New Delhi, Aug. 06, 2024 (GLOBE NEWSWIRE) -- The global mobility-as-a-service market is expected to reach US$ 619.32 billion by 2032 up from US$ 145.07 billion in 2023. The market is growing at a CAGR of 17.5% from 2024-2032.
The Mobility as a Service (MaaS) market is poised for unprecedented growth and transformation, driven by a convergence of technological advancements and strategic investments. This growth trajectory is fueled by the proliferation of 4G/5G infrastructure and the ubiquitous presence of smartphones, which are pivotal in facilitating seamless access to MaaS platforms. Ride-hailing services, which continue to dominate the MaaS application market with a 37.8% market share, exemplify the consumer shift towards convenience and accessibility. The industry's diversification into on-demand ferry and freight services further broadens its appeal, catering to a wider array of transportation needs and enhancing its comprehensive service offerings.
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Strategic investments in the battery value chain are reshaping the future landscape of electric mobility in the mobility-as-a-service market, with OEMs like Stellantis and Ford making significant financial commitments to bolster battery production and recycling capabilities. Stellantis invested $100 million in Controlled Thermal Resources, while Ford invested $50 million in Redwood Materials. This focus on sustainability is mirrored in the surge of environmental sustainability-related deals, totaling $353.5 million in Q1 2024 alone. Additionally, electric vehicle (EV) sales are projected to increase by 25% annually, highlighting the growing demand for sustainable transportation solutions. High-profile mergers and acquisitions, such as Schaeffler's $5 billion acquisition of Vitesco Technologies and Renault's $3 billion partnership with Volvo Trucks, highlight the industry's drive towards consolidation and collaboration to advance EV technologies. Despite a reduction in the number of funding rounds, the increase in the average size of these rounds to $52 million indicates a strategic emphasis on impactful investments that promise substantial returns and innovation.
The integration of cutting-edge technologies, including artificial intelligence (AI), blockchain, and augmented reality (AR), is revolutionizing the mobility-as-a-service market, enhancing service efficiency and user experience. For example, AI-driven predictive maintenance is expected to reduce operational costs by 15%. Additionally, the development of smart city technologies is paving the way for more efficient urban mobility systems, promoting sustainable urban development. The smart city market is projected to grow at a CAGR of 23% between 2023 and 2032. Strategic divestitures and portfolio reviews are becoming commonplace as companies realign their assets to focus on high-growth areas, with 30% of mobility firms engaging in such activities in the past year. This approach not only optimizes capital allocation but also ensures that firms remain agile and competitive in a rapidly evolving market. Collectively, these developments paint a promising outlook for the MaaS market, positioning it as a critical component of future urban mobility and sustainable transportation solutions.
Key Findings in Mobility-as-a-Service Market
| Market Forecast (2032) | US$ 619.32 billion |
| CAGR | 17.5% |
| Largest Region (2023) | North America (30%) |
| By Product | Passenger Transportation (90.9%) |
| By Application | Ride Hailing (51.6%) |
| Top Trends |
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| Top Drivers |
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| Top Challenges |
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Recent Investment Patterns and Funding Dynamics in the Global Mobility-as-a-Service Market
The Mobility-as-a-Service (MaaS) sector has experienced a dynamic shift in funding patterns over recent years. After reaching a record high of $83 billion in 2021, startup funding in the mobility sector has stabilized, with total investment in 2023 amounting to $39 billion, mirroring the previous year. Despite this plateau, the size of funding rounds in 2023 increased significantly, averaging $52 million per round, up from $39 million in 2022. This indicates that while the total capital influx may have steadied, the confidence in larger, more substantial investments in promising mobility startups is on the rise. Notably, US startups have captured roughly half of this total investment, increasing their share from 46% the previous year, underscoring the United States' dominant role in shaping the future of mobility services.
However, the funding landscape in the mobility-as-a-service market presents a mixed bag of regional disparities and sector-specific trends. European investments in mobility services have plummeted by 82% in 2023, highlighting a significant regional shift. Conversely, sustainable mobility has emerged as the top segment worldwide, being the only category to witness growth from 2022, reflecting the global emphasis on eco-friendly transportation solutions. Generative AI startups in the mobility sector have also seen impressive growth, raising over three times the funding compared to previous years. Additionally, venture capital in battery technology and end-to-end charging solutions is burgeoning, driven by the increasing demand for vehicle electrification. This multifaceted investment outlook suggests a promising yet selective enthusiasm in the MaaS market, with a clear preference for sustainable, technologically advanced solutions poised to revolutionize the future of mobility.
The Dynamic Landscape of the Global Mobility-as-a-Service Market Start-up Ecosystem
Prominent start-ups in the Mobility-as-a-Service (MaaS) space include notable names like MaaS Global, Lime, Nuro, Pony.ai, and The Boring Company. These companies are at the forefront of revolutionizing urban transit with innovative solutions such as on-demand ride services, autonomous delivery vehicles, and underground transportation systems. Their contributions are pivotal in advancing the mobility ecosystem towards a more sustainable and efficient future.
Israel stands out as a significant hub in the global mobility start-up ecosystem, ranking as the fourth-largest in terms of financing. With over $30 billion invested from 2010 to 2023, Israel's start-ups are making substantial strides in mobility innovations. However, these start-ups face challenges such as securing funding and finding the right strategic partners and investors. Due to its small market size and lack of local car manufacturing, Israeli start-ups are compelled to adopt a global perspective, maintaining crucial relationships with international investors and strategic partners to thrive.
Dominance of Passenger Transportation in the Mobility-as-a-Service Market, Controls Over 90.9% Market Share
In 2023, passenger transportation is asserting its dominance within the MaaS market, buoyed by a resurgence in ridership and substantial infrastructure investments. North America's passenger transport systems have rebounded impressively, achieving 90.9% of pre-pandemic levels by the end of 2023, reflecting a 16% annual increase in trips. This resurgence is powered by significant investments in Bus Rapid Transit (BRT) projects, with 40 out of 61 public transport projects receiving funding from the US Federal Transit Administration being BRT initiatives.
Autonomous vehicles (AVs) are making their mark in mobility-as-a-service market, with cities such as Phoenix, San Francisco, and Los Angeles deploying robotaxis, currently numbering around 250 vehicles. This trend is expected to expand, with additional testing underway in cities like Atlanta. Meanwhile, Tesla's Full Self-Driving (FSD) v.12 represents a major leap forward in autonomous driving technology, further integrating AVs into the public transport framework. Electric vehicles (EVs) continue to gain traction, driven by the push for sustainable and eco-friendly transport solutions. The transition to electric fleets is accelerating, as evidenced by the increasing number of fleets adopting EVs. AI integration is revolutionizing the MaaS industry by optimizing service and maintenance, reducing labor hours by up to 50% in maintenance tasks, as demonstrated in a four-month test across three transit agencies in the US and Canada.
Micromobility solutions, such as e-scooters, are also on the rise in the mobility-as-a-service market, with companies like Lime reporting record trip numbers in 2023. However, public transportation remains the backbone of MaaS, supported by cities implementing policies to protect urban spaces and the environment. New York City's impending congestion charge for vehicles entering downtown and midtown Manhattan exemplifies such initiatives. The Transit and Ground Passenger Transportation market is projected for steady growth, fueled by significant investments from key industry players. Despite challenges from economic instability and disrupted supply chains, public transportation's resurgence and infrastructure investments underscore its leading role in the evolving MaaS market.
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North America’s Dominance Shines Brighter than Other Regions in Global Mobility-as-a-Service Market, Contributes Over 30% Revenue
North America, particularly the US and Canada, is a dominant force in the Mobility as a Service (MaaS) industry, showcasing significant market leadership due to technological advancements, substantial investments, and the presence of key market players. This dominance is fueled by the region's high consumption rate, holding over 30% of the global market share. The integration of cutting-edge technologies such as mobile applications, the Internet of Things (IoT), and artificial intelligence (AI) has enhanced real-time data integration and service optimization, making transportation more efficient and user-friendly. Notably, around 85% of urban population in the US has access to MaaS platforms, showcasing widespread adoption.
Leading companies in the mobility-as-a-service market like Uber and Lyft, which have diversified their services to include ride-hailing, food delivery, and bike-sharing, are at the forefront of this revolution. Uber reported a revenue of USD 11.1 billion in 2020, while Lyft accounted for USD 3.6 billion in the same year, highlighting the substantial financial performance of key players in the region. By 2023, Uber's revenue exceeded US$ 27 billion, and Lyft is expected to see a growth rate of 20% year-over-year. The market is further buoyed by significant investments and funding, with global startup funding for mobility services totaling nearly US$ 122 billion between 2021 and 2023. This influx of capital underscores investors' confidence in the growing demand for efficient and sustainable transportation solutions. In Canada, MaaS investments have surged by 35% annually, indicating robust market confidence.
Moreover, environmental concerns and regulatory support for reducing carbon emissions are major drivers of the mobility-as-a-service market in North America. The region's commitment to sustainability and urbanization aligns with broader goals of mitigating climate change and lowering carbon footprints. For instance, the US government has allocated USD 5 billion towards smart city initiatives that include MaaS components. Despite challenges such as regulatory hurdles, data privacy concerns, and the need for collaboration among stakeholders, North America continues to lead the MaaS industry. Future trends indicate a continued focus on developing integrated platforms and forming partnerships with local governments and transportation providers, ensuring North America's position as a hub for MaaS innovation and growth. Additionally, the number of MaaS platform users in North America is expected to reach 200 million by the end of 2024, with a user satisfaction rate of 92%. The region's focus on electric vehicles (EVs) is also noteworthy, with 40% of MaaS fleets expected to be EVs by 2030.
Global Mobility-as-a-Service Market Key Players
- Uber Technologies Inc.
- Lyft, Inc.
- Didi Chuxing
- Careem
- BlaBlaCar
- ANI Technologies Pvt. Ltd.
- Mobike
- LimeBike
- Bird Rides Inc.
- Waze Mobile Ltd.
- Resferber Labs Private Limited
- The Hertz Corporation
- Avis Rent A Car System
- SIXT SE
- Bridj Pty Ltd.
- GoGo Tech Limited
- ZIFY SAS
- Grab
- Other Prominent Players
Market Segmentation Overview
By Application
- Passenger Transportation
- Micro-Mobility
- Freight Transportation
By Product
- Ride Hailing
- Ride Sharing
- Car Pool
- Rental
By Region
- North America
- Europe
- Asia Pacific
- Middle East & Africa
- South America
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