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

Big Data Analytics Revenue to Reach $215.7 Billion

Across the globe, more leaders seek actionable insight from the customer data they've stored in huge data lakes. Worldwide spending on big data and business analytics (BDA) solutions is forecast to reach $215.7 billion in 2021 -- that's an increase of 10.1 percent over 2020, according to the latest worldwide market study by International Data Corporation (IDC). Moreover, BDA technology investment will likely gain momentum over the next five years as the global economy recovers from the COVID-19 pandemic. The compound annual growth rate (CAGR) for global BDA spending over the 2021-2025 forecast period will be 12.8 percent. Big Data Analytics Market Development "As executives seek solutions to enable better, faster decisions, we're seeing relatively healthy BDA spending across all industries. Leveraging data for insights into everything from internal business operations to the customer journey is top of mind and of strategic importance," said Jessica Goepfert, vice

Warehouse Robot Deployment Gains New Momentum

The retail and wholesale back-office infrastructure market is being transformed by technology. The warehousing industry has accelerated automation efforts due to the increased order volume and labor shortages driven by the global pandemic. In addition to technology solutions such as handheld devices with enhanced capabilities, autonomous, collaborative, and mobile robots are proving to be the fastest-growing productivity-enhancing solution in the warehouse workspace. Commercial Robotics Market Development According to the latest worldwide market study by ABI Research, global commercial robot revenue in warehouses will have a Compounded Annual Growth Rate (CAGR) of over 23 percent from 2021 to 2030 and exceed $51 billion by 2030. "Mobile robots are at the heart of the warehouse robotics market and account for most shipments and revenue. These robots, made up of Autonomous Guided Vehicles (AGVs) and Autonomous Mobile Robots (AMRs), are being used to move goods within the warehouse a

Remote Working Drives Demand for Internet Access Solutions

High-speed internet access from home is essential to participate in the Global Networked Economy. The worldwide residential broadband service market reached a subscriber base of over 1.1 billion users in 2020 -- that's a 4 percent increase from the previous year. Clearly, the COVID-19 pandemic accelerated demand for broadband connectivity. The need for high-capacity residential broadband will remain, even post-pandemic. According to the latest worldwide market study by ABI Research, 5G Fixed Wireless Access (FWA) will be the fastest-growing residential broadband segment to increase at a CAGR of 71 percent, exceeding 58 million subscribers in 2026. Remote working, online learning, and virtual healthcare created new demand for high-speed broadband throughout 2020. The significant increase in the use of internet-based entertainment services also prompted broadband users to upgrade, while more households without broadband access subscribed for the first time. Residential Broadband Serv