News

Former ride-sharing startup Split finds new home with Volkswagen company MOIA

Former ride-sharing startup Split finds new home with Volkswagen company MOIA

Volkswagen Group-affiliated transportation software company MOIA wants to revolutionize ride-sharing, commuting and how people travel around cities — and it has purchased D.C.-based Split as part of that effort.

The deal with Split, which offered low-cost rides inside the District before shutting down its operations in September and switching to transportation-related software (and moving at least some of its operations to Finland), was first reported by The Washington Post. But in a blog-post on Medium CEO and founder Ario Keshani said they will be “pushing the envelope” on the future of transportation at MOIA.

Keshani did not disclose how much MOIA paid for the company, or how many employees were heading to MOIA, or even what type of assets were purchased by MOIA, but in the blog post he thanked the entire Split team, including those “who will continue on with MOIA, and those who won’t.”

So what on earth is MOIA? It’s a little unclear. Officially launched in December, MOIA is an independent Berlin-based company that wants to become one of “the world’s leading mobility service providers by 2025,” with a focus on developing IT-based on-demand ride-hailing and car-poooling services and other “amazing concepts,” according to its website.

“We don’t know exactly what concepts and products MOIA Next will develop in ten years’ time — nobody does — or where this will take us. But we do know that we will work very hard to enhance the existing transportation system as a whole and lead the way to the future,” its website said.

Split is MOIA’s most recent purchase — it bought parking payment operator PayByPhone when it launched late last year. The push into the on-demand driving space pits it against big tech competitors like Uber, as well as other auto manufacturers that have gotten in on the game recently. MOIA is an independent company under the Volkswagen umbrella.

Split began in late 2014 and started service in the spring of 2015 serving just downtown D.C., but had grown outward, adding Southeast D.C., Petworth, Hill East and other neighborhoods to the list. It had raised at least $11 million, according to Crunchbase, with transportation company Transdev.

MOIA, the new mobility company in the Volkswagen Group, is taking over the Finnish software company Split Finland Oy. As a wholly owned MOIA subsidiary the Espoo-based company will be known as MOIA Finland Oy. The main tasks of the team led by co-founder Teemu Sihvola will include the development of the pooling algorithms that will be used to manage MOIA’s ride-pooling concept.

Split Finland was founded in 2011 as Ajelo Oy. Up to 2015 the Finnish start-up developed the software behind the ride-pooling concept Kutsuplus, which was operated by Helsinki Region Transport. The US-based ride-pooling company Split took over Ajelo in 2014 with the goal of using its software to develop a ride-pooling concept in Washington D.C.

Ajelo developed the world’s first fully automated pooling solution. That technology enables ride requests from users who are travelling in similar directions to be served with just one vehicle in a fully automated and dynamic way. Would-be passengers use an app to notify the system of their location and destination. An algorithm then calculates the most efficient route possible for the shuttle. This is the only way to make highly efficient and sustainable real-time shared mobility possible.

Read more at http://telematicswire.net/moiato-take-over-the-finnish-software-company-split-finland-oy/#X2RCWpB5RuZ3iELI.99

  • Split joins MOIA and Volkswagen.
Chinese bike-sharing giant Mobike expands into Europe

Chinese bike-sharing giant Mobike expands into Europe

Fast-growing Chinese bike-sharing startup Mobike has announced its first launch markets outside of Asia. Founded out of Shanghai in 2015, Mobike has been available in dozens of cities across China since it first launched last year, and it landed in Singapore back in March. Today, the company announced that it will launch in the U.K. cities of Manchester and Salford later this month, taking its total city count across its three markets to 100.

The U.K. launch marks the start of a major European expansion for Mobike, with plans to arrive in a “series of European cities” over the next few months.

“We are already in talks with a number of other cities around Europe and are sure the successful pilot will be the first of many partnerships, allowing us to make cycling the most convenient and affordable choice for those in cities all around Europe,” said Mobike U.K. general manager Steve Pyer.

Mobike, for the uninitiated, provides cities with the bikes and the technology platform, including mobile apps. For durability, and to help sidestep costly repairs, the Mobike bikes are chainless, sport puncture-proof airless tyres, and are supported by an anti-rust aluminium frame. To unlock a bike, a user scans the QR code with their phone.

Mobike has raised $325 million in venture funding — with Tencent leading a $215 million round in January of this year — and notable previous investors include Foxconn, Temasek, and Sequoia Capital.

Similar to the way data is increasingly being garnered from car-based ride-sharing services to improve transport infrastructure in cities, Mobike uses GPS in its bikes so it can access real-time trip data to properly allocate its fleet and analyze how variables such as weather and traffic impact its service. This also allows it to help city planners “in a variety of smart urban planning projects,” according to Mobike.

With congestion a growing concern for conurbations globally, bikes have emerged as a hot trend among investors. Last September, Didi Chuxing invested “tens of millions” into Ofo, a rival bike-sharing startup that went on to close a whopping $450 million round earlier this year. And over in the U.S., LimeBike recently raised $12 million in a round led by Andreessen Horowitz.

Read more: https://venturebeat.com/2017/06/12/chinese-bike-sharing-startup-mobike-expands-into-europe/

  • Mobike expanding into Europe.
Ridesharing used to supplement not replace personal vehicles, finds Strategy Analytics

Ridesharing used to supplement not replace personal vehicles, finds Strategy Analytics

With the rise of Uber and alternate transport options for consumers, OEMs are rightfully concerned about the impact the increased usage of these options will have on consumers’ interest in purchasing future vehicles.

A new report from the Automotive Connected Mobility (ACM) service at Strategy Analytics “Impact of Ride Sharing Frequency on Vehicle Purchase Intention“, has found that ridesharing usage may not negatively impact the future vehicle purchase intention of current vehicle owners.

Click here for report: https://www.strategyanalytics.com/access-services/automotive/in-vehicle-ux/reports/report-detail/impact-of-ride-sharing-frequency-on-vehicle-purchase-intention#.WTgFTusrKM8

Key report findings include:

  • Ridesharing usage actually increased the likelihood that current vehicle
  • owners would purchase another vehicle within the next five years. This was true across the US, Europe, and China.
  • Frequent ridesharing users that also own their own vehicle had greater transportation needs than those that don’t. Ridesharing fills a niche that is convenient but will not supplant their personal vehicle.
  • Millennials that had no children and used ridesharing at least once a week were less likely to purchase another vehicle within the next five years than all respondents that had children.

“The question of how emerging transportation options like ridesharing and car-sharing will impact vehicle sales is a very complex one to answer. Issues of cost, convenience, usability, privacy, type of journey, and length of journey all impact transportation choices,” commented Chris Schreiner, report author and Director of Syndicated Research, UXIP. “Frequent ridesharing users do not seem likely to delay their next vehicle purchase, but it is still possible that they might choose a less expensive or lower class vehicle. Alternatively, they may choose to downsize their fleet from three vehicles to two.”

Added Kevin Nolan, VP UXIP, “However, it is prudent to note that external factors such as ridesharing competition reducing end user costs, expanded availability and autonomous taxis, all have the ability to negatively affect consumers’ future purchase decisions.”

• New report: “Ridesharing does not replace personal vehicles.”

Unregulated robot cars pose unprecedented risks and costs, consumer watchdog report warns

Unregulated robot cars pose unprecedented risks and costs, consumer watchdog report warns

Robot cars operating without mandatory safety, security, privacy and ethical standards will pose unprecedented risks to the American public, Consumer Watchdog warned in a report, Self-Driving Vehicles: The Threat to Consumers.

The report is being issued in conjunction with a day-long program, Driverless Cars: The Legal Landscape, sponsored by George Washington University Law School and a hearing by the Senate Commerce Committee, Paving the Way for Self-Driving Vehicles.

Harvey Rosenfield, Consumer Watchdog Founder, Joan Claybrook, Former Public Citizen President and Former NHTSA Administrator and John M. Simpson, Consumer Watchdog Privacy Project Director, submitted the report to the formal written record of the Commerce Committee hearing. All three are panelists in the GW Law program.

“No one disputes that the evolution of motor vehicle technology has the potential to prevent deaths, injuries and property damage. New technologies such as automatic emergency braking, lane keeping, collision warning, and assisted parking are already doing so, and indeed should be made standard equipment in all vehicles,” the report said. “The point is that the gradual automation of driving will introduce a new set of risks. These risks will necessarily be far broader than those posed by vehicles today – suggesting that the ramifications for liability and insurance will be significant. A fully autonomous robot-based transportation system will likely reduce the number of crashes caused by human error, but that does not tell us anything about the overall impact of a fully autonomous system.”

Read Self-Driving Vehicles: The Threat to Consumers here: http://www.consumerwatchdog.org/sites/default/files/resources/self_driving_consumer_threat_report.pdf

“Lost in the hyperbole over robot cars is a realistic assessment of the likely costs to both consumers and taxpayers particularly over the coming decades, when robot cars and human drivers will share a ‘hybrid highway,” the letter to the Senate Committee said.

The letter also expressed dismay at the Committee’s failure to include any representatives of consumer groups among the witnesses called to speak at the hearing.

“The witness panel includes a spokesman for auto manufacturers, a representative of a company developing robot car technology, and organization developing a test center for robot car technology. A spokesman for MADD has the laudable, but narrow, agenda of combating drunk driving.  This is an industry-dominated panel with no representatives of auto safety or consumer protection organizations,” the letter said.

Read the letter to the Senate Committee here: http://www.consumerwatchdog.org/sites/default/files/resources/ltrsenatecommere061417_con_watchdog_2.pdf

To deal with the challenge posed by autonomous vehicle technology, Consumer Watchdog believes six principles must be adopted.  Outlined in the report and letter they are: Protect the civil justice system; Enact stronger state consumer protections against insurance company abuses; Enact auto safety standards; Stronger laws are needed to protect consumers’ privacy; Bar federal interference in state consumer protection laws; Respect democratic and human values.

“Congress must not succumb to the siren song of the autonomous car developers who are over promising what autonomous vehicle technology can do today.  We call on you to require the development of enforceable federal safety performance standards. Responsible regulation goes hand-in-hand with innovation. Voluntary “standards” in the auto industry have repeatedly been proven to be weak and insufficient.  Safety must come before the automakers’ bottom lines. Consumer Watchdog calls on you to enact the necessary regulations to protect the safety of our highways.”

  • Consumer Watchdogs warns for unregulated ‘robot cars’
ITF Corporate Partnership Board releases report on shaping the relationship between public transport and innovative mobility

ITF Corporate Partnership Board releases report on shaping the relationship between public transport and innovative mobility

The report ‘Shaping the relationship between public transport and innovative mobility’ investigates the convergence of public transport and innovative mobility solutions, such as ride services, car- and bicycle-sharing, app-enabled on-demand micro-bus services, and platforms that connect app-using travellers and drivers. It examines the role of public authorities in ensuring this convergence supports commercial innovation as well as public policy objectives and identifies principles to guide partnerships between innovative mobility services and public transport operators.

The report also explores where action may be needed to ensure that this convergence does not lead to reduced mobility options for those that have difficulty using existing transport modes, and in particular, how the needs of an ageing population may be met in an evolving mobility service landscape.

This study was organised under the auspices of the International Transport Forum’s Corporate Partnership Board (CPB). It is based on a workshop with commercial actors, public authorities and other experts that took place in November 2016, and interviews with various officials and experts as well as input from CPB member companies. Additionally, extensive desk research for this study was carried out by the International Transport Forum.

What the working group discovered: The rapid deployment of new types of mobility services has the potential to change the way in which urban mobility and access are delivered. This will have an impact on the nature of public transport. The convergence of public transport and ride services in particular provides an opportunity to deliver better mobility outcomes for a broader share of the population. At the same time it poses clear risks to the provision of equitable and sustainable mobility for all.

Ride services like those offered by Didi Chuxing, Grab, Lyft, Ola, Uber and other innovative mobility options – including app-based microtransit platforms like Chariot and car- and bicycle-sharing – account for a small share of trips in most urban areas. Nonetheless, they are starting to have an impact of trip-making behaviour where they are present and are starting to be seen as a potential complement for first and last mile connections. In low density regions difficult to service with public transport and areas where public transport is available but quality is perceived to be lacking, ride services may also come to be seen as an alternative.

Some public transport operators and authorities are already exploring partnerships with app-enabled mobility services. Most of these initiatives are taking place in the United States – partly because of the popularity of ride services there, partly because many urban areas there have difficulty providing attractive public transport. Many of the partnerships described in this report are pilot projects or promotional campaigns and at present there is no evidence for a permanent shift in public transport service delivery towards structural partnerships with ride services. Nonetheless, authorities and ride-service operators are using these pilots to test new ways of improving mobility outcomes where it is difficult to provide quality public transport.

Co-operation with ride services is unlikely to save poor-quality public transport, however. Providing first and last mile connections via ride services to poor quality (i.e. unreliable, crowded, slow, infrequent) public transport will not suffice to attract users to public transport; it certainly seems unlikely to entice car users to switch. Such co-operations may result in cost savings for public transport operators in certain contexts. But introducing ride services alone will not reverse a decline in ridership if the overall service offer does not result in improved outcomes for travellers.

The group recommends:

Focus on improving overall mobility outcomes, not just on lowering public transport costs

Replacing more expensive, less demand-responsive and less flexible public transport with less expensive, more demand-responsive and more flexible ride services (or other combinations of innovative mobility services) can free funds that public transport operators could allocate to improving service quality. Cost savings should not be the only motivation for seeking synergies between ride services and public transport. These synergies can be leveraged to provide improved outcomes for travellers while at the same time allowing public authorities to deliver on important public policy objectives such as improved equity, reduced congestion and improved environmental outcomes.

Set a vision for urban transport that includes full integration of innovative mobility options

Public policy is best served when it is framed within a coherent set of visions and goals. These should be incorporated into a publicly vetted plan that sets out how authorities intend to deliver on these goals despite fast-changing circumstances. This is the case with the public policy approach to innovative mobility services, automated driving and generally how digitally-driven changes may fundamentally challenge the concept of public transport. One good example of this type of plan is the city of Los Angeles’ “Urban Mobility Plan in a Digital Age” that re-orients the focus to Mobility as a Service.

Ensure partnerships between public transport and innovative mobility operators to improve mobility for all people, including those with disabilities

If innovative mobility services complement or replace accessible mainstream public transport, they will need to provide at least the same degree of spontaneity and flexibility to travel when the individual wants or needs. Where frequent accessible buses and on-street hail taxis are available, licensed ride services must not erode overall levels of accessible transport. App-based ride services can improve overall accessibility by better matching supply of accessible vehicles and demand – but only if the design of the service and of the partnership takes into account the specific needs of travellers with impairments.

Target low-performing or costly routes, and leverage government assets to guide convergence

Where public transport is expensive and service quality is low, replacing certain poorly-performing, expensive bus services may increase the overall attractiveness of public transport. By undertaking inventories of existing public transport routes to examine the potential for alternative service delivery models, public authorities and public transport operators can evaluate where synergies with innovative mobility services are strongest. Governments can also leverage assets they control to guide this convergence: Re-allocating parking space at public transport hubs, for instance, can improve the convenience of trips by public transport combined with rides-services; as can the creation of curb-side pick-up and drop-off zones.

Split regulatory oversight from operation of urban transport and adapt procurement practices

The governance of public transport will play an essential role in either facilitating or impeding the convergence of traditional and innovative mobility services, and of ride services in particular. Split responsibilities complicate the task of aligning outcomes. For instance the regulation of ride services may be in the hands of an authority in charge of taxi or for-hire services, while public transport regulation may fall under a completely different authority. Governance models that unify regulatory oversight and planning functions, define quality outcomes and performance objectives, and set contractual relationships to deliver these across a wide range of mobility operators may accelerate the integration of these into a co-ordinated ecosystem. Procurement rules for ride services and platform-based micro-transit services, however, will have to adapt to the specificities of these services. In particular, this will require a focus on outcomes (e.g. average wait times) versus strict service delivery (e.g. on-time performance).

Mitigate innovation risk for new services through pilots and portfolio management

Public authorities must ensure that public expenditure delivers value to citizens. This is understandable, but can also hamper their ability to engage in innovative arrangements where the value for the public is initially uncertain. Time-bound pilot projects contain this risk, and many jurisdictions in the United States have used these. Public agencies might also create public-private “innovation laboratories” that manage a portfolio of new projects to help identify interesting initiatives. National authorities can help as well, by creating dedicated programmes to help fund trials that have the potential for widespread replication. A good example is the US Federal Transit Agency’s “Mobility on Demand Sandbox” programme. Another option to avoid the risk of lock-in with single service providers is for public authorities to implement user-side subsidies rather than supplier-side subsidies.

Incentivise age- and disability-friendly interactions in partnerships between public transport and ride-service operators

Ageing has a major influence on disability trends. These, in turn, will have an impact on the ability of an ageing population to remain mobile and enjoy good access to services, opportunities and other people. Many older people are affected by impairments including loss of visual acuity, loss of hearing, short-term memory loss or difficulties in balancing. The design and delivery of partnerships between public transport and ride services must take this development into account so as not to exclude older people and those with disabilities. Public authorities should generally ensure that innovative services meet the needs of the population as a whole on an inclusive basis. Incentives for ride-services to deploy wheelchair-accessible vehicles, appropriate levels of training for drivers, call centres for bookings and questions for users with special needs and innovative contracts between operators and public authorities to improve para-transit services (like in Boston) are examples for how this can be achieved.

  • ITF-report: New relationship between public transport and innovative mobility.
IDTechEx Research forecasts the electric car market will be $249 billion by 2027

IDTechEx Research forecasts the electric car market will be $249 billion by 2027

The electric car market will be $249 billion plus that for 48V mild hybrids with electric modes by 2027. The unique IDTechEx Research report Electric Car Technology and Forecasts 2017-2027 will assist investors, participants and intending participants in the value chain including manufacturers, developers, academics, government and users seeking the best forecasts and technology roadmaps based on new global investigation.

Only this report has the latest analysis by multilingual IDTechEx experts intensely travelling the world to the conferences, universities, companies and governments that will make it happen. The biggest change in cars for one hundred years is now starting, driven by totally new requirements and capabilities. They will cause huge new businesses to appear, but some giants currently making cars and their parts will spectacularly go bankrupt.

The report’s sober look at the detail reveals surprising aspects not popularly reported. For example, Fiat Chrysler is a laggard in EVs but they convinced us they are a leader in 48V MH. Why has Toyota just done a U turn on pure electric cars? Timing is all in this game.

Is there a hare and tortoise story here with Tesla terrifying the industry by becoming the Apple of automotive but acquiring major quality and financial challenges? Volkswagen and Daimler have become ambivalent about fuel cell cars and Toyota has just decided to go big on pure electric, in a change of emphasis. Hyundai say they are the end game, Honda says they are an important option and yet others call them “fool” cells. Who is right?

It is very important that readers escape the evangelism of so many commentators and access the sober analysis of companies such as IDTechEx. For example, this report breaks all the rules of safe manufacturing to radically change your product while increasing production one hundredfold yet we show how that is exactly what is happening with the lithium-ion batteries. Battery fires and explosions are ongoing but some car and battery makers have a superb record. Forecasts should not presume everything goes right. The anode, cathode, electrolyte and format are changing in a headlong race to smaller size and weight, less cooling and non-flammability.

  • IDTechEx Research forecasts the electric car market will be $249 billion by 2027.
Transdev and Delphi announce commercial partnership for autonomous transportation

Transdev and Delphi announce commercial partnership for autonomous transportation

Transdev, a leading global provider of mobility services, and Delphi Automotive, a global leader in developing automated driving solutions, today announced a commercial partnership to develop a global, fully automated, mobility-on-demand (AMoD) transport system.  The system will utilize Transdev Universal Routing Engine (URE) and Delphi’s previously announced automated driving platform – the Centralized Sensing, Planning and Localization (CSLP) platform which Delphi is developing in partnership with Mobileye. Transdev and Delphi will start collaborating on pilot programs in Paris-Saclay and Rouen (Normandy) France, as the first EU driverless, on-demand mobility service on an open road.

Yann Leriche, chief performance officer and lead of the B2C business line at Transdev group said, “With Delphi’s expertise in driverless technology, we will accelerate our capabilities to develop a global autonomous transportation system, from client interface to vehicle intelligence. Our ambition is to offer the best ‘PACE’ mobility solutions to our clients: Personalized, Autonomous, Connected and Electric. Combining the strengths of our two companies, leaders in their field, will enable us to introduce innovative driverless services in our current and future operations, confirming the position of Transdev as a pioneer in integrating autonomous transport systems into global mobility networks.”

“This latest announcement will help accelerate the development of commercially viable automated vehicle solutions,” said Glen De Vos, Delphi senior vice president and chief technology officer. “With Transdev’s deep understanding of mobility operations, this collaboration will further strengthen our AMoD and data management capabilities, while expanding our automated driving platform to include a variety of different vehicle types. As a result, we’re confident this collaboration brings us closer to providing all of our customers and partners with an affordable, reliable and scalable automated driving and mobility-on-demand platform.”

  • Transdev and Delphi will start collaborating on pilot programs in Paris-Saclay and Rouen (Normandy), as the first EU driverless, on-demand mobility service on an open road. 
Lyft’s autonomous ridesharing platform

Lyft’s autonomous ridesharing platform

nuTonomy is partnering with Lyft to launch self-driving cars in Boston this year, writes David Silver. While nuTonomy has been targeting self-driving cars in Boston for a while, this is great news for Lyft. Lyft continues to expand its platform as a provider of ridesharing infrastructure, while letting other companies figure out the actual autonomous technology.

Lyft turned its much-smaller-than-Uber size to its advantage here, by credibly committing not to develop autonomous vehicles. That presumably makes it a more attractive partner than Uber, which is developing its own self-driving technology and thus might have conflicts of interest.

Lyft, through a combination of using a presumed weakness to their advantage, and through avoiding unforced errors, is having a pretty great 2017.
Read more: https://medium.com/self-driving-cars/lyfts-autonomous-ridesharing-platform-55cd24da0e86

• No building autonomous vehicles for Lyft, like Uber, but partnering with nuTonomy.

Porsche SE is taking over PTV Group

Porsche SE is taking over PTV Group

The mobility market is on the move. Porsche Automobil Holding SE (Porsche SE) announced the acquisition of the market’s leading traffic and transport specialist, PTV Planung Transport Verkehr AG (PTV Group), for a purchase price in excess of 300 million euro. More than 700 mobility experts work for PTV Group worldwide. The company develops software and provides expertise for transport planning and logistics. The acquisition is part of a long-term investment strategy and Porsche SE sees considerable growth potential in the optimization of the flow of people and goods. And this is precisely where PTV’s core competence lies.

Vincent Kobesen, CEO of PTV Group, welcomes Porsche SE’ entry. “We have now found the right strategic investor for our company. This allows us to remain independent and helps us reach our ambitious goals for the upcoming years.” PTV Group has seen a positive revenue development and attained double-digit growth rates in the past few years. The company generated 93 million euro in the past fiscal year 2015/16 (ends on 31 March). The financial statements for 2016/17 will be presented very shortly. Kobesen adds: “For the first time in company history, we will cross the 100 million euro hurdle.” The experienced management team at PTV will continue to manage business operations. Further growth is projected.

There is currently a strong demand worldwide for state-of-the-art technology in the trendy sector of mobility. Over 2,500 cities already use PTV products. Over one million vehicles daily make transport runs planned with PTV software. PTV’s traffic simulation software was used at the Olympic Games in London. And the European transport model, which encompasses all passenger transport and freight movements in Europe (EU Commission project Trimode), is developed using PTV software.

Vehicle manufacturers, service providers, logistics service providers, technology suppliers and urban planners are also interested in new mobility services such as MaaS (mobility as a service). PTV has developed a special program for MaaS that covers a whole portfolio of technologies – from planning MaaS operations to the operation and control of MaaS worldwide. PTV plans to make targeted investments in this forward-looking topic.

  • PTV Group taken over by Porsche SE.
Revenue from new automotive business models and technologies expected to reach $1.3 trillion in 2030

Revenue from new automotive business models and technologies expected to reach $1.3 trillion in 2030

Mobility, autonomous vehicles, connected cars and big data analytics present growth opportunities in 2017, finds Frost & Sullivan’s Mobility team. E-mobility solutions, autonomous vehicle technology, and other digitisation advancements are creating new and exciting opportunities in the automotive industry. By the end of 2017, global light vehicle sales are expected to cross 93 million units. Slight growth in North America and significant growth in Eastern European markets like Russia and Ukraine will offset the slowdown in the China and Japan markets. Big data and digitisation will increase revenue and customer penetration while marketplaces and tire eRetailers will challenge original equipment manufacturers (OEMs) and traditional retailers. Increasing competition will also step up investment from volume OEMs in mobility services to move towards a car-as-a-service model.
2017 Global Automotive Industry Outlook, recent research from Frost & Sullivan’s Automotive & Transportation Growth Partnership subscription, finds that new mobility strategies, autonomous vehicle development, advancement in connected car technologies and big data analytics will be some of the key trends influencing the automotive market in 2017.

“Digitisation will underpin automotive industry strategies, with OEMs establishing digital divisions and investing in developing Internet of Things (IoT) platforms that support connective living solutions,” says Frost & Sullivan Mobility Industry Principal Shwetha Surender. “The growing digital ecosystem between automotive OEMs, software integrators, telecoms, and other companies will also bring new areas of competition, with revenue expected to grow to $1.3 trillion in 2030 from electrification, smart mobility, connected cars, and autonomous vehicle development, among others.”

Emerging growth opportunities in the global automotive market include:

  • Mergers and acquisitions, especially in the startup space, to accelerate introduction of new technologies in to the market
  • Diversification of OEM business models into fresh revenue streams such as mobility and fintech
  • Partnerships between automotive companies to bring about much needed synergies that accelerate development and reduce costs
  • Growth of shared mobility options to tackle urban congestion and environmental pollution; the future may see OEMs partnering with cities on transportation solutions
  • Strong advances in autonomous, electric and connected cars in North America, especially the USA
  • Recovering sales in Russia, Ukraine, Spain and Poland
  • Focus on China’s aftermarket as new car profit margins reduce in the mature market
  • Developments in voice recognition; focus areas include voice biometrics, real-time translation, artificial intelligence-enabled virtual assistants, deep speech and vision analytics
  • Health, wellness, and well-being (HWW) platforms that integrate consumer health devices with the vehicle
  • Growing used car market; by 2022, it is expected to become 2.5 times the size of the new car market in North America and 2.7 times the size in Europe
  • Booming vehicle sales in all ASEAN countries with demand for crossovers and entry-level vehicles.

“As digitalisation increases in the industry, data security is vital,” notes Surender. “Companies will have to ensure strict compliance and fortified measures to prevent hacking. Cybersecurity adds to the overall security of the car, improves the brand image of an OEM, and allows more innovation, especially on the vehicle automation side.”

Companies to note, in this rapidly expanding ecosystem include Tesla with its EV technology; Toyota with its product offering and strategic partnership with Uber that is key to understanding diversification of portfolios; Mobileye, which has recently been acquired by Intel, showing the importance of its product offerings; and Google that is pioneering advances in autonomous and in-vehicle technology.

Frost & Sullivan’s distinctive research examines regional and global growth in passenger vehicles and light commercial vehicles sales across North America, South America, Asia, Western Europe, Eastern Europe, South Africa, Egyptand Iran. The study explores advances self-learning, autonomous, voice recognition, vehicle cybersecurity, digital retailing, connected supply chains, IoT, electric vehicles, industry 4.0, HWW, connectivity and telematics; and details opportunities in applications like e-mobility, autonomous connectivity, mobility-as-a-service, advanced manufacturing, and vehicle to X (V2X) communication.

  • More on this at Frost & Sullivan’s annual Intelligent Mobility Workshop on June 28-29. Delegates at Frost & Sullivan’s Intelligent Mobility workshop, held annually in London since 2009, have witnessed the realisation of mega trends on the future of mobility, spawning a new generation of products and services. More: https://ww2.frost.com/event/calendar/intelligent-mobility/