Shared Vehicles Market

Shared Vehicles Market Size (2022 - 2027):

The Global Shared Vehicles Market size is anticipated to rise at a CAGR of 15.2% between 2022 to 2027 and was valued at USD 133.8 billion in 2021.

Shared vehicles are owned by an organization or individual and made available for use by multiple people, usually on a short-term or temporary basis. Shared vehicles can include cars, bikes, scooters, and other transportation modes used for commuting, running errands, or leisure activities. These are available in various modes such as car sharing, bike sharing, car rental, etc. Shared vehicles can be an alternative to traditional modes of transportation, such as personal car ownership. They can be convenient and cost-effective for individuals to get around a city or region. They can also have environmental benefits, as they can reduce the number of cars on the road and the pollution they produce.

Market Drivers:

The benefits associated with shared vehicles are one of the major factors propelling the shared vehicles market growth. Shared vehicles offer numerous benefits, such as cost savings, convenience, environmental benefits, reduced traffic, and increased mobility. The growing urbanization happening worldwide contributes to the shared vehicles market growth. As more people move to cities, the demand for convenient, cost-effective transportation options has increased. Shared vehicles can provide a convenient and flexible transportation option for urban residents who may not have access to a personal car or who want to reduce their reliance on car ownership. The hIn addition, the high costs required to purchase vehicles in this modern era are propelling the demand for shared vehicles and resulting in market growth. The cost of owning a car, including the purchase price, insurance, fuel, and maintenance, can be expensive, especially in urban areas. Shared vehicles can offer a more affordable alternative, as users only pay for the time they use them.

The growing concerns around environmental health further positively influence the market’s growth rate. Shared vehicles can reduce the number of cars on the road and the pollution they produce. This has made shared vehicles an attractive option for individuals and organizations looking to reduce their carbon footprint and promote sustainability. In addition, technological advancements are anticipated to impact market growth during the forecast period positively. The development of mobile apps and other digital technologies has made it easier for individuals to locate and reserve shared vehicles and pay for them. This has contributed to the growth and popularity of shared vehicle programs.

Furthermore, government incentives to promote shared vehicles' usage are anticipated to fuel the market’s growth rate. In some cases, governments have provided incentives to encourage the adoption of shared vehicles, such as funding for bike-sharing programs or tax breaks for car-sharing companies.

Market Restraints:

The availability issues associated with shared vehicles are one of the factors hampering the market growth. Shared vehicles may not be available in all locations, particularly in rural areas where there may not be a large enough population to support a shared vehicle program. In addition, factors such as limited vehicle options, increased dependence on technology, safety concerns, regulations, and growing competition from traditional modes of transportation are anticipated to inhibit the growth rate of the shared vehicle market.

Market Opportunities:

Emerging economies have untapped potential for the shared vehicles market and are anticipated to offer numerous growth opportunities to market participants. Shared vehicle programs can expand into new markets in terms of geography and vehicle types. For example, car-sharing companies can expand into new cities or countries, and bike-sharing programs can expand into new regions. In addition, diversification of vehicle options, mergers and collaborations between market participants, integration with public transportation modes, and growing adoption of technological innovations are anticipated to provide growth possibilities in the global shared vehicles market.

Market Key Developments:

• Hertz Global Holdings, Inc. is a company that provides car rental services, including car-sharing and ride-hailing services. It is one of the notable companies in the shared vehicles market. Tesla Inc. is a company that manufactures electric vehicles. In this partnership, Hertz has agreed to supply 100,000 Tesla Model 3S vehicles, which are electric sedans. Half of these vehicles are expected to be rented out to Uber drivers, who can use them to provide rides to passengers through the Uber platform. This partnership allows Hertz to expand its fleet of vehicles available for car-sharing and ride-hailing while also providing a new source of revenue for Tesla by selling its vehicles to Hertz.

SHARED VEHICLES MARKET REPORT COVERAGE:

Market Segmentation:

Shared Vehicles Market – By Service:

• Car Rental
• Bike Sharing
• Car Sharing

During the forecast period, the car rental segment is expected to showcase significant domination in the global shared vehicle market. Car rental services have increased in recent years due to various factors. One reason is the growing popularity of ride-sharing services, such as Uber and Lyft, which have made it easier for people to access car rentals on a short-term basis. In addition, the rise of online booking platforms and mobile apps has made it easier for people to find and book car rentals quickly and conveniently. The factors mentioned above are anticipated to promote the segment's growth rate during the forecast period.

On the other hand, the bike-sharing segment is projected to grow at the fastest CAGR during the forecast period. Increasing demand for convenient and sustainable transportation options is a significant factor fueling the segment’s growth. Bike-sharing allows individuals to rent a bicycle for a short period, typically on an hourly or daily basis, and return it to a designated location when they are finished using it.

Shared Vehicles Market – By Region:

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East and Africa

APAC was the largest regional segment in the worldwide market in 2021. The shared vehicle market in the Asia Pacific (APAC) region has been growing rapidly in recent years, driven by factors such as the increasing urbanization of the region, the rise of the sharing economy, and the growing demand for convenient and cost-effective transportation options. The growth of the APAC market is further anticipated to be driven by the increasing popularity of ride-hailing services, the growing demand for electric vehicles, and the increasing adoption of technology and digital platforms in the region.  China is expected to be the most significant contributor to the shared vehicle market in the APAC region due to its large population and urbanization rate. However, other countries in the region, such as India and Indonesia, are also expected to see significant growth in the shared vehicle market.

The European market is expected to showcase a healthy CAGR during the forecast period. Shared vehicle usage, including car-sharing, ride-hailing, and bike-sharing, has recently increased in popularity in Europe. The growing demand for convenient and cost-effective transportation options, particularly in urban areas, propels the European shared vehicles market. Shared vehicles can provide a convenient and flexible way for people to get around without the need to own a personal vehicle. The increasing adoption of technology and digital platforms further drives the growing usage of shared vehicles in Europe. Online platforms and mobile apps have made it easier for people to find and book shared vehicles and have enabled the development of new business models, such as peer-to-peer car sharing.

COVID-19 Impact on the Shared Vehicles Market:

The COVID-19 pandemic significantly negatively impacted the global shared vehicles market. The lockdowns and travel restrictions implemented in many countries led to decreased demand for shared vehicles, as people could not use them for commuting or leisure activities. This had a negative impact on the revenues and profitability of shared vehicle companies. Car-sharing and ride-hailing services were particularly hard hit, as people could not use these services for non-essential travel. On the other hand, bike-sharing programs saw an increase in demand as people looked for alternative modes of transportation that allowed for social distancing. However, due to the growing adoption of new normalization, the shared vehicle market is anticipated to grow at a healthy CAGR in the coming days.

Market Key Players:

1. Hertz Global Holdings, Inc.
2. SIXT SE
3. Avis Budget Group Inc.
4. Lyft, Inc.
5. Europcar Mobility Group SA
6. Avis Budget Group Inc.
7. Daimler AG