Car Sharing Market Report

Global Car Sharing Market:

The global car sharing market size reached US$ 8.0 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 23.3 Billion by 2032, exhibiting a growth rate (CAGR) of 12.3% during 2024-2032. The increasing consumer preference for alternative modes of transportation that are convenient and cost-effective is one of the key factors bolstering the market.

Car Sharing Market Analysis:

• Major Market Drivers: The launch of favorable policies by government bodies to encourage the adoption of sustainable transportation options is primarily fueling the market. Moreover, the rising consumer environmental consciousness is also acting as another significant growth-inducing factor.
• Key Market Trends: The growing number of mobile apps that have made it easier than ever for individuals to book, find, and unlock shared vehicles is one of the emerging trends catalyzing the market. Besides this, the inflating popularity of digital platforms is further positively influencing the market.
• Competitive Landscape: Some of the prominent companies in the global market include Autolib (Bollore), Cambio Mobilitätsservice GmbH & Co. KG, Car2Go Ltd., CarShare Australia Pty. Ltd., Cityhop Ltd., Communauto Inc., DriveNow GmbH & Co. KG (BMW AG), Ekar FZ LLC, Getaround Inc., HOURCAR, Locomute (Pty.) Ltd., Lyft Inc., Mobility Cooperative, Modo Co-operative, Turo Inc. (ICA), and Zipcar Inc. (Avis Budget Group), among many others.
• Geographical Trends: Europe exhibits a clear dominance in the market, on account of the shifting preferences towards car ownership among the younger generations, who prioritize experiences over possessions. Furthermore, the elevating focus among the European Union on minimizing carbon emissions levels is also bolstering the regional market.
• Challenges and Opportunities: One of the primary challenges hindering the market is the rising concerns about ensuring vehicle availability and convenience for users. However, the introduction of advanced fleet management systems is expected to fuel the market in the coming years.
   

Car Sharing Market Trends:

Growing Integration of EVs

One of the significant trends in the market is the widespread adoption of electric vehicles. As environmental awareness continues to rise and regulations regarding emissions levels become stringent, various car sharing companies across countries are widely adopting EVs that appeal to eco-friendly individuals. For instance, in September 2023, Autonomy, one of the electric vehicle subscription companies, and the leading all-electric vehicle car-sharing platform, EV Mobility, LLC., collaborated to accelerate flexibility by making an electric vehicle available to anyone with a credit card, valid driver's license, and smartphone. Similarly, in September 2023, Marubeni Corporation introduced a PoC project for the car-sharing of electric vehicles (EVs) in Gunma Prefecture, Japan. Apart from this, EVs not only aid in reducing pollution but also lower operational costs associated with fuel and maintenance, thereby aligning with global sustainability goals. For instance, in March 2024, Uber developed a luxury electric vehicle-sharing service called 'Uber Comfort Electric' in New York City, U.S. In addition, it also unveiled a new product feature called 'Emissions Scorecard' to encourage customers to make eco-friendly choices. Furthermore, in January 2024, Míocar, one of the nonprofit car-sharing platforms, expanded its reach across the rural California Central Valley to bring electric transportation options and vehicles to low-income communities.

Increasing Digital Advancements

The inflating technological advancements, coupled with the elevating adoption of mobile apps, are positively influencing the car sharing market outlook, thereby enhancing user experience and operational efficiency. For instance, in March 2024, Arval Group developed a mobile car sharing application exclusively dedicated to companies, which focuses on the mobility and comfort of employees. The Arval Car Sharing app, like other apps in the Arval portfolio, assists fleet managers in streamlining fleet costs and provides employees with cars they can easily share. Besides this, mobile apps are gaining extensive traction, as they allow users with easy access to unlocking, booking, and locating vehicles. For example, in May 2024, Roamly, one of the API-enabled digital insurance platforms, announced the introduction of its proprietary car share insurance product specifically designed for commercial fleet vehicle operators. Through the launch, car sharing marketplace companies can cover the specific needs of users during both non-rental and rental periods, thereby providing modernized insurance protection to reward car-sharers while also removing premiums for features they aren't using, which, in turn, aids in safeguarding their profits. Apart from this, in April 2024, Yango, a global tech company, introduced Yango SuperApp, which makes it easy for individuals to select and rent a vehicle with just a few taps on their devices.

Emphasis on Urban Mobility Solutions

The rising traffic congestion, along with limited parking spaces, are making car sharing an integral part of urban mobility solutions. For instance, in January 2024, one of the German-based remote-driving startups, Vay, introduced a remotely driven rental car service in Las Vegas, Nevada, that enables users to rent a car on a per-minute basis, thereby offering a cost-effective and hassle-free mobility solution. Additionally, cities are collaborating with car sharing companies to integrate these services into public transportation networks to offer residents with convenient and flexible transportation options. For example, in December 2023, Zipcar partnered with university campuses, cities, and commercial as well as residential businesses to offer electric vehicles to drivers who need easy and affordable access to a vehicle. Apart from this, in May 2024, Seattle-based car-sharing firm Zero Emission Vehicle Cooperative (ZEV Co-op) partnered with Gonzaga University, Urbanova, and Avista to introduce an electric vehicle car sharing program in Spokane, U.S. In line with this, it allows users to borrow a car by joining ZEV CO-op and paying an hourly fee to use the car.

Global Car Sharing Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with the market forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on the car type, business model, and application.

Breakup by Car Type:

• Economy
• Executive
• Luxury
• Others
   

Economy dominates the market

The report has provided a detailed breakup and analysis of the market based on the car type. This includes economy, executive, luxury, and others. According to the report, economy represented the largest market segmentation.

Economy cars represent the largest segmentation in the car sharing market due to their affordability, fuel efficiency, and suitability for urban environments. These vehicles are highly preferred by car sharing companies and users alike, as they offer lower operational costs and appeal to a broad demographic seeking cost-effective transportation solutions. For instance, Zipcar's fleet predominantly consists of compact and subcompact economy cars like the Honda Fit and Toyota Yaris, which are ideal for city driving and short trips. The low rental rates of economy cars make car sharing an attractive alternative to traditional car rental services and personal vehicle ownership, especially for young professionals and students. Additionally, economy cars are easier to park and maneuver in congested urban areas, enhancing user convenience. Consequently, it is expected to fuel the segment’s growth in the coming years.

Breakup by Business Model:

• P2P
• Station Based
• Free-Floating
   

P2P business model dominates the market

The report has provided a detailed breakup and analysis of the market based on the business model. This includes P2P, station based, and free-floating. According to the report, the P2P business model represented the largest market segmentation.

The Peer-to-Peer (P2P) business model in the market has revolutionized the way individuals access and share vehicles. This model allows private car owners to rent out their vehicles when they are not in use, effectively turning underutilized assets into revenue-generating resources. Platforms like Turo and Getaround facilitate these transactions by connecting car owners with potential renters through user-friendly mobile apps and websites. For instance, Turo operates in numerous cities worldwide, allowing users to choose from a wide range of vehicles, from everyday sedans to luxury and specialty cars. This model benefits car owners by offsetting ownership costs and providing an additional income stream, while renters enjoy a diverse selection of vehicles at competitive prices. The P2P model also promotes more efficient use of existing cars, reducing the need for additional vehicles on the road and contributing to environmental sustainability. For example, in March 2024, Ejaro collaborated with Tawuniya, one of the peer-to-peer (P2P) car rental firms, to boost the car rental market growth in line with Saudi Arabia's Vision 2030.

Breakup by Application:

• Business
• Private
   

Business accounted for the largest car sharing market share

The report has provided a detailed breakup and analysis of the market based on the application. This includes business and private. According to the report, business represented the largest market segmentation.

Business use represents the largest market segmentation in the car sharing market due to the growing need for flexible, cost-effective transportation solutions among companies. Corporations are increasingly adopting car sharing services to manage their fleet requirements, reduce transportation costs, and enhance employee mobility. This shift is driven by the desire to avoid the high costs associated with owning and maintaining a corporate fleet, such as depreciation, insurance, and parking. For example, companies like Enterprise CarShare and Zipcar offer tailored programs that provide businesses with access to a fleet of vehicles on demand, allowing employees to use cars for client meetings, business trips, and daily commutes. These services often include fuel, insurance, and maintenance, simplifying logistics for businesses and enabling them to allocate resources more efficiently. Additionally, car sharing programs support corporate sustainability goals by reducing the overall number of vehicles needed and encouraging the use of fuel-efficient and electric vehicles.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia-Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

Europe exhibits a clear dominance in the market

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, Europe accounted for the largest market share.

Major cities across Europe have embraced car sharing as a key component of their transportation strategies, aiming to reduce traffic congestion and pollution. For example, in cities like Berlin and Paris, car sharing services, such as Share Now (formerly Car2Go and DriveNow), provide a large fleet of vehicles, including electric models, to cater to the demand for eco-friendly transport options. Additionally, companies like BlaBlaCar and Ubeeqo, offer both short-term car rentals and ride-sharing options, addressing various mobility needs. Besides this, according to the Arval Mobility Observatory - Fleet and Mobility Barometer 2023, 64% of companies in Romania have already implemented at least one mobility system for their employees, while 90% of them have planned investments or intend to invest in such sustainable mobility solutions. Furthermore, the wide availability of vehicles in urban centers is expected to fuel the regional market in the coming years.

Competitive Landscape:

The global car sharing market is experiencing significant growth due to the expansion of vehicle fleets to cater to increasing demand and serve a broader customer base. Companies are acquiring new vehicles, including electric and hybrid models, to offer a diverse range of options to users. Along with this, car sharing companies are investing in advanced technology solutions to improve the user experience. This includes mobile applications with user-friendly interfaces for booking, unlocking, and locating vehicles, and integrating features, such as real-time GPS tracking and vehicle condition monitoring. In addition, the introduction of eco-friendly vehicle options, such as electric or hybrid models, to reduce carbon emissions and promote environmentally responsible transportation choices is positively influencing the market. Furthermore, companies operating in the market often form partnerships and collaborations with other businesses and organizations to provide seamless integration and multi-modal transportation solutions, creating a positive market outlook.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major car sharing market companies have also been provided. Some of the key players in the market include:

• Autolib (Bollore)
• Cambio Mobilitätsservice GmbH & Co. KG
• Car2Go Ltd.
• CarShare Australia Pty. Ltd.
• Cityhop Ltd.
• Communauto Inc.
• DriveNow GmbH & Co. KG (BMW AG)
• Ekar FZ LLC
• Getaround Inc.
• HOURCAR
• Locomute (Pty.) Ltd.
• Lyft Inc.
• Mobility Cooperative
• Modo Co-operative
• Turo Inc. (ICA)
• Zipcar Inc. (Avis Budget Group)
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Car Sharing Market Recent Developments:

• May 2024: Roamly, one of the API-enabled digital insurance platforms, developed its proprietary car share insurance product specifically designed for commercial fleet vehicle operators.
• March 2024: Uber introduced a luxury electric vehicle-sharing service called 'Uber Comfort Electric' in New York City, U.S.
• March 2024: Arval Group launched a mobile car sharing application exclusively dedicated to companies, which focuses on the mobility and comfort of employees.

Car Sharing Market Report Scope:

Key Questions Answered in This Report:

• How has the global car sharing market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global car sharing market?
• What is the impact of each driver, restraint, and opportunity on the global car sharing market?
• What are the key regional markets?
• Which countries represent the most attractive car sharing market?
• What is the breakup of the market based on the car type?
• Which is the most attractive car type in the car sharing market?
• What is the breakup of the market based on the business model? 
• Which is the most attractive business model in the car sharing market?
• What is the breakup of the market based on the application?
• Which is the most attractive application in the car sharing market?
• What is the competitive structure of the global car sharing market?
• Who are the key players/companies in the global car sharing market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the car sharing market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global car sharing market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the car sharing industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.