Market Research Report
Mobility as a Service Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Mobility as a Service Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
Published: July 1, 2021
Mordor Intelligence Pvt Ltd
Content info: 100 Pages
Delivery time: 2-3 business days
The Mobility as a Service (MaaS) Market*was valued at USD 12 Billion in 2020 and is anticipated to grow up to USD 60 Billion by 2026, 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 has been reduced except for emergency purposes. With almost zero public movement, the major business area of the market was severely hit and the economy took a nosedive. Also, the social distancing norms across different countries forced the people to opt for private transport over the usual ride-hailing services which further worsened the economy for this market. Even the post-pandemic revival expectations for the market don't look great due to the general preference for private mobility.
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 and Caribbean, Europe, and Asia stood at 82%, 79%, 75%, and 51% respectively in 2020. 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, the increased preference for private vehicles with better in-vehicle facilities has driven the mobility services market. Urbanization and increased dependence on cars is leading to traffic congestions 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, the opportunity to digitalize the existing systems has also driven the market growth.
For instance, Moovit MaaS Solutions has digitalized the government transport system tracking and timings, to make it easier for the users to track and modify the schedules accordingly, thereby improving efficiency of transport system. Also, to meet these objectives, the government has considerably invested in mass transportation schemes such as metro rail, bus rapid transit system (BRTS) and mass rapid transit.
Asia-Pacific is the largest market owing to the dominance of some of the leading vendors such as Whim, Citymapper, Tanzer, and Moovel.* Also, developed economies in Asia such as China, Singapore, South Korea, Japan, and few others are the early adopters of MaaS services. China lead the Asian market with operating revenues reaching up to USD 258.4 Billion in 2019. These countries have been investing in smart transportation infrastructure. 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.
Also, increased concerns about the environmental impacts of automobiles are driving people to opt for ride-hailing, carpooling services provided by the MaaS companies. Furthermore, countries with a high number of passenger cars in relation to population are main target markets due to the availability of vehicles for the MaaS providing companies.
User penetration for the MaaS market in Europe and 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 above-mentioned points, 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 amounts of shares in the market. Some of the prominent companies in the Mobility as a Service market are Uber, Didi, Beeline mobility, Moovit, and others. Companies are investing heavily in research and development 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.
Uber also helps urban planners by providing vital geographic information from the data it collects via more than 10 Billion trips across 10,000 cities worldwide.