On-Demand Transportation Market Report 2025

This on-demand transportation report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The on-demand transportation market size has grown exponentially in recent years. It will grow from $195.08 billion in 2024 to $236.86 billion in 2025 at a compound annual growth rate (CAGR) of 21.4%. The growth in the historic period can be attributed to proliferation of smartphones and mobile applications, increase in urbanization and congestion in cities, changing consumer preferences towards convenience and flexibility, growth inThe gig economy and freelance work, advances in GPS and navigation.

The on-demand transportation market size is expected to see exponential growth in the next few years. It will grow to $506.99 billion in 2029 at a compound annual growth rate (CAGR) of 21%. The growth in the forecast period can be attributed to surge in adoption of electric and autonomous vehicles, integration of multimodal transportation options, growth in the demand for eco-friendly and sustainable transportation solutions, rise of ride-hailing services, increasing in fuel prices. Major trends in the forecast period include use of artificial intelligence for predictive demand analysis and route optimization, development of on-demand transportation services catering to specific demographics, emphasis on contactless and cashless payment options in on-demand platforms, customization of on-demand services for niche markets and specialized needs, integration of real-time communication and feedback features.

The anticipated growth of the on-demand transportation market is expected to be fueled by an increase in tourism and a working-class population. Tourism is defined as a social and economic phenomenon involving the movement of individuals to destinations outside their regular environment for personal, business, or professional reasons. On-demand transportation benefits both tourists and the working class by allowing them to book rides at their convenience and facilitating quicker, easier pickups from designated locations. For example, in November 2023, the UNWTO (United Nations World Tourism Organization), a non-profit organization based in Spain, reported that approximately 975 million international tourists traveled between January and September 2023, reflecting a 38% increase compared to the same period in 2022, with a 22% rise in international tourist arrivals during the third quarter of 2023. Consequently, the increasing levels of tourism and the working-class population are contributing to the growth of 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.

Major companies in the on-demand transportation market are concentrating on technological advancements, such as public transport trials, to enhance service efficiency, improve user experience, and increase accessibility. These trials aim to assess the feasibility of on-demand services as a sustainable and effective public transportation option, potentially shaping future transportation strategies in the area. For example, in May 2024, Skånetrafiken, an organization based in Sweden responsible for public transportation in the Skåne region, including bus and train services, launched a new on-demand public transport trial. This initiative involves the implementation of a flexible transit service that allows passengers to request rides through a mobile app, providing a customized transportation solution that responds to real-time demand.

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 September 2024, Van Pool Transportation LLC, a U.S.-based company specializing in transportation solutions such as corporate shuttles and commuter services, acquired Control-Transaction Corporate Shuttles, Inc. for an undisclosed amount. This acquisition is intended to enhance Van Pool Transportation LLC's corporate transportation services, broaden its customer base, and boost operational efficiency. Control-Transaction Corporate Shuttles, Inc. is also a U.S.-based company that specializes in providing transportation solutions, particularly for corporate clients.

Major companies operating in the on-demand transportation market include Avis Budget Group Inc., BlaBlaCar SA, Bolt Financial Inc., Cabify SA, Careem Inc., Curb Mobility Private Ltd., Daimler AG, Europcar Mobility Group SA, Ford Motor Company, General Motor Company, Grab Holdings Inc., Hyundai Motor Company, Lyft Inc., Didi Chuxing Technology Co, Enterprise Holdings Inc., Jugnoo, Uber Technologies Inc, Bird Global Inc., MOIA GmbH, ANI Technologies Pvt Ltd., PT Gojek, Bolt Mobility.

Asia-Pacific was the largest region in the on-demand transportation market in 2024. 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.

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 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.

This product will be delivered within 3-5 business days.