Published: December 2019 | Report Code: AT11789 | Available Format: PDF | Pages: 149
The mobility as a service (MaaS) market revenue stood at $171.5 billion in 2018, and it is expected to reach $347.6 billion in 2024, progressing at a CAGR of 11.9% during 2019–2024.
Geographically, the Asia-Pacific (APAC) region accounted for the largest market share during 2014–2018. Globally, China has emerged as the largest mobility as a service industry owing to the increasing usage of electric vehicles (EVs) across several service platforms in numerous cities. In the coming years, China will display robust growth in the usage of such services due to the continuous government support in the form of regulatory policies and incentives.
In recent years, the surging adoption of EVs in public sharing fleets has become a prominent trend in the market. Governments of several nations are introducing policies and regulations to encourage the deployment of these new-energy vehicles for shared mobility services. Several companies are also taking initiatives to introduce EV fleets for sharing purposes. For example, in 2018, Volkswagen AG introduced its plan to launch an all-electric carsharing service under the brand name WeShare. This service made its debut in Berlin, Germany, in June 2019 with 1,500 Volkswagen e-Golf cars. The company also intends to expand in other European and North American cities from 2020 onward.
The major driver for the mobility as a service market growth is the cost-effectiveness and convenience associated with such transportation services. Owning a private vehicle entails a huge investment, which includes the vehicle cost, insurance premium, fuel costs, maintenance charges, and parking expenses. Whereas MaaS allows users to enjoy the perks of personal vehicles without making any significant expenditure. Commuters only need to pay according to the distance they travel or the journey duration. Moreover, the additional expenses associated with fuel, insurance, and parking are taken care of by the service provider.
Furthermore, the usage of autonomous vehicles for sharing services will expand the horizons for the market players. Autonomous taxis will reduce the cost of sharing services because the operational cost of these automobiles is lower than human-driven vehicles. The cost of these shared services will be nearly half of the expenditure incurred by owning a vehicle. Several automobile manufacturers and technology companies are working toward the development and testing of autonomous taxis, or robotaxis. For instance, in 2017, Continental AG manufactured CUbE (Continental Urban mobility Experience), a demo robotaxi, and piloted it in Frankfurt, Germany.
The car rental category, within the service type segment, accounted for the largest share in the mobility as a service market in 2018. This was due to the expansion of the travel and tourism industry and shift from the traditional offline booking of vehicles to the online booking system.
The car category generated the highest revenue in 2018, under the vehicle type segment. The dominance of this category can be credited to the early introduction of carsharing and car rental services and presence of a developed value chain and regulatory support in several countries.
The European market for mobility as a service is expected to demonstrate the fastest growth in the foreseeable future. The MaaS concept is penetrating the region due to the implementation of a wide range of individual business models over time. The widespread implementation of these business models is resulting in an expanding consumer base and robust competition. This has further improved the pricing structure, which has helped in improving the consumer perception toward these services.
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.
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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