A new report from Tractica forecasts that the global market for Mobility as a service (MaaS) to grow at a compound annual growth rate (CAGR) of 24.0% to become a $563.3 billion market by 2025, largely driven by ride-hailing applications. Tractica defines mobility as a service (MaaS) as technology-driven programs that enable people to gain access to vehicles on an as-needed basis.
Tractica expects the Asia Pacific region to continue to be the largest market based on its massive and growing urban population and its expansive manufacturing capacity as a global and automotive and technology hub.
North America is forecast to be the second largest market since it is a pioneer and supporter of ride-hailing and vehicle subscription services. The Middle East & Africa will be the fastest growing market (27.3% CAGR) due to a rapidly increasing population and MaaS providers expanding into the region.
The global population is moving into and near cities, with the majority of people now living in urban areas. This is putting a strain on transportation infrastructure and transit systems and has created demand for services that enable people to forego using their own vehicles and instead share transportation services with others. Mobility-as-a-service (MaaS) programs provide on-demand access to four-wheel and two-wheel vehicles to travel more efficiently and cost-effectively in urbanized areas.
MaaS provides door-to-door transportation via both ride-hailing and vehicle subscriptions. It also focuses on the first- and last-mile commute from homes to places of work or leisure.
Automotive companies, startups, traditional car rental agencies, and technology companies are all creating MaaS offerings, including ride-hailing (ridesharing); carsharing; vehicle subscriptions; and shared e-scooter and e-bike programs.
This Tractica report highlights how MaaS programs such as carsharing and ride-hailing are reaching maturity in their breadth of offerings and business models while two-wheel vehicle sharing and vehicle subscription services are still in their infancy.
The report contextualizes how millennials and later generations who grow up in the shared economy will forego vehicle ownership and drive the continued expansion of MaaS.