Market Trends of Corporate Employee Transportation Service Industry
This section covers the major market trends shaping the Corporate Employee Transportation Service Market according to our research experts:
Increasing Internet Usage and Technological Advancements to Drive Demand in the Market
With the increased internet use among the global population, markets such as transportation services, vehicle rentals, and so on have primarily benefited their business operations in recent years. The booking ease, pre-estimated fee, comfortable journey, on-time arrival, and quick payment options are just a few factors driving markets such as shared mobility and employee transportation services worldwide.
The transportation industry is tremendously leading among internet-based business sectors, accounting for most of the digital economy. With the online platform's growth and increased competition among market operators, quick action and resolution of issues have become the most critical factor for companies to sustain their businesses in the current competitive environment.
Due to the inherent operations nature, there is a high reliance and dependency on the internet. More internet users are required than necessary for companies with a multi-city presence. As a result, companies frequently accept differential pricing arrangements within and/or across locations and need help to exercise greater bargaining power with vendors.
Other reasons for using these services include technological advancements in transportation, such as live tracking, cashless payments, cancellations, real-time vehicle monitoring, etc. Furthermore, the global IT emergence and other technology sectors toward the end of the last century necessitate the need for flexible working and operations. This operation created opportunities for many associated businesses and jobs. Employee transportation is one of them, becoming a requirement due to statutory regulations regarding employee safety.
With increased internet usage and technological advancements, the market is expected to grow consistently for operators, prompting them to maintain a good vehicle fleet for their business operations during the forecast period.
Asia-Pacific Region Expected to Dominate the Market
The Asia-Pacific region is expected to grow significantly during the forecast period due to increasing corporate companies and rising demand for mass transit solutions by companies to attract a diverse employee range. Furthermore, the low labor cost in countries such as India, Japan, and China, attracts big firms to open their offices in these countries, expecting to drive demand for corporate transportation services in the region over the forecast period. For instance,
- In 2021, Japan's total labor force was estimated to be 68.6 million. The labor force dropped from approximately 68.7 million the previous year.
Furthermore, several key players in the market are implementing various growth strategies, such as partnerships and collaborations, capturing a growing market share in the region. For instance,
- In June 2022, Share Mobility, a company providing transportation solutions for businesses, raised USD 12 million to assist businesses in providing transportation to their employees.
The market in focus is expected to grow significantly during the forecast period due to an increase in employee numbers across the country.
