The car sharing market is expected to witness significant growth by 2027 due to proliferating demand for ride-sharing services across the globe. In addition, increasing shortage of rental cars in key regions is anticipated to further propel market demand over the forecast timeline.
Following the COVID-19 outbreak, car sharing saw a steep decline as users feared exposure to the novel coronavirus. However, driven by stringent social distancing measures and rampant vaccination drives worldwide, the car sharing sector is gradually regaining its pre-COVID momentum. Moreover, industry players are strengthening their operations to capitalize on emerging demand in leading marketplaces, which is positively influencing business expansion.
For instance, in July 2021, Lyft, the California-based ride-sharing leader, announced its plans to resume car sharing more than a year after it suspended services in light of the pandemic. Initially, Lyft’s ride-sharing services would be available in Chicago, Philadelphia, and Denver and are slated to penetrate other markets over the following months.
Furthermore, electrification has gained massive prominence in the automotive industry as companies focus on reducing dependence on fossil fuels and decreasing the carbon footprint of the sector. To that effect, market participants are incorporating electric vehicles (EVs) in their fleet, which has improved business outlook.
For instance, in June 2021, Share Now, a German car sharing firm, announced that it was integrating all-electric Fiat 500e to its Hamburg fleet, adding 100 units of the small EVs. The company has pledged to become an all-EV brand by 2030.
For comprehensive assessment, the car sharing market has been bifurcated based on model, business model, application, and region. On the basis of model, the market has been divided into station-based, P2P, and free-floating.
The free-floating sub-segment is estimated to amass a sizable revenue by 2027, progressing at a CAGR of over 20% through the assessment timeframe. High flexibility offered by car sharing in terms of pick-up and drop off is set to support segmental adoption over the following years.
In terms of business model, the market has been segmented into round trip and one way. The business model sub-segment is anticipated to witness steady growth at a notable pace over 2021-2027. Shift in consumer preferences towards one-way car sharing business models is likely to fuel segmental expansion in the coming years.
With respect to application, the market has been categorized into private and business. The business sub-segment holds a share of over 75% in the car sharing market revenue and is speculated to observe substantial growth over the analysis period. Prevalent usage of car sharing services by corporates and multi-national companies for employee pick-up and drop off is projected to impel segmental growth through 2027.
The Latin America car sharing market is calculated to expand at a considerable CAGR to reach a respectable valuation by the end of the forecast period. The emergence of new car sharing service providers in the region is speculated to boost market demand in the future.