Ride Hailing Service Market Analysis and Forecast by Size, Share, Growth, Trends 2031

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.

Ride Hailing Service Market Analysis

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.

Ride Hailing Service Market Overview

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.

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Ride Hailing Service Market: Strategic Insights

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Ride Hailing Service Market Drivers and Opportunities

Increase in Cost of Vehicle Ownership to Favor Market

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.

Increase in Trend of Mobility-as-a-Service

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.

Ride Hailing Service Market Report Segmentation Analysis

Key segments that contributed to the derivation of the ride hailing service market analysis are service type, vehicle type, location, and end-user

• Based on service type, the ride hailing service market is divided into E-hailing, car sharing, car rental, and station-based mobility. The E-hailing segment held the largest market share in 2023.
• By vehicle type, the market is segmented into two-wheeler, three-wheeler, four-wheeler, and others. The four-wheeler segment held the largest share of the market in 2023.
• On the basis of location, the market is bifurcated into urban and rural. The urban segment held a significant share of the market in 2023.
• By end-user, the market is segmented into institutional and personal. The institutional segment held the larger share of the market in 2023.

Ride Hailing Service Market Share Analysis by Geography

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.

Ride Hailing Service Market Regional Insights

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.

Ride Hailing Service Market Report Scope

Ride Hailing Service Market Players Density: Understanding Its Impact on Business Dynamics

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:

1. ANI Technologies Private Limited
2. Daimler AG
3. Delphi Technologies PLC
4. DiDi Global Inc.
5. Gett
6. Grab Holdings Inc.

Disclaimer: The companies listed above are not ranked in any particular order.

Ride Hailing Service Market News and Recent Developments

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 provider Kakao Mobility expanded its presence by launching ride hailing services in Asia and the Middle East. (Source: Kakao Mobility, Press Release, November 2023)
• DiDi Global Inc. begun the process of registering drivers in Cape Town, South Africa, and began providing ride-hailing services to consumers in the country's second-largest city. (Source: DiDi Global Inc., Press Release, March 2021)

Ride Hailing Service Market Report Coverage and Deliverables

The “Ride Hailing Service Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Ride hailing service market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Ride hailing service market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Ride hailing service market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the ride hailing service market
• Detailed company profiles