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Carsharing to Largely Remain an Urban Trend in North America Finds Frost & Sullivan - Market expected to see faster growth in the long-term as it reaches critical mass - Automotive.Frost.com
Carsharing to Largely Remain an Urban Trend in North America Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2013/01/10 - Market expected to see faster growth in the long-term as it reaches critical mass - Automotive.Frost.com.

   
 
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By 2020, the United States is expected to account for 83.3 percent of the traditional carsharing membership base in North America, compared to 87.1 percent in 2011. Canada's share will also increase due to enhanced integration with third-party mobility solution providers, as well as partnerships with cooperatives, facilitating seamless carsharing among neighborhood communities.

New analysis from Frost & Sullivan (automotive.frost.com), Business Models and Opportunities in the North American Traditional and Peer-to-Peer Carsharing Market, finds that by 2020, the total carsharing number of members, for both traditional and peer-to-peer (P2P), in North America is expected to reach 9.0 million; which translates to about 0.26 million vehicles in carsharing fleet.

If you are interested in more information on this research, please send an email to Jeannette Garcia, Corporate Communications, at jeannette.garcia[.]frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Original equipment manufacturers (OEMs) are entering the carsharing market through either launch-and-expansion of independent operations or partnerships with established participants. Similarly, car rental companies are looking for inorganic growth in carsharing for the short- to medium-term.

"The carsharing business is not profitable until it reaches critical mass," said Frost & Sullivan Senior Research Analyst Ratika Garg. "It is therefore vital to obtain external funding from investors or governments for new programs to take off."

Further, due to the existence of a well-developed public transit system, carsharing still remains an urban phenomenon. Participants need to strategize for these factors and develop strong partnership strategies that enable easy access to other mobility solutions to be successful.

The 0.16 million vehicles in the traditional carsharing fleet will boost business for OEMs, as revenues are generated either directly through their inclusion in carsharing fleet or by providing early exposure to potential buyers. Also, one-way members and corporate customers will emerge as attractive end-user segments.

In North America, partnerships between traditional and P2P carsharing operators are an emerging trend. As this tendency increases, P2P operators will benefit from access to technologies such as telematics inventory monitoring solutions that eliminate the need for a physical exchange of keys. This is expected to reduce regular maintenance costs.

"While carsharing remained a standalone sustainable transport solution in 2011, it is likely to become an integrated sustainable transport solution by 2020, which will boost membership and vehicle fleet numbers," said Garg.

Business Models and Opportunities in the North American Traditional and Peer-to-Peer Carsharing Market is part of the Automotive & Transportation Growth Partnership Services program, which also includes research in the following areas: Business Models and Opportunities in the European Traditional and Peer-to-Peer Carsharing Market, Executive Analysis of the Carsharing Market in APAC, Strategic Analysis of Carsharing Market in Japan, and U.S. Generation "Y": Beliefs and Attitudes Towards Environment and Personal Mobility Needs and Vehicle Preferences. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Business Models and Opportunities in the North American Traditional and Peer-to-Peer Carsharing Market / NB00-18

 
 
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Carsharing to Largely Remain an Urban Trend in North America Finds Frost & Sullivan

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