According to global consulting firm Frost & Sullivan (F&S) the automotive sector gears up to the challenge presented by the emergence of new business models in the transportation sector.
“New mobility business models and more connected infrastructure are emerging as a challenge for the automotive industry and other actors in the transportation and mobility space,” says F&S analyst Martyn Briggs.
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“We are currently facing a period of potentially disruptive change that will inevitably impact the business of motorised transportation. The companies that will remain successful will be the ones who anticipate change and align their business operations accordingly,” says Briggs.
Research undertaken by F&S points to a particular emphasis on future transportation change in urban areas across the globe.
“The transportation landscape in urban areas is shifting quite rapidly,” Briggs maintains. “We are seeing the emergence across the world of more megacities and increasing pressures on transportation sectors arising from infrastructure congestion as well as a new awareness of the need for environmental sustainability. Smart cities are coming in places like northern Europe and the US, but the environmental driver for transport policy and regulation is also becoming much more significant in emerging markets, too.”
Briggs adds that personal connectivity is also a vital part of the landscape of new business models and increasingly integrated transportation solutions. “Think of it as an integrated approach to door-to-door transportation. Radical new solutions are being facilitated by personal connectivity and apps on connected devices. Journeys can be configured for the fastest time or the most environmentally friendly multi-mode options with real-time updates, too. The available choices for consumers of transportation services in a modern city are rapidly growing.
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By GlobalData“Car sharing, for example, continues to gain new customers in cities across the world. We are also seeing the emergence of more micro-mobility and ‘last mile mobility’ innovations such as Toyota’s innovative iRoad vehicle that is testing in Grenoble. There are also more incentives for zero emission schemes such as Autolib electric cars in Paris. There is a huge wave of innovation taking place and coming – both in terms of hardware and software.”
“The car is changing, too. Active safety systems are taking us in the direction of more automation. BMW’s new 7 Series can park by remote control and cars are coming soon that will drive themselves on the highway. Intelligent Transportation Systems that can optimise traffic flows are in an advanced stage of development. The pace of technological change is rapid.”
“Some of this technology is here now and we can see some clear trends and directions. Traditional car ownership however, is not dead. The traditional model that has served the auto industry so well for the past century is far from dead and still works for many people. However, we are seeing some important changes in the transportation market – especially in urban areas – and participants in that market need to be acutely aware of future pressure points and how their business can be impacted.”
All of these aspects will be discussed during Frost & Sullivan’s upcoming annual industry event “Intelligent Mobility: Future Business Models in Connected and Automated Mobility”, which will take place at the House of Lords and the Royal Garden Hotel in London on 1st and 2nd July 2015. More event information
