|Mobility and Other Downstream Services Market, Forecast to 2030|
|OEM and Service Provider Revenue from Downstream Services will Exceed $3 Trillion by 2030|
Digital disruption is set to revolutionize the automotive industry. The value is shifting from individual consumption to collaborative consumption. OEMs are embracing this trend and are looking at alternative sources of revenue, such as shared mobility, connected car services, financial services, and logistics services.
The demand for shared mobility services, such as carsharing, ridehailing and dynamic shuttle, is increasing, with these services expanding globally. OEMs are launching their own mobility services, partnering with mobility start-ups that are providing these services and are also launching their own mobility sub-brands under which all mobility-related projects will be unified.
Frost & Sullivan observed increasing efforts from OEMS, Tier I 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. OEMs are partnering with technology companies to share data (only with customer consent) to recommended third-party service providers, such as insurance companies and smart parking service providers. Tier I companies are investing in start-ups that focus on data-driven platforms, AI, and ML to leverage IoT applications.
Automotive manufacturers will continue to focus on Connected, Autonomous, Shared and Electric (CASE) strategies. Autonomous technologies will have a big impact on shared mobility and logistics. Drone technology has already emerged as an active R&D area in the broader automotive industry. There is also interest in aftermarket commercial applications, where a drone interacts with the vehicle to sense the environment and carries replenishment parts to specified locations in the warehouse once a lack of inventory has been confirmed. In the shared mobility space, autonomous technology can render huge cost savings to the end consumer.