North America car sharing market share will see a considerable growth during the forecast period of 2021-2027. One of the main reasons for this is the number of benefits carsharing services offer. The advantages include cost-effectiveness, reduction in greenhouse gas emissions, lesser need for extra parking space, and decrease in pollution level, among others.
North America is witnessing a worrying surge in the overall pollution level. According to the ‘State of the Air’ 2021 report by the American Lung Association, 41.1% or more than 135 million people in the U.S. are living in 217 counties that have showcased unhealthy levels of ozone or particle pollution. These statistics are pointing to the need for better measures to control the pollution level in the region, which will have a positive effect on the demand for car sharing services.
Need for car sharing solutions for private use rises:
North America car sharing market size from personal applications is likely to register a strong CAGR through 2027. Many people across the region are opting for car sharing solutions to attend personal events, such as weddings and other informal functions. One of the main reasons behind it is that people don’t have to use their own cars to travel longer distances, which helps them save on money and fuel.
Moreover, the regional population is becoming increasingly aware of the dangerous effects of carbon emissions on the environment and want to reduce their carbon footprint. Many car sharing service providers are offering electric vehicles, which can urge several travelers to use car sharing services more often for their personal purposes.
High demand for free-floating model of car sharing services:
The free-floating model is anticipated to capture a sizeable share of North America car sharing market by 2027. The region is witnessing a worrying rise in traffic congestion, which is putting immense pressure on the environment. In such a scenario, the demand for free-floating car sharing is growing among travelers.
Some of the benefits of using this model of car sharing include low maintenance & fuel costs, high utilization rate, wider range of cars to choose from, reduction in the number of vehicles on road, decreased carbon emissions, and flexibility in transportation options, among others. These features benefit the environment and reduce a traveler’s commuting costs, which will favor the use of free-floating model of car sharing among customers.
Importance of using car sharing services for round trips grows:
Based on business model, round trips may capture a major share of North America car sharing industry by 2027. Even though the overall per-capita income of the regional population is rising every year, they would still prefer to use one car for round trips due to the obvious advantage that this business model can save a lot of money.
Moreover, it greatly reduces a traveler’s waiting time and they do not have to go through the hassle of booking another ride. Since round trips can save money and time spent in commuting, they will be highly used by passengers across North America.
The growing internet and smartphone penetration in North America has played a key role in increasing the demand for car sharing apps among customers. Using these apps has made it much easier for travelers to avail car sharing services as they can save a lot of time, money, and fuel while traveling to far-off locations. Many car sharing companies are also introducing electric vehicles to achieve sustainability and reduce their carbon footprint, which has strengthened their customer base.
COVID-19 effect on demand for car sharing solutions:
The COVID-19 pandemic had negatively influenced the demand for car-sharing services across North America in the first half of 2020. People were skeptical to carpool with others as they feared getting exposed to the virus. This had an adverse effect on the business potential of several companies that offer car sharing services to their customers.
However, they overcame this challenge by heavily investing in disinfecting services and ensured that all their drivers were fully vaccinated. As the current situation continues to show consistent improvement, the demand for car sharing solutions will witness a massive boost in the coming years.
Reputed companies across North America, such as Regina Car Share Co-operative, Communauto Inc., Turo, Inc., Lyft Inc., Getaround, Inc., Hertz Global Holdings, Inc., and Zipcar, Inc., among several others, are offering innovative and sustainable car sharing solutions to their clients. They are also entering into partnerships and merger & acquisition deals with other organizations to diversify their product & service portfolios and expand their customer base.
For instance, in December 2021, Lyft and Delta Airlines announced the extension of their partnership to enhance a rider’s experience by offering them in-app flight statuses and additional traveler reminders. Such efforts will positively impact the use of car sharing services among customers across North America.