The autonomous vehicle market could be worth over US$200bn in 2030 according to analysis by Frost & Sullivan.
The consultant’s report, Future Business Models of Autonomous Vehicle Services 2030, analyzes the autonomous vehicle service market, the new business models supporting these services, and provides detailed revenue forecasts.
AVs promise reduced operating expenses and large profit margins, resulting in new entrants in the market.
Companies offer a variety of services, employing new business models. Frost & Sullivan predict the AV service market could grow from US$1.1bn in 2019 to US$202.5bn in 2030.
Manish Menon, mobility industry analyst at Frost & Sullivan, said, “The key challenge is to quickly evolve from the current sales and leasing business models to investing in the assets and capabilities that can support NextGen solutions in the autonomous mobility space and its associated services. This is especially pertinent for OEMs as revenues from vehicle sales and leasing will drastically decrease.”
Peripheral services will account for 55% of the market in 2030, while mobility services are expected to grow from US$0.01m in 2019 to US$22.4bn in 2030. Autonomous logistics will also grow rapidly due to consumers demanding faster deliveries.
Kamalesh Mohanarangam, mobility program manager at Frost & Sullivan, said, “Autonomous vehicles can be used to gather data about passengers that can be leveraged to optimize vehicle routing and demand generation. Between 2020 and 2030, OEMs will begin consolidating the car data ecosystem, and vehicle usage data will become the new currency for value creation among B2B/B2C entities.”
Frost & Sullivan recommends OEMs and service providers can realign business models along the lines of internet and software companies as one way of adapting to the development of AVs.
Other opportunities include mining shared data from OEMs and data aggregators; collaborating with governments to integrate planned rapid transport systems; partnering and investing in AD technology companies; and integrating real-time data tracking systems to enable value-added, in-vehicle and on-demand services.