P2P Carsharing Market To Generate $7,225.2 Million Revenue by 2030
- Published: October 2022
The global P2P carsharing market revenue is expected to be $7,225.2 million in 2030, exhibiting a compound annual growth rate of 17.6% during 2022–2030. This can be attributed to the rising demand for cost-effective mobility services, high cost of vehicle ownership, and stringent government regulations to curb environmental emissions. This concept has also been gaining traction owing to the growing penetration of car booking mobile applications. Carsharing is considered a crucial vertical in the transportation industry as it offers numerous benefits to people as well as car manufacturers.
The cost of ownership of a vehicle is rising owing to several factors, such as the booming vehicle and fuel prices, insurance premiums, and licensing and registration fees. P2P carsharing enables people to enjoy driving a car, but without having to pay for anything except the ride. It has progressed into an opportunity to boost economic sustainability and provide several benefits, such as fuel savings, carbon emission reduction, and appreciable returns on investment.
The rising population in the major cities across the world has led to an increasing number of daily commuters, thus creating road congestion, especially during the peak hours. As a result, companies are looking to introduce alternative mobility options, in order to combat this problem. Most megacities, especially metro areas, such as Bengaluru (India), Sao Paulo (Brazil), Los Angeles (U.S.), Tokyo (Japan), and Guangzhou (China), are taking initiatives to encourage daily commuters to avail of shared mobility services, with the intention of reducing the number of vehicles on the roads.
Executive Cars To Lead Market
Among the vehicle types, executive cars led the P2P carsharing market in 2021, and they are expected to retain their dominance during the forecast period. This is due to the surging demand for fuel-efficient vehicles and rigorous government regulations to control vehicular emissions. In addition, the acceleration in the economic growth, increase in the production capacity of car manufacturers, and rise in the demand for flexible mobility solutions are set to boost the demand for these vehicles.
Geographically, Europe dominated the market in 2021, with revenue of around $700 million. The regional market has witnessed double-digit growth in recent years, particularly in the bigger cities, where people continue to show reluctance in buying cars, on account of their high maintenance and repair costs. This has drastically reduced traffic congestion and considerably brought down environmental emissions in the region.
LATAM is expected to record moderate growth during the forecast period. This is because the number of carsharing fleets and memberships has grown steadily in the region in recent years. Moreover, Brazil is characterized by densely populated cities, which has contributed significantly to the rise in the traffic congestion in the country. Additionally, many people do not own vehicles, which makes the country a potential market for P2P carsharing services.
Key players in the market include Turo Inc., Social Car SL, GoMore ApS, SNCF Réseau Group, Getaround Inc., HyreCar Inc., Car Next Door Australia Pty. Ltd., Hiyacar Ltd, JustShareIt Inc., and Zoomcar Inc.