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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 growth rate of the market depends on several factors, such as the stringent government regulations regarding emission control, the increasing investments and collaborations in car sharing by automobile manufacturers, and the growing adoption of shared mobility due to increasing traffic congestion and pollution.
The car-sharing market in North America is experiencing growth, driven by the investments of numerous OEMs from other regions in the region. Avis Budget Group Inc. provides car-sharing services through the brands Avis, Budget, and Zipcar. Bayerische Motoren Werke AG offers car-sharing services through Cambio CarSharing, offering a diverse selection of cars at reserved parking places
Market Forecast 2024-2028
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Our researchers studied the market research and growth data for years, with 2023 as the base year and 2023 as the estimated year, and presented the key drivers, trends, and challenges for the market.
Several government bodies across regions have formulated vehicular emission norms to monitor particulate emissions. In addition, Euro emission standards formulated by the European Union, Corporate Average Fuel Economy (CAFE) standards formulated by the US, and the Japanese New Long-Term Emission Standards are some examples of new emission standards.
Moreover, European emission standards and testing procedures are implemented across several countries. In addition, countries in APAC, such as India and China, also follow Euro emission standards. Furthermore, Euro emission standards introduced mandatory carbon dioxide regulations for passenger cars for the first time in 2009. In addition, individual manufacturers were allowed a higher carbon dioxide emission value based on the average weight of their vehicle fleets. Hence, such factors are driving the market growth during the forecast period.
The growing investments in autonomous car production are fuelling the adoption of car-sharing services. For example, in March 2021, Honda Motor launched its luxury sedan car, which features certified level 3 autonomous driving technology. In addition, self-driving vehicles navigate with the help of information received from a connected car network and IoT.
Moreover, autonomous vehicles incorporate several electronic systems, including backup aids, autonomous brake systems, and radar sensors. In addition, radar sensors, which are integrated into autonomous vehicles, are used to determine the velocity and range of objects. Most of these electronic systems are controlled using sensors. Furthermore, radar sensors can input autonomous vehicle operations for safety and reliability. Hence, such factors are driving the market growth during the forecast period.
Regulations and policies regarding car sharing services present major challenges to the growth of the global market as they can vary greatly between countries and cities. In addition, this implies that to operate in various regions, car-sharing companies must navigate a convoluted web of regulations, which can be time-consuming and expensive.
For example, limitations on the number of cars that can be used for car sharing may exist in some European cities such as Rome, which may limit the services accessibility and make it challenging for businesses to expand their operations. In addition, some cities may demand that car-sharing companies acquire particular permits or licenses, which can be a cumbersome and lengthy process. Furthermore, other regulations that may limit the growth of the car-sharing market include parking restrictions that limit the number of dedicated parking spaces for car-sharing vehicles and zoning restrictions that limit where car-sharing vehicles can park or operate. Hence, such factors are hindering the market growth during the forecast period.
The business segment is estimated to witness significant growth during the forecast period. The business segment of the global market is increasing due to an increase in the dedicated fleet of shared-use vehicles. In addition, the car sharing service allows enterprises to optimize their fleet management and significantly reduce fleet-related costs. Furthermore, it also allows companies to offer an attractive mobility solution to their employees.
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The business segment was the largest segment and was valued at USD 3.68 billion in 2018. Moreover, some benefits of corporate car-sharing services include reducing the total cost of mobility and use extra fleet vehicles, saving time and resources with advanced vehicle management, increasing corporate social responsibility for a shared car to decrease car renting burdens and generating time-saving while maximizing efficiency. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
Based on the mode of booking, the market has been segmented into online and offline. The online segment will account for the largest share of this segment. Booking car sharing services online is gaining popularity across the globe. In addition, people can now access car sharing services more easily, thanks to the ease of booking a car on a mobile app or website. Moreover, this has increased the demand for online booking platforms, hence making it the most preferred booking mode. Furthermore, car sharing companies can more effectively handle their fleets as well as reservations due to the online booking option, which has also helped them streamline their operations. Hence, such factors are fuelling the growth of this segment which in turn drives the market growth during the forecast period.
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North America is estimated to contribute 31% to the growth by 2028. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. Several stringent government regulations regarding emissions from automotive vehicles are expected to accelerate the car sharing services in North America. In addition, the US motor vehicle emission control program has stipulated more stringent standards for the control of vehicular emissions to reduce pollution. Therefore, it will drive the market for car sharing services that not only lead to a reduction in vehicle ownership but also contribute to fewer emissions from vehicles. Moreover, there are about 20 car sharing companies that are members of The Car Sharing Association, which is continuously leading to market growth. In addition, another factor for the growth of the market in North America is likely to be the rise in luxury car sales (luxury SUVs) from automotive companies like Mercedes Benz (Daimler AG), Lexus (Toyota), and BMW, in the US. Hence, such factors are driving the market growth in North America during the forecast period.
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.
Bolt Technology OU: The company offers car sharing services that provides fuel-efficient automobile reservations to members, billable by the hour or day.
We also have detailed analyses of the market’s competitive landscape and offer information on 20 market companies, including:
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.
Technavio market forecast the an in-depth analysis of the market and its players through combined qualitative and quantitative data. The analysis classifies companies into categories based on their business approaches, including pure-play, category-focused, industry-focused, and diversified. Companies are specially categorized into dominant, leading, strong, tentative, and weak, based on their quantitative data analysis.
The market analysis and report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
In the realm of transportation, the market garners attention from professional opinions and independent perspectives, with insights often gleaned from product literature and industry statements. Major industry participants contribute to the market's dynamics, offering a diverse fleet of vehicles accessible through internet applications, with convenient pickup and drop-off locations.Car sharing transcends traditional automobile rental, catering to various needs with different types of vehicles available by the minute. It addresses concerns associated with car ownership, such as parking, by providing intracity and intercity services for commuting, road trips, and errands.
The market operates through models like free float and stationary, including peer-to-peer car sharing, which fosters cost savings and complements public transportation providers. However, challenges like insurance and inadequate infrastructure hinder growth.With a focus on sustainability, the market integrates electric and sustainable vehicles, offering last-mile solutions. Key players drive innovation and accessibility, shaping the future landscape of urban mobility. As the market continues to evolve, it offers a flexible and efficient transportation solution tailored to modern lifestyles
Car Sharing Market Scope |
|
Report Coverage |
Details |
Page number |
161 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.12% |
Market growth 2024-2028 |
USD 17.59 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.42 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 31% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
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. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our 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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