A number of factors, such as the low cost of ownership involved in electric fleet and the rise in environmental concerns across the globe, are expected to drive the e-mobility services market in the foreseeable period (2020–2030). According to PS Intelligence, the market generated revenue of $3,189.8 million in 2019, which is expected to reach $78,898.3 million by 2030, growing at a CAGR of 40.7% in the coming years. Moreover, the market is witnessing a trend of rising participation of several automobile manufacturers in the business of shared mobility.
One of the major factors boosting the demand for e-mobility services is the low cost of ownership involved in electric fleet. The charging cost of an electric vehicle is much lower than the fuel cost of a conventional vehicle. Furthermore, the maintenance cost of electric vehicles is also lower as compared to conventional vehicles. This is due to the relative simplicity of an electric drivetrain that involves around 70% fewer moving parts than an internal combustion engine (ICE) vehicle. Thus, these factors drive the adoption of electric vehicles in public shared mobility services.
The service type segment of the e-mobility services market is categorized into two-wheeler sharing, carsharing, ride-hailing, and car rental. Among these, the two-wheeler sharing category accounted for the largest market share in 2019. This is because the two-wheeler sharing service is an economical, convenient, and faster mode of commuting that caters to the demand for last-mile connectivity across the globe. Whereas, the ride-hailing category is projected to witness the fastest growth in the coming years, owing to a large number of initiatives taken by big ride-hailing companies to adopt electric fleets for their services.
Furthermore, based on commuting pattern, the e-mobility services market is categorized into daily commuting, occasional commuting, last-mile connectivity, and others. Out of these, the last-mile connectivity category held the largest market share in 2019, and it is also expected to witness the same trend during the forecast period, as this e-mobility service offers convenience to users to travel short distances. Whereas, the daily commuting category is projected to record the highest CAGR in the coming years, owing to the rising demand for shared mobility services by the young population for meeting their daily commuting needs.
Geographically, the Asia-Pacific (APAC) e-mobility services market accounted for the largest share in 2019, and it is also expected to lead the global market during the forecast period. This is ascribed to the increasing consumer demand for shared mobility services, rising environmental pollution concerns, surging disposable income, and rapid industrialization and urbanization in the region. In an effort to minimize the rate of personal vehicle ownership and curb pollution levels, governments in regional countries are concentrating on developing road networks and strong infrastructure, and introducing electric vehicles in shared mobility fleets.
Thus, the low cost of ownership involved in electric fleet and the rise in environmental concerns across the globe are expected to propel the market growth during the forecast period.