Despite the continuous drop in the prices of automobiles and the emergence of low-cost vehicles, a large number of people are not inclined towards buying a private vehicles. This can be because, owning a vehicles isn’t just a one-time investment, but expenses such as parking cost, fuel cost, insurance premium, and maintenance charges also need to be taken care of during the vehicle’s life span. Attributed to these reasons, people across the globe are increasingly making use of mobility as a service (MaaS) solutions, since they are convenient and pocket-friendly mobility options.
The customer only needs to pay according to the usage of the vehicle and do not need to worry about any additional expenses, which are taken care of by mobility services providers. Therefore, the customer gets to enjoy the benefits of vehicles without having to actually own it. Furthermore, because of surging environmental concerns, for which the automobile industry is highly responsible, the younger population is focusing more towards making use of public transportation services instead of buying private vehicles. Attributed to all these factors, the global mobility as a service market is expected to attain $347.6 billion by 2024, rising from $171.5 billion in 2018, progressing at an 11.9% CAGR during the forecast period (2019–2024).
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This is ascribed to the fact that shared mobility services are majorly being availed by the young population, including young professionals and students, for meeting daily commuting needs. Geographically, Asia-Pacific (APAC) has been the largest mobility as a service market size up till now, which is primarily due to the rising disposable income and surging government concerns regarding air pollutions in the region, especially India and Taiwan. In addition to this, swift industrialization and urbanization in the region are further leading to the rising demand for shared mobility services in the APAC region.
In conclusion, the heavy expenses related to owning private vehicles and increasing environmental concerns are resulting in the growing adoption of mobility as a services.