Adoption of mobility solutions drives growth in auto ecosystem

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Original equipment manufacturers (OEMs) are exploring new opportunities across the shared mobility ecosystem. Partnering with, and investing in e-hailing, ridesharing, smart parking and technology providers, will help OEMs realise their goal of becoming a one-stop shop for all mobility needs.

Frost & Sullivan’s research, Global Mobility Market, Strategic Insight 2017, finds that mobility solution providers are expected to focus on offering robust security systems to enable cashless payments and understand customer preferences.

The study analyses evolving business models, advanced technology trends, market consolidations and partnerships, as well as regulatory reforms that are occurring within the global mobility space. New collaborative business models impacting the industry, such as carsharing, peer-to-peer carsharing, corporate carsharing, e-hailing, integrated mobility, and ridesharing are discussed in the report.

How tech could usher in a new era of ‘personalised public transport'

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“The mobility landscape is now evolving with a host of mobility services. Thanks to smartphones, connected transportation services are becoming more efficient and convenient,” said Frost & Sullivan Future of Mobility Industry Analyst Albert Priya. “People are able to commute in buses, cars, trains, and bikes as a result of increased access to information and an increased awareness of different solutions pertaining to a personal mobility need. With a goal offering more convenience in transportation where people can select the most logical means of transport, OEMs are shifting from the car-as-a-service business model to a mobility-as-a-service model.”

Technology is facilitating a rise in new mobility business models, particularly app-based, on-demand services that encourage access to mobility, rather than ownership.

Strategic imperatives for success and growth in this dynamic market include:

• A value shift from product to service with market evolution from “car as a product” to the “car as an enabler” of a connected living ecosystem;
• New mobility business models that are sustainable and profitable once integrated with other mobility platforms; 
• Advanced technologies such as automated driving, connected mobility, electric vehicle charging, and health, wellness, and wellbeing solutions playing a pivotal role in terms of improving the experience offered by vehicle sharing operators by 2025; and 
• Customers demanding intuitive services in business-to-consumer and business-to-business environments; thereby propelling participants to invest in delivering seamless propositions and user experiences for integrated mobility.

“In the long term, user experience will shift from a product-based experience to a service-based one, and the focus will be on connectivity,” noted Priya. “Cities are launching Smart City initiatives across the world and shared mobility will be at the core, providing first- and last-mile connectivity.”

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