Mobility as a Service Market was estimated to be at $39.23 billion in 2021, which is expected to grow with a CAGR of 25.7% and reach $379.66 billion by 2031. The growth in the global mobility as a service market is expected to be driven by rising urbanization and smart city initiatives, increasing adoption of on-demand mobility services, the growing trend of smart mobility with better in-vehicle facilities, and increasing parking problems, and emphasis on reducing CO2 emissions.
Market Lifecycle Stage
MaaS providers are the companies that deal with the customers first hand since they provide the customers with multimodal transportation solutions. The growth of global mobility as a service market is majorly attributed to the growing inclination toward micro-mobility.
Growing investment in research and development activities by various manufacturers in mobility as a service is expected to propel the market. Additionally, MaaS companies have tended toward collaborating with other companies to expand their mobility capabilities.
Furthermore, favorable government policies, the adoption of more environmentally friendly and renewable energy vehicles, and an increase in competition in the electric vehicle industry are projected to offer new avenues for mobility as a service market. There are some challenges in the market, such as low awareness regarding total lifetime cost for private vehicle ownership and service ownership, non-availability of required infrastructure, and data privacy and security concerns. The ongoing vital developments in the market are expected to overcome them in the forecast period.
Market Segmentation:
Segmentation 1: by Application
- Passenger Transportation
- Freight Transportation
- Micro Mobility
Passenger transportation dominated the market for global mobility as a service (by application) in 2021 whereas micro mobility is expected to grow with the highest CAGR of 28.1% in the estimated forecast period 2022-2031. The rise in population growth in urban areas requires an efficient and reliable way to transfer passengers from one point to another. MaaS for passenger transportation provides a wide range of services that integrate various transport, information, and different payment services into an efficient and reliable customer experience. Moreover, the growing number of users who prefer car-sharing services is also a major factor boosting the market.
Segmentation 2: by Product
- Ride-Hailing
- Ride Sharing
- Carpool
- Rental
Ride-hailing dominated the market for global mobility as a service (by product) in 2021 whereas carpool is expected to grow with the highest CAGR of 29.2% in the estimated forecast period 2022-2031. The surge in popularity of on-demand transportation services, the emergence of job prospects, and the low rate of automobile ownership among millennials are all driving the growth of worldwide ride-hailing services.
Segmentation 3: by Solution
- Payment Engines
- Navigation Solutions
- Connectivity Providers
- Ticketing Solutions
- Insurance Solutions
Payment engines dominated the market for global mobility as a service (by solution) in 2021 whereas navigation solutions are expected to grow with the highest CAGR of 27.0% in the estimated forecast period 2022-2031. The way consumers pay for transportation services has changed thanks to mobility platforms, which have replaced cash with online payment options. The major factor assisting the growth of the payment engine segment includes increasing the installation of the ride-sharing app and providing ease of payment options. For instance, a few companies, including Ola, have even started to offer post-paid payment options that allow the customer to ride without paying before or after the ride is completed, and the outstanding payment can then be paid later.
Segmentation 4: by Region
- North America - U.S., Canada, and Mexico
- South America - Brazil, Rest of South America
- Europe - U.K., Germany, France, Italy, Spain, and Rest-of-Europe
- China
- Asia-Pacific and Japan - Japan, South Korea, and Rest-of-Asia-Pacific and Japan
- Middle East and Africa
Europe dominated the market for global mobility as a service (by region) in 2021. It is expected to grow with a CAGR of 24.9% in the estimated forecast period 2022-2031. The growth was attributed owing to various government initiatives to create multimodal transportation systems utilizing mobility as a service, to enhance their public transportation networks. The mobility as a service market in Germany holds the highest market share owing to various regulations for increasing the usage of electric vehicles to decrease vehicle emissions.
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Impact of Mobility As A Service Market
- Mobility as a service (MaaS) is a futuristic modern transportation service, with a complex network of collaborators, strategists, and technicians making up the ecosystem. The on-demand insured ride with accompanying value-added features is a key aspect of this service. It also provides customers with various options, including commuting kinds, pricing options, service duration, driver selection, and real-time journey optimization, among others.
- Government regulations and a growing focus on smart city projects are driving the use of mobility as a service. New regulations are being drafted to stimulate the use of mobility as a service in transportation. France is at the forefront of new mobility schemes and mobility as a service model development.
- The adoption of MaaS is expected to facilitate numerous changes, such as reducing vehicles on the road, owning vehicles on a contract basis, boosting optimization, utilizing existing infrastructure for different economic scales, and reduction in personally owned vehicle expenses. For instance, carpool not only reduces the overall running cost of the vehicle through a shared operating cost of the vehicle but also reduces the number of vehicles on the roads. Additionally, the customer experience is enhanced since MaaS offers innovative and diversified modes to commuters from different economic backgrounds.
Recent Developments in Global Mobility As A Service Market
- In April 2022, Capitello Move and MaaS Global signed a strategic partnership to launch the world’s first eco-friendly mobility platform.
- In June 2021, Grab, a mobility services provider, further enhanced the partnership with Hyundai to encourage utilization of MaaS and accelerate EV adoption, especially in Singapore, Indonesia, and Vietnam.
- In 2019, Lyft had invested over $1.5 billion in the RD division. The company is keen on developing its in-house mapping platform.
- In January 2022, Arval and Ridecell entered into a strategic partnership with an aim to accelerate the development of end-to-end mobility solutions for Arval’s European customers.
- In January 2020, Uber acquired Careem for $3.1 billion to help expand its operations in the Middle East.
Demand – Drivers and Limitations
Following are the demand drivers for the global mobility as a service market:
- Rising Urbanization and Smart City Initiatives
- Increasing Adoption of On-Demand Mobility Services
- Growing Trend of Smart Mobility with Better In-Vehicle Facilities
- Increasing Parking Problems and Emphasis on Reducing CO2 Emissions
- Growing Inclination Toward Micro Mobility
Following are the challenges for the global mobility as a service market:
- Low Awareness Regarding Total Lifetime Cost for Private Vehicle Ownership and Service Ownership
- Data Privacy and Security Concerns
Impact of COVID-19
The impact of COVID-19 on mobility as a service industry has been moderately severe compared to the impact on the general automotive industry. Companies such as Uber and Lyft have seen massive ride drops due to the COVID-19 crisis. People are avoiding these services due to the rising concerns regarding the spread of the virus.
Additionally, due to work-from-home options provided by companies, public transport has reduced by around 70-80% globally, thus, having a negative impact on the market resulting downfall in revenue across all regions.
Analyst's Thoughts
According to Ayan Bandopadhyay, Lead Analyst, BIS Research, “With the evolving nature of travelers’ everyday commutes, the need for a comprehensive mobility service platform that can provide a convenient, cost-effective transportation method has increased. The concept of mobility as a service (MaaS) emerged and promoted a number of developments, such as the increased adoption of carpooling. Mobility as a service (MaaS) has the potential to provide a hassle-free sustainable transportation system for commuters.”
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