This article is for all my fellow startup founders designing their market size slide for their pitch deck.
The report “Ride Hailing Market“ by Service Type (E-hailing, Car Sharing, Station-Based, Car Rental), Data Service (Navigation, Information, Payment, Others), Connectivity (3G, 4G, 5G, Wi-Fi and V2V, V2I, V2P, V2N), Vehicle Type & Region – Global Forecast to 2025“, The Ride hailing market is projected to grow at a CAGR of 19.81% from 2017, to reach a market size of USD 276.00 Billion by 2025.
The market is primarily driven by rising urbanization and declining car ownership.
”E-hailing to be the largest segment of Ride hailing market, by service type”
E-hailing is expected to dominate the Ride hailing market. It solves the problem of the first and last mile connectivity for passengers. E-hailing is predominant in urban areas because of declining trend of car ownership and increasing consumer preference. E-hailing significantly reduces waiting time for taxi and provides precise time using GPS. Consumers towards app based e-hailing owing to its user friendliness, focus on better customer service and innovative pricing system.
“Electric vehicles to be the fastest growing segment in the Ride hailing market, by vehicle type”
The electric vehicle segment is projected to grow at the highest CAGR during the forecast period. Electric vehicles are expected to catch up with IC engine vehicles, which currently dominate the market. The anticipated development of electric vehicles along with autonomous and self-driving cars are expected to change the Ride hailing market landscape as need of driver for mobility will be vanished. Asia-Pacific is expected to have the fastest growing market for electric vehicle due to government incentives and increasing supporting infrastructure.
“Asia-Pacific to have the largest market size during the forecast period”
Asia-Pacific is estimated to dominate the Ride hailing market, and is projected to grow at a significant CAGR during the forecast period. The growth in Asia-Pacific market is attributed to wide customer base due to dense population and rising urbanization in emerging economies such as China and India. Factors such as increasing urbanization and rising traffic congestion will drive the demand for Ride hailing services. For countries like India and China, the consumer preference is changing and with the rising population, the need for Ride hailing is increasing in order to cater to the increase in the consumer basket.