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

  • Corporate car sharing fleets set to reach 85,000 vehicles in 2020
    February 24, 2014
    A recent analysis from Frost & Sullivan estimates the number of vehicles in car sharing fleets to stand at around 2,000 in 2013 and forecasts that by 2020 there could be between 75,000 and 100,000 of such vehicles in operation, as providers such as OEMs, leasing arms, rental companies, car sharing organisations (CSOs) and technology providers continually enter the market and expand geographically with competing solutions. With more than half of European automobile sales now accounted for by fleet sales, set
    Read More
  • Solid-state batteries– a better, longer-lasting class of Li-ion electrolytes?
    November 8, 2016
    In 2016, Li-ion batteries (LIB) have been on the market, virtually unchanged, for the last 25 years. While this anniversary marks and underscores their worldwide success and diffusion in consumer electronics and, more recently, electric vehicles (EV), the underlying technology begins to show its limitations in terms of safety, performance, form factor and cost, according to a new research report by IDTechEx Research.
    Read More
  • ADAS leads consumer preferences in new vehicle purchases, says survey
    July 28, 2016
    According to a new IHS Automotive global consumer survey, Connected Cars, 55 per cent of annual global new vehicle sales in 2020 will be connected vehicles and at that time, nearly half of the global fleet of vehicles in operation will be connected. Findings indicate that new advanced technologies and increased connectivity are driving consumer preferences as they consider new vehicles. More than 4,000 vehicle owners intending to purchase a new vehicle within the next 36 months were surveyed, representi
    Read More
  • Why the US said ‘yes’ to public transportation on 8 November
    March 29, 2017
    Historic funding boost reflects America’s awareness of transit’s contribution to economic growth and quality of life. Something unexpected happened on Election Day 2016, a result nobody expected; public transportation was a clear winner. There were 49 transit-related funding initiatives on ballots across the nation, of which about 70% were passed.
    Read More

Highlighted Content