On-Demand Transportation Market Size, Share & Trends Report

On-Demand Transportation Market Size, Share & Trends Analysis Report By Service Type (E-Hailing, Car Rental, Car Sharing), By Vehicle Type, By Vehicle Connectivity (V2V, V2P), And Segment Forecasts, 2018 - 2025

  • Published Date: Feb, 2018
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-097-2
  • Format: Electronic (PDF)
  • Historical Data: 2014-2016
  • Number of Pages: 96

Industry Outlook

The global on-demand transportation market size was valued at USD 60.9 billion in 2016. Increasing penetration of smartphone and connected vehicles is one of the key trends supporting market growth. Additionally, increased traffic & fuel costs and reduced parking spaces have elevated the adoption of on-demand transportation services.

High costs of automobile have boosted the inclination towards on-demand transportation services, as these services enable users to pre-book, modify, and cancel their taxi bookings at lower costs through applications. Surging usage of car sharing services by millennials is also expected to bolster the market growth.

U.S. on-demand transportation market

On-demand transportation services provide benefits such as flexibility of traveling and minimal maintenance costs to users. Car sharing applications such as Uber and Gett require seamless internet connectivity as they connect to the host server for reserving bookings of users.

Substandard connectivity, especially in developing economies such as Africa, Mexico, and MEA, is one of the major challenges faced by market players. Furthermore, concerns related to high costs of infrastructure development and internet connectivity are anticipated to inhibit the growth of the market.

Service Type Insights

The e-hailing services segment is estimated to be the fastest-growing segment. Growing penetration of smartphones and car sharing applications are supplementing the growth of this segment. Increasing traffic and rising fuel costs are anticipated to bolster the growth of the segment. Various development programs undertaken by several governments are also expected to boost market growth. For instance, in 2016, the government of Malaysia launched the Taxi Industry Transformation Programme (TITP), a plan that aims at modernizing and improving the urban public transport in the region.

Additionally, with the advent of car sharing applications, necessity of seamless internet connectivity is the major concern. Therefore, on-demand transportation service providers have developed applications that do not require internet connection.

Vehicle Type Insights

Micro mobility offers numerous benefits such as reduced fuel consumption and flexible mobility.  Additionally, it allows improved cost and energy efficiency, which are impelling users to choose this vehicle type. Increasing environmental regulations across the globe coupled with stringent norms pertaining to vehicle production are encouraging users to adopt this vehicle type. As a result, the segment is poised to expand at the highest CAGR during the forecast period.

However, four-wheelers also offer benefits such as reduction in noise pollution. Rising consumer disposable income and comfort offered by four-wheelers are also contributing to the growth of the segment. Therefore, the segment is projected to maintain its lead in the market throughout the forecast horizon.

Vehicle Connectivity Insights

On-demand transportation services provide enhanced security to pedestrians by enabling them to connect with automated vehicles via a network technology. Pedestrians receive real-time information on cross traffic and lane changing alerts.

On-demand transportation market

Enhanced flexibility and security provided by V2P connectivity are leading to increased adoption of connectivity services by users. On-demand transportation offers vehicle-to-infrastructure (V2I) connectivity, which enables vehicles to connect with their country’s infrastructure such as highways and RFIDs. This enhances the security of vehicles and passengers and therefore, the adoption of V2I connectivity is also expected to increase at a noteworthy pace.

Regional Insights

Based on region, the market has been segmented into North America, Europe, Asia Pacific and Rest of the World (RoW). Factors such as consumer behavior, disposable income, fuel prices, and government initiatives play a pivotal role in influencing the growth of the market across different regions.

North America dominated the market followed by Asia Pacific and Europe in 2016. Presence of major players coupled with favorable government initiatives, the market in North America will continue to rise at a steady growth rate.

The market has observed high adoption rate in European countries such as France and Germany. Supportive regulatory framework in the region is also propelling the market. In APAC, increasing fuel prices, traffic congestions, and environmental emission regulations are supporting the growth of the market. By 2025, Asia Pacific is expected to rise to the forefront of the market.

On-Demand Transportation Market Share Insights     

Prominent participants in the market include International Business Machines Corporation (IBM); BMW Group; Daimler Group; Ford Motor Company; General Motor Company; Gett, Inc.; and Robert Bosch GmbH. The key players in the market are focusing on collaborations with other players. They are making huge investments in R&D to develop innovative solutions and gain a competitive edge over others.

They have adopted mergers & acquisitions as the key strategy to gain momentum in the market. For instance, in 2015, BMW Group, Audi AG, and Daimler Group acquired HERE, Nokia’s digital mapping and location business, for USD 3.1 billion. The acquisition was aimed to strengthen BMW Group’s mapping capabilities.

Report Scope



Base year for estimation


Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation

Revenue in USD Million & CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, and Rest of World

Country scope

U.S., Canada, Germany, France, Korea, Japan, and China

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

15% free customization scope (equivalent to 5 analysts working days)

If you need specific market information that is not currently within the scope of the report, we will provide it to you as a part of the customization

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2025. For this study, Grand View Research has segmented the global on-demand transportation market report based on service types, vehicle types, vehicle connectivity, and regions:

  • Service Type Outlook (Revenue, USD Million, 2014 - 2025)

    • E-Hailing

    • Car Sharing

    • Car Rental

    • Station-Based Mobility

  • Vehicle Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Four-Wheeler

    • Micro Mobility

  • Vehicle Connectivity Outlook (Revenue, USD Million, 2014 - 2025)

    • V2V

    • V2I

    • V2P

    • V2N

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • Germany

      • France

    • Asia Pacific

      • China

      • Japan

      • Korea

    • RoW

Key questions answered by the report
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