On-Demand Transportation Market Size, Share, Growth Analysis, By Service Type(E-Hailing, Car Sharing, Car Rental, and Station-Based Mobility.), By Vehicle Type(Four-Wheeler, and Micro Mobility.), By Business Model(P2P, B2B, and B2C), By Power Source(Fuel Powered, HEV (HEV), PHEV (PHEV), BEV (BEV).), By Application(Passenger Transportation, and Goods Transportation.), By Region - Industry Forecast 2024-2031

On-Demand Transportation Market Drivers

The rising sales of smartphones

• The acceptability of on-demand transportation services including car sharing, e-hailing, station-based mobility, and car renting has risen with the increase in connected automobiles. Customers can modify, pre-book, or cancel their cab arrangements via mobile applications.

Rise in fuel costs

• Growing traffic problems, rising fuel costs and a lack of resources of parking spots are driving market growth. Moreover, the use of on-demand transportation services has increased due to the growing popularity of smartphones and linked vehicles.

On-Demand Transportation Market Restraint

Imposition of Stringent Regulations due to  Increased Passenger Safety

• Increased passenger safety concerns are having a significant influence on market growth, making passenger safety one of the most significant barriers to the growth of the on-demand transportation sector in recent years. Governments are concerned about these occurrences and may impose tough regulations to guarantee the security of drivers and passengers. The On-demand Transport (OdT) business division of the Department of Transportation (DoT) keeps an eye on the passenger transportation sector to make sure that requirements for public safety are met.