Car sharing is the practice of sharing a car for regular traveling or commuting. The global car sharing market is growing at a significant rate, due to mounting acceptance of vehicles assisted with advanced technologies, and strict government regulations regarding the emission. A different business model such as a round trip and one way contributed to the car sharing market size. The market has witnessed high demand for one way sharing due to its operational advantages and customer flexibility.
Insight by Model
On the basis of the model, the car-sharing market is subdivided into free-floating, P2P, and station-based. Of all models, free-floating segment accounted the largest share in the market, due to a high degree of flexibility, and escalating taxi fares. In addition, P2P car sharing segment is expected to grow at a significant rate due to the increasing number of people willing to rent out cars. P2P is a peer-to-peer model, which connects car owners with people who want to rent vehicles.
Insight by Business Model
On the basis of the business model the market is subdivided into one way, and round trip. Of both business models, the one-way segment accounted for the larger share in the market due to its operational advantages, and customer flexibility. Moreover, the one-way segment decreases the hassle for the users to drop-off the vehicle at the pick-up point. In addition, round car trip is expected to experience extensive adoption due to lower cost for long distances and escalating awareness related to environmental benefits of these services.
Insight by Application
On the basis of application, the market is subdivided into private, and business. Among both applications, the business application accounted the larger share in the car-sharing market due to mounting on-demand movement in the corporate sector, ease of operation, and flexibility through improved mobility.
Mounting environmental pollution, strict government regulations regarding the emission, traffic congestion in urban areas, elevated price of personal vehicle ownership, reduction in traveling cost, and mounting acceptance of vehicles assisted with advanced technologies are the primary growth drivers for the car-sharing market. For instance, according to the Transportation Sustainability Research Center, in October 2016, car sharing was operating in 46 countries and six continents, with approximately 2,095 cities and approximately 15 million people sharing 157,00 vehicles.
In addition, an increase in the requirement of an efficient vehicle with zero carbon emission, mounting alarm about environmental pollution and strict regulations regarding vehicle emission is also driving the growth of the market. For instance, according to the World Health Organization (WHO), globally exposure to ambient air pollution leads to 4.2 million deaths every year. In addition, 91% of the world’s population lives in a place where air quality exceeds WHO guidelines limit.
Incentives offered by the government to use car sharing in the U.S., changing regulation in Singapore and Malaysia, a mounting number of smartphones and mobile devices, and lack of proper public transportation infrastructure in emerging countries are also facilitating the growth for the car-sharing market.
Lack of flexibility, inadequate transportation infrastructure and intense completion among similar transport models are the major challenges for the growth of the car-sharing market. In addition, are also hindering the growth of the market. In addition, poor road conditions in countries such as Turkey, and India, and growing traffic congestion is also hindering the growth of the car sharing market
Globally industry players are leveraging market growth through launching new products. Globally, the manufacturing companies trying to enter the car sharing market are required to maintain stringent regulatory standards. This offers an edge to the established players in the industry competition.
Geographically, Asia-Pacific is observed to witness significant growth in the car-sharing market due to a shortage of parking space and a large population base. In addition, rapid urbanization and mounting preference of younger population for car-sharing service are also up surging growth of the Asia-Pacific car-sharing market. In addition, China is expected to grow at a significant rate in the Asia-Pacific region due to expanding government support.
Moreover, Germany accounted the largest share in the European car sharing marker due to escalating taxies fares and the mounting cost of buying a vehicle.
Key players in the car-sharing market are catering the demand by collaborating with small players and investing in technologically advanced products across the globe. In March 2018, BMW Group and Daimler AG agreed to combine their mobility services and enlarge their prevailing on-demand mobility offering in the areas of charging, carsharing, parking, ride-hailing, and multimodality. Autolib, Hertz Corporation, Car2Go Ltd., Getaround, Inc, Mobility carsharing, Turo Inc., and Orix Corporation are the key players offering car sharing.