Carsharing Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Carsharing Market Size

Car Sharing Market Trends & Drivers

Cost-Effective and Convenient Mobility Service

Owning a car requires a high investment, which mainly comprises the vehicle costs, fuel costs, parking expenses, maintenance charges, and insurance costs. In this regard, carsharing services allow users to rent a car, without owning vehicle. The users can make the payment on the basis of the time and distance traveled by them, along with an initial registration cost. Moreover, additional expenses, such as costs related to fuel, maintenance, insurance, and parking, are taken care of by these service providers.

Moreover, carsharing services are extremely convenient for the general public, primarily for daily commuters, as they can enjoy driving to their required destination without having the hassles of owning and maintaining. Besides, they can easily access the service and book the car of their choice directly from the company’s app. The app provides every necessary detail and assistance to the users to guarantee them a convenient experience.

Growth Opportunity

Over the past few decades, the urban population in many developing countries, such as India and China, are growing significantly. The surging population in large cities is resulting in the increasing adoption of fuel-based vehicles, further leading to the generation of higher air pollution levels and longer commuting times. However, the scenario is quite favorable for the implementation of carsharing services in these countries.

Moreover, developing nations are actively investing in clean energy transportation systems; thus, signaling carsharing companies to extend their services in these countries. In China, the government is heavily investing in electric charging infrastructure. Besides, governments in numerous countries are working toward the development of more efficient road networks with the addition of electric cars and enforcing stringent regulations to curb the ownership of personal vehicles; thus, offering ample growth opportunities to carsharing service providers to operate within.

Car Sharing Market Analysis

Electric Category Will Achieve Fastest Growth

The electric category is predicted to grow at the fastest CAGR during the forecast period. This is attributed to the increasing initiatives toward environmental protection and vehicle electrification. As they produce less greenhouse emissions and air pollution than gasoline or diesel vehicles. This includes their manufacturing and electrical generation to keep them functioning. Besides, due to low maintenance costs, electric cars are expected to witness rapid growth in adoption in the market.

Moreover, pure electric automobiles emit no carbon dioxide when driving because they have no tailpipe. This significantly minimizes air pollution. Moreover, one electric vehicle on the road can save an average of 1.5 million grams of CO2.

Furthermore, electric vehicles have lower operating costs as compared to fuel or diesel vehicles. Because of the relatively lower cost of power, charging an electric vehicle is less expensive than filling up with gasoline or diesel for traveling needs. The price of electricity can be reduced even more if charging is done utilizing renewable energy sources installed at home.

Economy Cars Are Majorly Adopted

Economy cars held the largest revenue share, of 61%, in the global market in 2022. This can be attributed to the high fuel economy of these cars, which encourages their adoption of carsharing services. Additionally, the increasing gasoline prices and growing environmental concerns are driving the demand for such cars globally, as they cause low environmental impact. Furthermore, the market share of economy cars is expected to increase during the forecast period.

Geographical Analysis

APAC Achieved Exponential Growth in Market

The APAC carsharing market has witnessed exponential growth in recent years and held a share of 46%, in 2022 due to the surging consumer need for shared mobility services, growing disposable income, and growing government concerns over environmental pollution in the region.

Additionally, rapid industrialization and urbanization are playing a major role in boosting the market growth. Moreover, countries, such as Taiwan and India have high pollution levels. In an effort toward curbing pollution levels and reducing the rate of personal vehicle ownership, governments in these countries are focusing on establishing strong infrastructure and road networks and adding more electric vehicles to the carsharing fleets.

Moreover, China is expected to continue to lead the APAC region, owing to the significant economic growth coupled with the government’s ambitious plans related to vehicle electrification in the country and surging commuter base. However, during the forecast period, the Indian market is expected to witness the fastest growth. The growth of the industry in India, especially in metropolitan cities, such as Mumbai and Bangalore, is mainly driven by the increasing hassles associated with owning a vehicle, including those pertaining to parking and maintenance. Also, major market players in the country are heavily investing in electric vehicles to curb vehicular emissions.

Moreover, the market in North America is expected to witness significant growth, with a CAGR of 5.8%, during the projection period. This growth can be ascribed to stringent government regulations to curb environmental emissions. The U.S. Clean Air Act, puts emphasis on the implementation of stringent standards for reducing the pollution caused by vehicular emissions. In this regard, carsharing services can prove beneficial to both the general public and the environment at large, as besides being cost-effective and offering travel flexibility to its users, these can help decrease vehicle ownership to a significant extent; thus, contributing to the reduction in vehicle exhaust.

Moreover, key players are adopting novel technologies, to enhance the consumer experience, to attract a large number of customers to these services, further accelerating the market growth. For instance, CarShare developed a mobile application that works as a reservation system and allows the user to choose from a wide variety of cars and decide the duration of travel. Also, the Zipcard technology by Zipcar allows users to access vehicles and unlock the doors.

Market Breakdown

This fully customizable report gives a detailed analysis of the car sharing industry from 2019 to 2030, based on all the relevant segments and geographies.

Based on Car Type

• Economy
• Executive
• Luxury

Based on Fuel Type

• Electric
• Fuel-Based

Based on Business Model

• Peer-to-Peer (P2P)
• Round-Trip
• One-Way

Based on Application

• Business
• Private

Geographical Analysis

• North America
  • U.S.
  • Canada
• Europe
  • France
  • Germany
  • Italy
  • Spain
  • U.K.
• Asia-Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa

Top Carsharing Companies