On-demand transportation Global Market Report 2024

On-demand transportation refers to a service utilized by passengers to book their journeys at a convenient time within the service operating hours, arranging pick-ups from agreed-upon locations. This mobility service is designed for areas with low demand for shared transportation, offering tailored convenience to commuters. From traditional dial-a-ride shuttle services and taxis to contemporary app-based pick-up and drop-off options, on-demand transport services aim to enhance ease and convenience in commuting.

The primary types of on-demand transportation include ride-sharing, vehicle rental or leasing, and ride-sourcing. Ride-sharing involves the sharing of automobile trips to reduce traffic congestion, alleviate parking demands, mitigate vehicle emissions, and create less stressful commutes. Vehicles encompass both four-wheelers and micro-mobility options. Applications span passenger transportation and goods transportation.

The on-demand transportation market research report is one of a series of new reports that provides on-demand transportation market statistics, including on-demand transportation industry global market size, regional shares, competitors with an on-demand transportation market share, detailed on-demand transportation market segments, market trends and opportunities, and any further data you may need to thrive in the on-demand transportation industry. This on-demand transportation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The on-demand transportation market size has grown exponentially in recent years. It will grow from $162.57 billion in 2023 to $198.16 billion in 2024 at a compound annual growth rate (CAGR) of 21.9%. The growth observed in the historic period can be attributed to the proliferation of smartphones and mobile applications, the rise in urbanization and congestion in cities, changing consumer preferences towards convenience and flexibility, the expansion of the gig economy and freelance work, and advancements in GPS and navigation technologies.

The on-demand transportation market size is expected to see exponential growth in the next few years. It will grow to $422.2 billion in 2028 at a compound annual growth rate (CAGR) of 20.8%. The anticipated growth in the forecast period can be attributed to the surge in the adoption of electric and autonomous vehicles, the integration of multimodal transportation options, an increased demand for eco-friendly and sustainable transportation solutions, the rise of ride-hailing services, and the escalation in fuel prices. Key trends expected in the forecast period involve the utilization of artificial intelligence for predictive demand analysis and route optimization, the development of on-demand transportation services catering to specific demographics, a focus on contactless and cashless payment options in on-demand platforms, the customization of on-demand services for niche markets and specialized needs, and the integration of real-time communication and feedback features.

The anticipated growth of the on-demand transportation market is expected to be propelled by the increasing tourism and working-class population. Tourism involves the movement of individuals to different countries or locations for personal, business, or professional purposes, and on-demand transportation services play a crucial role in facilitating convenient and efficient journeys for both tourists and the working-class. This includes the ability to book rides at convenient times and be picked up from agreed-upon locations, enhancing the overall ease of transportation. According to a report from the World Tourism Organization (UNWTO) in January 2022, global tourism experienced a 4% increase in 2021 compared to 2020, reaching 415 million from 400 million. Thus, the growth of tourism and the working-class population is a key driver for the on-demand transportation market.

The expansion of the on-demand transportation market is also expected to be driven by the widespread use of smartphones. Smartphones, which integrate cellular and mobile computing functions, have become ubiquitous and offer advanced features. On-demand transportation services leverage smartphones, providing users with convenient and flexible options to book rides, connect with drivers, and access transportation services when needed. Demand Sage reported in July 2023 that the global count of smartphone users reached 6.8 billion, an increase from around 6.6 billion users in 2022. Therefore, the proliferation of smartphones is a significant factor contributing to the growth of the on-demand transportation market.

Advancements in automotive transportation represent a notable trend gaining popularity in the on-demand transportation market. Major companies in the on-road transportation sector are actively seeking innovations to enhance the efficiency of existing transportation methods, and emerging technologies are poised to reshape the entire landscape of transportation. The development of self-driving cars, exemplified by initiatives like the Google Car and Tesla, is turning the concept of autonomous vehicles into a reality. Uber Technologies Inc., a US-based transportation company, introduced a new service in December 2021, allowing users to book an Uber ride through an official Uber Whatsapp chatbot, eliminating the need for a separate app. The Whatsapp chat interface manages user registration, ride booking, and trip receipts.

Major players in the on-demand transportation market are launching autonomous vehicle (AV) transit services, such as Valley wAVe, to cater to the needs of the aging population. Valley wAVe is an on-demand autonomous public transit service utilizing AVs to provide flexible and efficient transportation. In April 2023, May Mobility, a US-based company specializing in autonomous vehicle technology, launched Arizona's first on-demand autonomous public transit service, Valley wAVe, serving the retirement community of Sun City. Powered by Via, a global leader in TransitTech, the service aims to provide safe, reliable, and equitable on-demand transportation for the aging community while studying how AV technology can address mobility challenges faced by older adults.

In November 2021, Uber Freight, a US-based transportation and logistics platform, acquired Transplace from TPG Capital for $2.25 billion. This acquisition brings together Uber Freight’s digitally-enabled carrier network with Transplace’s shipper technology and operational solutions, creating a leading logistics technology platform to meet the evolving needs of shippers and carriers globally. Transplace is a US-based transportation and logistics service provider operating in the on-road transportation market.

Major companies operating in the in the on-demand transportation market report are Avis Budget Group Inc., BlaBlaCar SA, Bayerische Motoren Werke Group AG, Bolt Financial Inc., Cabify SA, Careem Inc., Curb Mobility Private Ltd., Daimler AG, Europcar Mobility Group SA, Ford Motor Company, General Motor Company, Gett Inc., Grab Holdings Inc., Hyundai Motor Company, International Business Machines Corp, Lyft Inc., Didi Chuxing Technology Co, Enterprise Holdings Inc., Jugnoo, Uber Technologies Inc, Bird Global Inc., MOIA GmbH, Via com, City Mapper Ltd., Taxify BV, ANI Technologies Pvt Ltd., PT Gojek, Wingz Inc., Hailo Technologies Ltd., Bolt Mobility

Asia-Pacific was the largest region in the on-demand transportation market in 2023. North America is expected to be the fastest growing region in the forecast period. The regions covered in the on-demand transportation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa

The countries covered in the on-demand transportation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

The on-demand transportation market includes revenues earned by entities by establishing connections between remote places and providing customers complete mobility through digital apps. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified)).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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