Skip to main content

Mobility‑as‑a‑Service Savings will Reach $10.8 Billion

Mobility as a Service (MaaS) is a rapidly growing transportation offering where people are able to plan, book, and pay for a variety of service types, through a joint digital commerce channel.

It is a shift away from expensive personally owned modes of transportation, such as automobiles, towards a low-cost subscription or pay-as-you-go services.

It is achieved through the combination of public transport -- such as trains and buses -- as well as private transport, and micro-mobility, including bikes and scooters, to get users from one destination to another.

Mobility as a Service Market Development

Mobility as a Service users are able to pay for the service provided either on a monthly basis or pay per trip.

According to the latest worldwide market study by Juniper Research, Mobility as a Service will generate fuel cost savings of $10.8 billion by 2027 globally -- that's increasing from $2.8 billion in 2022, a growth of 282 percent.

Juniper Research anticipates these savings will be achieved by the service's ability to reduce congestion by displacing private vehicle usage with public transport over new MaaS platforms.

MaaS platforms provide consumer urban transit solutions -- such as ride-hailing, bus, and metro trains, integrated into a single digital commerce app.

The research findings uncovered that more consumers will likely turn to MaaS solutions, as fuel costs increase globally. The cost of gasoline has become increasingly volatile as producers manipulate supply.


The latest Juniper survey found that 41 percent of respondents ranked the cost of transport as being the most important factor when it comes to selecting a method of transportation.

MaaS growth is due to the perception of being a less-expensive travel alternative. MaaS adoption is also due to the convenience it provides by offering transportation with planning, purchasing, and ticketing combined in a single software app.

Furthermore, Juniper analysts predict that CO2 reduction from private car journeys displaced is also fuelling the growth of MaaS applications.

"MaaS has the ability to improve corporate social responsibility, as a result, MaaS vendors must appeal to companies by demonstrating how MaaS can significantly reduce their carbon emissions from travel," said Cara Malone, research analyst at Juniper Research.

Outlook for Micro-Mobility App Usage Growth

The distance traveled via micro-mobility options -- described as a form of transportation using lightweight vehicles such as bicycles and scooters -- is set to grow 780 percent globally between 2022 and 2027.

Micro-mobility enables service users to traverse through highly congested cities for the first and last mile of their journey. The growth will be driven by the increased deployment of micro-mobility infrastructure, including docking stations, bicycles, and scooters.

That said, across the globe, many smartphone users already have one or more micro-mobility apps on their mobile devices. Moreover, micro-mobility service saturation became a significant issue in some urban markets, and local government leaders responded with increased regulation. Regardless, the outlook for new growth in this space is promising.

Popular posts from this blog

Digital Talent Demand Exceeds Supply in Asia-Pac

Even the savviest CEO's desire for a digital transformation advantage has to face the global market reality -- there simply isn't enough skilled and experienced talent available to meet demand. According to the latest market study by IDC, around 60-80 percent of Asia-Pacific (AP) organizations find it "difficult" or "extremely difficult" to fill many IT roles -- including cybersecurity, software development, and data insight professionals. Major consequences of the skills shortage are increased workload on remaining digital business and IT employees, increased security risks, and loss of "hard-to-replace" critical transformation knowledge. Digital Business Talent Market Development Although big tech companies' layoffs are making headlines, they are not representative of the overall global marketplace. Ongoing difficulty to fill key practitioner vacancies is still among the top issues faced by leaders across industries. "Skills are difficul

How Cloud Fuels Digital Business Transformation

Across the globe, many CEOs invested in initiatives to expand their digital offerings. User experience enhancements that are enabled by business technology were a priority in many industries. Worldwide end-user spending on public cloud services is forecast to grow 21.7 percent to a total of $597.3 billion in 2023 -- that's up from $491 billion in 2022, according to the latest market study by Gartner. Cloud computing is driving the next phase of digital transformation, as organizations pursue disruption through technologies like generative Artificial Intelligence (AI), Web3, and enterprise Metaverse. Public Cloud Computing Market Development "Hyperscale cloud providers are driving the cloud agenda," said Sid Nag, vice president at Gartner . Organizations view cloud computing as a highly strategic platform for digital transformation initiatives, which requires providers to offer new capabilities as the competition for digital business escalates. "For example, generativ

Mobile Device Market Still Awaiting Recovery

The mobile devices market has experienced three years of unpredictable demand. The global pandemic, geopolitical pressures, supply chain issues, and macroeconomic headwinds have hindered the sector's consistent growth potential. This extremely challenging environment has dramatically affected both demand and supply chains. It has led to subsequent inflationary pressures, leading to a worsening global cost of living crisis suppressing growth and confidence in the sector. In tandem, mobile device industry stakeholders have become more cautious triggering market uncertainties. Mobile Device Market Development Operating under such a backdrop, the development of mobile device ecosystems and vendor landscapes have been impacted severely. Many of these market pressures persisted throughout 2022 and now into 2023, borne chiefly by the smartphone market. According to the latest worldwide market study by ABI Research, worldwide smartphone shipments in 2022 declined 9.6 percent Year-over-Year