Increasing acceptance of autonomous vehicles uncovers multi-billion-dollar opportunities in mobility services
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, reports Frost & Sullivan. These companies are offering myriad services for AVs, employing innovative new business models that threaten the dominance of OEMs. A recent analysis by the firm indicates that the autonomous vehicle services market is expected to grow from a mere $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. “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 company’s latest research, “Future Business Models of Autonomous Vehicle Services, 2030,” analyzes the emerging global market for autonomous vehicle services, assesses the new business models supporting these services, and provides detailed revenue forecasts through 2030.
According to the study, 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 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.
“Autonomous vehicles can be used to gather data about passengers that can be leveraged to optimize vehicle routing and demand generation,” said Kamalesh Mohanarangam, Mobility Program Manager at Frost & Sullivan. “Between 2020 and 2030, OEMs will begin consolidating the car data ecosystem, and vehicle usage data will become the new currency for value creation amongst B2B/B2C entities.”
“Future Business Models of Autonomous Vehicle Services, 2030” is a part of the company’s Automotive and Transportation Growth Partnership Service program, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
For more information, visit ww2.frost.com.