Car Sharing Market Size By Application (Business, Private), By Business Model (Round Trip, One Way), By Model (P2P, Station-based, Free-floating) & Global Forecast, 2023 - 2032

Car Sharing Market Size By Application (Business, Private), By Business Model (Round Trip, One Way), By Model (P2P, Station-based, Free-floating) & Global Forecast, 2023 - 2032

Global Car Sharing Market is poised to record significant growth attributed to the rising demand for government initiatives promoting the use of car sharing services.
Government incentives assist in cutting prices, improving accessibility, and promoting car sharing. The United States government has implemented several incentives to encourage the usage of vehicle sharing. Employers who provide car sharing services to their workers are eligible for tax credits and cash incentives from the state of Washington. Employees can receive up to USD 60 in incentives each year. Such favorable government initiatives will propel industry growth through 2032. Additionally, the appreciable rise in the number of inbound and domestic travelers in numerous nations has increased demand for high-quality and dependable travel services for their tours, positively influencing business growth.
Furthermore, the rapid integration of sophisticated technologies is expected to create a lucrative potential for the widespread adoption of car sharing services. To maximize their market share, vehicle manufacturers globally are aggressively incorporating technologically advanced systems such as vehicle access and reservations into their cars.
The enhanced features of route planning, effective payment interface, and others that enable organizations to adopt the Mobility-as-a-Service platform will influence the market outlook over 2023-2032. For instance, in February 2023, Mastercard collaborated with the Portuguese mobility platform Ubirider to improve its transit services by utilizing Ubirider's Mobility-as-a-Service platform Pick. This partnership intends to develop a more sustainable and efficient solution for transport operators' digital payment and ticketing.
The global car sharing industry is segmented based on application, model, and region.
The car sharing market from the private application segment is set to witness more than 25% CAGR from 2023 to 2032, owing to the increased adoption of shared mobility services to minimize carbon emissions from personal automobiles. Private car sharing companies offer mobility-on-demand services that allow consumers to select automobiles based on their preferences while also delivering convenience and on-time availability. This service will drastically reduce a vehicle’s idle time, thus, freeing up space, which may foster segment development.
By model, the car sharing market from the P2P model is foreseen to gain significant traction through 2032. The segment growth is attributed to the rapid urbanization in several major cities across the globe. The P2P car-sharing model has been well suited to operate in areas with limited parking space, thus, adding to its popularity. A business using this model does not have its own fleet; instead, it consists of a fleet of privately owned cars, trucks, and other vehicles, whose owners receive a portion of the payment costs for allowing the use of their cars while they are not in use.
Regionally, the car sharing market in North America is set to generate more than USD 2.5 billion in 2032. The support of the regional governments for shared transportation is driving higher demand for car sharing, encouraging many service providers to expand their services in the region. To cite an instance, in November 2022, the Southern Alliance for Clean Energy in collaboration with Centralina Regional Council and the City of Charlotte, began a new electric vehicle car sharing program in Charlotte, North Carolina.