The carsharing market generated a revenue of $5,571.2 million in 2018 and is estimated to progress at a CAGR of 11.0% during the forecast period (2019–2025), owing to advancements in technology, which are helping make the access to shared mobility services easy. The growing demand for convenient and cost-effective mobility services, coupled with government policies encouraging the use of carsharing programs, is the key factor driving the growth of the market. In simple terms, carsharing is a short–term rental service offered to customers at a certain charge.
Favorable government regulations for carsharing services, growing concerns over environmental emissions, increasing demand for more convenient and cost-effective mobility solutions, and advancements in technology are the key factors driving the growth of the market.
Besides, the high upfront and maintenance costs associated with personal cars are encouraging people to switch to shared mobility services. Since owning a car demands a high investment in terms of vehicle cost, fuel cost, parking and maintenance charges, and insurance cost, people are increasingly adopting carsharing services that provide them the flexibility to rent a car, without having the need to own one. The users can make the payment on the basis of the time and distance travelled by them. Besides, additional expenses, such as costs related to fuel, maintenance, insurance, and parking, are borne by the service providers in the carsharing market.
Carsharing services are extremely useful for the general public, especially for daily commuters, as without owning and maintaining cars, they can reach their destination. For users, these services are available day and night throughout the year, allowing them to use a car from anywhere, anytime. Besides, with the help of the carsharing company’s mobile app, commuters can directly avail the services and easily rent the car of their choice. The apps offer the necessary details and every assistance to users, so that they have a good commuting experience. Hence, mobile apps, providing easy access to cars as well as all the information related to the service, are taking the carsharing market ahead.
Furthermore, carsharing helps save the expenditure on owned cars, fuel, maintenance, parking, and insurance. Carsharing services require users to pay only on the basis of the time and distance the car is being driven for, along with an initial registration cost. Also, other expenses, such as those for maintenance, insurance and fuel, are borne by the carsharing service providers. Due to benefits associated with sharing services, such as cost-efficiency and easy availability, the global carsharing market is expected to grow.
Hence, with the increasing inclination of people toward convenient mobility services, the global market for carsharing is witnessing a boost.
APAC standing as the largest market for carsharing services globally
APAC is expected to continue holding the largest share in the global carsharing market, with an estimated revenue of over 40% in 2018. Of all countries around the world, China continues to remain the largest market for carsharing services. In 2017, several cities across China increased the usage of electric vehicles across carsharing platforms to promote greener environment. With continuous support from the government in the form of policies and incentives, the market in China is expected to demonstrate robust growth in the future as well.