In 2018, the global ride-sharing market size was $24.4 billion, and it is expected to reach $103.6 billion by the end of 2025, with a CAGR of 19.8% between 2019 and 2025, according to new market research from Valuates Reports. The implementation of new technology enabling real-time ride matches and a shift in trends toward car ownership are expected to affect the growth of ride-sharing market size during the forecast period.
The major ride-sharing market players dominate the market, based on Valuates’ analysis. It says that the top five companies dominating the ride-sharing market took up more than 79% of the global market. The companies the firm singles out are Uber, Lyft, Fasten, Haxi, Via, Didi Chuxing, Ola Cabs, Grab, Go-Jek, BlaBlaCar, myTaxi, and Dida Chuxing.
Researchers say that ride-sharing programs have tremendous economic potential, can lead to significant cost reduction and increasing savings, and can help decrease substantial greenhouse emissions reductions and minimize traffic congestion. These advantages are expected to increase the ride-sharing market size.
For the forecast period, the increase in the number of regulated lanes providing car-pooling incentives and the increasing car-sharing economy would create new growth opportunities for the market. Advances in technology that assist with the adoption of ridesharing, and support from government policy such as toll fee waivers and high-occupancy vehicle (HOV) lanes, are fueling the growth.
An increase in smartphone and internet penetration is expected to boost the market. As ride-sharing is an internet-enabled service, Internet access is the basic prerequisite in every part of the world to ride-sharing services. Users are expected to download an app to their smartphone for accessing ride-sharing information.
With increasing fuel prices, and a rise in the financing, insurance, and car registration rates, the costs of owning a personal vehicle are expected to rise. Maintenance expenses, including replacement of parts and components and labor fees, will also rise, contributing to the total cost of ownership. This increasing vehicle ownership cost is, in turn, is expected to propel the ride-sharing market growth.
Regarding the overall ride-sharing market-share analysis, the station-based mobility segment is expected to witness the highest growth rate during the forecast period. This segment’s growth is attributed to the government’s initiatives to promote station-based mobility and construct dedicated tracks. Navigation service will hold the largest ride-sharing market size during the period. Drivers and passengers use navigation applications for mapping and traffic data. Navigation service usage is imperative for ride-sharing services. North America held the largest ride-sharing market size. This region’s dominance is attributed to the increasing investments from automakers and changes in travelers’ preferences.
