With the rise of electric vehicles and new developments in Connected and Autonomous Vehicle (CAV) technology, the automotive industry is changing rapidly.
One of the biggest transformations will be in how vehicles are used, according to a white paper from engineering consultancy Ricardo.
This will see a shift from a model dominated by personal vehicle ownership and use to one based on the provision of Mobility-as-a-Service (MaaS) – and as a sub-sector it is already growing significantly faster than the auto industry as a whole.
The white paper, Identifying markets for future mobility services, highlights how the technological and social drivers and enablers for this change are developing fast: vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) connectivity, supported by fast 5G data services and blockchain payment authentication, is advancing in parallel to the development of SAE Level-4 automated driving technology. At the same time, insurance models and legislation are being changed to allow autonomous vehicles onto public roads.
This raises the prospect of new MaaS offerings such as driverless taxis and automated shuttles.
Ricardo analysis suggests that the cost per mile of driverless taxis will be around half that of personal car ownership, even if the autonomous technology is significantly more expensive than that of traditional vehicles. And if people share taxi rides, the cost per mile falls to less than 17% of the cost of personal cars.
“Figures like these indicate that the tipping point away from personal car ownership in city zones that can be well served by robotic vehicles could arrive very soon, with traditional ride-hailing and vehicle rentals continuing to service travel outside city zones,” Ricardo said.
Osborne Clarke’s Next-generation connectivity report looks at how the next wave of connectivity will support Mobility-as-a-Service and other new business models. Download your copy now!