Auto Mobility Services To Reach Trillion Dollar By 2040, China To Lead The Market: IHS Markit Research

While the global car-based “mobility services” as an industry generated zero revenues about a year ago, it is predicted to reach values of trillions of dollars by the year 2040 and China will lead the market in this significant transformation.

This was revealed in a report titled Reinventing the Wheel: Mobility and Energy Future, by HIS Markit.

The research notes that manner in which consumers buy, use and power cars has bene transformed by the mobility services which is also among the major driving forces hat is transforming the automotive ecosystem.

“China is at the forefront of the automotive transformation due to its large and growing car market,” the report noted.

Users of mobility services would be able to make use of a car temporarily even while they do not own the cars. This is the field that ride hailing companies like Didi Chuxing in China and Uber and Lyft at other places, are now dominating and is executed through app-based ride-hailing or car-sharing services.

“The growth of mobility services will lead to more miles traveled by cars and increased access to mobility via the car around the world. People will have greater access and other options than ever before,” said Dr. Daniel Yergin, IHS Markit vice chairman, Pulitzer Prize-winner and project lead of the new IHS Markit research service.

“China is at the forefront of the automotive transformation due to its large and growing car market,” Dr. Yergin said. “In 2018, IHS Markit expects car sales in China to reach 28 million compared to 17.1 million in the United States, the second-largest national car market in the world.”

The world’s largest market for electric cars is China. According to the latest figures from the new IHS Markit service, a 24 percent y-o-y rise in the number of electric cars sold was noted in the period from January to September of 2017 with a sale of 234,000 vehicles. Compare this with about 140,000 electric cars being sold in the same period in the United States which was a jump of 26 percent from the previous year.

The automotive ecosystem is also slated to be transformed by converging factors other than the significant rise in mobility services.

“The combined impact of mobility services, driverless technologies, electric cars and government policies will propel a transformation in personal mobility,” said Jim Burkhard, vice president and head of crude oil markets at IHS Markit.

“The spread of driverless technology will amplify the impact of other catalysts of change, such as electric car adoption and mobility services growth, as well as reducing traffic injuries and fatalities on the road,” Burkhard said.

The manner in which mobility services would shape up at the city level would be decided by the regulatory oversight.

“Some cities may choose an open, lightly regulated market for mobility services. In other locales, governments may seek to incorporate car-based mobility services into their mass transit systems. Local regulation and conditions will also shape the business models. In highly congested, densely populated areas, ride-pooling – where multiple passengers share a car ride – could be favoured as a way to lower the number of cars on the road,” said Tom DeVleesschauwer, transport and mobility practice leader at IHS Markit.

(Adapted from Businesswire)

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