Sharing Cars and Saving Fuel: The Future of Green Urban Mobility

Carsharing Market Overview

The increasing concerns being raised in many countries over the rising greenhouse gas emissions and. The rapid environmental damage being caused due to the large-scale usage of oil and. Gas-powered vehicles are fueling the popularity of novel mobility solutions such as carsharing services. Moreover, the deteriorating air quality levels in several countries because of harmful emissions from vehicles are making the governments of these countries implement various initiatives and strict environmental protection policies.

For example, the Mayor of London, Sadiq Khan, announced in November 2018 that the city intends to initiate the development of public parking spaces for facilitating the easier and hassle-free parking of public cars. The initiative is also aimed at reducing the private ownership of cars in the city.  Furthermore, carsharing is turning out to be an excellent method for curbing the pollution levels, without negatively impacting the commuting needs of people.

Carsharing Market Growth

The growing adoption of carsharing services would massively reduce the number of private vehicles running on roads. Which would, in turn, minimize the amount of carbon dioxide and other harmful gases being released into the atmosphere. Hence, with the increasing usage of these services, the global carsharing market is set to demonstrate huge expansion in the forthcoming years. Based on car type. The market is divided into executive, luxury, and economy.

Out of these, the economy category registered the highest growth in the market in the past. This because of the large-scale deployment of economy cars for carsharing services all over the world in the last few years. Primarily because of the greater fuel economy of these vehicles in comparison to the executive and luxury cars. In addition to this, the high pollution levels and the soaring gasoline prices are pushing up the popularity of these vehicles for carsharing purposes.

Carsharing Market Opportunities

When fuel type is taken into consideration, the carsharing market is divided into fuel- and electric-based cars. Between these, the fuel-based cars are predicted to dominate the market. In terms of volume, in the upcoming years. However, the growing electrification of automobiles and the rising enactment of strict environmental policies are hampering the growth of the fuel-based cars category and instead. Propelling the advancement of the electric-based cars. Moreover, electric cars have lower maintenance requirements than the fuel-based ones.

As a result, the fuel-based category will register huge expansion in the market in the forthcoming years. Globally, the Asia-Pacific (APAC) carsharing market is currently the most lucrative one, as per the findings of P&S Intelligence. A market research firm based in India. In APAC, the market is recording the highest growth in China. This is because many Chinese cities increased the utilization of electric vehicles in various carsharing platforms in 2017 for achieving a greener and cleaner environment.

Carsharing Market Company Profile Analysis

Hence, it is safe to say that the demand for carsharing services would shoot-up across the world in the upcoming years. Mainly because of the rising requirement for shared mobility solutions. On account of the escalating pollution levels in many countries due to the large-scale usage of fossil fuel-based vehicles.

Governments across the world are reforming policies to encourage the adoption of carsharing services and. Reduce car ownership rates to minimize environmental pollution and traffic congestion. Apart from the federal governments of countries, state and local authorities are also taking several initiatives to facilitate the implementation of carsharing programs. For example, in November 2018, the Mayor of London initiated the construction of public parking spaces to facilitate the parking of public vehicles. To reduce the car ownership rate in the capital city.

Carsharing Market Research Methodology

Additionally, the rising concerns regarding greenhouse gas (GHG) emissions and environmental protection will also drive the carsharing market at a CAGR of 11.0% during the forecast period (2019–2025). The market revenue stood at $5,571.2 million in 2018 and it is projected to reach $10,846.9 million by 2025. GHG emissions from automobiles have resulted in the formulation of several stringent environmental policies by national governments and international organizations. The evolution of carsharing services has emerged as an effective solution to curb pollution levels.

Moreover, the high upfront and maintenance costs associated with personal cars are encouraging people to opt for shared mobility services. As personal cars demand hefty investments in the form of automobile cost, insurance cost, parking expenses. Maintenance charges, and fuel costs, people are increasingly shifting toward carsharing services. The users of such services have the flexibility of making payments according to the time and distance travelled by them. Moreover, the digitization of carsharing service providing companies has simplified the booking and payment process.

Carsharing Market Demand

The business model segment of the carsharing market is categorized into peer-to-peer (P2P). One-way, and round-trip. Among these, the P2P category is expected to showcase the fastest growth during the forecast period. Due to the surging use of private vehicles for providing carsharing services and increasing attempts being made by service providers to bridge the gap between traditional carsharing and car rental models. The P2P carsharing membership model is mostly utilized for personal usage.

Thus, the rising government support toward carsharing platforms and surging concerns about GHG emissions will fuel the adoption of carsharing services in the forthcoming years.

This study covers

• Major factors driving the market and their impact during the short, medium, and long terms
• Market restraints and their impact during the short, medium, and long terms
• Recent trends and evolving opportunities for the market participants
• Historical and the present size of the market segments and understand their comparative future potential
• Potential of on-demand logistics services, so the market players make informed decisions on the sales of their offerings
• Competitive scenario of various market segments across key countries in several regions for uncovering market opportunities for the stakeholders
• Major players operating in the market and their service offerings