Published: February 2021 | Report Code: AT11556 | Available Format: PDF | Pages: 99
The Indian shared mobility market was valued at $1,025.8 million in 2019, and is expected to grow at a CAGR of 56.8% during the forecast period (2020–2025). Cost effective and convenient mobility offered by shared mobility service providers is the prime factor supporting to the growth of the market. Moreover, additional expenses, such as fuel, maintenance, insurance, and parking, are taken care by the providers, which reduces the overall burden on consumers.
Before the coronavirus outbreak, many shared mobility start-ups were preparing for new market offerings and planning to expand their services. The sector, especially micro-mobility, had enticed a lot of entrepreneurial and user interests, even in tier 2 and tier 3 cities. Moreover, in recent years, it has received great support from public policies and structures to make its penetration even in towns.
But with the outbreak, the picture has totally changed for all stakeholders. Due to the lockdowns and several regulations imposed by the government that restrict the transportation of goods and people, led to the recession in the mobility industry. Moreover, the apprehension of virus spread, mass casualty, job losses, food security, and others have led a mass exodus of people living in major cities and towns to their villages. This pattern of reverse migration has posed challenges on both demand and supply sides of the Indian shared mobility market.
Based on service type, the ride hailing category held the largest share in 2019 in the Indian shared mobility market. It is also expected to progress with the highest CAGR during the forecast period. This can be attributed to the shift in preference of millennials toward ride hailing services from conventional mobility solutions. The innovation, such as cloud sharing that delivers computing services related to network, software, storage, database, and analytics to users at low cost, is attracting new customer base, which, in turn, is benefitting the market in this category.
Based on vehicle type, the cars category dominated the Indian shared mobility market during the historical period (2014–2019). The early introduction of car rental and hailing services is the primary factor for the domination of this category. In addition, factors such as developed value chain and regulatory provision have supported the market growth in this category.
The daily commuting category is expected to observe the fastest growth during the forecast period in the Indian shared mobility market, based on commuting pattern. This can be mainly attributed to the increasing demand for shared mobility services among the young population in the country, such as students and young professionals, for meeting their daily commutation needs. Additionally, several initiatives aimed at reducing the number of private vehicles on roads are expected to encourage the use of shared mobility transport among people in the country.
During the forecast period, the Indian shared mobility market is expected to witness faster growth in the business category, based on end use. Business firms are increasingly tying-up with ride hailing service providers to offer transportation services to their employees, which, in turn, is boosting the market growth in this category.
Geographically, south region generated the largest share in 2019 in the Indian shared mobility market, owing to the increasing demand for car hailing and rental services in cities like Bengaluru, Chennai, Hyderabad, and others. Whereas, the market in east region is expected to witness the highest growth rate during the forecast period, due to the higher demand for shared mobility services, in order to meet its daily commutation.
Furthermore, the north region is expected to lead the Indian shared mobility market in 2025. This can be attributed to the high demand for shared mobility services among people in the north region, primarily for meeting daily commuting and outstation travel needs.
The growing investment from various investors is a key trend in the Indian shared mobility market, which is offering a boost to the growth of the industry. For instance, in June 2019, scooter rental company Bounce, received an investment of $72.0 million, which was led by B Capital Group and Falcon Edge Capital. The company aims to use this fund to expand its presence in Indian cities and to add 100,000 more scooters in its fleet in next 12–18 months.
Increasing concern toward environmental protection, primarily due to the accelerated rate of environmental degradation caused by increasing amount of exhaust fumes from vehicles, is compelling the government to formulate regulatory policies as well as offer financial benefits, in order to encourage the adoption of shared mobility services. For instance, under the FAME II scheme, the Government of India designated incentive plans for the purchase of electric vehicles for commercial usage. This will result in a rapid boost to the electric vehicles adoption by shared mobility service providers, which, in turn, will drive the growth of the Indian shared mobility market.
Rising population in major cities across the country has led to an increased number of daily commuters, creating significant road congestion, especially in peak hours. Different companies are looking to introduce alternative mobility options in order to combat this problem. This scenario acts as a major driver for the Indian shared mobility market. Most of the urban cities in the country, especially in metro areas, such as Delhi & NCR region, Mumbai, and Bengaluru, are taking initiatives to encourage the daily commuters to avail sharing mobility services, with the intension of reducing the number of vehicles on road. This program has a major contribution in reducing traffic congestion, which serves as a major driver for the growth of the market.
|Base Year (2019) Market Size||$1,025.8 Million|
|Forecast Period (2020-2025) CAGR||56.8%|
|Report Coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional Breakdown, Competitive Analysis, Companies’ Strategic Developments, Impact of COVID-19, Company Profiling, Value Chain Analysis, Regulatory Landscape, Service Usage Analysis, Technology Trends, Share Analysis|
|Market Size by Segments||By Service Type, By Vehicle Type, By Commuting Pattern, By End Use, By Region|
|Market Size of Geographies||East, West, North, and South|
|Secondary Sources and References (Partial List)||All India Cycle Manufacturers' Association (AICMA), All India Transporters Welfare Association (AITWA), Association of State Road Transport Undertakings (ASRTU), Automobile Association of Southern India (AASI), Automobile Society India (ASI), Emission Controls Manufacturers Association (ECMA), Exhibitions India Group (EIG), Federation of Automobile Dealers Associations (FADA), Indian Road Transport & Development Association (IRTDA), International Road Federation (India Chapter), Ministry of Road Transport and Highways (MoRTH)|
In recent years, the players in the Indian shared mobility market have been actively involved in investing & funding for launching new services, in order to enhance their presence, improve mobility services, and stay ahead in the competition.
The India shared mobility market report offers comprehensive market segmentation analysis along with market estimation for the period 2014-2025.
Based on Service Type
Based on Vehicle Type
Based on Commuting Pattern
Based on End Use
The Indian shared mobility market will likely witness a 56.8% CAGR during 2020–2025.
Ride-hailing services hold the largest Indian shared mobility industry share.
The southern region generates the highest revenue in the Indian shared mobility market, while the eastern region will witness the fastest growth.
Investments and funding are the key Indian shared mobility industry trends.
The rising urban road congestion and government initiatives to deal with it and air pollution are pushing the Indian shared mobility market advance.
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