The on-demand transportation rolled out by The Business Research Company offers an overall evaluation of the industry, covering the market size forecast right from 2025 to 2034. This report goes on to explore the major trends that are shaping the market, the major drivers of growth, as well as a pinpoint segmentation based on the key segment categories. It also goes on to underscore the competitive spectrum along with profiling of major companies that operate within the industry.
What are the historical growth trends that have gone on to shape the on-demand transportation market size?
The market size when it comes to on-demand transportation has gone on to see a substantial expansion for the last few years. The sector was valued at almost $195 billion in 2024 and is all set to amplify to around $237 billion in 2025, thereby giving a CAGR of 21%.
The factors that contribute to this kind of growth within the historic period include the prominent usage of smartphones, along with mobile applications; growing urbanization with city congestion; the transition towards consumer preference when it comes to convenience and flexibility; the progress of the gig economy as well as independent work; and advancements when it comes to GPS as well as navigation.
The global market value when it comes to the on-demand transportation sector
The market when it comes to on-demand transportation is anticipated to experience a fast rise, thereby reaching almost $507 billion in 2029 with a CAGR of 21%. This upswing within the period can as well be linked to the growing use of electrical as well as self-directed vehicles, unification when it comes to numerous modes of transport, rising demand as far as green and sustainable transport methods are concerned, and finally, the growth of ride request services in addition to the hike in the cost of fuel.
In addition to this, the forecast period is also anticipated to witness trends such as rolling out artificial intelligence when it comes to forecasting demand evaluation and also optimizing routes, developing on-demand transport services that are aimed at certain demographics, giving priority to contactless as well as cashless payments when it comes to on-demand platforms, and customizing on-demand services in order to cater to the distinct market and specific needs, in addition to the overall inclusion when it comes to live communication as well as feedback capacities.
What are the growth factors that are actually propelling the growth in the on-demand transportation market?
The bloating tourism sector, teamed with the requirements of the working-class demographic, is expected to throttle the expansion when it comes to the on-demand transportation market.
It is well to be noted that tourism is both a socio-economic phenomenon, which consists of individuals who travel to different locations beyond their regular surroundings in terms of their personal, corporate, or professional reasons.
On-demand transportation elevates tourism and, at the same time, accommodates the working class by enabling them to plan their trips at a suitable time and get collected from a location that is mutually agreed upon, thereby making it a more straightforward and fast solution. For instance, the UNWTO—United Nations World Tourism Organization, which is a non-profit organization based out of Spain, has gone on record that almost 975 million global tourists went on to travel between January and September of 2023. This happens to represent a rise of 38% as compared to the same timeframe in 2022 and was accompanied by a rise of 22% in terms of international tourist arrivals in the third quarter of 2023.
Therefore, the rise in tourism figures as well as demands when it comes to the working class are indeed throttling the progress when it comes to the on-demand transportation market.
