Why is Increasing Gasoline and Diesel Price Major Reason behind Carsharing Market Growth?

The world is in grave danger, as the high amounts of greenhouse gas (GHG) emissions are making the air fouler by the day. Whenever coal, natural gas or crude oil and its derivatives are burned, carbon dioxide, nitrogen oxides, carbon monoxide, sulfur dioxide, and other harmful gases are released into the atmosphere. These are not only making the earth hotter, but also creating difficulties in breathing. The transport sector is one of the major emitters of GHGs, which is why several steps are being taken to check it and reduce the rate of air quality degradation.

One such effort has been the strong promotion of shared mobility services, as 3–4 people can travel in the same vehicle, which automatically helps bring down the number of automobiles in operation. As, still, most vehicles run on gasoline and diesel, shared mobility aids in bringing down pollution. This is one of the primary reasons the carsharing market, which valued $5,571.2 million in 2018, is projected to grow to $10,846.9 million by 2025, at an 11.0% CAGR between 2019 and 2025. In such a model, people can rent cars as per requirement and pay on the basis of the journey distance or time.

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The key catalyst for the popularity of such models has been the advent of the mobility as a service (MaaS) concept. With shared mobility companies putting in the hard yards of owning and maintaining the vehicles, a great weight has been lifted off the shoulders of users. Those who use MaaS services do not need to spend thousands of dollars on purchasing a personal vehicle, paying for insurance premiums, parking, and regular servicing and maintenance. Not to forget the rapidly increasing prices of diesel and gasoline, all of which become the responsibility of the service provider.

Asia-Pacific (APAC) is currently the largest carsharing market, majorly on account of the strong government support for such a transportation system, especially in China. In this country, the number of electric cars in shared mobility fleets has drastically risen in the last few years. Being one of the most industrially productive, and therefore polluted, countries on earth, China is taking concrete steps to increase the penetration of electric vehicles, including among car sharing companies, such as offering subsidies, tax rebates, and monetary incentives for their purchase.

Hence, as the realization about the fact that shared mobility can potentially reduce the number of automobiles on the road increases, carsharing services are bound to become more popular than ever in the coming years.

Read more: https://www.psmarketresearch.com/market-analysis/car-sharing-market
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