The e-hailing market is experiencing a dramatic surge, with projections indicating growth from $67.65 billion in 2024 to $81.49 billion in 2025, marking a 20.5% compound annual growth rate (CAGR), according to the latest market report from The Business Research Company. By 2029, the global market is forecasted to hit $170.11 billion, propelled by smart city initiatives, AI-driven platforms, and the rising demand for sustainable mobility.
Also known as ride-hailing, the e-hailing industry includes app-based transportation services such as taxis, carpooling, and peer-to-peer ride-sharing. The market’s rapid growth is being shaped by key technological trends, including AI-powered route optimization, real-time traffic data integration, and emergency safety features within mobile apps.
“Digitalization, smartphone penetration, and environmental concerns are transforming how people move, especially in densely populated urban centers,” the report states.
Top growth drivers include:
- Rising urban congestion and the need for efficient ride-sharing solutions.
- Increased smartphone adoption and widespread digital payments, enabling easier access to on-demand rides.
- A shift towards green transportation, with electric vehicles (EVs) increasingly featured in e-hailing fleets to meet sustainability goals.
Leading players shaping the global market landscape include Uber, DiDi Global, Grab, Bolt, AirAsia Superapp, inDrive, and Lalamove, among others. These companies are racing to innovate, integrating AI, blockchain, and smart technologies to deliver safer, faster, and more user-friendly services.
The market is segmented by service type (ride-hailing, taxi-hailing, carpooling, P2P), vehicle type (cars, two- and three-wheelers), and end-user (personal, business use), with additional subcategories such as EV ride-hailing, subscription-based P2P, and corporate carpooling reflecting growing demand for niche, tech-enhanced mobility options.
Regional Insights:
- North America leads the market with strong digital infrastructure and tech adoption.
- Asia-Pacific is projected to witness the fastest growth, thanks to booming urban populations and the rapid expansion of digital ecosystems in countries like India, China, and Indonesia.
- Europe continues its momentum with eco-friendly regulations and smart mobility integration.
