Global Mobility-as-a-Service market is expected to reach USD 556.9 billion by 2031 up from 153.3 billion in 2022. The market is growing at a CAGR of 17.5% from 2023-2031.
The Mobility-as-a-Service market is a rapidly growing sector in the transportation industry that aims to revolutionize the way people travel by providing integrated, on-demand, and multi-modal transportation solutions. MaaS combines various modes of transportation, including public transit, ride-hailing services, car-sharing, bike-sharing, and more, into a single platform or application, allowing users to plan, book, and pay for their journeys seamlessly.
MaaS platforms integrate multiple modes of transportation, offering users a range of options for their journeys. This can include buses, trains, taxis, car rentals, bike rentals, scooters, and more. Users can easily compare different modes, select the most suitable option, and make bookings through a single app or platform.
The mobility-as-a-service market is witnessing significant investment and partnerships from various stakeholders, including transportation service providers, technology companies, and venture capitalists. However, challenges such as interoperability between different systems, data privacy, and regulatory hurdles still need to be addressed for the widespread adoption of MaaS. Nonetheless, the potential benefits of MaaS, including improved mobility, reduced congestion, enhanced user experience, and environmental sustainability, make it a promising market with tremendous growth opportunities.
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According to the United Nations, approximately 55% of the world's population currently resides in urban areas, and this number is expected to reach 68% by 2050. Rapid urbanization has led to increased traffic congestion, longer commutes, and environmental concerns. In fact, the INRIX Global Traffic Scorecard estimated that in 2021, congestion cost each U.S. driver an average of $1,146 and wasted approximately 26 hours of their time. As a result, there is a growing demand for efficient and sustainable transportation solutions like MaaS to alleviate congestion and enhance mobility in urban areas. Thus, it is driving growth of the mobility-as-a-service market.
The rise of on-demand services, such as ride-hailing and bike-sharing, has reshaped the transportation landscape. In the U.S. mobility-as-a-service market, the ride-hailing industry revenue is projected to reach $40 billion by 2025. These services have gained popularity due to their convenience, affordability, and user-friendly mobile apps. This trend has laid the foundation for MaaS by introducing users to app-based transportation solutions and fostering their willingness to embrace integrated platforms that offer a range of mobility options.
Governments and local authorities worldwide are recognizing the potential of MaaS to address transportation challenges and promote sustainable mobility. For instance, Finland's capital, Helsinki, launched the world's first large-scale MaaS experiment in 2017, which has since expanded into a full-fledged service with over 370,000 registered users. Moreover, the European Commission has encouraged the development of mobility-as-a-service market through its policies, aiming to integrate various modes of transport and improve accessibility. Such government support and policies are driving the growth and adoption of MaaS across different regions.
The convergence of Electric Vehicles (EVs) and 5Gtechnology is fueling a transformative trend in Mobility as a Service (MaaS). This groundbreaking combination of eco-friendly transportation and hyper-connectivity promises to revolutionize the way we move. EVs are leading the charge as sustainable alternatives to traditional vehicles, while 5G unlocks unprecedented connectivity possibilities. Together, they create a seamless and efficient mobility experience.
Electric Vehicles (EVs) are at the forefront of the MaaS revolution, addressing concerns about climate change and air pollution. With zero tailpipe emissions, EVs offer a sustainable solution for transportation. In the context of MaaS, they transform the mobility landscape into a greener and healthier ecosystem.
Apart from this, the deployment of 5G networks has unleashed remarkable connectivity opportunities. With lightning-fast speeds, ultra-low latency, and high data capacity, 5G acts as a catalyst for a fully interconnected world. In MaaS, 5G enables real-time communication between vehicles, infrastructure, and service providers. This connectivity enhances safety, optimizes traffic flow, and unlocks personalized services, creating a smarter transportation network.
One of the key challenges facing the MaaS market is the interoperability and seamless integration of various transportation modes and data systems. Different transportation providers often operate on separate platforms and utilize distinct data formats, making it challenging to achieve a unified experience for users. According to a study by McKinsey, lack of interoperability is one of the main barriers hindering the scalability of MaaS, as it requires collaboration and standardization among stakeholders to ensure smooth integration and data sharing.
As the urbanization continues to accelerate, on-demand services gain momentum, governments prioritize sustainable mobility, and interoperability challenges persist, the Mobility-as-a-Service market presents immense opportunities for innovation and growth in the transportation sector.
In the mobility-as-a-service market, the passenger transportation segment holds a dominant position globally. In 2022, this segment generated a substantial revenue of $108.24 billion. Furthermore, it is projected to maintain its strong growth trajectory with the second-highest compound annual growth rate (CAGR) of 25.4% during the forecast period. The increasing demand for integrated transportation solutions, seamless connectivity, and personalized travel experiences contribute to the significant revenue generated by the passenger transportation segment within the MaaS market.
Ride-hailing services continue to assert their dominance in the global mobility-as-a-service market. With convenience, accessibility, and flexible transportation options, ride-hailing remains a preferred choice for many users. In 2022, the revenue generated by the ride-hailing segment reached $57.82 billion. The growth prospects for ride-hailing are highly promising, with the revenue projected to exhibit significant growth throughout the forecast period. This growth can be attributed to factors such as the expanding user base, increasing adoption of app-based ride-hailing services, and continuous innovation by ride-hailing companies to enhance user experience and service quality.
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North America has emerged as the largest and most lucrative Mobility-as-a-Service market solutions, showcasing remarkable growth and dominance in recent years. In 2022, the region generated a staggering revenue of $44.91 billion, establishing its strong position in the global MaaS landscape. Notably, this revenue figure is a testament to the increasing adoption of MaaS platforms and the rising demand for integrated transportation solutions in the region.
Government support plays a crucial role in driving the adoption and implementation of Mobility-as-a-Service (MaaS) solutions. In the United States, the Department of Transportation (DOT) has been actively encouraging the development of MaaS to address transportation challenges. Notably, the DOT's Smart City Challenge awarded a significant grant of $40 million to Columbus, Ohio, in 2016. This funding supported the city's smart transportation initiatives, including the implementation of MaaS solutions. This demonstrates the commitment of the US government in promoting innovative transportation solutions.
Similarly, the Canadian government has shown support for mobility-as-a-service market as well. Transport Canada, the federal department responsible for transportation policies and programs, recognizes the importance of innovation and new technologies in improving mobility. Transport Canada has emphasized the potential of MaaS concepts to enhance transportation systems and foster sustainable mobility across the country.
North America is highly urbanized, with approximately 82% of its population living in urban areas, according to the United Nations. This urban concentration leads to increased traffic congestion, longer commuting times, and environmental concerns. Consequently, there is a strong demand for efficient and sustainable mobility solutions like MaaS to address these challenges.
To quantify the impact of congestion, the Texas A&M Transportation Institute's Urban Mobility Report estimated that congestion costs in the United States reached a staggering $166 billion in 2021. These costs account for wasted time and fuel consumed during traffic congestion. The substantial financial and time implications highlight the urgent need for integrated transportation solutions like MaaS to alleviate congestion, enhance efficiency, and improve the overall mobility experience.
Across North America mobility-as-a-service market, various cities and regions have initiated MaaS pilot programs to test and evaluate integrated mobility solutions. For example, in Canada, the Greater Toronto and Hamilton Area (GTHA) launched the Triplinx MaaS pilot project. This initiative aims to provide travelers with a seamless journey across different transportation modes, promoting the convenience and efficiency of MaaS.
In the United States, the Smart Columbus initiative emerged as the winner of the DOT's Smart City Challenge. Smart Columbus has implemented a comprehensive MaaS platform that integrates various transportation services. This initiative enhances mobility options for residents and visitors by providing seamless connectivity and improved access to transportation.
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