Mobility on Demand Market to Grow with a CAGR of 11.45% through 2029

Rising urbanization and congestion, increasing smartphone penetration enabling app-based services, and growing consumer preference for cost-effective alternatives to vehicle ownership are the factors driving the market. 

According to TechSci Research report, “Mobility on Demand Market - Global Industry Size, Share, Trends, Competition Forecast & Opportunities, 2029F”, the Global Mobility on Demand market was valued at USD 107.11 Billion in 2023 and is expected to reach USD 205.26 Billion by 2029 with a CAGR of 11.45% during the forecast period. Technological advancements in AI, machine learning, and real-time data analytics, the rise of eco-conscious consumers demanding sustainable mobility solutions, and the increasing integration of electric vehicles and autonomous technologies are the factors driving the market in the forecast period 2025-2029.The mobility-on-demand industry is experiencing rapid growth as more people look for affordable, convenient alternatives to car ownership. With rising fuel prices and the scarcity of parking in crowded urban areas, many consumers are turning to on-demand transportation services, which offer the flexibility of using vehicles without long-term commitment. These shared mobility services provide a cost-effective and practical option for those living in cities. A major driver of innovation in the sector is the growing adoption of autonomous vehicles and robotaxis. These self-driving technologies have the potential to enhance efficiency, reduce costs, and improve safety for urban transportation. At the same time, there is an increasing focus on sustainability, with electric vehicles becoming more widely used within the mobility-on-demand ecosystem. This shift toward greener transport solutions is in line with global efforts to reduce environmental impact and improve the sustainability of urban mobility. Despite these opportunities, challenges persist in the market. The lack of uniform regulations across different regions creates barriers for companies seeking to expand into new markets. High costs associated with fleet management, vehicle upkeep, and customer acquisition continue to place pressure on profitability. Moreover, the market is becoming more competitive, with new entrants frequently disrupting the status quo. The advancement of autonomous technologies and the emergence of robotaxis also add complexity to the landscape, requiring significant investment in technological development and regulatory compliance to stay competitive

Browse over xx market data Figures spread through xx Pages and an in-depth TOC on "Global Mobility on Demand Market.” 

The Mobility on Demand Market is segmented into type, vehicle type, propulsion type, commute type, and region.

The global mobility-on-demand market is segmented by propulsion type into Internal Combustion Engine (ICE) vehicles and Battery Electric Vehicles (BEV). ICE vehicles have historically dominated the sector, providing flexibility, long-range capabilities, and widespread refueling infrastructure, making them a popular choice for on-demand services. These vehicles are generally more affordable upfront and remain a common option for many mobility providers due to their well-established supply chain and maintenance systems. Despite the push for cleaner transportation alternatives, ICE vehicles continue to have a strong presence in markets where electric infrastructure is still developing or limited.

In contrast, BEVs are increasingly gaining traction in the mobility-on-demand space due to their environmental benefits and lower operational costs. With growing concerns about urban pollution and stricter emissions regulations, BEVs offer a more sustainable alternative to ICE vehicles. The rise of electric charging networks and advancements in battery technology are helping to reduce the limitations previously associated with BEVs, such as range anxiety and long charging times. These vehicles align with the growing demand for green transportation solutions, particularly in cities aiming to reduce their carbon footprint. As consumer preferences shift towards eco-friendly solutions, BEVs are becoming an integral part of the mobility-on-demand ecosystem. 

Based on region, In 2023, North America emerged as the fastest-growing market for mobility on demand. The region's strong economic growth, coupled with high consumer adoption of digital platforms, has driven significant demand for ride-hailing and car-sharing services. North America is also a leader in the adoption of electric vehicles, with many cities focusing on reducing emissions and encouraging the use of eco-friendly transportation options. Technological advancements, including the development of autonomous vehicles and the expansion of charging infrastructure, are further propelling the market's growth. As regulatory frameworks become more favorable to electric and autonomous vehicles, North America is expected to continue leading the charge in the mobility-on-demand market.

Major companies operating in the global Mobility on Demand Market are:

• Uber Technologies Inc.
• Lyft, Inc.
• Beijing Xiaoju Technology Co, Ltd.
• Turo Inc.
• car2go NA, LLC
• Ola Electric Mobility Pvt Ltd
• Drivy
• Hertz Systems Ltd Sp. z o. o.
• DriveNow Pty Ltd
• Blu-Smart Mobility Pvt Ltd.

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“One of the biggest trends we’re seeing in the global mobility-on-demand market is the shift towards more eco-friendly transportation. As people become more aware of the impact of pollution and climate change, many are turning to electric vehicles and shared transportation options to help reduce their carbon footprints. This move is not just good for the environment, it’s also pushing the industry to come up with new, innovative solutions like electric and self-driving cars. “Said Mr. Karan Chechi, Research Director of TechSci Research, a research-based management consulting firm.

Mobility on Demand Market –Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Type (Renting, Ride-Hailing, Car Sharing, Station-Based Mobility), By Vehicle Type (Two-Wheeler, Four-Wheeler, Other Vehicles), By Propulsion Type (ICE, BEV), By Commute Type (Intracity, Intercity), By Region & Competition, 2019-2029F”, has evaluated the future growth potential of global Mobility on Demand Market and provides statistics & information on market size, structure and future market growth. The report intends to provide cutting-edge market intelligence and help decision-makers make sound investment decisions. Besides, the report also identifies and analyzes the emerging trends along with essential drivers, challenges, and opportunities in the global Mobility on Demand Market.

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