Asia Pacific Car Sharing Market size exceeded USD 700 million in 2020 and is projected to showcase around 22% growth rate from 2021 to 2027.
The rising population in Asia Pacific has led to an exponential rise in the national vehicle fleet in the last few years. Owing to this, many cities in China and India are witnessing swelling pressure to tackle air pollution and traffic congestion problems. The government authorities are heavily investing in advanced traffic management technology and passing stringent regulations & standards on emissions. China and India are thereby seeing growth in the adoption of urban mobility solutions such as car sharing and ride hailing services. Moreover, government organizations in Singapore and Malaysia are focusing on car sharing technology to curb the exponential increase in car population.
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The impact of COVID-19 was first felt in China due to the role it plays in global manufacturing with Wuhan, the epicenter of the pandemic, playing a particularly significant role as more than 200 of Fortune Global 500 Firms are present there. Countries, such as China, India, and Japan restricted public movement and enterprise operations to contain the outbreak. In addition, due to the pandemic, the automotive industry across the region was severely affected. However, post COVID-19, the adoption of car-sharing services is expected to grow due to the increasing cost of vehicles and decreasing use of public transport due to safety & hygiene concerns.
The round trip car-sharing business model is anticipated to register lucrative CAGR during the forecast timeframe. Round trip car sharing provides owners with the convenience of picking customers and dropping them back at the same location. This type of car-sharing is most often adopted by consumers that need a vehicle for intra-city movement or shorter distances. This model is often priced at much lower costs as the company providing the service does not have to expend resources, such as fuel or personnel, while returning the vehicles or leaving a vehicle idle until it is used by another customer.
Major players in the Asia Pacific car sharing market include BlueSG, Car Next Door Australia Pty. Ltd., Hertz Global Holdings, Inc., SOCAR Inc., and Zipcar, Inc.
Market players are focusing on introducing new car sharing models to increase customer base. For instance, in July 2021, Car Next Door Australia Pty. Ltd. launched its peer-to-peer car sharing and renting services in Southern Australia, Adelaide. The users can also rent their cars in the region through Car Next Door smartphone application, and car insurance will be provided by the company for trip duration.