P2P Carsharing Market Size & Share Analysis - Trends, Drivers, Competitive Landscape, and Forecasts (2024-2030)

The peer-to-peer (P2P) carsharing market generated a revenue of $2,457.3 million in 2023, and it is projected to reach $7,225.2 million in 2030, with a growth rate of 15.8% during 2024–2030. The major factors driving the growth of the market include the low cost and convenience of such mobility platforms, growing concerns over greenhouse gas emissions, strong push for vehicle electrification, soaring adoption of these services in developing countries, and worsening urban road congestion.

The evolution of mobility as a service (MaaS) is driven by the shift from the personal ownership of vehicles to shared mobility. MaaS depends on a digital platform that integrates online booking, payment, end-to-end trip planning, and other additional features. As the cost of ownership of vehicles has increased in the past few years, many people have started moving toward finding accessible, affordable, and hassle-free transportation models, such as car-pooling, P2P carsharing, and vehicle renting.

MaaS has substantially improved the overall transportation network, by significantly increasing the efficiency of transportation agencies. The mechanism has proved beneficial for these services as well; therefore, the introduction of MaaS has been observed as one of the key trends in the market.

Moreover, developing nations are actively investing in clean transportation systems, thus encouraging MaaS companies to expand their offerings. According to the China Electric Vehicle Charging Infrastructure Promotion Alliance (EVCIPA), the country has added up to 1.575 million units of public charging piles, including 68,400 direct current (DC) piles, 890,000 alternating current (AC) piles, and 485 DC–AC integrated charging piles, as of July 2022. Besides, governments in several other APAC countries are enforcing stringent regulations for emission control and working toward the development of more-efficient transportation networks, with the addition of electric cars.

P2P Carsharing Market Trends & Drivers

Introduction of Mobility as a Service (MaaS)

• The evolution of MaaS is driven by the shift from personal ownership of vehicles to shared mobility, including P2P carsharing. The service provides a way to manage trips and offers mobility solutions on the basis of the traveling needs of end users. MaaS depends on a digital platform that integrates online booking, payment, end-to-end trip planning, and other additional services.
• As the cost of ownership of vehicles has increased in the past few years, many people have started moving toward finding accessible, affordable, and hassle-free transportation modes, such as utilizing car-pooling, P2P carsharing, and vehicle renting, all of which are part of the MaaS ecosystem.
• MaaS has substantially improved the overall transportation network by significantly increasing the efficiency of transport service providers. The mechanism has proved beneficial for carsharing services as well; therefore, the introduction of MaaS has been observed as one of the key trends in the market.

Growing Concerns over Greenhouse Gas Emissions Support Market Boom

• Environmental agencies’ concerns over air quality degradation are paving the way for various government initiatives to curb emissions, by reducing the ownership of private vehicles.
• Carsharing is an effective antidote to curb the impact of pollution on the environment. The increasing use of such services would help reduce the number of private cars on the roads, thereby minimizing the amount of carbon dioxide (CO2) emitted into the environment.
• Additionally, countries across the world are increasing their efforts to raise awareness of sustainable transportation systems. In an effort toward this, several countries have started deploying low- and zero-emission transportation systems, wherein the vehicles offered for sharing services are mostly powered by electric motors.
• For instance, in April 2021, Turo Inc. announced that it will offset almost 100% of its global carbon emissions through a partnership with a carbon offset company, Blue Source LLC. Under this partnership, the offset emissions will be offset on the basis of the estimated number of miles driven on Turo trips, as well as all the emissions from its global office footprint. Purchasing carbon offsets will allow the company to reckon with the impact of its carbon footprint, by investing in high-quality, verified emission reduction projects.

Lack of Financial Institution Support

• Banks and financial institutions have a big role to play in the adoption of EVs in India. The widespread use of EVs is currently held back in part by inadequate supply chain, higher cost of production (Lacks economy of scale), higher cost of EVs, and EV charging station infrastructure gap.
• While governments have played a central role in subsidizing the upfront cost by providing financial and non-financial incentives to date, greater investment from bank and financial institutions will be needed to start the adoptions of EVs among masses.
• Furthermore, more than 50% of these drivers operate on a daily rental model instead of ownership, due to the lack of fitting financing options and/or the high cost of financing.
• Mainstream financers such as banks and non-banking finance companies (NBFCs) don’t provide financing to these drivers as they are unable to meet stringent lending requirements like self-funding for a minimum of 20-30% of the initial cost of (a usual practice in small commercial vehicles loans).
• Additionally, banks and NBFCs usually require collateral of about 1.5 times the amount financed, and battery rickshaw drivers typically don’t have assets to mortgage.

Segmentation Analysis

Car Type Overview

• Around 45% revenue share was held by executive cars in 2023. This is attributed to their lower rental cost relative to the comfort and quality offered to consumers.
• With the rapid economic growth of various developing countries, such as India and China, the number of businesses is booming and investors are making investments in numerous startups.
• Thus, the production of these cars is being augmented to offer superior transportation services to employees, which, in turn, strengthens the worldwide P2P service requirement growth.

Car type covered in the report include:

• Economy
• Executive (Largest Category)
• Luxury (Fastest-Growing Category)

Europe Holds 50% Market Share

• Europe is the leading market with around 50% share in the P2P carsharing market. Due to the densely populated cities and growing pollution in the region, the European Union (EU) continues to emphasize the need for green technologies and other alternatives, to facilitate a reduction in environmental emissions. This, combined, with the high purchase cost of vehicle ownership, has led to an exponential growth in the demand for these services in Europe.
• In addition, major players and governments in Europe are focusing on the adoption of electric vehicles in sharing fleets, as well as on increasing private electric vehicle adoption. Furthermore, P2P carsharing demand is proliferating mainly due to the broad range of offerings by key players, which cater to diverse customer requirements at differentiated price points.
• In France, the usage of advanced technologies is creating lucrative opportunities for the wide-scale adoption of P2P carsharing in France. OEMs are actively incorporating technologically advanced systems including vehicle access and reservation systems in their vehicles to gain prominence in the market.
• The APAC region is expected to witness the fastest growth during the forecast period, at a CAGR of around 23.2%. This would be because China and India have increased their focus on adopting new mobility services and electric vehicles. Moreover, in China, there has been an increase in the usage of electric vehicles across shared mobility platforms, to promote a greener environment. With continuous support from the government in the form of policies and incentives, China is expected to demonstrate robust growth in the near future.
• Moreover, consumer demand for shared mobility services is rising in APAC, increasing disposable income, and growing concerns over environmental pollution in the region is also driving the market.
• Another key factor for the growth of the regional market is the flexibility these services offer. The service is great for people who do not want or cannot afford to own a car, but need more flexibility than public transit provides.
• Additionally, rapid industrialization and urbanization are playing a major role in boosting the growth of the market. Countries such as China, Indonesia, India, Thailand, and Taiwan have high pollution levels. In an effort to curb pollution levels and reduce and control traffic congestion, governments in these countries are focusing on establishing strong infrastructure and road networks and adding more electric vehicles to carsharing fleets.
• North America is expected to witness significant growth during the forecast period too, primarily on account of the stringent government regulations to curb environmental emissions. The U.S. Clean Air Act, which regulates the vehicle emission control program, puts emphasis on the implementation of stringent standards, for reducing the pollution caused by vehicular emissions.
• The U.S. leads the North American P2P carsharing market. Young people in the U.S. are the major social force shaping the market in the country. Additionally, the high upfront cost of vehicles and associated maintenance discourage these people from owning a vehicle and encourages them to opt for shared mobility alternatives, such as P2P carsharing.
• Furthermore, according to the National Conference of State Legislatures, P2P carsharing popularity has grown substantially in recent years, in part, due to the flexibility it offers to consumers. Such platforms offer a greater selection of locations, vehicle types, and rental prices (e.g., both daily and hourly) than traditional car rental companies. Vehicle owners can use these applications to defray the cost of owning a car, or start a small business with a small fleet. Moreover, the adoption of novel technologies by the key players to enhance consumer experience is expected to attract a large number of customers to these platforms, thus further accelerating the market expansion in the region.
• In LATAM, the number of carsharing fleets and memberships has grown steadily in recent years. Moreover, Brazil is characterized by densely populated cities. This factor has contributed significantly to the rise in traffic congestion in the country. Additionally, many people do not own vehicles, which makes the country a potential market for these services.
• Moreover, carsharing services are affordable and can be chosen to suit customers’ needs in the MEA region. The market is growing, due to the digital transformation, with improving online services, ease of usability, and user satisfaction.
•  Also, the minimal responsibility for maintenance, repair, and 24/7 availability are adding to the industry growth. Moreover, with the vast innovation and the improving infrastructure for shared mobility integrations, P2P carsharing is considered to be a pioneering futuristic form of travel in the coming years in the region.

Further, regions and countries analyzed for this report include:

• North America
  • U.S. (Larger Country Market)
  • Canada (Faster-Growing Country Market)
• Europe (Largest Regional Market)
  • U.K. (Largest Country Market)
  • Germany
  • France (Fastest-Growing Country Market)
  • Netherlands
  • Rest of Europe
• Asia-Pacific (APAC) (Fastest-Growing Market)
  •  China (Largest and Fastest-Growing Country Market)
  • Australia
  • Rest of APAC
• Latin America (LATAM)
• Middle East and Africa (MEA)

The Market is Fragmented

On the global level, the P2P carsharing market landscape is fragmented, with the presence of numerous small private players. The majority of the players operate in a particular country or region. However, few players, backed by heavy investor funding, have been able to expand their business into many countries.

P2P Car Sharing Industry News

• In May 2023, Getaround acquired HyreCar to accelerate profitability path and fortify worldwide gig carsharing leadership position.
• In November 2022, Getaround launched Get2ThePolls initiative to help ensure that voters have access to transportation to go to the polls or drop off a ballot for the 2022 general election.