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Market Dynamics 

Driver: Rapid Urbanization and Growing Traffic Congestion

Mobility-as-a-service market is largely driven by urbanization. Currently, 55% of the global population lives in cities, according to the United Nations, and this number is expected to rise to 68% by 2050. This has caused traffic jams to become more frequent and intense, commutes longer and environmental issues more pressing. For example, congestion cost each US driver $1,146 on average and wasted around 26 hours of their time this year alone, says INRIX Global Traffic Scorecard. In addition, more than half of global population already reside in urban areas with over 60% doing so by 2025 following World Health Organization records.

The exponential growth in urban dwellers has created demand for MaaS as people seek efficient alternatives to conventional transportation systems. Europe had the second largest mobility-as-a-service market share in 2023 mainly due to increased city living resulting from high rates of urbanization coupled with population surges especially within major metropolises like London or Paris where numbers are projected at about 9 million inhabitants each. Asia-Pacific also presents significant prospects for this industry since its crowded cities are experiencing rapid growths aggravated further by deteriorating transport congestions. Hence, there being urgent need for integrated sustainable transport solutions which can be achieved through enactment government legislations aimed at promoting creation adoption maas platforms among others. This is following convergence between telecoms improved mobile networks coverage speeds such as 4G/5G penetration levels smartphones usage. 

Trend: Significant Growth in On-Demand Services

The transportation landscape has undergone significant changes with the advent of on-demand services like ride-hailing and bike-sharing. The ride-hailing industry revenue is estimated to be $40 billion in 2025, accounting for the largest market share in the US mobility-as-a-service sector. Convenience, affordability, and user-friendly mobile apps have contributed to their popularity. Didi Chuxing and Uber Technologies Inc., among others play a key role in this burgeoning field. This development has set the stage for Mobility-as-a-service market by exposing users to app-oriented transport solutions and cultivating their readiness to adopt inclusive platforms that provide various options for mobility. 

Moreover, it also points towards an exciting future as part of maas ecosystem where annual compound rate growth would reach up to 17.5%. According to Astute Analytica, ride hailing users are expected to hit 1.2 billion mark by 2030. From recent report, it has been found that around 55% urban transport will be on demand basis within by 2040. Wherein, electric scooter proliferation is adding more value into Maas concept whose adoption rate increased upwards of 30% in 2023. Apart from this, a survey showed 67% millennials prefer using shared vehicles than owning their personal one. In addition, self-driving taxi accounts for 10% all current taxi trips which were carried out in 2023.

Challenge: High Market Competition and Profitability

The mobility-as-a-service market is full of competitors and most of them are looking to tap the largest portion of the market. The intense competition among the players has the already started the price war and impacted profitability for service providers. However, it is forecasted that worldwide MaaS market will grow up to US$ 654.36 billion by 2032 but still companies are not sure about their profits yet. Today, most of prominent MaaS providers such as Uber and Ola operate with low profit margins and rely on venture capital funding to keep running their business. Uber and Lyft which are known as ride-hailing giants are not profitable yet even though they have large number of customers around the world.

There is competition not only between traditional transport services but also from new players and technological disruptors who have entered into this field recently. Wherein, autonomous vehicles, electric scooters or bike sharing systems among others are few examples. Besides these factors, shared cycle usage rate is predicted to reach 306 million users by 2025, which means more pressure for traditional providers in the mobility-as-a-service market who are already struggling with their profitability due to tough competition among themselves as well as with other types like public transports. Furthermore, tech giants like Google or Apple entering mobility space poses great threats towards existing players because these companies possess enough financial resources along with technological know-how needed for creating disruptions within markets followed by capturing large shares.

The success within mobility-as-a-service market demands creativity in terms of revenue models and streams. Many businesses explore subscription-based models while others partner up with local authorities so as to gain more money-making opportunities through value-addition services rendered alongside basic ones like transportation itself. 

Segmental Analysis 

By Application

In the mobility-as-a-service market, the passenger transportation segment holds a dominant position globally. In 2023, this segment generated a substantial revenue of $131.24 billion, accounting for 90.9% of the total MaaS market revenue. Furthermore, it is projected to maintain its strong growth trajectory with the second-highest CAGR of 25.4% during the forecast period. 

The integrated transport solutions are growing in demand and have seen a 30% YoY increase in subscriptions. Moreover, 85% of people mention seamless connectivity as their main reason behind choosing MaaS services while another important factor for many is personalized travelling: as such where individuals can themselves decide what aspects should be customized. About 70% respondents who participated in an online survey said they would prefer service provider giving them option which may allow them personalize their own travel experience. However, one major catalysts driving growth within this division stems from urbans dweller and their number will rise to 68% by 2050.

Additionally, rapidly growing disposable incomes which have risen globally on average by 3.5% per annum over same period supporting higher expenditure levels towards mobility-as-a-service market. Although, there has also been some reduction observed around car ownership rates especially among younger generations but even then, environmental consciousness remains strong among them. Moreover, governments around the world are taking also taking effort to develop more number of smart cities and have collectively set aside US$2.57 trillion for various smart city development projects for 2023–2025.

By Product

Ride-hailing services are dominating the global mobility-as-a-service market. Wherein, it is considered by many as the most convenient and accessible means of flexible transportation. In 2023, ride-hailing segment generated 51.6% of total market revenue. The future of ride-hailing looks bright in terms of development. There was a 12% surge in users in 2023 alone and the market witnessed a significant growth in app-based solutions being adopted widely for these services, with three out of four customers preferring them to traditional methods. Expectations are that growth will also come through continuous improvement by ride hailing firms like introduction self-driving cars among other innovations or even global adoption supported by increased penetration rate which stood at 83% worldwide as at end year 2022.

The demand driven factor behind rapid growth of the mobility-as-a-service market is urbanization, where over 55% of world population resides in cities. This, in turn, is driving need for better transport systems and minimum environmental impact like lower carbon emissions per trip compared against private cars. Furthermore, competitive pricing has led to 5% drop in charges on average trips taken via app-based platforms. While MaaS integration has seen rise from previous years as 65% travelers switched modes and frequently making use multiple options available.

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Regional Analysis 

Over the past few years, North America has become the biggest and most profitable mobility-as-a-service market. Showing tremendous growth and supremacy, the region in 2023 accounted for 30% of the total revenue share. This leap in earnings indicates that more people are now using MaaS platforms, which offer all transport services under one roof. The catalysts for such a development were high levels of urbanization with cities covering up to 82% of land leading congestion on highways due to longer hours spent traveling between home and work places. Urban Mobility Report by Texas A&M Transportation Institute revealed that traffic jams cost United States $166 billion last year alone. Thus, there is need to have efficient sustainable mobility systems like MaaS in place.

Driving the adoption and application of MaaS solutions is highly dependent on assistance from the government. The U.S. Department of Transportation (DOT) has taken steps to advance MaaS as a way of tackling transport issues. In 2016, Columbus received a $40-million grant from the DOT’s Smart City Challenge for smart transport schemes involving MaaS among others. Moreover, $500 million were set aside by the US government in 2023 for smart transportation schemes with a considerable fraction allocated towards MaaS development. Similarly, the Canadian Government has shown its support for mobility-as-a-service market too. According to Transport Canada “mobility improvements rely on new ideas” hence they have been putting aside US$ 100 million since 2021 for such projects within MaaS sector alone.  While in GTHA (Greater Toronto and Hamilton Area), Triplinx program was launched which seeks at enabling people move easily through different modes of transport thereby enhancing convenience as well as efficiency in utilizing MaaS services.

In order to test and evaluate various integrated mobility solutions, a number of MaaS pilot programs have been established in response to the urbanization and congestion issues facing North America. The Smart Columbus initiative, which was awarded the DOT’s Smart City Challenge in the United States, implemented an extensive MaaS platform that interconnects different transport services thereby increasing transportation options for residents and visitors alike. In 2023 alone, fifteen US cities launched their own federal funded ($10 million each) MaaS pilots. However, it wasn’t just them- Canada made sure not be left behind when Vancouver-based company TransLink started its own congestion-reducing efficiency-improving transit system pilot project in 2022 among other things too! These ventures show just how committed this region is towards achieving success with mobility-as-a-service market. According to predictions by 2025 a 25% of all American towns will adopt such platforms leading way towards transforming urban travel as well as combating traffic jams along with environmental problems.

Top Players in Global Mobility-as-a-Service Market

• Uber Technologies Inc.
• Lyft, Inc.
• Didi Chuxing
• Careem
• BlaBlaCar
• ANI Technologies Pvt. Ltd.
• Mobike
• LimeBike
• Bird Rides Inc.
• Waze Mobile Ltd.
• Resferber Labs Private Limited
• The Hertz Corporation
• Avis Rent A Car System
• SIXT SE
• Bridj Pty Ltd.
• GoGo Tech Limited
• ZIFY SAS
• Grab
• Other Prominent Players

Market Segmentation Overview

By Application

• Passenger Transportation
• Micro-Mobility
• Freight Transportation

By Product

• Ride Hailing
• Ride Sharing
• Car Pool
• Rental

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Western Europe
    • The UK
    • Germany
    • France
    • Italy
    • Spain
    • Rest of Western Europe
  • Eastern Europe
    • Poland
    • Russia
    • Rest of Eastern Europe
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Australia & New Zealand
  • ASEAN
  • Rest of Asia Pacific
• Middle East & Africa
  • UAE
  • Saudi Arabia
  • South Africa
  • Rest of MEA
• South America
  • Argentina
  • Brazil
  • Rest of South America