Next-generation technologies create growth opportunities for operators by transforming the experience of P2P carsharing, finds Frost & Sullivan
Posted 07 January, 2019 at 17:16
London, 7 January 2019 -- Peer-to-peer (P2P) carsharing is disrupting private vehicle usage and travel by filling the gap between traditional carsharing and car rental models. The concept is rapidly gaining currency, as demonstrated by the increase in the number of P2P carsharing operators from 10 in 2009 to more than 50 in 2018. This escalating competition is prompting a series of mergers and acquisitions and technological innovations to boost domestic and global growth. Eventually, by 2030, P2P carsharing is expected to become a part of the larger integrated multimodal network with other shared mobility services such as traditional carsharing, P2P parking, and ridesharing.
"Connected cars, steadily growing mobile penetration rate, and the advent of advanced networking technologies such as 5G are likely to enhance P2P carsharing features and services over the next three to five years,” said Abhishek Iyer, Mobility Research Analyst. "Artificial Intelligence (AI)-enabled assistants, blockchain-based payments, and smart contracts will also stoke greater demand among the current generation of users while paving the way for new business models."
Frost & Sullivan’s recent analysis, Strategic Insight into the Global P2P Carsharing Market, 2018, introduces new market segments that have developed to meet evolving customer needs, and discusses how the market is poised for growth. It highlights the key technology trends, interest of automotive OEMs in P2P carsharing, investments and partnerships between P2P carsharing and other business models, and expansion strategies of P2P operators in select regions. The study also includes the various initiatives from investors, governments, transit authorities, technology providers, original equipment manufacturers (OEMs), and new mobility service providers. Finally, it profiles the major participants in the global market and offers strategic recommendations and conclusions.
"OEMs are also showing keen interest in the P2P carsharing concept and are launching their own services as part of their mobility strategy for the future," noted Iyer. "However, state insurance laws, regulations, and rising insurance costs are restraining the market to some extent. Countries such as Germany, on the other hand, are promoting shared vehicles as part of their future ecosystems and are working on policies to support these frameworks."
Overall, the P2P carsharing market could potentially cross $4 billion by 2030 if service providers make the most of the revenue opportunities presented by:
- Introducing P2P carsharing in strategic locations such as those with inadequate public transport systems or a high density of young population (25-40 years olds).
- Increasing environmental awareness and building trust through community feedback and rating mechanisms, coupled with loyalty or reward programmes.
- Forming synergies between OEMs and P2P operators to generate new revenue streams.
- Identifying new areas of innovation and improvement of existing platform to offer more engaging and seamless user experiences.
- Garnering support from local regulatory bodies and lobbying for the establishment of clear policies.
Strategic Insight into the Global P2P Carsharing Market, 2018 is part of Frost & Sullivan’s global Automotive & Transportation Growth Partnership Service program.