Skip to main content

The Sharing Economy will Reach $40.2 Billion by 2022

While traditionally sharing has been an activity between friends and family, the sharing of items as a business model is not in fact a new concept. Previously, we have seen the rise and fall of the loaning of some physical items (i.e. movies on DVD).

However, with the introduction of new digital formats, alongside the rapid expansion of the online ecosystem, the sharing of not just physical goods, but also skills and talent, has grown exponentially. Today, the Sharing Economy includes numerous and varied service offerings and business models.

Sharing Economy Market Development

A new market study from Juniper Research has found that the sharing economy is now primed to experience substantial growth, as players in more established sectors -- such as transport and residential or commercial space -- press their first mover advantage.

The market study findings have resulted in a forecast that the sharing economy will reach $40.2 billion in 2022, in terms of platform provider revenues -- that's up from $18.6 billion in 2017.

Since Juniper’s previous research, some of the biggest names in the sharing economy -- including Uber and Lyft -- have seen much greater financial returns from driver operations than expected.

The research noted that the proportion taken by these platforms is now around 30 percent per journey, as providers capitalize on an established driver network.

In addition, uptake of many leading sharing services has increased considerably, with listings on shared space provider Airbnb growing from 2 million at the end of 2015, to 3 million this year.

According to the Juniper assessment, the residential or commercial space and transport sectors will continue to dominate the sharing industry.

However, the research found that there is increased pressure on companies such as TaskRabbit in the shared services sector, as more flexible start-ups and listing sites gain traction and, ultimately, market share.

The research identified corporate space as the next high-growth sector in the sharing economy; an area which has developed rapidly and somewhat under the radar.

Outlook for High-Growth Business Models

"The sharing of corporate space via platforms such as WeWork and PivotDesk is the next growth area of the sharing economy, with entire floors of office blocks kitted out and primed for office sharing," said Lauren Foye, senior analyst at Juniper Research.

Substantial investment is also underway, with Softbank investing $3 billion in WeWork in February 2017, anticipating sustained growth in the flexible rental of high-spec, modern office properties.

Consequently, Juniper found that the rapidly emerging sector will deliver substantial returns of over $10 billion by 2022.

Popular posts from this blog

Digital Identity Verification Market to Reach $16.7B

As more enterprise organizations embrace the ongoing transition to digital business transformation, CIOs and CTOs are adopting new technologies that enable the secure identification of individuals within their key stakeholder communities. A "digital identity" is a unique representation of a person. It enables individuals to prove their physical identity during transactions. Moreover, a digital identity is a set of validated digital attributes and credentials for online interactions -- similar to a person's identity within the physical world. Individuals can use a 'digital ID' to be verified through an authorized digital channel. Usually issued or regulated by a national ID scheme, a digital identity serves to identify a unique person online or offline. Digital Identity Systems Market Development Complementary to more traditional forms of identification, digital identity verification systems can enhance the authenticity, security, confidentiality, and efficiency of

Software-Defined Infrastructure: The Platform of Choice

As more organizations adapt to a hybrid working model for their distributed workforce, enterprise CIOs and CTOs are tasked with delivering new productivity-enabling applications, while also seeking ways to effectively reduce IT cost, complexity, and risk. Traditional IT hardware infrastructure is evolving to more software-based solutions. The worldwide software-defined infrastructure (SDI) combined software market reached $12.17 billion during 2020 -- that's an increase of 5 percent over 2019, according to the latest market study by International Data Corporation (IDC). The market grew faster than other core IT technologies. The three technology pillars within the SDI market are: software-defined compute (53 percent of market value), software-defined storage controller (36 percent), and software-defined networking (11 percent). "Software-defined infrastructure solutions have long been popular for companies looking to eliminate cost, complexity, and risk within their data cente

Global Pandemic Accelerates the Evolution of Transportation

Given the current trends across the globe, organizations that depend upon the continued growth of personal vehicle ownership will need to consider a plan-B scenario. While some companies will be able to adapt, others may find that their traditional business model has been totally disrupted. According to the latest worldwide market study by Juniper Research, Mobility-as-a-Service (MaaS) will displace over 2.2 billion private car journeys by 2025 -- that's rising from 471 million in 2021. Juniper believes that for MaaS to enjoy widespread adoption, subscription or on-the-go packages need to offer a strong combination of transport modes along with feasible infrastructure changes, high potential for data collection and low barriers to MaaS deployments. Mobility-as-a-Service Market Development The concept of MaaS involves the provision of multi-modal end-to-end travel services through a single platform by which users can determine the best route and price according to real-time traffic