According to the Global Burden Disease study of 2021 by the Institute for Health Metrics and Evaluation (IHME), 4.5 million fatalities were caused due to outdoor air pollution globally. The major causes of air pollution are fires, pollen, sea spray volcanoes, agriculture waste, manufacturing plants, and road transport. For instance, according to the U.S. Environmental Protection Agency (EPA), the transportation industry accounts for nearly 14% of the global greenhouse gas (GHG) emissions, as this sector is highly dependent on fossil fuels, which emit carbon dioxide (CO2) in excess.
The worsening air quality and increasing fatalities due to air pollution will, therefore, accelerate the carsharing market at a notable CAGR of 11.0% during 2019–2025. According to P&S Intelligence, the market was valued at $5,571.2 million in 2018, and it will generate $10,846.9 million revenue by 2025. The surging shift toward carsharing platforms can also be credited to the rising popularity of mobility as a service (MaaS) and the soaring government support toward carsharing services to minimize air pollution and traffic congestion.
In the coming years, carsharing service providers, such as cambio Mobilitätsservice GmbH & Co. KG, Ekar FZ LLC, Mobility Cooperative, Zipcar Inc., Car2Go Ltd., CarShare Australia Pty. Ltd., ORIX Auto Corporation, Hertz Global Holdings Inc., Getaround Inc., Turo Inc., Lyft Inc., DriveNow GmbH & Co. KG, Peg City Car Co-op Ltd., Modo Cooperative, Communauto Inc., Locomute (Pty.) Ltd., HOURCAR, and Cityhop Ltd., will be highly inclined toward a peer-to-peer (P2P) business model to offer improved services to customers worldwide. Additionally, these service providers are also opting for one-way and round-trip business models.
Globally, the Asia-Pacific (APAC) region led the carsharing market in the recent past, wherein China was the dominant user of such shared mobility services. The dominance of China can be attributed to the massive support being offered by the government for carsharing platforms, in terms of policies and incentives, and largescale incorporation of EVs in shared mobility fleets in the country. For instance, Beijing Shouqi Group, a state-owned carsharing service provider, offers its services in Xiamen, Beijing, Shanghai, and Qingdao through its Gofun Chuxing app.
Therefore, the growing concerns about high air pollution levels and the rising government support for shared mobility will encourage more people to opt for carsharing services in the foreseeable future.