Skip to main content

Mobility-as-a-Service Creates Disruptive Travel Options

Building on significant advances in big data, analytics, and the Internet of Things (IoT), more innovative transit service offerings aim to increase public transport ridership and reduce emissions or congestion within metropolitan areas.

By providing these services through smartphone apps, the transit services also significantly increase user convenience, providing information on different human mobility offerings -- including public transport, ridesharing, and autonomous vehicles.

Mobility-as-a-Service Market Development

According to the latest market study by Juniper Research, Mobility-as-a-Service (MaaS) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027 -- that's rising from $5.3 billion in 2021.

Let's start with a basic definition. MaaS is the provision of multi-modal end-to-end travel services through single platforms, by which users can determine an optimal route and price.

The study identified a monthly subscription model as key to increasing the adoption of MaaS among travelers. However, until users trust the proposition of subscription-based transport services, MaaS platforms must ensure pricing models are flexible, by offering pay-as-you-go journeys and short-term subscriptions.

Juniper analysts recommend that platform providers leverage account-based ticketing to provide flexible pricing models. Account-based ticketing allows travelers to be billed on account, with smartphone apps, travelcards, and wearables used to prove travel eligibility.


However, the researchers warned that account-based ticketing will require significant digitalization of transportation networks, which is already widespread in Europe and the Asia-Pacific region.

Juniper now predicts that over 85 percent of MaaS subscriber revenue will be attributable to these regions by 2027.

"Account-based ticketing is an essential prerequisite for MaaS, given that it enables multimodal interoperability and supports the accurate apportionment of revenue between transport operators, both of which are key to driving mobility partnerships and buy‑in from local authorities," said Adam Wears, research analyst at Juniper Research.

The study findings also uncovered how business travelers globally will use MaaS platforms to complete 25.7 million business trips annually by 2027, as companies look to minimize spend associated with corporate travel, such as fleet maintenance.

Outlook for Mobility-as-a-Service Applications Growth

However, this research assessment highlights that for the financial benefits of these programs to be appreciable, businesses must have a high level of travel spend and a large number of employees.

Juniper, therefore, recommends that when targeting this segment, MaaS platforms emphasize the societal benefits of their offerings, to attract corporations looking to reinforce their environmental and sustainability credentials.

That said, I envision the current momentum for climate change-related policies will drive growth. Government investment in public transport and public-led partnerships between MaaS vendors and commercial transport operators will be key to incentivizing greater adoption.

Besides, the need for mobile devices and Internet connectivity will likely limit MaaS adoption to developed regions of the world. As an example, over 70 percent of displaced journeys in 2025 will occur in advanced European and Far East markets, according to the Juniper assessment.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

How Generative AI Will Reshape the Economy

The Global Networked Economy -- a term synonymous with the interconnectedness of businesses, individuals, and governments worldwide -- has undergone a remarkable transformation in 2023. Fueled by the rapid growth of digital technologies and the global internet, this phenomenon has given rise to a worldwide marketplace that has already revolutionized the way we live, work, and play. The impact of Generative Artificial Intelligence (GenAI) in 2024 will be equally disruptive to many traditional business leaders. GenAI will also create huge opportunities for the fearless pioneers. Global Networked Economy Market Development The Global Networked Economy's evolution traces back to the advent of the Public Internet. The introduction of eCommerce, social media, and cloud computing has been instrumental in reshaping how businesses operate and engage with their customers. This interconnected ecosystem empowers savvy leaders to access new markets, trim operational costs, enhance commercial e