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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 conditions and demand.

The research findings identified government investment in public transport and public-led partnerships between MaaS vendors and transport operators as key to incentivizing adoption by more people over the next four years.

However, Juniper analysts cautioned that the need for mobile devices and Internet connectivity will limit adoption to developed regions. As a result, it predicts that over 70 percent of these displaced journeys will occur in Europe and the Far East by 2025.


The new research study results anticipate that, as the pandemic wanes, MaaS solution providers should view the increasing demand for travel as an opportunity to disrupt established transport provision ecosystems by demonstrating the cost-effectiveness and efficiencies of their platforms.

"As travel returns to normal, solution providers must look to maximize the benefits of their services, by offering as many transport modalities as possible through their platforms. Therefore, signing partnerships to maximize the value of their MaaS offering must be considered the highest priority," said Adam Wears, research analyst at Juniper Research

By displacing a high volume of car journeys, MaaS will also generate a saving of CO2 emissions worth 14 million metric tons in 2025 -- that's rising from 3 million metric tons in 2021.

Outlook for Continued MaaS Market Growth

Juniper predicts that increasing electrification of private taxis and buses is essential to realize this growth in carbon emission reductions over the next 4 years.

To achieve this, it urges increasing investment into electrification technologies from governmental bodies, to accelerate adoption amongst public transport operators to benefit from lower-emission vehicles sooner.

That said, I believe that the MaaS market upside could be limited by the response from legacy automobile manufacturers that will consider new forms of low-cost vehicle innovation. We'll have to wait and see how this evolves, but the final outcome of this transition is difficult to predict.

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