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

Global On-Demand Transportation Market was valued at USD 142.37 billion in 2022 and is expected to rise from USD 170.23 billion in 2023 to reach USD 711.24 billion by 2031, at a CAGR of 19.57%, during the forecast period, (2024-2031).

On-demand transportation is defined as a web-based service that allows users to reserve vehicles for a fee based on the distance and duration of the trip. On-demand transportation services consist of a variety of vehicle types, including commercial vehicles and passenger vehicles, that can be reserved or booked in accordance with the needs of the customer. The service is also very well-liked in metropolitan areas as a result of growing digitalization and reliance on internet-based services.

Rising car prices have increased consumers' preference for on-demand services that allow them to modify, pre-book, and cancel their bookings at lower costs through applications, which in turn increases demand for the product. Millennials have also increased their use of car sharing services, which is driving up demand for the service. Other important factors driving up demand for these services include dwindling parking spaces, growing smartphone penetration, and rising PR. Moreover, growing demand for on-demand transportation services during the aforementioned forecast period will be aided by rising tourism activities, an increase in the working-class population, a rise in the popularity of road trips, and growing technological advancements and modernization in the automotive industry.

However, rising data privacy security and improved public safety are the main reasons limiting market expansion and may present new challenges to the on-demand transportation market during the mentioned forecast period.

US On-Demand Transportation Market is poised to grow at a sustainable CAGR for the next forecast year.