A report is suggesting that the value of carsharing businesses is set to reach US$6.5bn (approx £40bn) by 2024.
Navigate Research says that at the beginning of 2014, carshare programs were offered in more than 30 countries across five continents and is “one of the industries that has thrived in a new transportation landscape centered on clean, multi-modal, and on-demand mobility”.
It says it’s expected to experience continued growth in its current markets as well as expansion into new markets and will grow from US$1.1 billion in 2015 to US$6.5 billion in 2024.
It points to what it calls “significant innovations” in the market recently saying the success of one-way carsharing services is prompting more companies to consider offering this service model and that such services can increase utilization since members can use one-way carsharing for shorter, spur of the moment trips.
Vehicle makers have entered this market with good results, it says, building substantial membership levels in only a few years. Meanwhile, the adoption of plug-in electric vehicles (PEVs) in carsharing services is expected to increase as automakers promote this technology.
“Carshare services fit squarely into the growing trend of on-demand mobility in urban markets,” says Lisa Jerram, principal research analyst with Navigant Research. “Total global membership in carsharing programs is expected to reach 23.4 million by 2024, and much of the industry’s growth will be in the Asia Pacific region, which is still in an earlier stage of the carsharing market than Europe and North America, which are both expected to continue to see growth in demand for carsharing services.”