Mobility as a Service Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024 - 2030)

Mobility as a Service Market Size

Mobility as a Service Market Trends & Growth Drivers

Deployment of EVs in Mobility Services Is Key Trend in Market

• The growing adoption of EVs in public sharing fleets is a key trend in the MaaS market. Governments of several countries are taking initiatives to encourage the deployment of these vehicles for shared mobility services, which is encouraging market players to do the same.
• In 2023, Zipcar expanded its EV inventory in major cities such as New York City and San Francisco as a result of local government incentives and environmental objectives.
• These programs include regulations that promote the use of EVs in shared mobility services, as well as grants and subsidies for the adoption of EVs.
• Moreover, Lyft expanded its EV and hybrid booking option to 14 more U.S. markets in 2023.
• These areas include San Francisco, Seattle, Los Angeles, Silicon Valley, Boston, New York City, Chicago, San Diego, Washington, DC, Austin, Denver, Orange County, Sacramento, and Phoenix.
• Lyft aims to achieve a fully electric fleet by the end of 2030. This commitment to lower-emissions vehicles is part of the company's broader strategy to promote sustainability and reduce its environmental impact.

Cost-Effectiveness and Convenience of MaaS Are Major Drivers for Market

• Owning a private vehicle demands a high investment, which mainly comprises the vehicle cost, fuel cost, parking expense, maintenance charge, and insurance cost.
• In this regard, MaaS allows users to enjoy the benefits of owning personal vehicles without having the need to actually own them, as the service provider takes care of all these expenses.
• Commuters make the payment on the basis of the service usage only. Most of the services are available round the clock, throughout the year, assuring users of the easy availability of vehicles as and when required.
• Besides, users can easily access the services by booking vehicles directly through companies’ mobile applications.
• CityBike's simple and affordable service concept has led to a rise in its acceptance in cities like Copenhagen and New York.
• Through a mobile app, users may access bikes, pay for what they use, and take advantage of 24/7 availability.
• The applications provide every necessary detail and assistance to the users to guarantee them a convenient experience. Thus, the convenience and the cost effectiveness of MaaS act as a strong driving factor for the growth of the market.

Weather and Infrastructure Are Challenges for Market Growth

• MaaS is a convenient, compact, cost-effective, and environment-friendly mode of transportation, especially for short distances, thus enabling end-to-end connectivity.
• But, the convenience of the service is questionable under extreme weather conditions, such as snow, rain, and storms (high-speed winds).
• This mode, although cheap, is non-functional or highly inconvenient and unsafe in such scenarios, as e-scooters, e-bikes, and cycles are susceptible to skidding/unbalancing, thus causing physical injuries.
• The analogy can also extend to road conditions, such as downhill or uphill roads, sharp curves and bends, and highways.
• The key micromobility modes, such as e-scooters, would be in a difficult position on these reads, as they can only comply on dedicated tracks/paths, due to their construction and design ability.

MaaS Market Analysis

Service Type

• The ride hailing category will hold the largest market share, of 40%, in 2024.
• The expansion in the travel and tourism industry across the world and the shift from conventional offline systems to online systems are boosting the demand for ride hailing services.
• The micromobility category is expected to witness the fastest growth in the forecast period.
• Local travel habits are rapidly shifting in response to steps to manage the COVID-19 disease, such as shelter-at-home directives.
• Since the beginning of the epidemic, average micromobility journey distances have increased by 26%, with rides in major places, such as Detroit, increasing by up to 60%.
• Some towns are also witnessing a shift in consumer use cases on a more specific level.
• In San Francisco, for example, the lockdown has resulted in a significant shift toward excursions to the pharmacy and to eateries to pick up food.

The service type analyzed in this report are:

• Ride Hailing (Largest Category)
• Ride Sharing
• Micromobility (Fastest-Growing Category)
• Car Rental
• Shuttle Service

Vehicle Type

• The car category will hold the largest market share, of 55%, in 2024 due to the early introduction of car rental and carsharing services.
• In addition, the developed value chain and regulatory support in various countries drive the demand for car rental and carsharing services.
• Two-wheeler category will grow at a CAGR of 18.5% in the forecast period.
• Many players are offering shared bicycles in specific markets. As bike sharing is a cheaper and convenient transportation mode, commuters are rapidly integrating it in their daily commute.
• Another major driver for the market is the inclusion of electric bikes (e-bikes) in sharing services, as they provide more convenience and higher speeds than pedal bikes to commuters.
• Vélib Métropole is a large-scale public bicycle sharing system in Paris, France, which encompasses more than 16,000 bikes and 1,400 stations.

The vehicle types analyzed in this report are:

• Two-Wheeler (Fastest-Growing Category)
• Car (Largest Category)
• Bus

Commuting Pattern

• The daily commuting category will hold the largest market share, in 2024, and it is also expected to grow at the highest rate, of 18.6%, in the forecast period.
• The market growth in this category can be mainly attributed to the increasing demand for shared mobility services among the young population, such as students and young professionals, for meeting their daily commuting needs.
• Additionally, several initiatives aimed at reducing the number of private vehicles on roads are expected to encourage the use of shared mobility among people.
• Students and young professionals are among the younger populations who have the highest demand for shared mobility services.
• The advantages of shared transportation options in terms of cost-effectiveness, convenience, and environmental impact are driving this transition.

The commuting patterns analyzed in this report are:

• Daily Commuting (Largest and Fastest-Growing Category)
• Last-Mile Connectivity
• Occasional Commuting
• Others

End Use Analysis

• MaaS utilized for personal use accounts for the larger share in the market, of 75%, in 2024 and it is expected to grow at CAGR of 18.4% in the forecast period.
• The majority of the customers use shared mobility services for personal work, which may include going to the workplace, running errands, such as grocery shopping; and undertaking short trips, such as escorting someone to the airport.
• In highly urbanized areas, traffic congestion and limited parking availability drive the preference for shared mobility services.
• In crowded cities, such Tokyo and New York City, where owning a car can be difficult, people are using services such as ar2Go and Zipcar more frequently for short-term rentals and leisure travel.

The end uses analyzed in this report are:

• Personal (Larger and Faster-Growing Category)
• Business

Payment Analysis

• The pay-as-you-go category will hold the major market share, in 2024.
• People prefer to pay once while availing of the services, due to their budget constraints.
• A customer does not need to commit to a prescribed plan and gets charged on a monthly or yearly basis by using this payment model.
• For instance, pay-as-you-go pricing is available for ride-hailing services from Uber and Lyft, enabling consumers to pay for each ride without committing to a long-term plan or subscription.
• The short-term subscription category is the fastest-growing, in the forecast period.
• This model provides a balance between pay-as-you-go and long-term subscriptions, offering users access to services for a fixed period, such as a month or a quarter.

The payments analyzed in this report are:

• Short-Term Subscription (Faster-Growing Category)
• Pay-as-You-Go (Larger Category)

Propulsion Type

• The electric category is expected to grow at the highest CAGR, in the coming years, owing to the surging need for electrification of transport systems.
• Moreover, the mobility-as-a-service market has been rapidly incorporating electric vehicles, since the demand for EVs has increased globally.
• ICE category will hold the largest market share in 2024 due to the extensive network of fuel stations.
• ICE vehicles continue to be the most popular because of this vast infrastructure, which makes it easy for customers to refuel their cars.

The propulsion types analyzed in this report are:

• Electric (Fastest-Growing Category)
• Internal Combustion Engine (ICE) (Largest Category)
• Others

Geographical Analysis

• APAC will hold the largest market share, around 50%, in 2024 mainly on account of the rising consumer demand for shared mobility services, increasing disposable income, and growing government concerns over environmental pollution in the region.
• Among all the countries around the world, China continues to remain the largest market for shared mobility services.
• Several cities in China increased the usage of EVs across various service platforms, to promote a greener environment.
• For instance, the city of Shanghai mandates that by 2025, more than 50% of all vehicles in the online car hailing fleet be plug-in hybrid electric vehicles (PHEVs), BEVs, or fuel cell electric vehicles (FCEVs).
• With continuous support from the government in the form of policies and incentives, the market in China is expected to demonstrate robust growth in the near future.
• In addition, in the region, last-mile delivery is undergoing a big transformation. The increasing need for faster delivery times from an ever-increasing number of online buyers is propelling this business in a new direction.

The regions and countries analyzed in this report are:

• North America
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe
  • Germany (Largest Country Market)
  • U.K. (Fastest-Growing Country Market)
  • France
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific (APAC) (Largest and Fastest-growing Regional Market)
  • China (Largest Country Market)
  • Japan
  • India (Fastest-Growing Country Market)
  • South Korea
  • Australia
  • Rest of APAC
• Latin America (LATAM)
  • Brazil (Largest Country Market)
  • Mexico (Fastest-Growing Country Market)
  • Rest of LATAM
• Middle East and Africa (MEA)
  • South Africa (Fastest-Growing Country Market)
  • Saudi Arabia
  • U.A.E. (Largest Country Market)
  • Rest of MEA

MaaS Market Share

The MaaS market is fragmented in nature due to several players, such as technology platforms, ride-hailing services, private mobility providers, public transportation agencies, and operators of bike sharing programs. Each of them operates their business with their own systems, standards, and business models. Businesses may prioritize their own collaborations and technologies over building a cohesive MaaS ecosystem, which furthers the market's fragmentation. Moreover, the localized nature of consumer preferences and the need for mobility solutions is shaped by various factors, including urban density, transportation patterns, and economic situations.

MaaS Market Company News

• In August 2024, Odysse Electric partnered with Sun Mobility to use the latter’s battery swapping technology in its e-commute bikes.
• In March 2024, Asia Mobiliti launched a multimodal MaaS app with DRT.
• In January 2024, GreenCell Mobility announced that it will deploy 150 electric buses in Ayodhya for pilgrims.
• In February 2023, Uber partnered with HSBC in Egypt to launch Flexpay for drivers.