Market Size and Overview:

The Middle East and Africa Transportation as a Services Market is valued at USD 163.57 Million and is projected to reach a market size of USD 251.86 Million by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 6.36%. 

The Middle East and Africa Transportation as a Services (TaaS) market has witnessed significant growth over the past decade, driven by various factors that have shaped its trajectory. One long-term market driver that has played a crucial role in the expansion of TaaS is urbanization. As cities in the region continue to grow and expand, the demand for efficient and convenient transportation solutions has increased. TaaS platforms have emerged as viable alternatives to traditional modes of transportation, offering on-demand services that cater to the needs of urban dwellers. However, the COVID-19 pandemic has had a profound impact on the TaaS market in the Middle East and Africa. With strict lockdown measures and social distancing protocols in place, the demand for ride-sharing and other TaaS services plummeted during the initial phases of the pandemic. Many people opted to stay indoors, resulting in a sharp decline in ride bookings and revenue for TaaS companies. In response to the crisis, TaaS providers implemented stringent hygiene and safety measures to reassure passengers and drivers. Additionally, some companies diversified their offerings by introducing delivery services to meet the changing needs of consumers.

Key Market Insights:

The Middle East and Africa Transportation as a service Market is projected to expand at a compound annual growth rate of over 6.36% in the coming seven years, propelled by increasing urbanization and population growth in major cities worldwide.

Transportation as a service is the integration of digital channels through transport methods such as car and bike sharing, taxis and car rentals/leases which enables consumers to plan, book, and pay for multiple types of transportation services.

Apps like Ola, Uber, Lyft and others are some example of Transportation as a service.

 Transportation as a Services Market is typically dominated by major metropolitan areas and urban centers, where population density and demand for transportation services are highest.

The Gulf Cooperation Council (GCC) countries, including Saudi Arabia, United Arab Emirates (UAE), Bahrain, Kuwait, Oman, and Qatar are key hubs for TaaS providers, accounting for 70-80% of the market share.

Middle East and Africa Transportation as Service Market Driver:

Tourism and Travel Demand drives the market demand for Middle East and Africa Transportation as a Service Market.

The Middle East and Africa region are major tourist destinations, attracting millions of international visitors each year. The tourism and travel industry drives demand for transportation services, including airport transfers, sightseeing tours, and intercity travel. TaaS providers that cater to the tourism sector by offering tailored transportation solutions and seamless connectivity enhance the travel experience for visitors and contribute to the growth of the TaaS market.

Middle East and Africa Transportation as a Services Market Restraints and Challenges:

Security concerns, including terrorism threats, political instability, and crime rates, may impact consumer confidence and safety perceptions regarding TaaS services. TaaS providers must address security concerns through robust safety measures, security protocols, and emergency response systems to ensure the safety and well-being of users.

The MEA region faces challenges related to the digital divide, with disparities in internet access, smartphone penetration, and digital literacy levels among different population segments. TaaS providers must address digital inclusion barriers and ensure accessibility for all users, including those with limited digital literacy or access to technology.

Middle East and Africa Transportation as Services Market Opportunities:

The increasing focus on sustainability and environmental conservation presents a compelling opportunity for TaaS providers to embrace electrification and promote sustainable transportation solutions. With advancements in electric vehicle technology and infrastructure, there is growing interest in electric ride-hailing services, electric bike-sharing programs, and other eco-friendly mobility options. TaaS providers can leverage this opportunity by expanding their fleets of electric vehicles, investing in charging infrastructure, and promoting sustainable mobility initiatives to attract environmentally conscious consumers.

The emergence of autonomous vehicle technology represents a transformative opportunity for the Middle East and Africa TaaS Market. While fully autonomous vehicles are still in the testing and development phase, there is considerable potential for integrating autonomous vehicles into existing TaaS platforms. Autonomous ride-hailing services, shuttle fleets, and last-mile delivery solutions have the potential to enhance safety, efficiency, and accessibility in transportation systems. TaaS providers can explore partnerships and collaborations with autonomous vehicle developers to pilot and deploy autonomous mobility solutions.

Middle East and Africa Transportation as Services Market Segmentation

Middle East and Africa Transportation as Services Market: By Mode of Transport:

• Ride-Hailing Services
• Micro-Mobility Services
• Public Transit Integration

 Ride-hailing services, such as Uber and Lyft, dominate the Middle East and Africa Transportation market due to their convenience and accessibility. With the widespread adoption of smartphones and the increasing preference for on-demand transportation, ride-hailing services have become the preferred choice for many individuals.

Micro-mobility services, including electric scooters and bikes, are experiencing rapid growth in Middle East and Africa. These services offer an environmentally friendly and cost-effective alternative for short-distance travel in urban areas. With increasing concerns about traffic congestion and environmental sustainability, micro-mobility solutions are gaining popularity among commuters.

Middle East and Africa Transportation as Services Market Segmentation:  By Service Type:

• Individual Transportation
• Corporate Transportation
• Freight and Logistics

The Individual transportation services, such as ride-hailing and micro-mobility, cater to the needs of individual consumers. These services provide convenient and flexible options for personal travel, allowing users to access transportation on-demand without the need for ownership or maintenance of vehicles.

Freight and logistics services are witnessing significant growth in Middle East and Africa , driven by the expansion of e-commerce and the need for efficient delivery solutions. With the rise of online shopping and same-day delivery expectations, there is a growing demand for reliable and timely freight services to transport goods across the region.

Middle East and Africa Transportation as Services Market Segmentation: By End-User:

• Consumer
• Businesses
• Government and Public Agencies

The consumer segment represents the largest user base for transportation services in Middle East and Africa. Individual consumers rely on various transportation options, including ride-hailing, micro-mobility, and public transit, to meet their personal travel needs and commute to work or leisure activities.

Businesses are increasingly adopting transportation services to optimize their operations and meet the evolving needs of their employees and customers. Corporate transportation solutions, such as shuttle services and corporate ride-hailing accounts, are becoming popular among businesses looking to streamline employee commutes and provide convenient transportation options.

Middle East and Africa Transportation as Services Market Segmentation: Regional Analysis:

• Middle East and Africa

The Gulf Cooperation Council (GCC) countries, including Saudi Arabia, United Arab Emirates (UAE), Bahrain, Kuwait, Oman, and Qatar, constitute a significant segment of the MEA TaaS market. These countries boast high levels of urbanization, strong economic growth, and a progressive outlook towards technology adoption. Major cities like Riyadh, Dubai, and Doha are hubs for TaaS providers, offering a range of services such as ride-sharing, food delivery, and e-commerce logistics.North Africa comprises countries such as Egypt, Morocco, Algeria, Tunisia, and Libya. This region is characterized by its large population centers, cultural diversity, and emerging economies. In North Africa, TaaS solutions cater to the transportation needs of urban residents in cities like Cairo, Casablanca, and Algiers. The market is driven by factors such as population growth, increasing urbanization, and the proliferation of smartphones, which facilitate the adoption of on-demand transportation services.

COVID-19 Impact Analysis on Middle East and Africa Transportation as a Services Market:

The lockdown measures and travel restrictions imposed to contain the spread of the virus led to a significant decline in demand for transportation services across Middle East and Africa. With people staying at home and non-essential businesses closed, the need for ridesharing, public transit, and other transportation services plummeted, resulting in revenue losses for service providers. With many individuals opting for alternative modes of transportation or avoiding travel altogether. Concerns about virus transmission in shared vehicles and public spaces have led to a decline in the use of ride-hailing services and public transit, as people prioritize their safety and social distancing.

The COVID-19 crisis has accelerated the digitalization of transportation services in Middle East and Africa, with an increasing emphasis on contactless transactions and digital payment solutions. Ride-hailing companies have introduced new features in their apps, such as contactless pickup and drop-off options, to minimize physical interaction between drivers and passengers.

Latest Trends/ Developments:

One of the prominent trends in the Middle East and Africa Transportation as a services market is the growing adoption of electric and sustainable transportation solutions. With increasing awareness about environmental sustainability and government initiatives to reduce carbon emissions, there is a rising demand for electric vehicles (EVs) and alternative modes of transportation such as bicycles and scooters for short-distance travel.

The integration of Mobility-as-a-Service (MaaS) platforms is another significant trend shaping the transportation landscape in Middle East and Africa. MaaS platforms consolidate various transportation services, including ridesharing, public transit, bike-sharing, and car-sharing, into a single digital interface, providing users with seamless access to different modes of transportation and enabling multimodal travel planning.

The development and deployment of autonomous and connected vehicles are driving innovation in the Middle East and Africa Transportation sector. Companies are investing in research and development to advance autonomous driving technology and enhance vehicle connectivity, with the aim of improving safety, efficiency, and the overall passenger experience.

Key Players:

1. Careem (United Arab Emirates)
2. Uber (United States)
3. DiDi Chuxing (China)
4. Swvl (Egypt)
5. Careem NOW (United Arab Emirates)
6. Karim (Egypt)
7. Talabat (Kuwait)
8. Anghami (Lebanon)
9. Beam (United Arab Emirates)
10. Yassir (Saudi Arabia)
11. MaxAB (Egypt)
12. Wasel (Saudi Arabia)
13. Halan (Egypt)
14. Bosta (Egypt)
15. Dubizzle (United Arab Emirates)
16. GoBazzar (Egypt)
17. HelloFood (Egypt)
18. Africab (Morocco)
19. Snoonu (Qatar)
20. InstaShop (United Arab Emirates)