Ride Hailing Service Market Strategies and Forecast by 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
Market Size Value in US$ 48,922.78 million in 2021 Market Size Value by US$ 98,745.11 million by 2028 Growth rate CAGR of 10.6% from 2021 to 2028 Forecast Period 2021-2028 Base Year 2021
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Ride Hailing Service Market: Strategic Insights
| Market Size Value in | US$ 48,922.78 million in 2021 |
| Market Size Value by | US$ 98,745.11 million by 2028 |
| Growth rate | CAGR of 10.6% from 2021 to 2028 |
| Forecast Period | 2021-2028 |
| Base Year | 2021 |
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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 Report Scope
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
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Service Type, Vehicle Type, Location, End-User
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
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.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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