Mobility as a Service Market - Growth, Trends, COVID-19 Impact, And Forecasts (2023 - 2028)

Mobility as a Service Market - Growth, Trends, COVID-19 Impact, And Forecasts (2023 - 2028)

The Mobility as a Service (MaaS) Market was valued at USD 15.69 billion in 2021, and it is anticipated to grow up to USD 78.46 billion by 2027, registering a CAGR of more than 30% during the forecast period.

The COVID-19 pandemic had a negative impact on the mobility as a Service Market. With the lockdown and social distancing norms implemented worldwide, the need for mobility was reduced except for emergency purposes. With almost zero public movements, the major business area of the market was severely hit, and the economy took a nosedive. Additionally, the social distancing norms across different countries forced people to opt for private transport over the usual ride-hailing services, which further restricted the growth of the market for 2020. Even the post-pandemic revival expectations for the market do not look great due to the general preference for private mobility.

The major factors driving the growth of the market are increasing urbanization, rise in pollution levels around the world, ownership cost of vehicles, such as maintenance, insurance cost, which is mandatory for vehicle owners, and also the parking concern, which is one of the major issues in most of the Tier-1 cities across the world.

Governments are also taking initiatives to make shared mobility popular, thereby driving the MaaS market worldwide. With an increasing number of people shifting toward shared mobility, i.e., by driving their personal vehicles and sharing their rides with other commuters, which has been gradually solving the problem of urban traffic congestion. Thus, not just the national governments but also the state/province or local levels are making efforts to augment the popularity of the concept.

The major factor driving the growth of the market is the increasing urbanization and the growing number of government initiatives to reduce pollution and improve the transportation infrastructure across the world. For instance, the urbanization percentage of North America, Latin America, Europe, and Asia stood at 82%, 81%, 75%, and 52%, respectively, in 2021. These high numbers indicate the growing need for an efficient transportation system across different countries and also meet the increasing demand for better transportation facilities.

Furthermore, urbanization and increased dependence on cars is leading to traffic congestion and have created a good market opportunity for companies in the mobility services business to cater to the increasing demand from the transportation sector.

In developing countries, like India, with mobility as a service (MaaS) still in nascent stages, different sustainable solutions, like Smart Cities Scheme or Atal Mission for Rejuvenation and Urban Transformation (AMRUT), lay heavy focus on improving urban mobility and public transport systems. With better investments in public transport systems, digitalizing the existing systems has also driven the market growth.

Asia-Pacific is the largest market owing to the dominance of some of the leading vendors, such as Whim, Citymapper, Tanzer, and Moovel. Additionally, developed economies in Asia, such as China, Singapore, South Korea, Japan, and a few others, are the early adopters of MaaS services. These countries are investing in smart transportation infrastructure, and the planned investments to improve urban transport and traffic infrastructure are expected to drive the Asian market. The increased digitalization has further aided the market growth by providing efficient ride reservation and tracking technologies.

Additionally, increased concerns about the environmental impacts of automobiles are driving people to opt for ride-hailing and carpooling services provided by the MaaS companies. Furthermore, countries with a high number of passenger cars in relation to population are the main target markets due to the availability of vehicles for the MaaS providing companies.

User penetration for the MaaS market in Europe and the United States has been comparatively lower compared to Asia, mainly due to the concerns over private data abuse and the local law regulations. Due to the points mentioned above, despite the lower growth rate compared to the Asia-Pacific, the market for the MaaS industry is expected to have significant opportunities and growth in both Europe and North American regions.

The mobility as a service market is fragmented, with several players accounting for significant shares in the market. Some prominent companies in the mobility as a service market are Uber, Didi, Beeline mobility, Moovit, and others. Companies are investing heavily in R&D for the innovation of new and advanced products.

In May 2021, Uber, Mobilize, and BlaBlaCar have joined forces to develop and launch a sustainable mobility services project, with a view to optimizing urban mobility, especially in the European region.

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