Autonomous Vehicles Promise Huge Opportunities: Frost & Sullivan

Autonomous Vehicles Promise Huge Opportunities: Frost & Sullivan

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With advantages like reduction in operating costs and stronger profit margins, Autonomous Vehicles (AV) will offer multi-billion Dollar space for new entrants

Frost & Sullivan discovers that new business models stitched around the Autonomous Vehicle ecosystem will cross $200 billion market by 2030. Owing to lesser operating costs and recalibration of business models, the AE market could threaten OEM markets of the future. A recent report by Frost & Sullivan suggests AV market could grow from $ 1.1 billion in 2019 to a staggering $ 202.5 billion by 2030 at a CAGR of 60.1 %. This growth will be possible through mutually benefitting business systems working in the mobility value chain. Peripheral services from AV service cloud will account for 55 % of the market by 2030. Mobility services are destined to grow heavily in the next decade. The growth expected is from $ 0.01 million in 2019 to $ 22.41 billion in 2030.

Not just the passenger market, pushed by customers for faster deliveries Autonomous vehicles through logistic services is also estimated to develop at CAGR 41.7 %. Manish Menon, Industry Analyst, Mobility Practice, Frost & Sullivan states “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 next generation 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”.  AV can be utilized to gather a lot of data that can further be analyzed in route optimization and demand generation. Kamalesh Mohanarangam who is a program manager at Frost & Sullivan mentioned that by 2030, OEMs will consolidate all available usage data from the automobile ecosystem making it the new currency for B2B/B2C entities.

OPPORTUNITIES

Realign business models

Enhancing subscription or pay-as-you-go models

Mine shared data

Routing efficiencies for fleet usage optimization

Government collaborations

Planning a rapid transport system with AV taxis and shuttles

Investing in AD tech

Improve the movement of goods in the supply chain

Integrate real-time data tracking

Create better value-added, in-vehicle services for passengers