COVID-19: How is Mobility-as-a-Service Market Expected to Shape Up in the Future?
The outbreak of novel coronavirus has impacted several industries across economies, and mobility is one amongst them. Considering financial difficulties, COVID-19 has caused a reduction in the overall expenditure done by individuals. The spillover effect of this is expected to hit the automotive market.
With major cities under lockdown, the demand for public transportation has also decreased drastically. This condition has triggered several mobility-as-a-service (MaaS) companies to undertake drastic measures, such as layoffs, to keep themselves afloat in the market.
MaaS generally aims at controlling the volume of traffic, especially during peak travel hours, reducing the pressure on the current transportation network, focusing on today’s autonomous technology, and developing the utility of the existing infrastructure for economies of scale.
Figure: Share of Key Market Strategies and Developments, 2015-2018
With the help of collaborations, acquisitions, and mergers, it is expected the market may witness a growth. The reduction in the increase in the COVID-19 cases worldwide, along with the inculcation of autonomous vehicles in the near future, can also help boost the demand for MaaS.
For instance, the announcement of Intel Corporation on May 4, 2020, to acquire Moovit, a MaaS platform known for its mobile application that provides services related to public transit and navigation data in over 3,100 cities globally. Development strategies tracked by BIS Research from 2015 to 2018, revealed that new product launches and developments led the market.
However, post-COVID-19 era there are several changes that are expected to occur in the MaaS market. Based on the market intelligence published by BIS Research, the global mobility-as-a-service market was expected to grow at a CAGR of 25.10% during the forecast period from 2020 to 2025. On-demand and private transportation, logistic services, multi-modal transportation, delivery transportation, and autonomous transportation are some of the services included in MaaS.
The growth of the MaaS market is often attributed to factors such as the integration of several mobility services and the extensive role that are taken up by the government in the development of MaaS. However, some factors can hinder the growth of the overall market. These include data security and privacy of consumers and low awareness related to data security and privacy of consumers and low awareness about the total lifetime cost for private vehicle ownership and service ownerships.
Analysts at BIS Research indicate that autonomous vehicles are expected to be deployed to improve the overall public transportation system. Using artificial intelligence in combination with MaaS can also be of immense help in improving user experience and thorough safety and security management.
Lastly, the increasing penetration of smartphones in day-to-day lives can turn out to be a big driver in boosting the growth of MaaS. This is because smartphones help in equipping commuters by cutting down several activities related to the management of transportation mode, bookings, price comparison, and help in maintaining social distancing by cutting down queues, among others.