Frost & Sullivan’s annual blockbuster Intelligent Mobility event, this year featuring future business models in connected and automated mobility held in London on 28 and 29 June, picked out current trends its experts considered likely to bring about ‘transformational shifts expected to shape the future of mobility’.
Promoted as identifying growth opportunities arising from convergence of technologies, particularly in the mobility industry the industry Sarwant Singh, a Senior Partner, opened by noting market developments and strategic plays such has a 30% global growth in the car sharing market in last year and investments such as by GM in Lyft, He proposed eight likely ‘Mega Trends’ currently impacting mobility. These are: Connected Mobility; a Cognitive Era; Cars going Tech.; Digitization; Health Wellness and Wellbeing; Vehicle Leasing and Financing; and Mobility as a service.
Speakers from industry such as General Motors, Renault Nissan, Fontinalis Partners, Moovit, BMW, Toyota, Gett, XXimo, Mobility International AG, Arriva, TomTom Telematics, Inrix, Digital Barriers, HORIBA MIRA and BT, presented their take on the mobility market, and in panel discussions that to some degree suggested the direction of travel is to a future of mobility becoming a commoditised service, that will instead present new, and different, opportunities for revenue.
Multi-modal preferences using technology enabled solutions
According to Frost & Sullivan’s review of the event, the line between public and private transportation is increasingly blurred, as customers shift towards more multi-modal preferences using technology enabled solutions.
“This convergence will be driven by data that revolves around both the car and the consumer. Future-oriented solutions will involve the development of intelligence on all levels rather than focusing on one pillar,” claimed Frost & Sullivan Senior Partner Sarwant Singh. “The shift from private vehicles to multi-modal integrated mobility is a further disruption the industry faces: Due to a convergence of social, demographic and technological innovations, we are witnessing a shift from people using cars as the preferred or even only choice to using them as part of a wider system.”
Sarwant Singh betting on full autonomous functionality within the next decade
Mr. Singh pointed out that in future, tech companies which offer solutions for autonomous driving will compete with traditional OEMs. This will lead to a disruption of the industry and expects the market to grow to $60bn in 2030. The automation technology roadmaps of 80% of the major OEMs are expected to be finalised this year.
“The pace at which connected services, sensoring solutions and the like develop make it safe to assume that full autonomous functionality can be achieved within the next decade.”
During the sessions on the Future of Connectivity and on Autonomous Business Models leading OEMs unveiled that convergence will allow the industry to master the challenges mobility faces today, with pollution and accidents making the issue a political and social one, going beyond customer needs.
In the discussion about New Mobility Business Models four leading OEMs exchanged their respective approaches towards shared mobility. They offered a broad spectrum reaching from carsharing, ridesharing and ride hailing to demand responsive solutions and smart parking. The discussed business models provided the basis for a fluid transition to the next panels, evolving around the Future of Corporate Mobility and Integrated Transport Solutions, which is facing similar challenges and choosing comparable modular solutions.
In future, fleet management will become more integrated and comprise not only company vehicles, but increasingly carsharing and other elements of the mobility mix. Hence, an integrated fleet management will function complementary to integrated mobility solutions, both aiming for one single platform to provide access to all services and products.
“Today’s niche business models will become main-stream, particularly digitally enabled mobility services, which will lead to a convergence of public and private transportation,” concluded Mr. Singh.
“Overall, this will lead to a more convenient, user friendly, on-demand transportation network for the customer, which will revolutionise the way we use cars in urban areas in particular.”