Mobility as a Service Market to Grow Rapidly Through 2023

Aug. 24, 2017
The report points out that mobility as a service is growing rapidly mainly due to the high adoption of online mobility services. Globally, the market is expected to grow to experience thriving growth by 2023, surpassing its previous growth records in terms of value. 

Aug. 24, 2017—Market Research Future (MFR) published a research report on "Global Mobility as a Service Market Research Report - Forecast to 2023."

As reported on by FenderBender in the past, an ABI Research survey noted that only 10 percent of respondents in the automotive industry expect OEMs to have the most to gain from the mobility as a service (MaaS) megatrend, which relates to "a shift away from personally owned modes of transportation and towards mobility solutions that are consumed as a service" that is expected to heavily favor ride-sharing services and self-driving cars.

Though automotive incumbents recognize that new personal mobility opportunities will attract competitors from markets such as ride-sharing and autonomous system development, the overwhelming expectation remains that premium brands stand to gain the most from the prevalent automotive technology megatrends, ABI said.

Lyft, Car2Go, Uber, Bridj, Ridepal and Cabify are some of the prominent players profiled in MFR's analysis and are at the forefront of competition in the global mobility as a service market.

The MFR report points out that MaaS is growing rapidly mainly due to the high adoption of online mobility services. According to a recent MFR report, globally, the market for MaaS has increased its market growth in recent years and is expected to grow at a rapid pace during the forecast period. The global market of MaaS is forecasted to witness a thriving growth by 2023, surpassing its previous growth records in terms of value with a striking CAGR during the anticipated period (2016-2023). 

Increasing online mobility service is a key driver for MaaS market. Innovation and advancements in online mobility service is a prime factor that drives the growth of  the MaaS market, which is evolving across the world. The high adoption is resulting in an on demand transportation system for MaaS market.

As urban density continues to grow, MaaS provides an alternative way to move more people and goods in a way that is faster, cleaner and less expensive than current options. By adding more variability into the supply side of transportation, MaaS could transform a relatively inflexible transportation system into one that is significantly more pliable.

Future iterations of MaaS should create an integrated system of mobility that is more flexible than the existing transportation network, where supply is aligned with actual demand and where more choices are provided to enable commuters with ways that are easier, faster, cheaper, cleaner, and safer than those currently available. Mobility will shift to a greater extent becoming a service in which physical mobility and digital services merge into a high-quality door-to-door service that meets the users' needs. In the future various transport service chains should work seamlessly together. This means a holistic change in the entire transport system and in the roles of the transport operators.

Characterized by the presence of several major well-established players, the global Market of MaaS appears to be highly competitive. Well-established players incorporate acquisition, collaboration, partnership, expansion, and technology launch in order to gain competitive advantage in this market and to maintain their market position. Strategic partnerships between Key players support the growth and expansion plans of the key players during the forecast period. The key players operating in the market compete based on pricing, technology, reputation and services.