Shared Mobility - South Korea

South Korea

Highlights

South Korea's Shared Mobility market is expected to grow significantly in the coming years.
In 2024, the projected revenue for this market is US$24.91bn, and it is expected to reach US$29.18bn by 2029, with an annual growth rate (CAGR 2024-2029) of 3.21%.
The Flights sub-market is expected to be the largest, with a projected market volume of US$12.92bn in 2024.
By 2029, the number of users in the Public Transportation market is expected to reach 32.89m users.
The user penetration rate is projected to increase from 95.0% to 95.0% in 2029.
The average revenue per user (ARPU) is expected to be US$505.60.
It is projected that 71% of the Shared Mobility market's total revenue in South Korea will be generated through online sales by 2029.
When compared globally, China is projected to generate the most revenue in this market, with US$365bn in 2024.
In South Korea, the shared mobility market is dominated by ride-hailing giant Kakao Mobility, with its extensive network and integration with other Kakao services.

Key regions:

Definition:

The Shared Mobility market encompasses a diverse range of long- and short-distance mobility services. As the world moves towards a more connected and digital era, the Shared Mobility market is central to driving innovation, collaboration, and the development of intelligent transportation systems.

Structure:

The market consists of eleven further markets. These include the following markets:

The Car Rentals market contains vehicle rentals that have been booked in person, by telephone via the internet or an app.
The Car-sharing market includes professionally run car-sharing services that provide on-demand access vehicles, allowing users to rent cars for short periods, e.g., by minute or hour.
The Bike-sharing market contains short-term bike-sharing services. Bicycles can be found in the provider’s business zone where they are either parked at designated stations or freely distributed without fixed docks.
The Ride-hailing market encompasses on-demand transportation services facilitated through mobile apps or online platforms. This market covers both private vehicle rides and taxi services, all booked exclusively online.
The Taxi market covers exclusively traditional taxi services booked offline, typically via street hailing or phone calls.
The Flights market contains air travel bookings regardless of the purchase channel, such as an airline's website or a travel agency.
In the Public Transportation market, revenues generated by ticket sales from public transportation companies are considered.

Additional Information:

The main performance indicators of the Shared Mobility market are revenues, average revenue per user (ARPU), user numbers and user penetration rates. Additionally, online and offline sales channel shares display the distribution of online and offline bookings. The ARPU refers to the average revenue one user generates per year while the revenue represents the total booking volume. Revenues are generated through both online and offline sales channels and include exclusively B2C revenues and users for the above-mentioned markets. User numbers show only those individuals who have made a reservation, independent of the number of travelers on the booking. Each user is only counted once per year. Additional definitions for each market can be found within the respective market pages.

The booking volume includes all booked rides made by users from the selected region, regardless of where the ride took place.

For further information on the data displayed, refer to the info button right next to each box.

Market definitionIn-Scope/Out-of-scopeMarket structureReportsMethodology

The Shared Mobility market in South Korea has been experiencing significant growth and evolution in recent years.

Customer preferences: Customers in South Korea are increasingly valuing convenience, cost-effectiveness, and sustainability when it comes to transportation options. This shift in preferences has led to a rise in demand for shared mobility services that offer flexibility and affordability.

Trends in the market: One key trend in the South Korean Shared Mobility market is the rapid adoption of electric scooters and bikes. These eco-friendly options have gained popularity due to their convenience in navigating urban areas and the government's initiatives to promote green transportation. Another notable trend is the integration of various shared mobility services into a single platform, providing users with a seamless experience for accessing different modes of transportation. This integration not only enhances convenience for customers but also contributes to the overall growth of the Shared Mobility market in the country.

Local special circumstances: South Korea's dense urban population and limited parking spaces have created a conducive environment for shared mobility services to thrive. The compact nature of cities like Seoul makes services like car-sharing, bike-sharing, and ride-hailing particularly attractive to residents and commuters looking for efficient ways to get around. Additionally, the tech-savvy population in South Korea has been quick to adopt new transportation trends, further driving the growth of the Shared Mobility market. The country's advanced infrastructure and high smartphone penetration rate have facilitated the widespread use of shared mobility apps and services.

Underlying macroeconomic factors: The government's support for the shared mobility sector through regulations and incentives has played a significant role in shaping the market dynamics in South Korea. Policies promoting eco-friendly transportation options and the development of smart cities have encouraged the expansion of shared mobility services across the country. Moreover, the competitive landscape of the South Korean transportation market, with both local startups and international players vying for market share, has led to innovation and diversification in shared mobility offerings. This competition has benefited consumers by providing them with a wide range of choices and driving continuous improvement in service quality.

Data coverage:

The data encompasses B2C enterprises. Figures are based on bookings, revenues, and online shares of car rentals, ride-hailing, taxi, car-sharing, bike-sharing, e-scooter-sharing, moped-sharing, trains, buses, public transportation, and flights.

Modeling approach:

Market sizes are determined through a bottom-up approach, building on a specific rationale for each market. As a basis for evaluating markets, we use financial reports, third-party studies and reports, federal statistical offices, industry associations, and price data. To estimate the number of users and bookings, we furthermore use data from the Statista Consumer Insigths Global survey. In addition, we use relevant key market indicators and data from country-specific associations, such as demographic data, GDP, consumer spending, internet penetration, and device usage. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, ARIMA, which allows time series forecasts, accounting for stationarity of data and enabling short-term estimates. Additionally, simple linear regression, Holt-Winters forecast, the S-curve function and exponential trend smoothing methods are applied.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change.