Mobility Will Have New Meaning in Connected Vehicle Era

With the rise of connected cars and autonomous vehicles, we will have to learn to use the term “mobility” in a new way, as in “transportation,” not “phones.”

A study by Strategy Analytics, sponsored by Intel, predicts a new “passenger economy” generating as much as $7 trillion in annual revenues by 2050.

Consumer use of a range of mobility-as-a-service (MaaS) offerings will account for US$3.7 trillion, nearly 55 percent of all revenues. The evolution and mass adoption of MaaS by  consumers is central to the emergence of the Passenger Economy. Consumers will continue to forgo ownership as they seek out economical, self-directed personal mobility.

Revenue models might include on-demand transportation, commuter ride-sharing, mobility as a service, fleet operations, event transportation or amenity transportation, according to the report.


A fundamental assumption is that consumer and business users will be able to “order” transportation whenever needed, including for such routine uses as getting to work.

Strategy Analytics also believes automaker business models will change, with carmakers offering both on-demand and contract or subscription models that offer transportation as an amenity to their core retailing products or services.

Over time, the analysts argue, application and content revenue generated by MaaS will supplant vehicle sales as core sources of financial value creation. Auto manufacturers might also become transportation service providers themselves, as they once invested in car rental businesses. Car manufacturers used to operating fleets of vehicles for commercial rental might also operate fleets for other transportation purposes

But MaaS likely also will be a component of services and features offered by many other consumer-facing retailers and web/internet firms. Think Google, Amazon and others.

Mobility services might also become an element of the value proposition of an office building, apartment complex, university campus or home, becoming an amenity offered by guest services.

Some employees might have transportation services as a part of their compensation package. In exchange for the service, companies will maintain geo-fence limits on the “pod” while maintaining remote maintenance and service to extend the lifecycle of the investment.




Business use of MaaS will generate US$3 trillion in revenues, roughly 43 percent of total revenues. Industries like transportation and freight delivery and sales and service fleets will utilize pilotless vehicle technology to reshape their fundamental businesses and to leverage new opportunities, Strategy Analytics predicts.
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