Alternate Transportation Global Market Report 2024

The alternate transportation market has grown rapidly in recent years. It will grow from $233.82 billion in 2023 to $265.71 billion in 2024 at a compound annual growth rate (CAGR) of 13.6%. The growth observed in the historical period can be attributed to various factors, including urbanization and congestion, heightened environmental concerns, advancements in electric vehicles (EVs), government initiatives and incentives, shifts in consumer preferences, and the rise of Mobility as a Service (MaaS).

The alternate transportation market is expected to see rapid growth in the next few years. It will grow to $419.83 billion in 2028 at a compound annual growth rate (CAGR) of 12.1%. The anticipated growth in the forecast period can be attributed to the proliferation of autonomous and connected vehicles, the expansion of micro-mobility solutions, a heightened focus on last-mile connectivity, the implementation of climate change mitigation policies, and increased collaborations and partnerships. Key trends expected in the forecast period include the widespread adoption of micro-mobility solutions, the development of autonomous and self-driving vehicles, the integration of multi-modal transportation systems, the emergence of urban air mobility, and the rise of subscription-based transportation services.

The growth of the alternate transport market is anticipated to be driven by the increasing popularity of on-demand transportation services. On-demand transportation refers to a service that is readily available to users whenever they need it. This mode of alternate transport offers swift services, providing cost-effective options for passengers. By reducing travel time and fuel consumption, on-demand alternate transport contributes to lower pollution levels, offering an eco-friendly alternative for travelers. In February 2023, The New York Times reported an 11% monthly increase in the number of people using Uber's on-demand transport services throughout 2022. Furthermore, Uber made two billion trips in a quarter of the year 2022, compared to 1.7 billion journeys in 2021. Hence, the surge in on-demand transportation services is a key driver propelling the growth of the alternate transport market.

The growth of the alternate transportation market is also expected to be fueled by the rising issue of traffic congestion. Traffic congestion occurs when the volume of vehicles on a road or network surpasses the available capacity, leading to traffic slowdowns or halts. The increasing prevalence of traffic congestion has prompted individuals to seek efficient alternatives such as carpooling and ride-sharing to alleviate gridlock, shorten travel times, and enhance overall mobility. According to a report by Government Technology in January 2023, drivers spent nearly 4.8 billion hours in traffic in 2022. The average American driver faced losses of $869 in 2022 due to traffic delays, a significant increase from the $305 recorded in 2021. Consequently, the escalating problem of traffic congestion is driving the growth of the alternate transportation market.

Major players in the alternate transportation market are focusing on innovation, particularly in the realm of ride-sharing services, to cater to broader customer bases, boost sales, and increase revenue. Ride-sharing services involve individuals sharing a vehicle for transportation from one location to another. In June 2022, Uber Technologies Inc., a leading US-based transportation network company, launched UberX Share. This service introduces a unique feature where riders can share their journeys, benefiting from upfront discounts of up to 20% when matched with a co-rider. Prioritizing efficiency, UberX Share ensures minimal delays by exclusively pairing riders heading in the same direction, guaranteeing arrival within 8 minutes of an UberX ride. Aside from cost savings and timely arrivals, the service promotes sustainability by efficiently matching more passengers in fewer cars, contributing to reduced gas consumption, vehicle miles, and emissions per passenger.

Major companies in the alternate transportation market are investing in advanced technologies, such as carpooling applications, to expand their customer bases, drive sales, and boost revenue. Carpooling apps are mobile applications or software platforms designed to facilitate ride-sharing among individuals traveling in the same direction. For example, in March 2022, MobileWare Inc., a US-based company offering a carpooling solution, launched onTime Carpool, an on-demand carpooling service. This app integrates seamlessly with Mobileware's established onTime commuter mobile app, which boasts a user base of over 3 million individuals. onTime Carpool focuses on transforming commuting within the public transportation system, particularly emphasizing first- and last-mile connections. By providing real-time information on transit rail services, onTime Carpool enhances the convenience and connectivity for users navigating both the broader public transit network and the critical first and last segments of their journeys.

In March 2023, Transdev Group, a prominent France-based public transport company, made a strategic acquisition by acquiring First Transit Inc. for an undisclosed amount. Through this acquisition, Transdev Group aims to expand its geographical footprint in the USA and Canada, offering various services such as fixed-route bus systems, shuttle services, and more to passengers in the North American region. First Transit Inc. is a US-based public transportation company that provides mobility solutions, aligning with Transdev's goal of enhancing its presence and service offerings in North America.

Major companies operating in the alternate transportation market report are AECOM Technology Corporation, AeroMobil s.r.o., Alternative Transportation Systems LLC, Carzonrent India Private Limited, Delft University of Technology Hyperloop Test Facility, Lockheed Martin Corporation, Space Exploration Technologies Corp., Tesla Inc., Virgin Hyperloop One, ANI Technologies Private Limited, BlaBlaCar SAS, ALC Schools LLC, Transdev Group, Enterprise Holdings Inc., Azienda Trasporti Milanesi S.p.A., BYD Company Limited, Polestar Automotive Holding UK Limited, JetBlue Airways Corporation, Plus Transportation Technologies Inc., HopSkipDrive Inc., Superpedestrian Inc., Uber Technologies Inc., Proterra Inc., Ford Motor Company, General Electric Company, DB Schenker Logistics Americas Inc., UPS Supply Chain Solutions Inc., Union Pacific Corporation, Canadian National Railway Company, Canadian Pacific Railway Limited.

Europe was the largest region in the alternate transportation market in 2023. Asia-Pacific is expected to be the fastest-growing region in the global alternate transportation market report forecast period. The regions covered in the alternate transportation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the alternate transportation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The main types of alternate transport include road, air, vacuum tubes or pneumatic pressure tubes, and rail. Roads are defined as routes, typically constructed with hard surfaces such as concrete, asphalt, or gravel, intended for the movement of vehicles, pedestrians, and bicycles. The sharing functions associated with alternate transport involve both sharing and renting, offering services within cities and between cities. This can apply to personal vehicles, passenger vehicles, as well as freight or carriage vehicles.

The alternate transportation market research report provides alternate transportation market statistics, including alternate transportation industry global market size, regional shares, competitors with alternate transportation market share, detailed alternate transportation market segments, market trends, and opportunities, and any further data you may need to thrive in the alternate transportation industry. This alternate transportation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The alternate transportation market includes revenues earned by entities by providing car services, motorcycle services, and related electric and fuel alternate transport services. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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