On-demand Transportation Market To Reach $473.0 Million By 2030

On-demand Transportation Market Growth & Trends

The global on-demand transportation market size is expected to reach USD 473.0 million by 2030, registering a CAGR of 20.1% from 2025 to 2030, according to a new report by Grand View Research, Inc. Rising penetration of smartphones and connected vehicles is increasing the adoption of on-demand transportation services such as e-hailing, car sharing, car rental, and station-based mobility. These services enable users to pre-book, modify, or cancel their taxi reservations via mobile applications such as Uber and Gett.

Advancements in IT infrastructure and growing usage of car sharing services by millennials are anticipated to drive the adoption of on-demand transportation services in Europe. Asia Pacific is estimated to witness considerable growth over the forecast period, owing to increased traffic and fuel prices. Government initiatives, such as the Smart Mobility 2030 plan of the Land Transport Authority of Singapore, are also likely to bolster the market growth.

Among different on-demand transportation services, car rental was anticipated to be the largest segment in terms of market share in 2017. However, demand for other services such as e-hailing and car sharing are anticipated to witness a substantial rise over the forecast period. Market participants are engaging in different business expansion strategies such as product launches and partnerships to gain market share. For instance, in September 2018, BMW and Daimler announced their collaboration for starting combined car sharing service in Germany.

The trend of micro-mobility sharing such as two-wheeler, e-bike, and e-scooter sharing is growing rapidly in developing countries such as China and India. Several new companies are entering the on-demand transportation market by providing smartphone-based car booking services. However, global players such as BMW Group, Daimler AG, Uber Technologies, and OLA dominate the market.

The ban on DIDI Chuxing by the Chinese government in September 2018 for alleged passenger murders has increased concerns among customers over ride sharing. Similar cases have been filed on Uber drivers for misbehaving and mistreating users in the past. Moreover, issues regarding poor connectivity and high costs of developing infrastructure may further hamper the growth of the market. Therefore, service providers are focusing on developing car-sharing applications, which do not require internet connectivity for accessing them.

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On-demand Transportation Market Report Highlights

• The four wheeler segment dominated the market with a revenue share of 89.3% in 2024, primarily due to its widespread acceptance and versatility. This segment's appeal lies in its ability to offer a comfortable and secure travel experience, accommodating various passenger needs, from families to business professionals.

• The e-hailing segment is expected to grow at the highest CAGR over the forecast period as more consumers embrace app-based ride services for convenience and accessibility.

• The micro mobility segment is projected to grow at the highest CAGR during the forecast period, as urban areas face increasing traffic congestion and environmental concerns.

• The V2V segment dominated the market with the highest revenue share in 2024 due to advancements in technology that enhance safety and efficiency on the roads.

• The North America on-demand transportation market dominated the market with a revenue share of 35.2% in 2024, due to its advanced technological infrastructure and high consumer adoption rates.

On-demand Transportation Market Segmentation

Grand View Research has segmented the global on-demand transportation market on the basis of on type, service, connectivity, and region:

On-demand Transportation Type Outlook (Revenue, USD Million, 2018 - 2030)

• Four Wheeler

• Micro Mobility

On-demand Transportation Service Outlook (Revenue, USD Million, 2018 - 2030)

• E-hailing

• Car Sharing

• Car Rental

• Station-based Mobility

On-demand Transportation Connectivity Outlook (Revenue, USD Million, 2018 - 2030)

• V2V

• V2I

• V2P

• V2N

On-demand Transportation Regional Outlook (Revenue, USD Million, 2018 - 2030)

• North America

  • U.S.

  • Canada

  • Mexico

• Europe

  • Germany

  • UK

  • France

• Asia Pacific

  • China

  • Japan

  • India

  • Australia

  • South Korea

• Latin America

  • Brazil

• Middle East and Africa (MEA)

  • UAE

  • KSA

  • South Africa

List of Key Players in the On-demand Transportation Market

• Uber Technologies, Inc.

• Lyft, Inc.

• Ola Electric Mobility Pvt Ltd.

• Grab

• Beijing Xiaoju Technology Co, Ltd.

• Bolt Technology OÜ

• Gojek Tech

• FREE NOW GmbH

• Maxi Mobility SL

• Gett