Peer-to-Peer Carsharing Market To Generate Revenue Worth $7,225.2 Million by 2030
- Published: September 2021
The cost-effectiveness and convenience of shared mobility services, growing concerns over greenhouse gas emissions, vehicle electrification, growing adoption of carsharing services in developing countries, and worsening urban road congestion are driving the peer-to-peer (P2P) carsharing services market. Due to the above-mentioned factors, the peer-to-peer carsharing industry is projected to generate $7,225.2 million revenue globally in 2030, growing at a CAGR of 21.7% during 2020–2030.
The COVID-19 pandemic altered people's movement patterns all across the world in 2020. Due to businesses shifting to the work from home model, trips to workplaces have reduced. Even in terms of mobility options, the COVID-19 pandemic appears to have shifted priorities. Prior to the crisis, the journey time, cost of services, and ease of the trip, as well as many socioeconomic characteristics unique to the individual, were the key determinants influencing decisions concerning the mode of transportation.
Although several countries now provide guidance on how to keep vehicles offered by commercial operators relatively COVID-free, a failure to satisfy these standards appears to have generated concerns about the safety of carsharing services. As a result, carsharing service offerings were restricted, or in some cases, suspended during the lockdowns. Despite attempts by carsharing companies to convey the implemented safety precautions to customers, the pandemic has caused the latter to neglect these services in favor of those associated with higher safety levels.
Executive Cars Account for Most Peer-to-Peer Carsharing Service Revenue
The peer-to-peer carsharing market is divided into economy, executive, and luxury, based on car type. In 2020, executive cars held the largest market share. During the forecast period (2021–2030), the category’s revenue is expected to increase at a high rate due to the lower rent charged for rides on these cars considering the comfort and quality they offer.
The Asia-Pacific (APAC) region is expected to grow the fastest over the forecast period in the peer-to-peer carsharing market. China and India have prioritized the adoption of innovative mobility services and electric automobiles. Furthermore, to promote a cleaner environment, there has been a rise in the use of electric vehicles across carsharing networks in China. With the sustained government backing in the form of laws and incentives, China's peer-to-peer carsharing sector is projected to develop rapidly in the near future.
Securing Investments Allowing Market Players to Expand Operationally
Key Players in the peer-to-peer carsharing market have been involved in raising funding in order to gain a significant competitive advantage. For instance, in February 2020, following the $250 million Series E financing received in July 2019, Turo Inc. obtained an additional $30 million. Turo Inc. has raised about $500 million in financing across 12 rounds.
Similarly, in October 2020, PeopleFund Inc. led the $140 million Series E financing round of Getaround Inc., which has raised over $600 million in investment over the course of 17 rounds.
The key players operating in the peer-to-peer carsharing market are Turo Inc., Social Car SL, GoMore ApS, SNCF Réseau Group, Getaround Inc., HyreCar Inc., Car Next Door Australia Pty. Ltd., Hiyacar Ltd., and JustShareIt Inc.