The smart commute market was valued at US$ 30,469.49 million in 2021 and is projected to reach US$ 86,568.73 million by 2028; it is expected to grow at a CAGR of 16.1% from 2021 to 2028. Â
The smart commute market is experiencing significant growth due to the increasing popularity of carpooling and bike pooling services among regular office commuters. This trend is being fueled by leading companies in the smart commute market, such as Uber and Ola, who offer convenient pick-up and drop-off services that appeal to consumers. Additionally, the availability of services such as short-distance travel, intercity ride-sharing, bus-sharing, bike-sharing, and auto-sharing is contributing to the expansion of the smart commute market as demand for these services continues to increase.
A growing number of large Indian corporations are actively promoting the use of carpooling and bike pooling services among their employees. These include Infosys, Capgemini, Cognizant, HCL, Amazon, Flipkart, Siemens, L&T, Biocon, and HDFC Bank, as well as many smaller businesses, which are launching awareness campaigns and digital platforms to help employees better plan their commutes. To encourage employees to reduce carbon emissions and traffic congestion in cities, some of these organizations are rewarding top carpoolers. Governments and businesses around the world are also promoting carpooling as a means of reducing carbon footprints and meeting Paris climate agreement targets.
Carpooling and bike pooling services offer numerous benefits, such as affordable pick-up and drop-off, co-passenger information, and greater convenience than traditional transportation services. Additionally, several service providers offer incentives and discounts, such as monthly passes on shared transport, to help daily commuters save money. As demand for carpool and bike pool services continues to rise, the smart commute market is expanding.
Bike pooling involves sharing bikes, scooters, or bicycles for transportation, while a bike-sharing system allows users to borrow bicycles for free. Sharing travel through bike pooling can reduce fuel costs and carbon emissions by decreasing the number of vehicles on the road, which helps to control pollution. Two-wheelers, such as bikes and scooters, are often faster in the city than cars and four-wheelers, making bike pooling a simple, quick, and convenient option for commuting. It is also a more cost-effective alternative to taking a taxi since the cost of petrol is shared among users.
Metro is a ridesharing service that operates in specific zones and utilizes vans and small cars. Metro bike share provides users with access to a fleet of bicycles for local trips and transit 24/7. For example, the Metropolitan Transportation Authority (MTA) board has approved the fee structure and initial service areas for a three-year MicroTransit Pilot Project, which is a ride-hailing service run by the MTA. During the first six months, Metro Micro will offer on-demand shared-ride service for short trips within approved service zones in Los Angeles County for $1 per ride (transfer not included). This service provides the convenience of ride-sharing technology at a fraction of the cost, resulting in reduced traffic on the streets, cleaner air, and a new approach to maximizing the use of transit systems.
In the coming years, Asia Pacific is expected to experience the fast growth in the smart commute market due to the increasing adoption of ride-sharing services among office commuters, which helps to alleviate traffic congestion and environmental issues. The region's smart commute market is expanding due to the growing trend of digitization, the thriving tourism industry, and the demand for safer transportation options. The MEA and SAM smart commute markets are anticipated to grow during the forecast period due to the convenience of booking and increased passenger comfort provided by ride-hailing services. Furthermore, factors such as urbanization, a rising young population, significant investments by key players in the smart commute market, and an increase in internet and smartphone users are expected to drive the demand for smart commutes in these regions.
The COVID-19 pandemic had a negative impact on the North American smart commute market as consumers shifted to using private vehicles instead of public transportation for health and safety reasons. The leading automakers, including Ford Motor Company and General Motors, experienced a decline in car production and sales. The disruption of supply chains and reduced demand for transportation caused various challenges for the local transportation infrastructure. However, the smart commute market in North America is expected to recover gradually due to the gradual reopening of economic activities, government initiatives, and the rapid rollout of vaccination drives.
The smart commute market size has been determined through a combination of primary and secondary research methods. Extensive secondary research has been conducted using both internal and external sources to gather qualitative and quantitative information on the smart commute market. This approach also involves obtaining an overview and forecast for the market across all segments. Additionally, numerous primary interviews have been conducted with industry experts and commentators to validate the data and obtain further analytical insights on the topic. These participants include VPs, business development managers, market intelligence managers, national sales managers, as well as external consultants such as research analysts, valuation experts, and key opinion leaders who specialize in the smart commute market.