Why Car Sharing is Getting Popular Recently?

Discussing About Various Benefits of Car Sharing

Car sharing is getting popular recently. Many people think that car sharing is just for those folks who don't own a car. But, the fact of the matter is that, car sharing is not dependent on one person owning a car or not.

It is an innovative way to get around town. It's a prodigious option for regular citizens, but it can also be a lucrative and environmentally friendly option.

Car Sharing vs. Car Rental

Car sharing is a great alternative to conventional renting. A car-sharing service is a car rental form lets you to rent a vehicle on an hourly basis.

Different from conventional car rental companies, which charge users on the basis of length of time they have the car or the distance, car-sharers are billed by the hour, on the basis of the on use. The flexibility offered by a car-sharing service, in which members can rent cars anytime, makes it more appealing to individuals who don't possess a car.

The Benefits of Car Sharing

If you want to do away with high parking rates, reducing the hassle of possessing a car, there are several reasons why car sharing is the future. Let's look at the benefits of making use of a car-sharing service.

It is Relatively Inexpensive

Owning a car costs a lot of money on a yearly basis. Car sharing makes you rent cars on a yearly basis or on the day basis and only pay for the time of usage. There are no maintenance or maintenance costs involved either, making it easy to have a car to reach your destination.

Emission of Less Poisonous Gases

Most people want to reduce emissions. Car sharing help reduce the vehicle count on the road, the distance driven, and car ownership. The less vehicles on the road, the less cramming and emissions of the poisonous gases , including carbon dioxide. It also decreases the requirement for additional parking. This lets for further green spaces.

No Stress Whatsoever 

Owning a car can be demanding for a lot of people.  On the other hand, car sharing is relatively convenient; it is possible to have a car that suits their purpose. Car sharing is perfect for quick trips or going on long excursions. You can rent an SUV or any car of your choice. Car sharing provides you with the ability to borrow a vehicle for a certain period without worrying about maintenance.

It is More Accessible

Car sharing reduces pollution and congestion. It is a great or people not able to afford a car due to high price constraints. Car sharing programs surge the people count who have access to cars since they disregard the necessity to purchase a car.

It is because of the increasing concerns of greenhouse gas emissions, all over the world, the demand for carsharing is on the rise, and it will reach a value of USD 9,657 million by the end of this decade.

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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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Carsharing Market Revenue and Industry Expansion Strategies

The carsharing market generated a revenue of $5,571.2 million in 2018 and is estimated to progress at a CAGR of 11.0% during the forecast period (2019–2025), owing to advancements in technology, which are helping make the access to shared mobility services easy. The growing demand for convenient and cost-effective mobility services, coupled with government policies encouraging the use of carsharing programs, is the key factor driving the growth of the market. In simple terms, carsharing is a short–term rental service offered to customers at a certain charge.

Based on car type, the global carsharing market is categorized into luxury, executive, and economy cars. Among these, in 2018, in terms of volume, the economy category held the largest share in the market. This is attributed to the high fuel economy of these cars, which stimulates their demand for carsharing services. Furthermore, the rising gasoline prices and increasing environmental concerns are expected to push the demand for these cars across the globe in the coming years, as these cause less impact on the environment and are cost-effective.

Further, on the basis of fuel type, the global carsharing market is bifurcated into fuel-based and electric cars. Of these, in terms of volume, fuel-based cars dominated the market in the historical period (2014–2018) and are further projected to continue leading it with more than 95.0% share in 2025. However, growing initiatives toward vehicle electrification and environment protection are predicted to result in decreased gasoline usage during the forecast period. In addition, owing to low maintenance cost, electric cars are anticipated to observe increased adoption in the market for carsharing.

Carsharing services are extremely useful for the general public, especially for daily commuters, as without owning and maintaining cars, they can reach their destination. For users, these services are available day and night throughout the year, allowing them to use a car from anywhere, anytime. Besides, with the help of the carsharing company’s mobile app, commuters can directly avail the services and easily rent the car of their choice. The apps offer the necessary details and every assistance to users, so that they have a good commuting experience. Hence, mobile apps, providing easy access to cars as well as all the information related to the service, are taking the carsharing market ahead.

Introduction of mobility as a service observed as a key trend in the market

Furthermore, carsharing helps save the expenditure on owned cars, fuel, maintenance, parking, and insurance. Carsharing services require users to pay only on the basis of the time and distance the car is being driven for, along with an initial registration cost. Also, other expenses, such as those for maintenance, insurance and fuel, are borne by the carsharing service providers. Due to benefits associated with sharing services, such as cost-efficiency and easy availability, the global carsharing market is expected to grow.

Hence, with the increasing inclination of people toward convenient mobility services, the global market for carsharing is witnessing a boost.

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