Increasing Acceptance of Autonomous Vehicles Offers Multi-billion Dollar Opportunities in Mobility Services
March 31, 2020
Supported by new business models, autonomous vehicle services market to cross $200 billion by 2030, according to Frost & Sullivan.
With autonomous vehicles (AVs) promising reduced operating expenses and healthy profit margins, there has been an inflow of newcomers into the market for autonomous vehicle services. These companies are offering services for AVs and employing new business models that threaten OEMs.
An analysis by Frost & Sullivan indicates that the autonomous vehicle services market is expected to grow from $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.
Frost & Sullivan’s research, Future Business Models of Autonomous Vehicle Services, 2030, analyzes the 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. The mobility services market is expected to grow from $0.01 million in 2019 to $22.41 billion in 2030, showcasing 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;
- Future Business Models of Autonomous Vehicle Services, 2030 is a part of Frost & Sullivan’s Automotive and Transportation Growth Partnership Service program, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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