Frost & Sullivan forecasts growth in autonomous mobility market

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An increasing acceptance of autonomous vehicles could uncover multi-billion dollar opportunities in mobility services, Frost & Sullivan says

According to research from Frost & Sullivan, there has been a huge influx of new entrants into the autonomous vehicle services market. These companies are offering myriad services for AVs, employing innovative new business models that threaten the dominance of OEMs.

The analysis recently conducted by Frost & Sullivan indicates that the autonomous vehicle services market is expected to grow from a mere US$1.1bn in 2019 to US$202.5bn in 2030 at a CAGR of 60.1%, facilitated by mutually beneficial business models across the entire mobility value chain.

“For an autonomous technology to be viable, it needs to have a profitable and sustainable business model,” said Manish Menon, mobility industry analyst at Frost & Sullivan. “The key challenge is to quickly evolve from the current sales and leasing business models to investing in the assets and capabilities that can support next-gen solutions in the autonomous mobility space and its associated services. This is especially pertinent for OEMs as revenues from vehicle sales and leasing will drastically decrease.”

Frost & Sullivan’s latest research, Future Business Models of Autonomous Vehicle Services, 2030, analyzes the emerging global market for autonomous vehicle services, assesses the new business models supporting these services, and provides detailed revenue forecasts through 2030.

Of all the AV services clusters, peripheral services will roughly account for 55% of the market in 2030. The mobility services market is expected to grow to US$22.41bn in 2030, showcasing the most drastic cluster for expansion in the next decade. The autonomous logistic services market is also predicted to develop at a CAGR of 41.7% in the same time frame, driven by consumer demand for faster delivery.

“Autonomous vehicles can be used to gather data about passengers that can be leveraged to optimize vehicle routing and demand generation,” noted Kamalesh Mohanarangam, mobility program manager at Frost & Sullivan. “Between 2020 and 2030, OEMs will begin consolidating the car data ecosystem, and vehicle usage data will become the new currency for value creation among B2B/B2C entities.”

OEMs and service providers operating in this sector can also explore the opportunities in the following areas:

– Realigning business models along the lines of internet and software companies for better implementation of subscription or pay-as-you-go models.

– Mining shared data from OEMs and data aggregators to create new service offerings, analyze efficient vehicle routing, and ensure optimal fleet utilization.

– Collaborating with governments to integrate planned rapid transportation systems with autonomous taxi and shuttle services.

– Partnering and investing in AD technology companies to optimize the movement of goods within the supply chain ecosystem.

– Integrating real-time data tracking systems to enable value-added, in-vehicle, on-demand services suited to passenger preferences.

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Rachel's career in journalism began around five years ago when she started working for UKi Media & Events, having recently graduated from Coventry University where she studied the subject. Her favourite aspect of the job is interviewing industry experts, including researchers, scientists, engineers and technicians, and learning more about the groundbreaking technologies and innovations that are shaping the future of the automotive and tire industries.

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