The car sharing market is poised for significant growth in the coming years, driven by government initiatives promoting the use of shared mobility services. Incentives such as tax credits and cash rewards are encouraging employers to offer car sharing services to their employees, making it an attractive option for commuters. With more people opting for environmentally friendly transportation solutions, the demand for high-quality travel services is increasing.
The rapid integration of advanced technologies is also expected to create a lucrative potential for widespread adoption of car sharing services. Vehicle manufacturers are incorporating technologically advanced systems such as vehicle access and reservations into their cars, making it easier for organizations to adopt Mobility-as-a-Service platforms. For instance, Mastercard partnered with Portuguese mobility platform Ubirider to improve transit services by utilizing Ubirider's Mobility-as-a-Service platform Pick.
The global car sharing industry is segmented based on application, model, and region. The private application segment is set to witness more than 25% CAGR from 2023 to 2032, driven by the increased adoption of shared mobility services to minimize carbon emissions from personal automobiles. Private car sharing companies offer mobility-on-demand services that allow consumers to select vehicles based on their preferences while also delivering convenience and on-time availability.
By model, the car sharing market from the P2P model is foreseen to gain significant traction through 2032. The segment growth is attributed to rapid urbanization in several major cities across the globe. The P2P car-sharing model has been well suited to operate in areas with limited parking space, thus adding to its popularity.
Regionally, the car sharing market in North America is set to generate more than USD 2.5 billion in 2032. The support of regional governments for shared transportation is driving higher demand for car sharing, encouraging many service providers to expand their services in the region.