Carsharing to grow in Europe and US
Over the past three years, peer-to-peer (P2P) car sharing in Europe and North America has changed from a basic service provided by grassroots organisations to a widely recognised, transformative urban transport industry. As traditional P2P carsharing operators (CSOs) diversify their business models to include airport and train station rentals, P2P carsharing is quickly becoming an affordable, accessible, and integrated multi-modal transport solution.
New analysis from Frost & Sullivan, Strategic Analysis of European and North American P2P Carsharing Market finds that carsharing membership will grow from the mere 1.3 million in 2014 to reach 9.8 million in 2025, growing at a compound annual growth rate of 19.9 percent.
‘P2P carsharing has evolved into an opportunity to enhance economic sustainability and simultaneously produce benefits such as emission reduction, fuel savings and returns on investment,’ said Frost & Sullivan Automotive & Transportation Research Analyst Krishna Achuthan. ‘High online connectivity and smartphone penetration too have fast tracked the use of P2P carsharing.’
However, not all vehicles are equipped with telematics devices and connectivity as they require the vehicle model to support the hardware. Further, stringent state insurance laws, legal regulations, and increasing insurance costs in Europe and North America could slow down adoption to an extent. Market participants may be forced to seek funding from venture capital firms to offset inadequate revenue inflow.
Nevertheless, the market in Europe and North America will eventually thrive as the allure of a 40 percent reduction in vehicle rental costs attracts end users to P2P carsharing. Integration with other business models such as ridesharing and traditional carsharing will enhance transport options and broaden the vehicle base for P2P CSOs.
‘Partnerships and acquisitions are rampant and necessary for the P2P carsharing market to stay in the fast lane,’ confirmed Achuthan. ‘Collaboration with original equipment manufacturers will pave the way for keyless entry technology, thus easing operations and ushering in new revenue opportunities in the European and North American carsharing industry.’