Increasing acceptance of AVs uncovers money opportunities in mobility services
The autonomous vehicle services market is expected to cross US$200B by 2030, finds Frost & Sullivan
With autonomous vehicles (AVs) promising drastically reduced operating expenses and healthy profit margins, there has been a huge inflow of new entrants into the market for autonomous vehicle services, according to Frost & Sullivan.
A recent analysis by the research firm indicates that the autonomous vehicle services market is expected to grow from a mere US$1.1 billion in 2019 to $202.5 billion in 2030 at a CAGR of 60.1%, facilitated by mutually beneficial business models across the entire mobility value chain.
“For an autonomous technology to be viable, it needs to have a profitable and sustainable business model,” said Manish Menon, mobility industry analyst at Frost & Sullivan, in a prepared statement. “The key challenge is to quickly evolve from the current sales and leasing business models to investing in the assets and capabilities that can support NextGen solutions in the autonomous mobility space and its associated services. This is especially pertinent for OEMs as revenues from vehicle sales and leasing will drastically decrease.”
The research analyzes the emerging global market for autonomous vehicle services, assesses the new business models supporting these services, and provides detailed revenue forecasts through 2030.
Of all the AV services clusters, peripheral services will roughly account for 55% of the market in 2030, according to Frost & Sullivan. The mobility services market is expected to grow from $0.01 million in 2019 to $22.41 billion in 2030, showcasing the most drastic cluster for expansion in the next decade. The autonomous logistic services market is also predicted to develop at a CAGR of 41.7% in the same time frame, driven by consumer demand for faster delivery.
OEMs and service providers operating in this sector can also explore the opportunities in:
- Realigning business models along the lines of internet and software companies for better implementation of subscription or pay-as-you-go models.
- Mining shared data from OEMs and data aggregators to create new service offerings, analyze efficient vehicle routing, and ensure optimal fleet utilization.
- Collaborating with governments to integrate planned rapid transport systems with autonomous taxi and shuttle services.
- Partnering and investing in AD technology companies to optimize the movement of goods within the supply chain ecosystem.
- Integrating real-time data tracking systems to enable value-added, in-vehicle, on-demand services suited to passenger preferences.