Carsharing in North America has come of age and is now widely accepted in its urban transport landscape.
Traditional carsharing organizations (CSOs) are being replaced by car-rental organizations, car-leasing firms, and OEMs. The Carsharing Market in North America is growing with the involvement of OEMs such as Renault, BMW, and Nissan. In a highly competitive market, small local players are trying to match the huge financial strength and vast service-station networks of OEMs. Multi branding in vehicles used for car-sharing is another major trend witnessed in the market.
An ever growing market for Carsharing encompasses segments such as:
- Businesses
- Residential developments
- Government fleets
- Low-income markets
- Colleges and universities
Carsharing continues to diversify and evolve with additional beneficial features such as insurance, customer support, and ongoing advances in technology.
As per TechNavio, the Carsharing Market in North America is expected to grow at a CAGR of 45.99 percent. This high growth is attributed to the emergence of certain positive trends such as corporate carsharing.
TechNavio analysts bring you four key market trends which are in spurring growth in the North American Market:
Corporate Carsharing
Carsharing service providers have introduced a new scheme known as corporate carsharing. Through this scheme, they make fleets of vehicles available at company premises for the use of employees. This is beneficial for both companies and CSOs. It also provides better accessibility for employees as they can choose branded and expensive cars from the pool of cars that they otherwise would not be able to purchase.
As this indirectly boosts the morale and satisfaction of employees, companies are using these schemes as an employee retention policy. In addition, companies are free from the costs of maintaining company cars and investing in fleet management software. There is an increased preference for corporate carsharing among companies because of rising traffic congestion, environmental concerns, increasing fuel costs, and improvements in public transport.
Technological Innovation
As the market grows, it is flooded with new and unique features in the services provided by CSOs and other carsharing service providers. The market is witnessing increased usage of advanced telematics solutions and navigation functionalities in cars to satisfy the evolving needs of customers.
Integration of devices such as smartphones with cars is helping carsharing vendors provide more sophisticated and customized services. For instance, Audi plans to offer a high-speed wireless data connection in cars to provide access to other services, including communications with parking garages to find open spaces, as well as with other connected cars. The situation is complemented by the arrival of online mobility booking agencies and payment engines for hassle-free booking and sharing of cars.
Diversity of Carsharing Systems
Traditionally, CSOs provided car-sharing services through a two-way model. With growing needs of individual and corporate customers, the range of service models is widening. One-way and peer-to-peer carsharing models have been developed, which are becoming increasingly popular among users.
The peer-to-peer model allows car owners to rent their vehicles to others through CSOs for short periods of time. The revenue earned is shared between the individual and the CSO, but the ownership lies with the individual. The one-way carsharing system helps customers choose their pick-up and drop-off points. Vehicles are owned by the CSOs. These models offer convenient options to users as they are free to decide the terms and conditions with the owners and can directly use the cars.
Recovery of US Economy
The US is fuelling demand for carsharing services in North America. The US economy is presently growing at a steady pace. It is recovering from recession and is returning to its pre-crisis state. This directly impacts the increase in infrastructure-building activities. It facilitates the growth of the Carsharing Market through the introduction of various government policies. It helps in building better regulatory and monitoring systems to oversee the implementation of laws and protection of CSOs and consumers.
