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The car sharing market size is forecast to increase by USD 17.59 billion at a CAGR of 21.12% between 2023 and 2028. The market is experiencing significant growth, driven by factors such as increasing consumer preference for flexible mobility solutions and the rise of intracity and intercity services. Contracts with flexible periods cater to the varying needs of commuters, road trippers, and those running errands. The market offers two primary models: the free float model, which allows users to pick up and drop off vehicles as needed, and the stationary model, where users reserve vehicles from designated parking spots. Stringent government regulations, including those regarding emission control and car sharing services, pose challenges to market growth. However, increasing investments in autonomous car production are expected to revolutionize the industry, offering new opportunities for market expansion.
Car sharing is an innovative mobility solution that allows individuals to rent out their personal vehicles or use shared vehicles through digital platforms when they need them. This market is witnessing significant growth due to the integration of mobile apps, making the process of booking rides more convenient and accessible. Shared vehicles, including economy cars and electric vehicles (EVs), are becoming increasingly popular as urban populations continue to grow and air pollution and carbon emissions become major concerns. Digital platforms are revolutionizing the car sharing industry by offering flexible periods, intracity and intercity services, and various insurance products. The integration of EVs and electric charging infrastructure is a key trend in the market, contributing to the growth of clean energy transportation and vehicle electrification.
Furthermore, the fragmented car sharing services market is expected to witness strong growth, driven by the increasing demand for urban mobility solutions and the convenience they offer for commuting, road trips, and more. Cloud computing technology also plays a crucial role in the efficient operation of car sharing services.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The business segment is estimated to witness significant growth during the forecast period. The market is experiencing significant growth due to increasing traffic congestion and limited parking spaces in urban areas. To mitigate these issues, companies are integrating car sharing services into their mobility solutions. This trend is particularly prominent in the business segment, where corporations are optimizing fleet management and reducing related costs. Car sharing services enable enterprises to offer attractive mobility solutions to their employees, reducing the need for car rentals and promoting corporate social responsibility. Some professional car sharing services in the market include Zipcar, a subsidiary of Avis Budget Group Inc., which offers a range of car types such as economy, executive, and luxury vehicles.
Additionally, some car sharing programs have integrated electric vehicles into their fleets, further reducing environmental impact. Both Peer-to-Peer (P2P) and station-based car sharing models are gaining popularity, providing flexibility and convenience to users. Corporations can save time and resources with advanced vehicle management systems, generate cost savings, and maximize efficiency by implementing car sharing services.
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The business segment accounted for USD 3.68 billion in 2018 and showed a gradual increase during the forecast period.
North America is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The North American market is experiencing significant growth due to increasing traffic congestion and limited parking spaces in urban areas. This trend is driving the demand for alternative transportation solutions, including car sharing. Public transportation integration and electric vehicle programs are also key factors contributing to the market's expansion. Various Original Equipment Manufacturers (OEMs) from different regions are investing in North America to establish their car sharing platforms. For instance, Toyota has partnered with Getaround in San Francisco, installing a Bluetooth box called Smart Key Box for car unlocking via authenticated smartphones. Strict government regulations on automotive emissions are further propelling the adoption of car sharing services in the region.
Furthermore, the market offers various car types, including economy, executive, and luxury models, catering to diverse consumer preferences.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Stringent government regulations regarding emission control is the key driver of the market. The markets have witnessed significant growth due to the integration of mobile apps and digital platforms, enabling users to easily access shared vehicles. Companies like Zipcar lead this sector, offering urban mobility solutions that prioritize sustainability. The adoption of electric vehicles (EVs) in car sharing fleets is on the rise, with insurance products tailored to accommodate the unique needs of these vehicles. Government bodies across regions have formulated vehicular emission norms, such as Euro emission standards and CAFE standards, to monitor and regulate carbon emissions. Euro emission standards introduced mandatory carbon dioxide regulations for passenger cars for the first time in 2009, with individual manufacturers allowed a higher carbon dioxide emission value based on the average weight of their vehicle fleets.
Moreover, the increasing focus on reducing carbon emissions and promoting sustainable transportation makes car sharing an attractive option for environmentally-conscious consumers.
Increasing investments in autonomous car production is the upcoming trend in the market. The market is witnessing significant growth due to the integration of advanced technologies such as mobile apps, digital platforms, and the increasing adoption of electric vehicles (EVs). Companies like Zipcar are leading this transformation by offering on-demand mobility solutions through their user-friendly mobile applications. These platforms enable users to easily locate, rent, and return shared vehicles, making urban mobility more convenient and sustainable. The use of EVs in car sharing fleets is also on the rise, as they contribute to reducing carbon emissions and promoting eco-friendly transportation. Autonomous vehicles, which are becoming increasingly common, are equipped with radar sensors and other electronic systems that enable self-driving capabilities.
Furthermore, these sensors play a crucial role in determining the velocity and range of objects, ensuring the safety and reliability of autonomous vehicle operations. Insurance products tailored to car sharing services are also being developed to address the unique risks associated with this business model. Overall, the market is poised for continued growth as technology advances and consumer preferences shift towards more flexible and sustainable mobility solutions.
Rigid government regulations pertaining to car sharing services is a key challenge affecting the market growth. The market is experiencing significant growth due to the increasing integration of digital platforms and mobile apps in urban mobility solutions. Shared vehicles, provided by companies such as Zipcar, offer convenience and cost savings for consumers, reducing the need for personal car ownership. However, regulations and policies surrounding car sharing services pose challenges to market expansion. Differences in regulations between countries and cities necessitate careful navigation by car sharing companies, who may face limitations on the number of vehicles allowed or lengthy permit and license acquisition processes. Additionally, the integration of electric vehicles (EVs) into car sharing fleets presents new opportunities and challenges, requiring companies to offer appropriate insurance products to address the unique risks associated with EVs.
Furthermore, the market's growth is influenced by various factors, including regulatory environments, consumer preferences, and technological advancements in shared mobility solutions.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Avis Budget Group Inc. - The company offers car sharing services under the brand names Avis, Budget, and Zipcar.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Car sharing is an innovative mobility solution that enables individuals to rent out their personal vehicles or use shared vehicles through digital platforms when not in use. This market is witnessing significant growth due to the integration of electric vehicles (EVs) and the adoption of mobile apps for booking rides. Urban populations are increasingly turning to car sharing as a cost-effective alternative to owning a vehicle, especially in areas with traffic congestion and limited parking. The market offers various models such as peer-to-peer (P2P), station-based, and free-floating. Economy, executive, and luxury cars are available for rent, catering to different segments.
Furthermore, the market also includes fuel-efficient vehicles and EV programs, contributing to the reduction of greenhouse gas emissions and air pollution. The market faces challenges related to insurance products, infrastructure development, and public transportation integration. Machine learning and cloud computing are being integrated to improve user experience and optimize vehicle usage. The future of car sharing lies in the development of charging station infrastructure and the electrification of vehicles, making it a key contributor to clean energy transportation.
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Market Scope |
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Report Coverage |
Details |
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Page number |
161 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 21.12% |
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Market growth 2024-2028 |
USD 17.59 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
19.42 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 31% |
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Key countries |
US, China, Japan, Germany, and UK |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Avis Budget Group Inc., Bayerische Motoren Werke AG, Bolt Technology OU, cambio Mobility Service GmbH and Co. KG, Carrot, Cityhop, Communauto Group, DiDi Global Inc., DRIVALIA S.p.A., ekar Car Rental LLC, Enterprise Holdings Inc., Getaround Inc., GoGet Carshare, Hertz Global Holdings Inc., HOURCAR, Hyundai Motor Co., iDrive, Lyft Inc., Mobility Cooperative, Modo Co operative, Motor Share FZ LLC, Orix Corp., Peg City Car Co op, Regina Car Share Co operative, Stellantis NV, Turo Inc., Vulog, and Zoomcar India Pvt. Ltd. |
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Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by End-user
7 Market Segmentation by Mode of Booking
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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