Emerging giants of Smart Mobility
Exploring the mobility as a service value chain (part 3)
Smart mobility (or Mobility as a Service), that is, the increasing use of digital platforms to manage traveler journeys end-to-end, will reshape mobility ecosystems over the next 20 years.
In the previous posts here and here, we mapped smart mobility transition to the smartphone one to make it more tangible. The smartphone revolution helped create digital media giants such as Facebook and Google who led the market in taking in billions of dollars in ad spending (picture above). Who will the Smart Mobility revolution benefit the most?
Many different types of companies are expected to enter the market for smart mobility in the short to mid-term, including legacy transportation companies, equipment manufacturers, digital giants, and technology startups. The rewards of unlocking smart mobility could be vast, estimates for this market are $270 billion in revenues by 2040.
Given the large base of interested parties, eventual shakeout and consolidation are likely, as has occurred in other digital ecosystems, such as search engines and social networks. This promises peril for some but opportunities for others to take a leadership role early on. Understanding customers’ wants and expectations will be crucial for companies seeking to build sustainable business models in this space.
Putting Smart Motility into perspective
“Advances in a number of fields, including camera and imaging technology, high power, low energy consumption processing, advanced neural networks and data processing, and others, have shifted the focal point of technology innovation from the computer in the 1990s, to the mobile handset in the 2000s, and in the current decade, to the automobile,” says Tractica analyst Keith Kirkpatrick.
Kirkpatrick adds that, while fully connected and autonomous vehicles are likely a decade away from hitting the roads en masse, the stepping-stone technologies that will be refined and improved upon for the driverless cars of the future are rapidly being integrated into the vehicles of today.
I’ll leave you with this slide from a MobileEye presentation. This displays their operations of a ridesharing project. The complexity of such projects brings in many partners and takes in billions of dollars in investment capital.
The big question is who will take the largest share in the value chain?
This is the third in a series of articles exploring the value chain in Smart Mobility. Caliber AI is a design and deployment partner for AI Pioneers in Smart Mobility, Legal & Compliance and Utilities & Resources. Start building your AI here.