The automotive industry of the UAE is undergoing rapid transformations. Trends like electrification of public transport, shared mobility, autonomous vehicles, etc., are positively influencing the UAE automotive sector. People across the country are now opting for more cost-effective & convenient alternatives to car ownership. It shall help relocate road space, make driving less stressful, and lead to fewer road accidents. Hence, to move forward in a better future, there is a desperate need to change the urban mobility system by adopting shared mobility.
According to MarkNtel Advisors, the UAE Shared Mobility Market is anticipated to grow at a CAGR of around 25.1% during the forecast period, i.e., 2021-26. The growth of the market attributes primarily to the increasing focus of the UAE government on implementing environment-friendly mobility solutions and mounting adoption of connected technologies. Shared Mobility is gaining immense popularity across the UAE since it is a cost-effective solution that eliminates problems associated with traffic congestions & parking spaces.
Strict regulations toward controlling the carbon emissions in the country, coupled with massive investments by the automotive companies in green mobility solutions, are also driving the market. Moreover, the increasing consumer preference toward electric vehicles for cost-effective, comfortable, & clean traveling is likely to create lucrative growth opportunities for the UAE Shared Mobility Market in the coming years, further states the research report, “UAE Shared Mobility Market Analysis, 2021.”
|Study Period||Historical Data: 2016-19|
|Base Year: 2020|
|Forecast Period: 2021-26|
|Key Companies Profiled||Uber, DiDi Chuxing, Drive Now, Lyft, Ekar, and Udrive|
|Unit Denominations||USD Million/Billion|
Impact of Covid-19 on the UAE Shared Mobility Market
By Service Type:
Among all services, Car Sharing & Ride-Hailing are the most prominent services used by UAE customers. As a result, various companies like Udrive are well-utilizing this opportunity by expanding their services across the UAE to fulfill additional consumer demands.
In 2018, Udrive launched a car-sharing service in Abu Dhabi. The benefits like time & money savings, being easy to use, providing comfort, etc., are encouraging individuals across the country to opt for ride-hailing services. However, on the other front, the demand for Car Rental services is expected to be astronomically growing in the coming years owing to the flourishing tourism sector in the UAE.
By Commuting Pattern:
Here, Daily Commuting dominates the UAE Shared Mobility Market with a 53.71% share registered in 2021. Over the past few years, the surging car ownership costs have been compelling consumers to switch to other mobility options in the country.
As a result, seeing the increasing traffic congestions across the UAE, people are drawn increasingly toward shared mobility services for their daily commute. According to the TomTom Traffic Index, Dubai & Abu Dhabi ranked 230 & 399 respectively in world traffic rankings. Therefore, the revenue share of daily commuting is expected to continue increasing in the coming years.
Key Trends in the UAE Shared Mobility Market:
Of them all, Dubai dominates the UAE Shared Mobility Market with a 45.98% share. It owes to the increasing demand for ride-sharing services arising from corporate workers as Dubai is the commercial hub of the UAE. In addition to this, various government initiatives toward promoting alternative transportation modes to reduce traffic congestions & greenhouse gas emissions also contribute to the overall market growth in Dubai. Hence, the shift towards eco-friendly mobility solutions is expected to boost the shared mobility market in the coming years, states MarkNtel Advisors in their research report, “UAE Shared Mobility Market Analysis, 2021.”
Increasing Traffic across the UAE to Drive Customers toward Using Shared Mobility Solutions
With growing population, the problem of traffic congestion is increasing astronomically. According to the TomTom Traffic Index, Abu Dhabi ranked 399 in terms of traffic congestion levels. Morning hours rush in the UAE leads to extra traveling hours. Hence, traffic congestion adds extra cost to economies due to the loss of working hours. Hence, more usage of shared mobility services is expected to help eliminate the problems cited above. Cited-below is a few other aspects expected to drive the market:
According to MarkNtel Advisors, the leading players in the UAE Shared Mobility Market are Uber, DiDi Chuxing, Drive now, Lyft, Ekar, Udrive, etc.
Key Questions Answered in the Market Research Report:
Market Outlook, Segmentation, and Statistics
Frequently Asked Questions
A. The UAE Shared Mobility Market is projected to grow at a CAGR of around 25.1% during 2021-26.
A. Daily Commuting holds the largest share of the UAE Shared Mobility Market and is projected to create profitable opportunities for the leading players operating in the market during 2021-26.
A. Increasing road congestions, carbon emissions, & mounting customer inclination toward convenient & cost-effective mobility services are the key factors expected to drive the Shared Mobility Market in the UAE during 2021-26.
A. Various measures by companies to ensure passenger safety, coupled with stringent government regulations to curb carbon emissions & encourage people toward using green mobility solutions, are likely to boost the shared mobility market in the coming years.