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.
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.
"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.
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.