Autonomous logistic services market is predicted to grow 41.7% per year over next decade
Increasing acceptance of autonomous vehicles is opening up opportunities to sell additional mobility services, with autonomous logistics one of the big winners
Frost & Sullivan predicts that an explosion of new entrants to the Autonomous Vehicle (AV) market will create a major market for derived services that will drive the AV services market from $1.1 billion in 2019 to $202.5 billion in 2030 at a CAGR of 60.1%.
Within this, the autonomous logistic services market is predicted to develop at a CAGR of 41.7% from 2019 to 2030, driven by consumer demand for faster delivery.
The mobility services market is expected to grow from $0.01 million to $22.41 billion in the same timeframe, showcasing the most drastic cluster for expansion in the next decade.
"Autonomous vehicles can be used to gather data about passengers that can be leveraged to optimize vehicle routing and demand generation," noted Kamalesh Mohanarangam, Mobility Program Manager at Frost & Sullivan. "Between 2020 and 2030, OEMs will begin consolidating the car data ecosystem, and vehicle usage data will become the new currency for value creation amongst B2B/B2C entities."
"For an autonomous technology to be viable, it needs to have a profitable and sustainable business model," said Manish Menon, Mobility Industry Analyst at Frost & Sullivan. "The key challenge is to quickly evolve from the current sales and leasing business models to investing in the assets and capabilities that can support NextGen solutions in the autonomous mobility space and its associated services. This is especially pertinent for OEMs as revenues from vehicle sales and leasing will drastically decrease."
Frost and Sullivan suggest that OEMs and service providers operating in this sector can find opportunities in:
- Realigning business models along the lines of internet and software companies for better implementation of subscription or pay-as-you-go models.
- Mining shared data from OEMs and data aggregators to create new service offerings, analyze efficient vehicle routing, and ensure optimal fleet utilization.
- Collaborating with governments to integrate planned rapid transport systems with autonomous taxi and shuttle services.
- Partnering and investing in AD technology companies to optimize the movement of goods within the supply chain ecosystem.
- Integrating real-time data tracking systems to enable value-added, in-vehicle, on-demand services suited to passenger preferences.