The ride hailing service market size is projected to reach US$ 139.8 billion by 2031 from US$ 61.76 billion in 2023. The market is expected to register a CAGR of 10.8% during 2023–2031. The emergence of autonomous ride-sharing is likely to remain a key trend in the market.
The rise in the trend of on-demand transportation services across the globe is expected to drive market growth in the coming years. In addition, the increase in cost of vehicle ownership is expected to fuel the demand for ride hailing services during the forecast period. Moreover, an increase in the trend of mobility-as-a-service worldwide is further anticipated to propel the ride hailing service market growth from 2023 to 2031.
The key stakeholders in the ride-hailing service market ecosystem include technology solution providers, ride-hailing service providers, and end users. The technology solution providers include connected devices or other hardware manufacturers and software developers. The increase in the number of technology solution providers is critically driving the digitization in ride hailing. Ride-hailing services are expected to increase post-COVID due to the rising trend of on-demand transportation services, the creation of employment opportunities, and the low rate of car ownership among millennials. In addition, technological advancements in connected & automatic vehicles to reduce CO2 emissions and substantial increases in sales of these smart and efficient vehicles for the use of ride-hailing services propel the global market growth. The ride-hailing service providers take services from technology solution providers. With the growing technological developments in the ride-hailing, the demand for a ride-hailing service market is increasing.
Finance, fuel, upkeep, registration/taxes, and maintenance, as well as depreciation, all contribute to the cost of car ownership. The expense of owning a vehicle increases year after year. The depreciation accounts for more than 43% of the total ownership cost, as per the American Automobile Association (AAA). However, the other costs, such as maintenance and gasoline, account for 25%. The increase in fuel prices and maintenance costs have increased dramatically in the past 10 years and are expected to increase in the upcoming years. Although car ownership increased during the pandemic, it is expected to decline after 2021 and return to pre-pandemic levels. This allows ride-hailing providers to benefit from this demographic development, as the new technology-savvy generation is among the most active users of these services.
Customers who are not able to purchase the vehicle can experience seamless travel through the mobility services. Mobility-as-a-service reduces the cost of owning and operating by maximizing the cost of car-sharing and ride hailing. In addition, the rapid pace of urbanization is already leading to traffic congestion. The Mobility as a Service (MaaS) concept may be a better choice for minimizing traffic congestion by greater use of existing public and private transportation network. The urgent and increased demand for effective solutions to handle traffic in smart cities which in turn is expected to fuel ride hailing service market growth through 2031. Therefore, the increasing trend of mobility as a Service (MaaS) is expected to fuel the growth of the global ride-hailing service market.
Key segments that contributed to the derivation of the ride hailing service market analysis are service type, vehicle type, location, and end-user
The geographic scope of the ride hailing service market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America.
The scope of the ride hailing service market report encompasses North America (the US, Canada, and Mexico), Europe (Germany, France, Italy, Spain, the UK, and Rest of Europe), Asia Pacific (China, India, Australia, Japan, South Korea, and the Rest of Asia Pacific), the Middle East & Africa (South Africa, Saudi Arabia, UAE, and Rest of Middle East & Africa), and South America (Brazil, Argentina, and the Rest of South America). In terms of revenue, Asia Pacific dominated the ride hailing service market share in 2023. North America was the second-largest revenue contributor to the global ride hailing service market, followed by Europe.
The regional trends and factors influencing the Ride Hailing Service Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Ride Hailing Service Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 61.76 Billion |
| Market Size by 2031 | US$ 139.8 Billion |
| Global CAGR (2023 - 2031) | 10.8% |
| Historical Data | 2021-2022 |
| Forecast period | 2023-2031 |
| Segments Covered |
By Service Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Ride Hailing Service Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Ride Hailing Service Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The ride hailing service market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the ride hailing service market are listed below:
The “Ride Hailing Service Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
Asia Pacific dominated the ride hailing service market in 2023.
The emergence of autonomous ride-sharing is the future trend of the ride hailing service market
ANI Technologies Private Limited, Daimler AG, Delphi Technologies PLC, DiDi Global Inc., Gett, Grab Holdings Inc., Lyft, Inc., TUKTUK RIDE, Uber Technologies Inc., and zTrip are some of the leading players in the ride hailing service market.
US$ 139.8 billion estimated value of the ride hailing service market by 2031.
10.8% is the expected CAGR of the ride hailing service market.