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Government shared mobility initiatives driving MaaS market

P&S Intelligence highlights the growing emphasis on the public mobility model over vehicle ownership to minimise traffic congestion and pollution.

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The MaaS market is projected to be valued at $347.6 billion by 2024
The MaaS market is projected to be valued at $347.6 billion by 2024

The number of government initiatives to support the adoption of shared mobility is the major driver for the growth of the mobility-as-a-service market (MaaS) market, according to a new report.

 

According to the Mobility as a Service (MaaS) Market Research Report

by Prescient & Strategic (P&S) Intelligence, the increasing acceptance of electric vehicles in public sharing fleets is also one of the key trends driving growth.

 

The research company valued the market at $171.5 billion in 2018 and projects it to reach $347.6 billion by 2024, with a compound annual growth rate (CAGR) of 11.9 per cent.

 

Key trends

 

Among all service types, the car rental category held the largest share in the market during the 2014–2018 period. The growth of the global travel and tourism and a shift from conventional offline systems to online systems for booking vehicles for transportation are boosting the growth of the car rental category, the report finds.

 

The key trend observed in the MaaS market is that governments of several countries are stepping up efforts to implement different policies and regulations to promote the deployment of vehicles in shared mobility services. P&S reports that in countries around the world, there is a growing emphasis on the public mobility model over vehicle ownership in a bid to minimise traffic congestion and pollution.

 

As well as national governments taking steps to reform policies to facilitate the implementation of mobility programmes, city and state authorities are also taking initiatives on a local level, which is boosting the growth of the market in several countries.

 

In countries around the world, there is a growing emphasis on the public mobility model over vehicle ownership, to minimise traffic congestion and pollution.

 

Geographically, the largest revenue in the MaaS market is generated by Asia-Pacific (APAC). The APAC market has witnessed exponential growth in recent years, mainly on account of the rising consumer demand for shared mobility services, increasing disposable income, and growing government concerns over air pollution in the region, especially in Taiwan and India.

 

Additionally, rapid industrialisation and urbanisation are playing a major role in boosting the growth of the market in these areas.

 

Market consolidation

 

P&S Intelligence describes the global MaaS market as “moderately consolidated”, characterised by the presence of players such as Uber, Beijing Xiaoju Technology (Didi Chuxing), ANI Technologies, (Ola), Hertz Global Holdings, Sixt SE, Car2Go Ltd, Lyft, Grab Holdings, Enterprise Holdings, Avis Budget Group and Europcar Mobility Group SA.

 

In recent years, the key players in the MaaS market have taken several strategic measures, such as service launches, mergers and acquisitions, and partnerships to stay ahead of the competition.

 

APAC was the largest ride-hailing market between 2014 and 2018. This is mainly due to the rising consumer demand for ride-hailing services, high population density, and rapid industrialisation and urbanisation.

 

A lack of joined-up public policy could hamper the advancement of mobility trends such as MaaS and electric vehicle (EV) infrastructure.

 

There are challenges to rolling out MaaS and other smart mobility programmes, though. A whitepaper from Amey Investments, part of Amey plc, highlights that a lack of joined-up public policy could hamper the advancement of mobility trends such as MaaS and electric vehicle (EV) infrastructure which could support sustainability drives and create new value.

 

It highlights “uncertainty” in the private sector about its role in investing in mobility, as well as the risk of mobility technologies excluding people who are less affluent or technology-savvy.

 

Last year, a roundtable event held in Eindhoven by SmartCitiesWorld in partnership with ReachNow, also identified some crucial questions that need to be answered if MaaS is to fulfil its potential around the world. Many cities lack clarity regarding their vision for MaaS while industry experts warned that cities need to act now or risk losing ground and seeing MaaS introduced in an uncontrolled way.

 

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