Well supported by innovative new business models, autonomous vehicle services market is expected to cross $200 bn by 2030, says the latest report by Frost & Sullivan
With autonomous vehicles (AVs) promising to drastically cut down on the operating expenses as well as put up healthy profit margins, new entrants into the AV market has been growing exponentially. These stakeholders offer a plethora of services and are increasingly threatening dominance of the OEMs.
Frost & Sullivan’s latest research, “Future Business Models of Autonomous Vehicle Services, 2030”, analyses the emerging global market for autonomous vehicle services, assesses the new business models supporting these services, and provides detailed revenue forecasts through 2030.
The analysis also 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. 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.
The report also states that autonomous vehicles can be used to gather data about passengers that can be leveraged to optimise vehicle routing and demand generation. Between year 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.
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, analyse efficient vehicle routing, and ensure optimal fleet utilisation.
- Collaborating with governments to integrate planned rapid transport systems with autonomous taxi and shuttle services.
- Partnering and investing in AD technology companies to optimise 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