The concerns regarding the degrading quality of the environment has been rising since the past few years. The need for reducing carbon dioxide emissions for decreasing the global temperature is surging day by day. Moreover, the transportation industry has significantly contributed to the growing levels of air pollution all across the globe, owing to which, the industry is now trying to come up with solutions to decrease its carbon footprints. The introduction of shared mobility services can take care of this situation to some extent, owing to which, their demand has been increasing rapidly across the globe.
As per a report by P&S Intelligence, the global carsharing market is predicted to attain a revenue of $10,846.9 million by 2025, rising from $5,571.2 million in 2018, and is projected to exhibit an 11.0% CAGR during the forecast period (2019–2025). Carsharing services provide people with cost-effective and convenience mobility solutions, where the need for buying a private vehicles is eliminated. Affording private vehicles is still a big deal for a lot of people, therefore, services where people can commute with comfort and pay according to the distance travelled are of great importance at the present time.
The major applications of carsharing services are private and business, between which, the demand for carsharing was created for the business application in the past. Apart from this, the demand for these services is also expected to increase substantially for private applications in the years to come, which can be owing to the rising adoption of the peer-to-peer (P2P) business model across the globe. Among, P2P, one-way, and round-trip business models, the need for P2P is projected to increase significantly in the near future. P2P business model of carsharing is making wide usage of private vehicles and narrowing the gap between conventional carsharing and car rental models.
When geography is considered, the Asia-Pacific (APAC) region is projected to emerge as the largest carsharing market in the years to come. Among various countries across the globe, China is the major user of carsharing services. Various cities in the country increased the utilization of electric vehicles across different carsharing platforms for promoting cleaner and greener environment, in 2017. Moreover, government support in the form of incentives and polices is also driving the adoption of carsharing services in the country.
Hence, the demand for carsharing services is growing due to the surging environmental concerns and increasing carbon emissions.