Ride-Hailing and Taxi Market Size, Share, Growth Analysis, By Type(Ride-Hailing, and Taxi), By Distribution Channel(Offline, and Online), By Region - Industry Forecast 2024-2031

Global Rise-Hailing and Taxi Market size was valued at USD 13.10 billion in 2022 and is poised to grow from USD 13.98 billion in 2023 to USD 23.48 billion by 2031, growing at a CAGR of 6.7% during the forecast period (2024-2031).

The ride-hailing and taxi market is experiencing significant growth, which is largely driven by consumer behavior to avoid the high overhead costs of car ownership. This trend is particularly evident in ride-hailing services, which are becoming increasingly popular due to their convenience of payment, transparent pricing, known driver identity through the app, and door-to-door service. The rise in urban population as a result of migration for employment purposes is leading to increased traffic congestion and a lack of parking space, which further facilitates the shift towards ride-hailing and taxis as a mode of transportation. However, the growth is restrained by environmental issues and complex regulations globally.

The increase in ride-hailing and taxi ridership has resulted in a corresponding increase in carbon emissions and air pollution, particularly in large metropolitan cities, which negatively impacts the growth. Additionally, the market penetration in various regions is limited due to complex regulations and governance. Although there has been a short-term shift towards private cars and two-wheelers, the market is expected to recover and witness healthy growth during the forecast period. In summary, the ride-hailing and taxi market is poised for significant growth, although it faces environmental and regulatory challenges that need to be addressed. Based on our in-depth analysis we found that, in North America, the market size is growing at a CAGR of 8.5% from 2023 to 2030. The report attributes the growth to factors such as increased adoption of ride-hailing services, growth in urban population, and the rise in disposable income among consumers. Report also states that, in the Asia Pacific region, the market is expected to witness significant growth during the forecast period, driven by factors such as increasing demand for transportation services, rising penetration of smartphones and internet, and the growing urban population.

US Ride-Hailing and Taxi Market is poised to grow at sustainable CAGR for the next forecast year.