Europe car sharing market demand set to grow
According to research company Graphical Research, Europe’s Car Sharing Market is set to surpass four billion by 2024. Industry growth is expected to accelerate over the forecast timespan, due to the benefits of these services such as reduced pollution and traffic congestion. High costs of vehicle ownership in the region are driving the demand for these services.
Costs, such as car ownership, taxes, owning a driver license, and vehicle maintenance, are further propelling the industry growth.
Car sharing market growth will gain momentum over the forecast timespan due to a broad range of service options with a diverse range of customer experiences and differentiated price points as compared to other mobility options. These services allow flexibility to customers such as distance travelled and integration with public transit systems.
Based on the model, the free-floating car sharing market is expected to witness a rapid growth due to newness of the industry and a high degree of flexibility in terms of dropping off the vehicle wherever it is suitable for the driver. These services are mainly used for shorter travelling distances, providing a cost-effective option as an alternative to taxies. However, these services are expensive as compared to station-based services and operate mainly in city areas.
The tedious and time-consuming registration processes for these services are expected to restrict the car sharing market growth. For instance, Car2Go app in Germany requires several steps for registration and Fiat-powered Enjoy does not allow registration via mobile phones. Furthermore, the competition from services such as car rental and ride hailing are expected to restrain the industry growth.
Key players in the Europe car sharing market include Autolib, Flinkster, DriveNow, Car2Go, Tamyca, and CarUnity. The industry is characterised by the presence of several players in addition to the several vehicle manufacturers such as BMW entering the car sharing market. Mergers and acquisitions are among the most common strategies adopted by these players. For instance, the merger between DriverNow and Car2Go will enable these companies to tackle the competition from established players such as Europcar.