Corporate Employee Transportation Service Market - Growth, Trends, Covid-19 Impact, and Forecast (2023 - 2028)
The corporate employee transportation service market was valued at USD 32.38 billion and is expected to reach USD 44.48 billion, recording a CAGR of 5.44% over the forecast period.
The COVID-19 pandemic hampered the market by forcing many companies to work from home, resulting in less employee transportation. However, as economies have recovered from the lockdown, a return to office is expected to provide transportation service operators with numerous opportunities in the coming years. Moreover, governments in various states are also initiatives to improve employee commute systems. For instance,
Key HighlightsOver the long term, employee transportation services are becoming more popular as people have become more aware of the significance of improved transportation safety measures. In addition, with the low prices offered by transportation providers, employees are choosing them to save time and effort when traveling. Therefore, players are coming up with new product developments and launches for employee transportation services. For instance,
Key HighlightsRising incidents of transportation insecurity, assaults, rude behavior, and high fees in ride-hailing and ride-sharing vehicles have prompted employers to consider their employees' safety. This factor is also in charge of driving market growth.
Asia-Pacific is expected to dominate the market due to a growing corporate office presence. It is because many North American and European MNCs are establishing offices, factories, warehouses, and plants in countries such as India, China, and the Philippines, owing to rising demand for goods and low labor costs. For instance,
Key HighlightsWith the increased internet use among the global population, markets such as transportation services, vehicle rentals, and so on have primarily benefited their business operations in recent years. The booking ease, pre-estimated fee, comfortable journey, on-time arrival, and quick payment options are just a few factors driving markets such as shared mobility and employee transportation services worldwide.
The transportation industry is tremendously leading among internet-based business sectors, accounting for most of the digital economy. With the online platform's growth and increased competition among market operators, quick action and resolution of issues have become the most critical factor for companies to sustain their businesses in the current competitive environment.
Due to the inherent operations nature, there is a high reliance and dependency on the internet. More internet users are required than necessary for companies with a multi-city presence. As a result, companies frequently accept differential pricing arrangements within and/or across locations and need help to exercise greater bargaining power with vendors.
Other reasons for using these services include technological advancements in transportation, such as live tracking, cashless payments, cancellations, real-time vehicle monitoring, etc. Furthermore, the global IT emergence and other technology sectors toward the end of the last century necessitate the need for flexible working and operations. This operation created opportunities for many associated businesses and jobs. Employee transportation is one of them, becoming a requirement due to statutory regulations regarding employee safety.
With increased internet usage and technological advancements, the market is expected to grow consistently for operators, prompting them to maintain a good vehicle fleet for their business operations during the forecast period.
Asia-Pacific Region Expected to Dominate the MarketThe Asia-Pacific region is expected to grow significantly during the forecast period due to increasing corporate companies and rising demand for mass transit solutions by companies to attract a diverse employee range. Furthermore, the low labor cost in countries such as India, Japan, and China, attracts big firms to open their offices in these countries, expecting to drive demand for corporate transportation services in the region over the forecast period. For instance,
Furthermore, several key players in the market are implementing various growth strategies, such as partnerships and collaborations, capturing a growing market share in the region. For instance,
The market in focus is expected to grow significantly during the forecast period due to an increase in employee numbers across the country.
Competitive LandscapeThe market for corporate employee transportation services is fragmented, with few players utilizing technological assistance for fleet and employee commute management. Apart from using the most recent assistive technology, many major players are broadening the scope of their offerings. For instance,
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