Transparency Market Research has released a new market report titled “On-demand Transportation Market (Type: Ride Sharing, Vehicle Leasing/Rental, and Ride Sourcing; Business Model: P2P, B2B, and B2C; Vehicle Type: Passenger Cars, LCVs, HCVs, Buses & Coaches, and Micro-mobility; Autonomy Level: Manual, Semi-Autonomous, and Autonomous; Power Source: Fuel Powered, HEV, PHEV, and BEV; Application: Passenger Transportation and Goods Transportation, and Region: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa) – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2018–2026.” According to the report, the global on-demand transportation market is expected to expand at a CAGR of about 14% during the forecast period.
The transportation industry is undergoing significant transformation and people are adopting online booking applications in order to book a mode or means of transportation. Rising traffic congestion and high fuel cost are key factors driving the adoption of on-demand transportation services. Adoption of smartphone-based internet services is rising among consumers, primarily due to the increased usage of smartphones, ease of operating the app, faster internet connectivity, and presence of globally leading and local service providers coupled with lower charges of services. High cost of vehicle ownership is encouraging people to prefer on-demand transportation services owing to their cost effectiveness and availability as per the requirement.
Countries from Europe and North America are well-developed and witness extensive adoption of advanced technologies and smartphones. Availability of faster internet connectivity and presence of globally leading service providers coupled with higher rate of adoption from consumers led the organized sector to hold a major share of the market in North America and Europe. However, in other regions, the unorganized segment accounts for major share of the market, in terms of revenue. Vehicles utilized in the unorganized sector are generally privately owned. These are considered as private services, as unorganized services cannot be availed through internet or smartphone-based apps.
In terms of type, ride sourcing is an emerging trend across the globe, in which consumers can book a ride via a smartphone-based app. Ease of operating the app, increased penetration of smartphone users, and availability of reliable internet services are fueling the demand for ride sourcing services. Ride sourcing services are flexible and hence, a large number of consumers traveling to workplaces, homes, to restaurants, and colleges prefer ride sourcing services.
Request For Covid19 Impact Analysis Across Industries And Markets @ https://www.transparencymarketresearch.com/sample/sample.php?flag=covid19&rep_id=55536
Thus, the demand for ride sourcing services is increasing owing to an increase in the working class population. Low rate of motorization, lack of adequate public transportation facility, crowded public transportation, and increase in fuel prices coupled with elimination of driving are fueling the ride sourcing segment of the global on-demand transportation market. The ride sourcing segment of the market is anticipated to expand at a CAGR of about 20% during the forecast period.
Based on business model, the P2P segment is a well-established segment and is expanding at a significant rate owing to the cost-effectiveness of the journey. Moreover, the expansion of the P2P segment can be a solution to reduce emission from vehicles, owing to sharing of the vehicle by multiple travelers on the same route. Furthermore, software solution providers or platform providing companies are increasing their own fleet size in order to boost revenue, which in turn is driving the B2C segment.
Autonomous technologies have proven to be highly effective in reducing the number of accidents occurring due to driver errors. Consequently, regulatory bodies across several nations are mandating several ADAS (advance driver assistance system) technologies into vehicles. ADAS technologies, such as lane keep assists, brake assist technology, and adaptive cruise control, drive the vehicle automatically; consequently, consumers are preferring such semi-autonomous vehicles owing to rising concern for safety among society. Consumer demand for increased in-vehicle safety, incorporation of ADAS technologies at manufacturers end, and regulations implemented by governing bodies are fueling the demand for semi-autonomous vehicles across the globe.