Mobility as a Service Market Size is Projected to Reach $519,697.5 Million by 2030
- Published: May 2022
The global mobility-as-a-service market is projected to generate $519,697.5 million revenue by 2030, advancing at a CAGR of 16.8% during 2021–2030. This can be attributed to the rising pace of urbanization in developing countries, growing concerns about greenhouse gas emissions, surging problems of urban road congestion, and the cost-effectiveness and convenience of MaaS.
Moreover, the increasing government initiatives facilitate the adoption of the MaaS application, and it helps to alleviate traffic congestion by effectively utilizing existing public and private transportation infrastructure, which is likely to the intensification the market growth.
However, the COVID-19 pandemic impacted the market negatively as the demand for MaaS services reduced because the majority of people were working from home, which resulted in the reduced usage of public transportation worldwide. Further, the crisis impacted mobility servicing companies like Uber Technologies Inc. and Lyft Inc., which had seen massive ride drops during the pandemic.
Two-Wheeler Category To Witness the Fastest Growth
During the forecast period, the market is expected to witness the fastest growth in the two-wheeler category, growing at a CAGR of more than 30%. The category has reported double-digit growth (albeit on a smaller base) in recent years. Many players are offering shared bicycles in specific markets. As bike-sharing is a cheaper and more convenient mode of transportation, commuters are rapidly integrating it into their daily commute. Another major driver for the market in this category is the inclusion of electric bikes (e-bikes) in sharing services, as they provide more convenience and higher speeds than pedal bikes to commuters.
Moreover, the ride hailing category is dominating other types of services, and it is expected to lead the mobility-as-a-service market, with a share of around 50%, in the coming years as well. The primary factor driving the demand for ride hailing services is on-demand transport services, which include passenger vehicles and taxis. These vehicles come up with advanced features such as panic/SOS buttons and accurate location tracking, which make the ride safe for passengers, and also provide complete real-time feedback about the driver.
Geographically, the APAC market is expected to observe the fastest growth, advancing at a CAGR of around 19%, during the foreseeable future. This can be attributed to the increasing focus on smart cities and the improving 5G infrastructure in the region. Moreover, the high population growth rate and the rapid increase in urbanization in the region have intensified the need for efficient transportation. Moreover, many regional countries are shifting their focus toward smart mobility services to reduce travel time and congestion.
Partnerships and Collaborations Are Most-Effective Strategic Measures
The top providers of MaaS have been extensively involved in partnerships and collaborations to improve their position in the market. For instance, in July 2021, Lyft Inc., Argo AI LLC, and Ford Motor Company collaborated to commercialize autonomous ride hailing and offer feasible autonomous ride hailing services, covering self-driving technology, vehicle fleet, and transportation networks.
Key enterprises in the mobility-as-a-service market include ANI Technologies Pvt. Ltd., Lyft Inc., Uber Technologies Inc., Beijing Xiaoju Technology Co. Ltd., Grab Holdings Inc., Hertz Global Holdings Inc., Avis Budget Group Inc., Enterprise Holdings Inc., Europcar Mobility Group S.A., and Sixt SE.