Global On-Demand Transportation Market Size, Share, Growth Analysis, By Service Type, By Vehicle Type, By Business Model, By Power Source(Fuel Powered, HEV ), By Application - Industry Forecast 2024-2031

Global On-Demand Transportation Market was valued at USD 142.37 billion in 2022 and is expected to rise from USD 170.23 billion in 2023 to reach USD 711.24 billion by 2031, by rising at a CAGR of 19.57%, during the forecast period, (2024-2031).

A web-based business that lets users reserve cars for a fee based on the distance and length of the trip is known as on-demand transportation. Various vehicle types, including passenger and commercial vehicles, are available for reservation or booking in accordance with the demands of the consumer through on-demand transportation services. Due to increased reliance on internet-based services and rapid digitization, the service is also highly popular in urban areas.

The desire for on-demand services that let users change, pre-book, and cancel their reservations at reduced rates through applications has grown as a result of rising auto prices, which in turn has raised demand for the product. Additionally, millennials are using car-sharing services more frequently, which is increasing demand for the service. Declining parking spaces, increasing smartphone usage, and increasing PR are significant factors contributing to the increase in demand for these services. Furthermore, during the aforementioned forecast period, rising tourism, a growing working-class population, the popularity of road trips, and growing technological advancements and modernization in the automotive industry will all contribute to the growing demand for on-demand transportation services.

Nonetheless, the primary factors impeding market growth and potentially posing fresh difficulties to the on-demand transportation industry throughout the specified estimate period are growing data privacy security and enhanced public safety.

Top-down and bottom-up approaches were used to estimate and validate the size of the Global On-Demand Transportation market and to estimate the size of various other dependent submarkets. The research methodology used to estimate the market size includes the following details: The key players in the market were identified through secondary research, and their market shares in the respective regions were determined through primary and secondary research. This entire procedure includes the study of the annual and financial reports of the top market players and extensive interviews for key insights from industry leaders such as CEOs, VPs, directors, and marketing executives. All percentage shares split, and breakdowns were determined using secondary sources and verified through Primary sources. All possible parameters that affect the markets covered in this research study have been accounted for, viewed in extensive detail, verified through primary research, and analyzed to get the final quantitative and qualitative data.

Global On-Demand Transportation market Segmental Analysis

On-Demand Transportation Market is segmented based on service type, vehicle type, business model, power source, application, and region. Based on service type, the On-Demand Transportation Market is segmented into E-Hailing, car sharing, car rental, and station-based mobility. In terms of segmentation by vehicle type, the On-Demand Transportation Market is categorized into four-wheeler, and micro mobility. With respect to classification by business model, the On-Demand Transportation Market is grouped into P2P, B2B, and B2C. The power source segment is further categorized into Fuel Powered, HEV (HEV), PHEV (PHEV), BEV (BEV). By Application, the On-Demand Transportation Market is divided into passenger transportation, and goods transportation. Demographically, the On-Demand Transportation Market is widespread into North America, Europe, Asia-Pacific, Latin America, and MEA.

Drivers of the Global On-Demand Transportation market

As the number of linked cars rises, so does the acceptance of on-demand transportation services including car sharing, e-hailing, station-based mobility, and car rentals. Using smartphone applications, customers may pre-book, cancel, or change their taxi arrangements.

Restraints in the Global On-Demand Transportation market

One of the biggest obstacles to the on-demand transportation sector's recent growth has been the growing concern over passenger safety, which is having a major impact on industry expansion. Because of their worry for these incidents, governments may implement strict laws to ensure the safety of both drivers and passengers. The Department of Transportation's (DoT) On-demand Transport (OdT) business division monitors the passenger transportation industry to ensure that public safety regulations are being followed.

Market Trends of the Global On-Demand Transportation market

With the increasing popularity of electric and driverless vehicles, on-demand transportation services are probably getting less expensive. Since electric cars use less fuel, using ride-sharing and other mobility-sharing services is less expensive overall. There's no doubt that this will raise demand for on-demand services globally. It is expected that driverless cars will eliminate the need for drivers and the associated costs. In many countries, the demand for on-demand transportation services is rising due to a decrease in the number of vehicles per capita. This is expected to create profitable opportunities for the global on-demand transportation market. The forward integration of automakers in the on-demand transportation service business is expected to create considerable opportunities for the market.