e-hailing expected to dominate ride hailing market by 2025

According to the latest research by MarketsandMarkets, the ride hailing market is projected to grow at a CAGR of 19.81 per cent from 2017, to reach a market size of US$276 billion by 2025. The market is primarily driven by rising urbanisation and declining car ownership. The report says e-hailing is expected to dominate the ride hailing market; it solves the problem of the first and last mile connectivity for passengers. It is predominant in urban areas because of declining trend of car ownership and increa
July 26, 2017 Read time: 2 mins
According to the latest research by 6418 MarketsandMarkets, the ride hailing market is projected to grow at a CAGR of 19.81 per cent from 2017, to reach a market size of US$276 billion by 2025. The market is primarily driven by rising urbanisation and declining car ownership.


The report says e-hailing is expected to dominate the ride hailing market; it solves the problem of the first and last mile connectivity for passengers. It is predominant in urban areas because of declining trend of car ownership and increasing consumer preference. It also significantly reduces waiting time for taxi and provides precise time using GPS. Consumers incline towards app based e-hailing owing to its user friendliness, focus on better customer service and innovative pricing systems.

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 vehicles due to government incentives and increasing supporting infrastructure.

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 the Asia-Pacific market is attributed to a wide customer base due to dense populations and rising urbanisation in emerging economies such as China and India. Factors such as increasing urbanisation 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.

The ride hailing market is dominated by a few global players and comprises several regional players. Some of the key players operating in the market are 8336 Uber Technologies, 7207 Delphi Automotive, 4306 Denso Corporation, 4243 Intel Corporation and 1692 TomTom.

For more information on companies in this article

Related Content

  • Adoption of ITS fuelled by need to tackle traffic issues, says research
    October 19, 2016
    The revenue of the global intelligent transportation systems market stood at US$20.22 billion in 2015 and the market is expected to reach US$57.44 billion by the end of the forecast period, developing at a CAGR of 12.7 per cent during the forecast period, according to research by Transparency Research (TMR). According to the report, Intelligent Transportation System Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast 2016-2024, on the basis of type, advanced transportation managem
    Read More
  • Growth predictions for parking management market
    December 18, 2014
    According to a new market research report Parking Management Market by Solution (Parking Software, On-Street Parking, Off-Street Parking, Access Control, Security and Surveillance, Parking Fee and Revenue Management, Parking Enforcement and Permit Management) - Global forecast to 2019, published by MarketsandMarkets, the global parking management market is expected to grow from US$5.0 billion in 2014 to US$9.2 billion by 2019, at a compound annual growth rate (CAGR) of 12.8 per cent. The global parking m
    Read More
  • Australian ITS market ‘worth US$1,130.2 million by 2020’
    July 10, 2015
    According to a new market research report, Australia Intelligent Transport System (ITS) Market by application, system (ATMS, ATIS, ITS - Enabled Transportation Pricing System, APTS and CVO) and Territory (New South Wales, Victoria, Queensland, Western Australia, Rest of Australia) - Forecast to 2020, published by MarketsandMarkets, the Australian intelligent transportation systems market is expected to grow at a CAGR of 14.41 per cent between 2015 and 2020, and reach US$1,130.2 million by 2020. The continuo
    Read More
  • Global smart cities market expected to reach US$1,265.85 billion by 2019
    June 12, 2014
    According to a new market report published by Transparency Market Research "Smart Cities Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2013 - 2019", the global smart cities market is expected to reach a value of US$1,265.85 billion by 2019, growing at a CAGR of 14.0 per cent from 2013 to 2019. Increase in migration from rural to urban areas is the major factor responsible for the growth of smart cities market, globally. North America was the largest contributor to the smart ci
    Read More

Highlighted Content