Carsharing Market To Generate Revenue Worth $9,957 Million by 2030
- Published: January 2023
The global carsharing market is projected to generate USD 9,957 million revenue by 2030, advancing at a CAGR of 5.7% from 2022 to 2030. This is due to the growing number of cost-effective and convenient mobility services, surging concerns over greenhouse gas emissions, and government policies encouraging the adoption of carsharing services.
With countries around the world, emphasizing carsharing model over car ownership to reduce traffic congestion and environmental pollution; numerous government policies are playing a pivotal role in this. Apart from the national governments that are improving policies to facilitate the application of carsharing programs, city and state authorities are taking initiatives to accelerate the adoption of these programs locally.
Peer-to-Peer Is Dominating Market
The peer-to-peer (P2P) category held the largest share of 83% in 2022 due to the pandemic-inspired demand for road trips, combined with limited supply in the traditional automobile rental market, which has driven up rates and prompted people to turn elsewhere. Moreover, P2P car-sharing is poised for explosive expansion owing to the rise of social networks and smartphone technology.
Globally, the number of P2P car-sharing vehicles increased from roughly 0.2 million in 2015 to more than 0.44 million this year, with the total predicted to more than quadruple to approximately 0.99 million vehicles by 2025. Moreover, the growth is also attributed to the wide adoption of this business model by vehicle owners as a means of generating additional revenue by renting out their cars to qualified members.
Various major P2P players provide rental insurance as well as 24-hour roadside support. Moreover, such car-sharing platforms make money primarily by charging a small commission on each booking, which varies on each platform. In addition, banner ads and on-site car promotion are two more prominent revenue-generation channels.
Moreover, the APAC carsharing market has grown at an exponential rate in recent years, owing to surging consumer demand for shared mobility services, rising disposable income, and growing government concern about environmental pollution in the region.
In Japan, one reason for the rise in subscription and carsharing services is young people are increasingly dissatisfied with owning a car. This trend has accelerated since the 1990s when Japan's economic doldrums began, and young people today have many options for entertainment than driving. Also, in the six months through April, carsharing services Park24's pretax earnings increased by 5% year on year, as escalating numbers of corporate users kept the Japanese market leader's rental cars running more frequently.
Furthermore, carsharing offers millions of Indian citizens the ability to rent a car at any time from a location near their home on a need-to-know basis, thereby contributing to the country's shared economy. This sector can also assist India to address some of its key concerns about traffic and pollution by promoting the concept of car sharing and, as a result, reducing the number of cars on the road. It also allows unemployed, aged, and differently-abled persons who own cars to earn money and become self-sufficient.
The major players operating in the global carsharing market are Car2Go Ltd., cambio Mobilitätsservice GmbH & Co. KG, Cityhop Ltd., Communauto inc., DriveNow GmbH & Co. KG, Getaround Inc., CarShare Australia Pty. Ltd., Ekar FZ LLC, HOURCAR, and Locomute (Pty.) Ltd.