Increasing urbanization and smart city initiatives is the significant factor for the growth of mobility as a service market globally
With 12 cities in the region ranking among the top 25 in the world, Europe continues to be the best positioned geographical area for smart cities.
According to the European Commission, the smart cities project market is expected to exceed USD 2.00 trillion by 2025, with Europe speculated to have the highest investment globally.
Copenhagen, Amsterdam, London, Vienna, Paris, Barcelona, Stockholm, Berlin, and Helsinki have already initiated the development of smart city platforms.
Besides, smart city initiatives, other factors driving the MaaS market include improving 4G/5G infrastructure and penetration of smartphones and the need for reduced CO2 emissions.
However, the integration of various MaaS stakeholders and limited internet connectivity in developing countries will restrict the mobility as a service market in the coming years.
Peer-to-Peer segment is expected to grow at the highest CAGR as people could use peer-to-peer services to rent out their vehicles when not in use in the future, which presents opportunities for growth.
In a peer-to-peer (P2P) ride-sharing service, drivers use their own vehicles to provide a service to registered users via an app.
Another model is peer-to-peer rentals where an owner rents out their vehicle. Various modes of transport can be integrated into one digital mobile app that covers the process from start to finish, including booking, trip planning, and electronic payment.
For instance, Uber, a peer-to-peer transportation provider, is branching out into short-term car rental and public transit ticket purchasing.
Similarly, Turo, a peer-to-peer rental company, enables private owners to rent out their cars to others.
The company recently partnered with Porsche to launch a pilot program in San Francisco and Los Angeles that allows drivers to rent sports cars for around USD 100/day.
Journey planning segment is expected to hold a dominant share throughout the forecast period as the user is able to select the preferred mode of transportation.
Journey planning involves providing journey options to users through a combination of real-time, predictive, and scheduled data based on a data algorithm.
Journey planning includes providing a list of service offerings and combines the optimal use of transport modes based on user preferences and transport infrastructure.
Thus, the user is also granted some level of personalization in terms of preference for transport mode and accessibility.
Technology platform segment is expected to be the largest market from 2020 to 2030.
The technology platform segment is likely to command the largest market share through the forecast period from 2020 to 2030 as it provides integrated services for ride hailing, car sharing, micromobility, bus sharing, and train services.
In July 2020, Google announced a digitization fund of USD 10 billion to boost India’s digital economy.
Google plans to enable affordable internet access for every Indian as the country has the second-highest number of internet users in the world.
Such initiatives are expected to create immense opportunities for high-growth niche markets like mobility as a service market.
- Didi Chuxing
- Mobilityx PTE Ltd
- Mobilleo (Fleetondemand)
- Moovel Group (Reach Now)
- Share Now Gmbh
- Smile Mobility
- Splyt Technologies
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