Due to the advancement of technology, cars have become the basic commodity owned by people and the most preferred means to travel. But higher purchasing cost and maintenance cost coupled with the rising concern of pollution and the necessity to decrease the emission of CO2 has led to the rise of car sharing market.
Although car sharing services have become familiar to us during the last decade, the history of this market dates back to 1998. The first car sharing company was founded in the US in 1998 called Carsharing Portland.
Since 1998, the car sharing industry has constantly seen an upward trend. But it has been badly affected due to the COVID-19 pandemic of 2020. Nevertheless, the market is recovering as the situation is getting normal and it is expected to grow continuously during the period of 2021-2027. As per the RationalStat study, revenue generated by the market is around US$ 7.5 Billion in 2020, down by nearly 22% from 2019.
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Global Car Sharing Market, 2019-2027 (US$ Billion)
Although the car sharing market has spread globally, it is not equally distributed across all the countries. According to RationalStat analysis, the top-5 countries in this market are the United States, China, the United Kingdom, Japan, and Italy.
Top 5 Countries in Car Sharing Market, 2021
Car Sharing Types and Top Companies
Car sharing market falls under the category of ride-sharing market. There are three types of services: corporate (company cars), peer-to-peer, and private (car rentals).
Peer-to-peer sharing has been the latest and became a popular service on account of its flexibility. Here you neither own a car nor pay rental charges but you share a ride from one place to another along with others in the vehicle. It is comparatively more affordable than the other types. Uber cars and Ola cabs are the best examples of peer-to-peer car sharing services.
Car rentals are another popular car sharing service, where you can rent a car for a few hours or days. Zoom cars, Zipcar, and Turo are some of the popular companies offering their services under this category.
Car sharing service has been one of the revolutionary ideas in history. Besides reducing pollution, it saves individuals from car loan EMI, heavy down payments, and car maintenance costs. Due to these undeniable advantages, steady growth could be expected in the car sharing market in the coming years.
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Co-founder and Director at RationalStat
Ujjwal is a thought leader and recognized expert in the market research and consulting field. He is the co-founder at RationalStat, a leading global market research & procurement intelligence firm with 10+ years of industry expertise.