Mobility as a Service Market worth $40.1 billion by 2030

The global mobility as a service market size is valued at USD 5.7 billion in 2023 and is expected to reach USD 40.1 billion by 2030, at a CAGR of 32.2% over the forecast period. With rapid urbanization, congestion and traffic-related challenges are increasing. MaaS offers a solution by providing users with multimodal transportation options, which in turn reduces the number of private vehicles on the road, and alleviates traffic congestion. In most cases, these services are flexible and highly customized per independent user. ?Faster internet connectivity, falling vehicle ownership, and the need to reduce traffic congestion and vehicular emissions will fuel the demand for seamless MaaS applications for end-to-end multimodal transport solutions.

The increasing need to reduce carbon emissions and awareness of environmental issues have driven a growing interest in sustainable transportation options. MaaS promotes the use of shared mobility services, electric vehicles, and public transit, which are generally more eco-friendly than private car ownership. MaaS often offers cost-effective options for travelers. By comparing various transportation options and choosing the most suitable and economical routes, users can save money compared to traditional modes of commuting, such as owning a private car.

Download PDF Brochure @ https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=78519888

Mobility as a Service Market Dynamics

Driver: Improvements in 4G/5G infrastructure and penetration of smartphones

As an internet-enabled service, connectivity is a basic requirement for MaaS. According to the International Telecommunication Union, by the end of 2023, an estimated 64.4% of the global population, or 5.16 billion people, will be using the Internet. Smartphones are vital infrastructure for new mobility models since mobility services like ride-sharing run on smartphones and require good connectivity. Over the last few years, smartphone use has increased significantly across the world, with developed countries accounting for around 80% of smartphone ownership.

5G network and better telecom infrastructure are expected to pave the way for a revolution in cities and in inter-city mobility. Wireless communication technologies (such as DSRC) can help improve traffic safety and increase traffic flow throughput. With onboard units (OBU), connected and automated vehicles (CAVs) can reduce the driver's perception-reaction time and improve safety.

Opportunities: Inclusion of on-demand ferry and freight services

Urban transportation systems are usually run by state-owned companies, while intercity transport is mostly run by private entities. Thus, pricing for urban transportation is not flexible in general, while ferries (and airlines as well) adopt flexible pricing schemes based on modern revenue-management techniques. With the advent of electrification, automation, and process digitalization, transportation is becoming a high-technological-opportunity industry where profitability promotes innovation. These principles easily apply to MaaS and, more specifically, MaaS in the ferry industry.

In the urban context, mobility is largely based on transport mode ownership. Hence, MaaS aspires to transform the existing asset ownership model into a subscription-based mobility model. However, in the case of sea passenger transportation, very few people own a vehicle (i.e., a ship/catamaran/yacht, etc). Consequently, for sea trips, the main objective of MaaS is to fill the need for an integrated system that offers different transport solutions together and consolidates trip planning and ticketing for every part of the total trip.

Ride Hailing service type to dominate the services provided by MaaS application.

Historically, more and more consumers are opting for car-sharing apps and ride-hailing services. Some ride-hailing apps, such as Uber and Lyft, have already observed a meteoric rise; there are several startups entering the space as well which is likely to intensify the competition level. Ride-hailing services are likely to witness the growth of rates upward of 30% annualized. Several established OEMs are getting involved in car-sharing initiatives. Incorporating both car-sharing and car rental services within the MaaS framework enhances the diversity of transportation options available to users, catering to a wide range of travel needs and preferences. The car-sharing and Car rental market is likely to grow up to ~ USD 27 billion. This increasing demand for car-sharing services will, in turn, drive mobility as a service market.

Payment Engines are the fastest-growing solution type.

Payment engines are a critical component of a MaaS system since service providers use various gateways for online payment processing after they have used their chosen service. Payment plans for users may range from a pay-per-trip/pay-as-you-go offer to partial or full subscriptions.

Currently, the market share of payment engines is ~10%, which is likely to grow fast as more customers demand smoother ticketing solutions. Typically, only one or two payment options other than cash, such as payment merchants, credit card, and payment wallets, are offered. Hence, these services have limited investment. However, with digital payments gaining popularity post-pandemic, investment in these solutions is likely to increase.

The pandemic has resulted in a majority of customers shifting toward contactless and cashless payment methods. The expansion of MaaS service providers in new regions and the option to make payments in foreign currencies will fuel the growth of the payment engine segment.

Asia Pacific region holds the largest market share in the mobility as a service market in terms of value.

Asia Pacific owing to its large population will hold a significant share of the MaaS market. This is also fueled by the presence of strong MaaS service providers such as DiDi in China, Ola & Uber in India, and Grab in Singapore. Singapore leads the region in terms of MaaS application test center. The Singapore Smart Mobility 2030, as part of Singapore’s Smart Nation plan, is allotted a budget of USD$1.7 billion and primarily focuses on developing autonomous taxis, buses, and shuttles. This development is likely to attract MaaS integrators to the region to boost the growth of the market. Integration of payment systems will play a key role in this region. For example, the Unified Payment ID (UPI) service in India allows its users to pay digitally just with their phones using a simple PIN. Such technologies can be integrated with MaaS applications to smoothen the multimodal integration of transport services and decongest the overpopulation of urban cities in this region.

Key Players

Prominent companies include Citymapper (UK), MaaS Global (Helsinki), Skedgo (Australia), FOD Mobility UK Ltd. (UK), and Moovit (Israel) are the leading mobility as a service providers in the global market.

Request Free Sample Report @ https://www.marketsandmarkets.com/requestsampleNew.asp?id=78519888