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Corporate Employee Transportation Service Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

Corporate Employee Transportation Service Market - Growth, Trends, COVID-19 Impact, and Forecast (2022 - 2027)

  • March 2022
  • 95 pages
  • ID: 6192787
  • Format: PDF
  • Mordor Intelligence LLP


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The Corporate Employee Transportation Service Market was valued at USD 32.38 billion in 2021 and is expected to reach USD 44.48 billion by 2027, growing at a CAGR of 5.44% over the forecast period.

The COVID-19 pandemic hindered the market as many companies resorted to working from home which resulted in less employee transport during the period. However, as economies are recovering post lockdown it is expected that return to office would offer transportation service operators with many opportunities in coming years.

Employee Transportation Services are growing in popularity as people become more conscious of the importance of upgraded transportation safety measures. Also, to minimize time and effort to travel to work employees are opting for transportation providers due to affordable prices offered by them.

Rising incidents of unavailability of transport, assaults, rude behavior, high charges in ride hailing and ride sharing vehicles has left companies to think about the safety of their employees. This factor is also responsible for driving the market growth.

Asia Pacific expected to dominate the market due to growing corporate offices presence in the region as substantial number of North American and European MNCs are setting up offices, factories, warehouses, and plants in countries such as India, China, Philippines, etc. due to increasing demand of goods and cheap labor.

Key Market Trends

Increasing Internet Usage and Technological Advancements to Drive Demand in the Market

With increasing usage of internet among the world population, markets like transportation services, vehicle rentals etc. have been largely benefited in their business operations in the recent years. The ease of booking, pre-estimated fee, comfort journey, timely arrival, and quick payment options are the few factors that have been driving the markets like shared mobility and employee transportation services worldwide.

Among the internet-based business sectors, the transport industry has been tremendously leading by covering majority share of the the digital economy. With growing online platforms and increasing competition among operators in the market, the need for quick action and resolution of issues has been the most crucial factor for the companies to sustain their business in the current competition.

Due to the inherent nature of operations, there exists a high level of dependency and reliance on internet. For companies having a multi-city presence, especially, that more internet users are required than necessary. More often, due to this reason, companies accept differential pricing arrangements within and/or across locations, and struggle to exercise higher bargaining power with vendors.

Technological development in transportation services by integrating features like live tracking, cashless payments, cancellations, real-time monitoring of the vehicle etc. are other reasons for choosing these services. Morever, Emergence of IT and other technology sectors towards end of last century around the world, demands necessity for flexible working and operations. Such operation has given opportunities for generation of many associated business and employment to be generated. Employee transportation is one of them which becomes pre-requisite because of statuary regulations in terms of employee safety.

With increasing usage of internet and technological advancements , market is likely to grow at a stable rate for operators, which, in turn, is driving them to maintain sufficient vehicle fleet for their business operations during the forecast period.

Asia-Pacific Region Likely to Dominate the Market

Asia-Pacific region expected to witness fastest and highest growth during the forecast owing to growing corporate companies presence and rising demand for mass transit solutions by the companies to attract wide number of employees. Moreover, presence of cheap labor in countries like India, Japan, China, etc. likely to boost demand for corporate transport services in the region over the forecast period. For instance,

In 2020, the total labor force in Japan was composed of approximately 68.7 million people. Despite Japan’s aging population, the labor force increased from 2000 by more than half a million people.

Moreover, in order to capture growing market share in the region several key players in the market are adopting various growth strategies such as partnerships, collaborations, etc. For instance,

Move-In-Sync, an Indian startup based out of Bengaluru is providing its transport management solution called Employee Transport Solution (ETS) to cab and employee transport fleet operators. The software is installed in the telematics of vehicles, and it syncs with the browser to provide the route optimization, employee commute record, recording, and route tracking.

With the rise in number of employees across the country, the market in focus is expected to witness significant growth during the forecast period.

Competitive Landscape

The market for corporate employee transportation service is a fragmented one with very few players using technological support for fleet management and employee commute management. Many big players are increasing their span of offering apart from using the latest assistive technology. For instance,

In March 2021, Europcar Mobility Group announced the extension of its strategic alliances with ECO Rent a Car in India and Shouqi Car Rental in China for its Europcar® brand. The Group is therefore preparing for the market rebound, renewing these two solid partnerships which will allow the Europcar brand to benefit from the strong inflow of Indian and Chinese tourists throughout the world in the years to come.
In November 2021, Transdev subsidiary, Team Pennine has confirmed its plans to launch an all-new fleet of six high-specification Mellor Strata Ultra buses on five routes serving the Halifax area, delivering the town’s first brand new buses for six years.

Some of the Key players in the market are Bus bank (Global Charter Services Ltd.)?, Transdev?,WeDriveU Inc., Prairie Bus Line Limited?, Move-In-Sync?, and Others.

Additional Benefits:

The market estimate (ME) sheet in Excel format
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