Rising adoption of connected devices drives the demand for global mobility as a service market
The global mobility as a service market size is projected to reach USD 248.56 billion by 2025. Mobility as a service (MaaS) consists of on-demand transport service, which includes vehicles such as cars, bikes, etc. The primary objective of MaaS is to enhance transportation offerings. A major benefit of MaaS is that it helps to reduce traffic congestion and it is a more convenient and sustainable option to conventional transport services. It also provides an alternative to private cars. Mobility as a service allows passengers to select the most personalized and streamlined way of local traveling.
The rising popularity of 4G LTE and 5G connectivity in the automobile industry is further expected to drive the global mobility as a service market. Approximately more than 90% of total connected cars will have a 4G LTE connection by 2022. 5G connectivity is expected to roll out in cars from 2020 onwards. Moreover, an increasing number of mobile payments is also one of the major factors contributing to the growth of the MaaS market. For instance, it is expected that around 1.06 billion people will make mobile payments by the end of 2020. Around 87% of the population in the U.S. has mobile phones with 77% of internet connection. Out of this, approximately 53% of users had recently used the smartphone for mobile banking, according to a study from the Federal Reserve.
In addition to this, several initiatives taken by governments are encouraging MaaS providers to promote their services and this is another reason driving the market growth. Lack of confidence in sharing own vehicle to a stranger is one of the significant factors hindering the growth of the MaaS market. In the case of ride-sharing, people are hesitant to share their vehicles with strangers, which resulting in a decrease in the number of vehicles participating in this service. Further, a lack of awareness about the benefits of shared mobility services is another factor restraining market growth.
The report also throws light on various aspects of global mobility as a service industry by assessing the market using value chain analysis. The report covers several qualitative aspects of mobility as a service industry in market drivers, market restraints and key industry trends. Furthermore, the report provides an in-depth assessment of the market competition with company profiles of global as well as local vendors.
On the basis of services, mobility as a service market is categorized into ride-hailing, ride-sharing, self-driving car service, and others. Ride-Sharing service is expected to grow at a CAGR of over 25.46% over the forecast period 2020 -2025.
Middle East & Africa is expected to grow significantly in the global mobility as a service (MaaS) market. This mainly due to increasing partnership and collaboration between technology providers and major auto manufacturers. For instance, in 2018, leading auto manufacturer Volkswagen AG has partnered with the Intel subsidiary Mobileye in order to commercialize the autonomous ride-sharing service in Israel by 2019. In this partnership, Mobileye will be responsible for providing autonomous technology in a fleet of electric vehicles provided by Volkswagen.
The major players of global mobility as a service market are Uber Technologies, Inc., Ola Cabs, Shuttl, Splyt Technologies Ltd., Transit Systems Pty Ltd., Lyft, Inc., Didi Chuxing Technology Co., Grab, Whim, Citymapper, SkedGo Pty Ltd, Moovit Inc., Moovel Group, Splyt Technologies Ltd., Ubigo Innovation AB, etc. Rising investments and expansion of MaaS by industry players have impacted significantly the market growth. For example, an Estonian ride-sharing company, Bolt is formerly known as Taxify has risen the funding worth USD 175 million from Daimler AG in May 2018. The company believes that this funding will help them in expanding their operations in Africa as wells as in the European region.
Segment Overview of Global Mobility as a Service Market
Service Overview, 2018-2025 (USD Billion)
- Self-driving car service
Vehicle Type Overview, 2018-2025 (USD Billion)
- Four Wheelers
- Three Wheelers
Regional Overview, 2018-2025 (USD Billion)
- North America
- The U.S.
- Rest of Europe
- Asia Pacific
- Rest of APAC
- South America
- Rest of South America
- The Middle East and Africa
- South Africa
- Rest of Middle East & Africa