|Future Business Models of Autonomous Vehicle Services, 2030|
|The Global Autonomous Vehicle Service Market is likely to Reach $203 Billion by 2030|
OEMs, who have been traditionally maintaining industry leadership and also tight control over the ecosystem, have realized that the ongoing shift towards holistic mobility solutions presents a substantial threat to their position and dominance. They have also realized that the emergence of autonomous vehicles will not only disrupt the way we travel but also cause a major disruption to how players across the value chain operate.
In order for autonomous technology to be viable, it needs to have a profitable and sustainable business model. The key challenge is to develop a robust strategy after taking into account many challenges such as regulatory hurdles, lack of standardized road infrastructure, and low consumer confidence on autonomous technology. Despite all these challenges, there is a huge inflow of new entrants, especially the ones with no automotive background, and all of them agree that autonomous vehicles promise good profit margins while reducing operating expenses.