Global Mobility as a Service (MaaS) Market Research Report: Forecast (2023-2028)

Market Definition

MaaS (Mobility as a Service) is the integration of various transportation modes into a single service that can be accessed on demand, where users can plan, book, & pay for a wide range of mobility solutions to meet their travel requirements. By offering a simplified link between users & mobility service providers through a technology-enabled platform like a smartphone app, MaaS helps reduce the inefficiencies & additional costs users incur in navigating between several fragmented transportation services.

Market Insights & Analysis: Global Mobility as a Service Market (2023-28)

The Global Mobility as a Service Market is projected to grow at a CAGR of around 32% during the forecast period, i.e., 2023-28. Most of the market growth would be propelled by the growing consumer interest in on-demand mobility services, government initiatives for smart city developments, and the mounting penetration of the internet & smartphones, coupled with the ever-evolving need to reduce carbon emissions from the transportation sector, which contributes massively to air pollution caused by heavy vehicular traffic. Consequently, the demand for shared mobility services is dramatically rising worldwide, i.e., also backed by burgeoning vehicle ownership & fuel costs. 

Shared mobility solutions are relatively less expensive than other transportation modes and help eliminate limited parking issues. Governments of several countries worldwide are making active efforts toward promoting the implementation of such solutions in order to reduce traffic congestion & carbon emissions. Subsequently, it is significantly impacting commuter lifestyles with enhanced transportation, decreased driving, & increased accessibility. In addition, environmental, social, & transportation system benefits are also being realized frequently through various shared mobility solutions, like car sharing, bike or scooter sharing, micro-transit, on-demand rides, commute-based modes, etc.

Improving disposable incomes of people and massive government investments in building world-class transportation infrastructure are also expected to boost the market in the coming years. Moreover, gradually reducing parking space owing to increasing urban population, coupled with the emergence of new mobility models like pooled ride-sharing, peer-to-peer car sharing, shared e-bikes or electric scooters owing to their easy integration, automated processes, personalized travel on demand, & environment friendliness, are other prominent aspects projected to spur growth in the mobility as a service market through 2028.

Market Dynamics

Key Driver: Rapidly Growing Demand for On-Demand Transportation

The rising inclination of various consumers worldwide toward micro-mobility has instigated several automakers to invest massively in on-demand transportation, such as taxis, passenger vehicles, & charter vehicles, which is why the world is witnessing the rapidly increasing availability of e-bikes & scooters on rent for consumers to save time & money as they offer features like real-time feedback, flexibility, & vehicle tracking, and rating. Hence, with on-demand transportation comes the ability to identify the consumer's precise location and match demand with available supply, which are the prime aspects projected to drive the Global Mobility as a Service Market during 2023-28.

Growth Restraint: Integration of Government & Private Sector Companies

Multiple authorities like infrastructure & service providers, telecom operators, manufacturers, user groups, and the public sector put efforts into deploying mobility-as-a-service platforms. In some regions, government authorities opt for PPP (Public-Private Partnership) for private firms to actively participate in their initiatives in order to implement & invest in projects. As a result, integrating public & private transportation providers becomes challenging since private transport is on-demand and public transport relies on supply & demand. Hence, the less availability of mobility-as-a-service infrastructure and issues with public acceptance & authority issues are significant barriers for the market to expand during 2023-28.

Market Segmentation

Based on Services:

• Ride
  • Hailing
  • Sharing
• Vehicle Sharing
  • Car Sharing
  • Bicycle Sharing
  • Motorbike Sharing
• Public Transport
  • Bus Sharing/Shuttle Service
  • Train

Of them all. Ride-hailing services are expected to attain a significant share of the Global Mobility as a Service Market during 2023-28. It owes to increasing technological advances in digital payments, safety, & convenience for riders, the rapidly rising internet penetration, the burgeoning adoption of connected & automated vehicles to reduce CO2 emissions, and skyrocketing vehicle ownership costs. In the coming years, digitalization trends in transportation services are most likely to result in personalized transportation, wherein customers will have easy access to convenient, controlled, well-connected, & affordable transport service.

Since ride-hailing solutions are on-demand services that can be accessed by a single user, they can be easily integrated with public transportation. Moreover, benefits like hassle-free booking, easy pick-up & drop, enhanced passenger comfort & convenience, coupled with the continuously growing traffic congestion and various government initiatives toward raising consumer awareness regarding rising pollution levels are also likely to boost the demand for ride-hailing services in the coming years.

Based on Solution:

• Technology Platforms
• Insurance Services
• Payment Engines
• Navigation Solutions
• Telecom Connectivity
• Ticketing Solutions

Here, insurance services are expected to attain a notable market share during 2023-28. It ascribes to the increasing insurance premiums for trip cancellations & delays, property damage, & road accidents. As insurers play a crucial role in a transit user's life & mobility, several leading MaaS providers are likely to offer insurance products as add-ons to their respective services in the future in order to remain competitive, especially in developing markets. Consequently, the current insurance type might soon get replaced by commercial insurance for MaaS vehicle fleets. Moreover, the growing need to save money on damages & risks associated with mobility services shall further provide a significant boost to insurance service solutions and, in turn, escalate the overall market growth in the coming years.

Based on Business Model:

• B2B (Business to Business)
• B2C (Business to Customer)
• B2I (Business to Industry)
• B2G (Business to Government)

Among all, B2C is projected to generate considerable revenue for the market during 2023-28, owing mainly to the ever-increasing utilization of EVs (Electric Vehicles) & autonomous cars as well as personalized services like easy booking, trip planning, scheduling, ticketing, & payment interface. In addition, the mounting need to reduce energy consumption while meeting the daily commute requirements of consumers shall further boost the implementation of environmentally friendly mobility solutions and, in turn, aid in enhancing the Global Mobility as a Service Market size in the coming years.

Regional Projection

Geographically, the Global Mobility as a Service Market expands across:

• North America
• South America
• Middle East & Africa
• Asia-Pacific
• Europe

Of all regions globally, Asia-Pacific is expected to attain a prominent share of the Mobility as a Service Market during 2023-28. It owes primarily to the rapidly rising vehicle ownership costs, rapid urbanization, the high population growth rate, and increasing fuel prices, especially in India & China, i.e., accelerating the need for an efficient transportation system. More & more people in these two countries are adopting smart mobility solutions to reduce travel time & congestion. Governments are increasingly spending on smart city developments & improving 5G infrastructure.

Over the past few years, China has been witnessing a rapidly growing penetration of app-based ridesharing services owing to the rising urban population and the massive non-driving population due to low average incomes in the country and stringent environmental regulations that make license plates challenging to obtain. As a result, pay-as-you-go app-based taxi services are gaining significant traction. Hence, during the coming years, the mobility-as-a-service market is set to witness a massive growth in China and generate lucrative prospects for automakers & technology firms and, in turn, shape the future of the Chinese transportation system.

Recent Developments in the Global Mobility as a Service Market

• On 23 March 2022, Lyft & Spin announced a partnership for bringing Spin scooters to the Lyft app across 60 locations in the US, where the initial rollout began in Nashville, Tennessee. This integration is in line with Lyft's goals toward becoming the go-to transportation platform as riders have new, cost-effective, & more sustainable ways to commute across different points.
• The same year on 22 February, Uber rolled out its latest B2B service, Uber Bus For Business, in Egypt, which would provide enterprises with tailored transport programs for the daily commute of their employees.

Gain a Competitive Edge with Our Global Mobility as a Service Market Report

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