Digital disruption is revolutionizing the automotive industry, creating a shift from individual consumption to collaborative consumption. As a result, original equipment manufacturers (OEMs) are looking at alternative sources of revenue, such as shared mobility, connected car services, financial services, and logistics services. These are some of the findings in a recent Frost & Sullivan analysis, Mobility and Other Downstream Services Market, Forecast to 2030.
The demand for shared mobility services, such as carsharing, ridehailing, and dynamic shuttle, is increasing, with these services expanding globally. To compete effectively, OEMs are launching their own mobility services, partnering with mobility start-ups that are providing these services, as well as launching their own mobility sub-brands under which all mobility-related projects will be unified.
"We observe increasing efforts from OEMs, Tier 1 suppliers, and startups to enter the car data monetization space through various verticals, such as developing new apps, hardware/interfaces (smartphone pairing), and offering services related to the type of data collected," said Abhishek Iyer, Mobility Research Analyst at Frost & Sullivan.
"OEMs are partnering with technology companies to share data (with customer consent) to recommended third-party service providers, such as insurance companies and smart parking service providers. Tier 1 companies are investing in start-ups that focus on data-driven platforms, AI, and machine learning to leverage IoT applications."
Between 2017 and 2022, OEMs will seek to develop capabilities from a suite of solution providers and aggregators of data to offer effective information to consumers across industries and smart city projects.
There are three key strategies Frost & Sullivan experts identify as growth paths for automotive companies in the shared mobility market:
Be a shared mobility operator
Serve as a fleet provider to operators
Manufacture custom-made vehicles for shared mobility operators
"In addition, OEMs in the shared mobility space need to transition to subscription-based, event-based, and revenue-sharing business models," said Iyer. "The automotive supply chain is changing drastically, driven by new players and big bets in new technology areas. OEMs need to take appropriate steps now to fill the gaps and stay on par with the competition."