On-Demand Transportation Market Size, Share, and Growth Analysis

Global On-demand Transportation Market

On-Demand Transportation Market By Type (Four Wheeler, Micro Mobility), By Service (Ride-Sharing, Vehicle Rental/Leasing), By Business Model (P2P (Peer-to-Peer), B2B (Business-to-Business)), By Vehicle Type, By Autonomy Level, By Power Source, By Application, By Connectivity, By Region - Industry Forecast 2025-2032


Report ID: SQMIG45A2042 | Region: Global | Published Date: April, 2024
Pages: 197 |Tables: 144 |Figures: 78

Format - word format excel data power point presentation

On-Demand Transportation Market Insights

Global On-Demand Transportation Market size was valued at USD 75.7 billion in 2023 and is poised to grow from USD 90.76 billion in 2024 to USD 387.68 billion by 2032, growing at a CAGR of 19.9% during the forecast period (2025-2032). 

On-demand transportation is defined as a web-based service that allows users to reserve vehicles for a fee based on the distance and duration of the trip. On-demand transportation services consist of a variety of vehicle types, including commercial vehicles and passenger vehicles, that can be reserved or booked in accordance with the needs of the customer. The service is also very well-liked in metropolitan areas as a result of growing digitalization and reliance on internet-based services.

Rising car prices have increased consumers' preference for on-demand services that allow them to modify, pre-book, and cancel their bookings at lower costs through applications, which in turn increases demand for the product. Millennials have also increased their use of car sharing services, which is driving up demand for the service. Other important factors driving up demand for these services include dwindling parking spaces, growing smartphone penetration, and rising PR. Moreover, growing demand for on-demand transportation services during the aforementioned forecast period will be aided by rising tourism activities, an increase in the working-class population, a rise in the popularity of road trips, and growing technological advancements and modernization in the automotive industry.

However, rising data privacy security and improved public safety are the main reasons limiting market expansion and may present new challenges to the on-demand transportation market during the mentioned forecast period.

US On-Demand Transportation Market is poised to grow at a sustainable CAGR for the next forecast year.

Market snapshot - 2025-2032

Global Market Size

USD 75.7 billion

Largest Segment

Four-wheeler

Fastest Growth

Micromobility

Growth Rate

19.9% CAGR

Global On-demand Transportation Market 2022-2030 ($ Bn)
Country Share for North America Region- 2022 (%)

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On-Demand Transportation Market Segments Analysis

Global On-Demand Transportation Market is segmented by Type, Service, Business Model, Vehicle Type, Autonomy Level, Power Source, Application, Connectivity and region. Based on Type, the market is segmented into Four Wheeler and Micro Mobility. Based on Service, the market is segmented into Ride-Sharing, Vehicle Rental/Leasing and Ride Sourcing. Based on Business Model, the market is segmented into P2P (Peer-to-Peer), B2B (Business-to-Business) and B2C (Business-to-Consumer). Based on Vehicle Type, the market is segmented into Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Buses & Coaches and Micro-Mobility. Based on Autonomy Level, the market is segmented into Manual, Semi-Autonomous and Autonomous. Based on Power Source, the market is segmented into Fuel Powered, HEV (Hybrid Electric Vehicle), PHEV (Plug-in Hybrid Electric Vehicle) and BEV (Battery Electric Vehicle). Based on Application, the market is segmented into Passenger Transportation and Goods Transportation. Based on Connectivity, the market is segmented into V2V (Vehicle-to-Vehicle), V2I (Vehicle-to-Infrastructure), V2P (Vehicle-to-Pedestrian) and V2N (Vehicle-to-Network). Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.  

On-Demand Transportation Market Analysis by Service Type

Based on service type, the market is segmented into E-Hailing, car sharing, car rental, and station-based mobility. E-hailing services (platforms for ride-hailing) are commonplace in most geographic locations and are projected to hold the dominant share in the market. In addition to ride-hailing, the trend of ride sharing is starting to gain traction in the on-demand transportation sector. Due to their low costs, Uber pool and Lyft offer such a platform that will be helpful to their clients.As users adjust to the new paradigm, ride-hailing trips are predicted to grow quickly and have an increasing impact on urban mobility systems, even though they still make up a relatively tiny portion of trips made in cities (reportedly just around 1% of total kilometres travelled worldwide). Other shared mobility options including carpooling, bike sharing, and e-hailing have all shown significantly slower growth in recent years.

On-Demand Transportation Market Analysis by Vehicle Type

In terms of segmentation by vehicle type, the market is categorized into four-wheeler, and micro mobility. In developed countries, the four-wheeler market offers benefits like lower noise pollution and a more comfortable driving experience. Growing consumer discretionary income in nations such as China and India is also contributing to growth. As a result, the four-wheeler segment dominates the market for on-demand transportation. Numerous benefits of micro mobility include reduced fuel usage and more mobility flexibility. Improved cost and energy efficiency are also made possible, which motivates users to select this particular vehicle type. Users are anticipated to switch to micro-mobility throughout the projected period as environmental rules tighten and traffic congestion intensifies. As a result, between 2023 and 2030, the segment is anticipated to increase at the fastest CAGR. In developing countries such as China and India, sharing of two-wheelers, e-bikes, and e-scooters is becoming more popular. Several new businesses are joining the on-demand transportation market by offering smartphone-based automobile booking services. Global conglomerates like the BMW Group, Daimler AG, Uber Technologies, and OLA, on the other hand, control the market.

Global On-demand Transportation Market By Type, 2022 (%)

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On-Demand Transportation Market Regional Insights

Across North America and Latin America, light commercial vehicles are widely preferred. Since car owners frequently offer carpool and ride-sharing services, the P2P segment accounts for a significant revenue part of the industry. The B2C segment, however, represents a sizable portion of the industry in terms of income because the vehicles used for rental and leasing services are held by service-provider businesses. While shared mobility services are preferred for transporting people about, there are a number of businesses that offer light and heavy trucks for moving products. Micro mobility, which includes scooters, bikes, and other small vehicles, is in high demand, and throughout the forecast period is expected to achieve a significant market share as a response.

In Asia Pacific regions like China, India, and ASEAN, ride sharing and ride sourcing services are quite popular. Major mobility sharing service companies active in Asia Pacific include DIDI Chuxing, OLA, Uber, and Grab. Asia Pacific is seeing an increase in demand for on-demand transportation services due to the region's rapidly growing urban population, rising daily commuter population, packed public transit systems, low motorization rate, and rising fuel prices. Asia Pacific now has a significant portion of the global on-demand transportation industry due to its large population and availability of top on-demand transportation service providers on a global scale.

Global On-demand Transportation Market By Geography, 2022-2030
  • Largest
  • Fastest

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On-Demand Transportation Market Dynamics

On-Demand Transportation Market Drivers

The rising sales of smartphones

  • The acceptability of on-demand transportation services including car sharing, e-hailing, station-based mobility, and car renting has risen with the increase in connected automobiles. Customers can modify, pre-book, or cancel their cab arrangements via mobile applications.

Rise in fuel costs

  • Growing traffic problems, rising fuel costs and a lack of resources of parking spots are driving market growth. Moreover, the use of on-demand transportation services has increased due to the growing popularity of smartphones and linked vehicles.

On-Demand Transportation Market Restraint

Imposition of Stringent Regulations due to  Increased Passenger Safety

  • Increased passenger safety concerns are having a significant influence on market growth, making passenger safety one of the most significant barriers to the growth of the on-demand transportation sector in recent years. Governments are concerned about these occurrences and may impose tough regulations to guarantee the security of drivers and passengers. The On-demand Transport (OdT) business division of the Department of Transportation (DoT) keeps an eye on the passenger transportation sector to make sure that requirements for public safety are met.

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On-Demand Transportation Market Competitive Landscape

The competitive landscape of the on-demand transportation market provides information by competitor. Corporate overview, financials, revenue generated, market potential, investments in R&D, new market initiatives, regional presence, company strengths and weaknesses, product introduction, product width and breadth, and application domination are among the details provided. Only the companies' focus on the on-demand transportation market is referenced in the above data points.

Top Players in On-Demand Transportation Market

  • Uber Technologies, Inc. (USA) 
  • Lyft, Inc. (USA) 
  • Grab Holdings Inc. (Singapore) 
  • Didi Chuxing (China) 
  • Ola Cabs (India) 
  • Gett, Inc. (Israel) 
  • BlaBlaCar (France) 
  • Bolt (Estonia) 
  • Careem (UAE) 
  • Via Transportation, Inc. (USA) 
  • Cabify (Spain) 
  • Curb Mobility (USA) 
  • Wingz, Inc. (USA) 
  • Gojek (Indonesia) 
  • Yandex.Taxi (Russia) 
  • Free Now (Germany) 
  • Zum (USA) 
  • Moovit (Israel)

On-Demand Transportation Market Recent Developments

  • Ioki and CleverShuttle teamed up to introduce Stadtwerke Aschaffenburg's on-demand service "City Shuttle" in February 2022.  The new service, which debuted in Aschaffenburg, provides consumers with on-demand, schedule-free transportation around the city.

  • Uber Technologies Inc. and Walgreens collaborated to introduce a new service in April 2021 that lets users schedule vaccination appointments in advance and go there via Uber taxi.

  • GrabCar Exec Services and Grabpet XL declared in May 2021 that they were giving drivers more chances to make money by giving Grab passengers choices about their mobility needs.

On-Demand Transportation Key Market Trends

On-Demand Transportation Market SkyQuest Analysis

SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected utilizing Primary Exploratory Research backed by the robust Secondary Desk research.

SkyQuest With on-demand transportation, customers can schedule their trip at a convenient time (within service hours) and be picked up from a predetermined place. Global acceptance of on-demand transportation is rising. A favourable environment for the growth of the transportation industry is being created through e-hailing, car sharing, car rentals, and station-based mobility. To get a free trial access to our platform which is a one stop solution for all your data requirements for quicker decision making. This platform allows you to compare markets, competitors who are prominent in the market, and mega trends that are influencing the dynamics in the market. Also, get access to a detailed SkyQuest exclusive matrix.

Report Metric Details
Market size value in 2023 USD 75.7 billion
Market size value in 2032 USD 387.68 billion
Growth Rate 19.9%
Base year 2024
Forecast period 2025-2032
Forecast Unit (Value) USD Billion
Segments covered
  • Type
    • Four Wheeler, Micro Mobility
  • Service
    • Ride-Sharing, Vehicle Rental/Leasing, Ride Sourcing
  • Business Model
    • P2P (Peer-to-Peer), B2B (Business-to-Business), B2C (Business-to-Consumer)
  • Vehicle Type
    • Passenger Cars, Light Commercial Vehicles, Heavy Commercial Vehicles, Buses & Coaches, Micro-Mobility
  • Autonomy Level
    • Manual, Semi-Autonomous, Autonomous
  • Power Source
    • Fuel Powered, HEV (Hybrid Electric Vehicle), PHEV (Plug-in Hybrid Electric Vehicle), BEV (Battery Electric Vehicle)
  • Application
    • Passenger Transportation, Goods Transportation
  • Connectivity
    • V2V (Vehicle-to-Vehicle), V2I (Vehicle-to-Infrastructure), V2P (Vehicle-to-Pedestrian), V2N (Vehicle-to-Network)
Regions covered North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA)
Companies covered
  • Uber Technologies, Inc. (USA) 
  • Lyft, Inc. (USA) 
  • Grab Holdings Inc. (Singapore) 
  • Didi Chuxing (China) 
  • Ola Cabs (India) 
  • Gett, Inc. (Israel) 
  • BlaBlaCar (France) 
  • Bolt (Estonia) 
  • Careem (UAE) 
  • Via Transportation, Inc. (USA) 
  • Cabify (Spain) 
  • Curb Mobility (USA) 
  • Wingz, Inc. (USA) 
  • Gojek (Indonesia) 
  • Yandex.Taxi (Russia) 
  • Free Now (Germany) 
  • Zum (USA) 
  • Moovit (Israel)
Customization scope

Free report customization with purchase. Customization includes:-

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  • Company profile
  • Market dynamics & outlook
  • Region

 

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Table Of Content

Executive Summary

Market overview

  • Exhibit: Executive Summary – Chart on Market Overview
  • Exhibit: Executive Summary – Data Table on Market Overview
  • Exhibit: Executive Summary – Chart on On-Demand Transportation Market Characteristics
  • Exhibit: Executive Summary – Chart on Market by Geography
  • Exhibit: Executive Summary – Chart on Market Segmentation
  • Exhibit: Executive Summary – Chart on Incremental Growth
  • Exhibit: Executive Summary – Data Table on Incremental Growth
  • Exhibit: Executive Summary – Chart on Vendor Market Positioning

Parent Market Analysis

Market overview

Market size

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • SWOT Analysis

KEY MARKET INSIGHTS

  • Technology Analysis
    • (Exhibit: Data Table: Name of technology and details)
  • Pricing Analysis
    • (Exhibit: Data Table: Name of technology and pricing details)
  • Supply Chain Analysis
    • (Exhibit: Detailed Supply Chain Presentation)
  • Value Chain Analysis
    • (Exhibit: Detailed Value Chain Presentation)
  • Ecosystem Of the Market
    • Exhibit: Parent Market Ecosystem Market Analysis
    • Exhibit: Market Characteristics of Parent Market
  • IP Analysis
    • (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
  • Trade Analysis
    • (Exhibit: Data Table: Import and Export data details)
  • Startup Analysis
    • (Exhibit: Data Table: Emerging startups details)
  • Raw Material Analysis
    • (Exhibit: Data Table: Mapping of key raw materials)
  • Innovation Matrix
    • (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
  • Pipeline product Analysis
    • (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
  • Macroeconomic Indicators

COVID IMPACT

  • Introduction
  • Impact On Economy—scenario Assessment
    • Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
  • Revised Market Size
    • Exhibit: Data Table on On-Demand Transportation Market size and forecast 2021-2027 ($ million)
  • Impact Of COVID On Key Segments
    • Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
  • COVID Strategies By Company
    • Exhibit: Analysis on key strategies adopted by companies

MARKET DYNAMICS & OUTLOOK

  • Market Dynamics
    • Exhibit: Impact analysis of DROC, 2021
      • Drivers
      • Opportunities
      • Restraints
      • Challenges
  • Regulatory Landscape
    • Exhibit: Data Table on regulation from different region
  • SWOT Analysis
  • Porters Analysis
    • Competitive rivalry
      • Exhibit: Competitive rivalry Impact of key factors, 2021
    • Threat of substitute products
      • Exhibit: Threat of Substitute Products Impact of key factors, 2021
    • Bargaining power of buyers
      • Exhibit: buyers bargaining power Impact of key factors, 2021
    • Threat of new entrants
      • Exhibit: Threat of new entrants Impact of key factors, 2021
    • Bargaining power of suppliers
      • Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
  • Skyquest special insights on future disruptions
    • Political Impact
    • Economic impact
    • Social Impact
    • Technical Impact
    • Environmental Impact
    • Legal Impact

Market Size by Region

  • Chart on Market share by geography 2021-2027 (%)
  • Data Table on Market share by geography 2021-2027(%)
  • North America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • USA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Canada
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Europe
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Germany
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Spain
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • France
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • UK
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Europe
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Asia Pacific
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • China
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • India
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Japan
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Korea
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of Asia Pacific
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Latin America
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • Brazil
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of South America
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
  • Middle East & Africa (MEA)
    • Chart on Market share by country 2021-2027 (%)
    • Data Table on Market share by country 2021-2027(%)
    • GCC Countries
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • South Africa
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)
    • Rest of MEA
      • Exhibit: Chart on Market share 2021-2027 (%)
      • Exhibit: Market size and forecast 2021-2027 ($ million)

KEY COMPANY PROFILES

  • Competitive Landscape
    • Total number of companies covered
      • Exhibit: companies covered in the report, 2021
    • Top companies market positioning
      • Exhibit: company positioning matrix, 2021
    • Top companies market Share
      • Exhibit: Pie chart analysis on company market share, 2021(%)

Methodology

For the On-Demand Transportation Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:

1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.

2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the On-Demand Transportation Market.

3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.

4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.

Analyst Support

Customization Options

With the given market data, our dedicated team of analysts can offer you the following customization options are available for the On-Demand Transportation Market:

Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.

Regional Analysis: Further analysis of the On-Demand Transportation Market for additional countries.

Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.

Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.

Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.

Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.

Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.

Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.

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FAQs

On-Demand Transportation Market size was valued at USD 170.23 Billion in 2023 and is poised to grow from USD 203.54 Billion in 2024 to USD 850.43 Billion by 2032, growing at a CAGR of 19.57% during the forecast period (2025-2032).

The competitive landscape of the on-demand transportation market provides information by competitor. Corporate overview, financials, revenue generated, market potential, investments in R&D, new market initiatives, regional presence, company strengths and weaknesses, product introduction, product width and breadth, and application domination are among the details provided. Only the companies' focus on the on-demand transportation market is referenced in the above data points. 'Uber Technologies Inc.', 'Didi Chuxing Technology Co., Ltd.', 'Lyft Inc.', 'Grab Holdings Inc.', 'Go-Jek (PT Aplikasi Karya Anak Bangsa)', 'Careem Inc.', 'Ola (ANI Technologies Pvt. Ltd.)', 'Bolt (formerly Taxify)', 'Cabify', 'Via Transportation Inc.', 'Curb Mobility LLC', 'BlaBlaCar', 'Yandex.Taxi', '99 (99 Tecnologia Ltda.)', 'Beat (formerly Taxibeat)', 'Free Now (formerly Mytaxi)', 'Zimride (Lyft Line)', 'Easy Taxi', 'Wingz Inc.', 'Gett Inc.'

The acceptability of on-demand transportation services including car sharing, e-hailing, station-based mobility, and car renting has risen with the increase in connected automobiles. Customers can modify, pre-book, or cancel their cab arrangements via mobile applications.

The cost of on-demand transportation services is likely actually going down as electric and autonomous vehicles are becoming more widespread. Fuel costs are decreased by electric vehicles, which lowers the overall cost of using ride-sharing and other mobility-sharing services. This will undoubtedly increase demand for on-demand services around the world. It is anticipated that autonomous vehicles will do away with drivers and, consequently, drivers' expenses. Fewer vehicles per capita are increasing demand for on-demand transportation services in a number of countries, which will likely result in profitable prospects for the worldwide on-demand transportation market. The market is projected to witness significant prospects due to the forward integration of automakers in the on-demand transportation service market.

Across North America and Latin America, light commercial vehicles are widely preferred. Since car owners frequently offer carpool and ride-sharing services, the P2P segment accounts for a significant revenue part of the industry. The B2C segment, however, represents a sizable portion of the industry in terms of income because the vehicles used for rental and leasing services are held by service-provider businesses. While shared mobility services are preferred for transporting people about, there are a number of businesses that offer light and heavy trucks for moving products. Micro mobility, which includes scooters, bikes, and other small vehicles, is in high demand, and throughout the forecast period is expected to achieve a significant market share as a response.

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