Skip to main content

Mobility as a Service Revenues will Reach $1 Trillion

Urban transportation is undergoing a revolution that's being driven by a variety of technologies. They've enabled new and disruptive business models. Recent research findings now indicate more changes are coming.

Where there's big change, there's often big opportunities. The emerging category of Mobility as a Service (MaaS), which provides aggregated, single account, on-demand multi-modal transportation services, is quickly gaining momentum.

According to the latest market study by ABI Research, global MaaS revenues will exceed $1 trillion by 2030. The anticipated impact on traditional transportation modes -- such as car ownership, buses, trains, taxis, and rental cars -- is causing a reevaluation of the economic foundation for legacy transportation companies.

Everything as a Service Market Development

"Driverless technology, through the Car as a Service (CaaS) paradigm, will be the defining factor for the success of on-demand mobility, offering consumers the possibility to summon transportation on the fly," said Dominique Bonte, vice president at ABI Research.

ABI analysts believe that MaaS concepts will result in more transportation offerings through the deployment of fleet-based, alternative energy-efficient powertrain vehicles and reduced congestion through improved utilization rates of available resources.

Autonomous vehicle operation will eliminate the need for paid drivers, reduce insurance costs, increase utilization rates to more than 70 percent, and enable Over the Air-based self-servicing and preventive maintenance.

When combined, this development will drive down the total variable cost-per-mile to a level that undercuts the cost of car ownership and enable MaaS ecosystem development. Vehicle-to-Grid, demand-response charging of electric powertrains and the economies of scale from fleet deployments will further lower costs.

The MaaS ecosystem will create dynamic transportation marketplaces, public private partnerships, plus aggregators managing the supply and demand according to government policies and associated frameworks.

Private and Public Transit Market Outlook

While the multi-modal character and complex interdependence of different transportation models is at the heart of MaaS, personal CaaS models will remain the dominant contributor to on-demand mobility though 2030.

Bicycle rental revenues will remain small. Moreover, Transit as a Service -- i.e. on-demand bus and driverless shuttle -- business models will likely start to become a significant market segment by about 2025.

But rail-based and other fixed route and fixed schedule public transit will become part of the MaaS paradigm, with digital technology and open platforms allowing automated multi-modal routing and single account billing.

"MaaS will fuel economic growth through lower transportation pricing," concludes Mr. Bonte. "But it will have to overcome resistance from both private and public entrenched players before it begins to progress."

Popular posts from this blog

Digital Transformation for the Oil and Gas Sector

The savvy CEOs of multinational organizations will accelerate their investment in digital transformation projects in 2022, and beyond, to improve their competitiveness. Every industry leader that is forward-looking will act swiftly to grasp the upside opportunity. Global oil & gas companies face a myriad of operational, commercial, and existential security threats. According to the latest worldwide market study by ABI Research, oil & gas firms apply digitalization to combat these threats and will spend $15.6 billion on digital technologies by 2030. Oil & Gas Digital Apps Market Development Investments in digitalization can help to analyze a supply pipeline’s condition, prepare for fluctuations in the changing prices for oil and gas, as well as aid action plans to create more sustainable operations and transfer to producing renewable energy sources. "Safety and Security are top priorities for oil & gas operators. Data analytics allied with IoT platforms have become

2022 Tech Trends Outlook: What Happens Next?

This year may very well be another period of unprecedented challenges and opportunities. In 2022, several highly anticipated technology-related advancements will NOT happen, according to the predictions by ABI Research. Their analysts identify many trends that will shape the technology market and some others that, although attracting huge amounts of pundit speculation and commentary, are less likely to advance rapidly over the next twelve months. "The fallout from COVID-19 prevention measures, the process of transitioning from pandemic to endemic disease, and global political tensions weigh heavily on the coming year's fortunes," said Stuart Carlaw, chief research officer at ABI Research . What Won’t Happen in 2022? Despite all the headlines and investments, the metaverse will not arrive in 2022 or, for that matter, within the typical 5-year forecast window. The metaverse is still more of a buzzword and vision than a fully-fledged end goal with a clearly defined arrival d

How Ride-Sharing Apps Changed Local Transport

Building on significant advances in disruptive mobile app technology, ride-sharing services have emerged to become a popular means of urban mobility. This is unsurprising given the advantages of ride-sharing options over traditional transport modes, such as buses and more expensive taxis. Innovative ride-sharing platforms enable app users to customize their journeys according to real-time phenomena, such as nearby traffic conditions, time of day, and rider demand. However, this is not to say that ride-sharing services are perfect. The popularity of ride-sharing has resulted in some additional traffic congestion in major cities already struggling to control this issue, while the widespread disruption caused by the pandemic affected most stakeholders within the local transportation value chain. Ride-Sharing App Market Development According to the latest worldwide market study by Juniper Research, ride-sharing spending by consumers globally will exceed $937 billion by 2026 -- that's c