Due to the rising popularity of electric mobility services, the global electric mobility (e-mobility) services market is predicted to surge, in valuation, from $3,189.8 million to $78,898.3 million from 2019 to 2030, exhibiting a CAGR of 40.7% between 2020 and 2030.
The main factors driving the progress of the market are the lower ownership costs of electric fleet and the rising concerns being raised regarding environmental degradation throughout the world.
The lower ownership costs of electric vehicles (EVs) in comparison to the fossil fuels-powered vehicles are massively pushing up the sales of these vehicles across the world. The charging cost of an electric vehicle is considerably lower than the cost of oil and gas, which is used for powering a conventional vehicle. In addition to this, the maintenance costs of EVs are much lower than that of the oil and gas-powered automobiles.
This is because of the comparatively higher simplicity of the electric drivetrain that comprises fewer moving components and parts (70%) than in an ICE (internal combustion engine) automobile. The lower ownership costs of EVs boost their deployment in shared mobility services, which, in turn, propels the advancement of the e-mobility services market all over the globe. Furthermore, the rapid rise in environmental degradation, on account of the emission of harmful greenhouse gases (GHGs) from the conventional automobiles, is pushing up the popularity of eco-friendly mobility solutions such as electric vehicles.
Many countries are increasingly launching large-scale awareness programs for raising public awareness of sustainable transportation systems and the environmental damage caused due to the utilization of oil and gas-powered vehicles. Due to this reason, the adoption of EVs is rising swiftly, especially in public transport fleets and shared mobility services, which is subsequently causing the growth of the e-mobility services market. Based on service type, the market is categorized into ride-hailing, car rental, carsharing, and two-wheeler sharing.
Amongst these categories, the ride-hailing one is predicted to register the fastest growth in the future years, on account of the increasing adoption of electric vehicles in the transport fleets of major ride-hailing service providing companies such as Beijing Xiaoju Technology Co. Ltd. and Uber Technologies Inc. When commuting pattern is taken into consideration, the market is divided into occasional commuting, last-mile connectivity, and daily commuting categories. Out of these, the daily commuting division will demonstrate the highest growth rate in the upcoming years.
The main factor fueling the advancement of this category is the growing requirement for shared mobility solutions and services amongst the younger population such as professionals and students for daily commuting. Apart from this, the implementation of numerous policies and initiatives in various countries aimed at reducing the usage of conventional vehicles is also contributing toward the soaring popularity of e-mobility services amongst daily commuters, thereby propelling the progress of the category in the market.
In the future years, the Latin American, Middle East, and African (LAMEA) e-mobility services market will be very prosperous, as per the estimates of P&S Intelligence, a market research company based in India. This is because of the increasing penetration of electric vehicles and associated facilities and infrastructure in this region and the rising initiatives being taken by the governments of Brazil and Mexico for reducing the pollution levels in the major cities.
Hence, it is safe to say that the market will exhibit tremendous growth in the upcoming years, on account of the rising adoption of electric vehicles by the shared mobility service providers and the increasing utilization of e-mobility solutions for daily commuting across the world.