Published: December 2019 | Report Code: AT11789 | Available Format: PDF | Pages: 149
The global mobility as a service (MaaS) market was valued at $171.5 billion in 2018, and it is projected to reach $347.6 billion in 2024, witnessing an 11.9% CAGR during 2019–2024.
Among all regions, Asia-Pacific (APAC) held the largest share in the MaaS market during the historical period (2014–2018). Of all the countries in the world, China continues to be the largest market for shared mobility services. In 2018, several cities across China increased the usage of electric vehicles across various service platforms, to achieve a greener environment. With continuous support from the government, in the form of regulatory policies and incentives, the MaaS industry in China is expected to demonstrate robust growth in the near future.
Fundamentals Governing MaaS Market
The growing adoption of electric vehicles in public sharing fleets is a significant trend in the MaaS market. Governments of several countries are taking active initiatives to introduce different policies and regulations, in order to encourage the deployment of these vehicles for shared mobility services. Different companies are also stepping up efforts for the introduction of electric vehicle fleets sharing purposes. For instance, in 2018, Volkswagen AG announced the launch of an all-electric carsharing service under the brand name, WeShare. In June 2019, the company initially launched the service in Berlin, Germany, with 1,500 Volkswagen e-Golf cars. Furthermore, it intends to expand in other cities across Europe and North America, from 2020.
The major driver for the growth of the MaaS market is the fact that such mobility services are cost-effective and convenient. Owning a private vehicle demands high investment, which mainly comprises the vehicle cost, fuel costs, parking expenses, maintenance charges, and insurance premium. In this regard, MaaS allows users to enjoy the benefits of personal vehicles, without having the need to actually own them. The users have to make the payment on the basis of the vehicle usage only. Besides, additional expenses, such as those related to fuel, maintenance, insurance, and parking, are taken care of by mobility service providers. Such factors, which result in convenience for commuters, boost the market growth across different countries.
The introduction of autonomous vehicles in sharing fleets is serving as a major opportunity for the players in the MaaS market. Autonomous taxis will offer ride sharing services at much lower costs, due to their much lower operational costs as compared to mobility services currently available. This will be roughly half of what vehicle owners wage to drive their vehicles today, which will shift the interest of consumers from buying personal vehicles to opting for MaaS. Several vehicle manufacturers and technology companies are focusing on the development of autonomous taxis or robotaxis and their testing. In 2017, Continental AG manufactured a demo robotaxi, CUbE (Continental Urban mobility Experience), and tested it on the roads of Frankfurt, Germany.
MaaS Market Segmentation Analysis
When segmented on the basis of service type, the MaaS market was dominated by the car rental category in 2018. The expansion in the travel and tourism industry across the world and shift from the conventional offline booking of vehicles for transportation to the online booking system are boosting the growth of the car rental category in the market.
Among all vehicle types, the car category held the largest share in the MaaS market in 2018. The early introduction of car rental and carsharing services has been the primary reason for the market domination of this category. In addition, a developed value chain and regulatory support in various countries have supported the market growth in this category.
Geographical Analysis of MaaS Market
Globally, Europe is expected to be the fastest-growing region in the MaaS market, during the forecast period. The MaaS concept is proliferating in the region, mainly due to the implementation of a broad range of individual business models that have emerged over time, which is leading to an increased consumer base and more competition. This has enhanced the pricing structure, which has further improved the consumer perception toward the market. This is expected to raise the share of the European MaaS industry in the near future.
Competitive Landscape of MaaS Market
The global MaaS market is moderately consolidated and characterized by the presence of players such as Uber Technologies Inc., Beijing Xiaoju Technology Co. Ltd. (Didi Chuxing), ANI Technologies Pvt. Ltd. (Ola), Hertz Global Holdings Inc., Sixt SE, Car2Go Ltd., Lyft Inc., Grab Holdings Inc., Enterprise Holdings Inc., Avis Budget Group Inc., and Europcar Mobility Group S.A.
Recent Strategic Developments of Major MaaS Market Players
In recent years, major players in the MaaS market have taken several strategic measures, such as service launches, mergers and acquisitions, and partnerships, to gain a competitive edge. For instance, in February 2019, car2go Ltd. and DriveNow GmbH & Co. KG entered into a joint venture to introduce a new free-floating carsharing service, under the name SHARE NOW. The new company would be operating in over 30 cities across North America and Europe, with over 20,000 vehicles, comprising BMW, Mercedes-Benz, and MINI cars.
Also, in March 2019, Uber Technologies Inc. announced plans to acquire Careem for $3.1 billion, which includes convertible notes worth $1.7 billion and $1.4 billion in cash. As part of the acquisition, Uber Technologies Inc. would acquire Careem’s mobility, delivery, and payment businesses in the Greater Middle East region, covering a vast area, from Morocco to Pakistan, including Jordan, Egypt, the U.A.E., and Saudi Arabia.
By 2024, players in the mobility as a service market can hope to generate a combined $347.6 billion.
China is the most-lucrative country in the mobility as a service industry.
The mobility as a service market is majorly driven by the cost-effectiveness of such transportation services.
Most of the end users in the mobility as a service industry are adopting this concept for daily commuting.
The mobility as a service market is moderately consolidated.
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