Ride Sharing Market size was valued at USD 143.9 billion in 2023 and is predicted to reach USD 629.4 billion by the end of 2036, registering around 12.2% CAGR during the forecast period i.e., between 2024-2036. In 2024, the industry size of ride sharing is assessed at USD 181.2 billion.
The primary growth driver of the ride sharing market is the increasing adoption of smartphones and mobile internet access. For instance, a total of 5.45 billion people worldwide were using the internet at the start of July 2024. The global number of internet users increased by 167 million during the last year. Globally, internet user numbers are expanding at an annual rate of 3.2%, but year-on-year growth is much faster in several developing economies. This technological advancement facilitates the use of ride sharing apps, making it easier for users to book rides and for drivers to find passengers. Additionally, factors such as urbanization, growing concerns over vehicle ownership costs, and an increasing preference for convenience and cost-effectiveness contribute significantly to the market’s expansion.
Growth Drivers
Challenges
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Base Year |
2023 |
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Forecast Year |
2024-2036 |
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CAGR |
12.2% |
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Base Year Market Size (2023) |
USD 143.9 billion |
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Forecast Year Market Size (2036) |
USD 629.4 billion |
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Regional Scope |
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Service Type (E-Hailing, Ride Sharing, Car Rental, Station-Based Mobility)
The e-hailing segment is anticipated to dominate the ride sharing market share of 35.1% in the coming years. This growth of the segment is expected to be driven by the global urbanization rate, the expanding tourism industry, and increased traffic congestion in urban areas. Urbanization often leads to a concentration of job opportunities in metropolitan areas. Individuals seeking better employment may use ride-hailing as an economical commuting option than owing a car.
Moreover, specialized services such as those for seniors or individuals with disabilities increase market inclusivity and cater to niche segments. For instance, Uber’s Uber WAV, and similar services are part of a growing trend to accommodate special needs. Thus, e-hailing service type contribute to the expansion and diversification of the market by addressing various consumer needs and preferences, supported by substantial growth figures and evolving market trends.
Distance (Short, Long)
The short segment is estimated to gather substantial CAGR by the end of 2036. The focus on short-distance travel within the ride sharing market caters to the need for convenience, cost effectiveness, and frequent use, contributing significantly to the segment growth. Convenience makes ride sharing a popular choice for short commutes, errands, and quick trips, contributing to increased usage. Many urban users rely on ride sharing for trips that are too short to warrant public transit or parking hassles. Furthermore, short-distance ride sharing helps mitigate urban traffic congestion and parking challenges by offering alternatives to personal vehicles.
Vehicle Type (ICE, CNG/LPG, Electric)
By the end of 2036, the electric segment is expected to dominate the global ride sharing market. EVs produce zero tailpipe emissions, which helps reduce the overall footprint of ride sharing services and aligns with growing environmental regulations. As cities and countries implement stricter emissions standards, the adoption of EVs in ride sharing fleets supports regulatory compliance and appeals to environmentally conscious consumers. Additionally, EVs have lower fuel costs compared to traditional internal combustion engine vehicles, which make EVs more economical for ride sharing companies, contributing to reduced overall expenses and potentially higher profits. For instance, EVs can reduce per-kilometer running costs by up to 60% compared to ICE vehicles.
Our in-depth analysis of the global market includes the following segments:
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Service Type |
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Sharing Type |
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Vehicle Type |
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Data Science |
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Travel Mode |
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Distance |
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APAC Market Statistics
The ride sharing market in Asia Pacific is anticipated to hold the largest share of 35.5% by the end of 2036. The market expansion is attributed to the rapid urbanization, growing middle class population, and rising technological advancements. The region is witnessing a staggering population density in major cities like Beijing, Tokyo, Mumbai, and Jakarta. Urbanization drives demand for efficient and flexible transportation solutions, boosting the adoption of ride sharing services. For instance, according to the United Nation Human Settlements Program (UN-HABITAT) urbanization remains a defining megatrend in the Asia-Pacific region. APAC is home to more than 2.2 billion people or 54% of the world's urban population. By 2050, Asia's urban population is predicted to increase by 50%.
In China, advances in technology, such as mobile app development, GPS, and payment systems, enhance the convenience and efficiency of ride sharing services. Technological integration improves user experience and operational efficiency. For instance, DiDi Chuxing and other players utilize sophisticated algorithms and data analytics to optimize routes and manage demand.
India has a growing middle-class population with increasing disposable incomes that drives demand for convenient and affordable transportation. According to the People Research on India’s Consumer Economy (PRICE), the middle class population in the country grew 6.3% per year between 1995 and 2021. Additionally, the Indian government is increasingly supporting ride sharing through favorable regulations and policies, including guidelines for safety and service standards.
In South Korea, there is a focus on integrating ride sharing with public transportation systems to enhance urban mobility. This helps improve last-mile connectivity and overall transportation efficiency. Kakao Mobility is the leading mobility service provider has been working on integrating its services with public transit options to provide seamless travel solutions.
North America Market Analysis
North America ride sharing market will also encounter enormous growth owing to the rising consumer preferences which play a crucial role in shaping the market. Fast and reliable service with features such as real-time tracking and quick payment options are highly valued by the users. Enhanced safety features, such as driver background checks, in-app safety tools, and insurance coverage, are critical for user trust and satisfaction. Additionally, consumers are showing interest in environmentally friendly options such as electric or hybrid vehicles.
In the U.S., the presence of strong key players significantly influences the ride sharing market. for instance, Uber is one of the largest and most well-established ride sharing companies, dominates the U.S market with a broad range of services including UberX, Uber POOL, and UberEats for food delivery. Its extensive network and technological innovation give it a substantial competitive advantage.
In comparison to traditional taxi services, Canada's market has rapidly evolved in recent years, as it provides a smooth booking experience and lower wait times. The Canadian economy has been significantly impacted by the growth of ride sharing which has contributed to making Canadians' daily lives easier by enhancing mobility and expanding options.
Companies play a central role in driving the market through various strategies and innovations. Companies invest in technology to enhance user experience, such as improved mobile apps, real-time tracking, and advanced algorithms for efficient routing. Moreover, by offering a range of services, from budget rides to premium options, companies cater to diverse customer needs.
Author Credits: Saima Khursheed
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