The taxi market in Asia is growing at a faster pace than expected. The Asia-Pacific region acquired a major share of the global market accounting for more than 70% of the global motorcycle/bike taxi market in 2018. This is mainly because these are highly populated areas, also the increasing traffic congestion and low taxi fares have led to this outcome. In fact, the ride-hailing segment in 2020 amounts to US$ 118,993m.
The revenue in the ride-hailing segment is expected to show an annual growth rate (CAGR 2020 – 2023) of 15.2%, resulting in a market volume of US$ 181,963m by 2023. Also, the majority of the revenue is generated in China (US$ 63,797m in 2020).
Some of the major players in the APAC region are:
- Didi Chuxing
The consistent rise has led to many new opportunities for the business operators and they are improvising on all fronts.
Here are the top market trends of the taxi industry.
As smartphones are a part of everyone’s life, taxi companies have focused on providing hassle-free, seamless transits for their customers with the mutual resource they possess. Know how? Having a strong online presence could lure in more customers since people could be well aware of the brand presence and their importance.
Web presence has been the most important criteria and taxis that offer online booking options have seen steady growth.
The electric segment will be the highest contributor to the market, with $329.28 million in 2021, and is expected to reach $3.39 billion by 2030, at a CAGR of 30.4% during the forecast period.
The rising cost of fossil fuels has led to newer modes of transportation and an alternate to the fuel-injected models. Electric vehicles are considered to be the best alternative for the fuel mode of transport and also a viable option for lesser carbon footprint, resulting in a better-suited reply to global warming.
Big players like Uber, Ola are already in the preparation of electric vehicles and have ideas to place more charging stations for the vehicles to get charged. This results in considerably reduced costs compared to fuel vehicles. However, being aware of the amount of charge left in vehicles and the nearby charging stations are essential for smooth, uninterrupted operations.
The rising accident rates due to driver negligence have led the change to driverless vehicles. Companies like Waymo and Tesla are already in the process of producing autonomous vehicles that can be driven automatically and make a turnaround in the taxi industry to provide a secure travel experience.
However, the testing process of driverless vehicles is still underway. Additionally, there are many elements such as population, road structure and geographical factors that need to be considered for the smooth driverless process.
The global air taxi market size is expected to be $817.50 million by 2021 and is projected to reach $6.63 billion by 2030, registering a CAGR of 26.2% from 2021 to 2030, the majority being taken from North America. With China, India, and Japan showing healthy economic growth, there are a lot of chances of bringing air taxi, which is a great option considering the traffic congestion.
But, availing a valid aviation license is mandatory to operate air taxis and also, they require secured grounds.
The current innovation and technology along with the upcoming ones make the taxi market hold its ground firmly in the Asia-Pacific region and there is minimal or less chance of retrieving it back.