Connected Mobility Solutions Market Analysis

Connected Mobility Solutions Market (Global, 2023)

Introduction

The connected mobility solutions market is experiencing a transformational phase, driven by the convergence of advanced technology and an increasing demand for a seamless transport experience. As urbanization continues to accelerate and as consumer preferences shift towards more sustainable and efficient mobility solutions, the integration of connectivity features in vehicles and in the surrounding transport network is becoming more and more important. This market comprises a wide variety of solutions, such as vehicle-to-everything (V2X) communication, smart traffic management systems, and new mobility-as-a-service (MaaS) platforms, all of which have the potential to improve the overall efficiency and safety of transport networks. Moreover, the rise of electric vehicles and the increasing focus on reducing the carbon footprint of transport are driving the demand for connected mobility solutions. These solutions are attracting a growing number of industry players, spanning the worlds of transport, technology, and telecommunications. They are driving the development of a new era of intelligent transportation systems, which are reshaping the way people and goods are moved in an increasingly interconnected world.

PESTLE Analysis

Political

In 2023, government policy in most countries is increasingly favouring the development of connected mobility, with more than thirty countries introducing regulations to encourage the use of electric and connected vehicles. For example, the European Union has set a target of at least 30 million zero-emission vehicles on the roads by 2030, and has allocated 7 billion to research and innovation in this area. In the United States, the government has also allocated 5 billion to the development of the electric vehicle charging network, and wants to encourage the uptake of connected mobility solutions.

Economic

The economic framework for connected mobility is based on major investments in the necessary technology and in the necessary physical structures. In 2023, the world's investment in smart mobility is expected to amount to some fifty billion dollars, with both public and private investment. In addition, the industry is expected to employ more than one million people in the field of connected vehicle technology, thus increasing the demand for skilled labor in this new field. The development of connected mobility solutions is essential for the economy.

Social

It is already possible to observe the social acceptance of connected mobility solutions. Recent studies show that about seventy per cent of consumers in major cities are willing to use shared mobility services. The shift is being driven by the growing awareness of the environment and the benefits of reduced congestion. Furthermore, the younger generations, the millennials and the so-called generation Z, are more open to the use of connected mobility solutions, with sixty per cent of people aged between 18 and 34 expressing a wish to use an electric vehicle for their daily commute.

Technological

By 2025, a billion and a half connected vehicles will be on the road. V2X technology, which will be further developed in 5G, is expected to increase the efficiency of traffic by as much as thirty percent. Artificial intelligence in navigation systems is expected to reduce journey times by an average of fifteen percent. The impact of technology on mobility solutions is clear to see.

Legal

The legal framework relating to the connected mobility solutions is evolving, and by 2023 more than fifty countries will have regulations in place for driverless vehicles. In California, for example, it is stipulated that all driverless vehicles must be subjected to at least 100,000 kilometres of testing in real-world conditions before they can be used on public roads. Also, the regulations on data protection are becoming stricter, with the General Data Protection Regulation (GDPR) imposing fines of up to twenty million euros for non-compliance, and this is having an impact on how companies manage the data of users of connected mobility.

Environmental

It is also a question of the environment, which is increasingly influencing the connected mobility market. By the end of the decade it is estimated that the adoption of electric and connected vehicles will result in a reduction of approximately 1,5 billion tons of CO2 in the atmosphere. Governments are also promoting the use of sustainable mobility, with 40 per cent of new vehicles sold in 2023 being hybrid or electric. In addition, it is estimated that initiatives to improve public transport will reduce urban air pollution by 25 per cent. This is a strong indicator of the benefits of connected mobility for the environment.

Porter's Five Forces

Threat of New Entrants

The Connected Mobility Solution Market has moderate entry barriers due to the need for significant investment and technical know-how. The established players have strong brand loyalty and customer relationships, which may deter new entrants. Moreover, regulatory requirements and the need to partner with the major car manufacturers also make entry for new companies difficult.

Bargaining Power of Suppliers

Suppliers of connected mobility solutions generally have low bargaining power. There are many suppliers of components and technologies. This reduces the dependence on a single supplier. Furthermore, technological change makes it easy to change suppliers and further reduces the power of suppliers.

Bargaining Power of Buyers

The buyers in the connected mobility solutions market have high bargaining power because of the wide range of alternatives and choices available to them. The mobility-related services are becoming more specialized, and the consumers are becoming more knowledgeable. They want more and more individualized and integrated mobility solutions, and they can easily change suppliers if they are not getting what they want. To keep their customers, companies must keep innovating and offer them attractive prices.

Threat of Substitutes

The threat of substitutes in the Connected Mobility Solution Market is moderate. There are some transport alternatives, such as public transport and car-sharing, but the unique value proposition of connected mobility solutions, such as the convenience of services and the integration of services, mitigates this threat. However, as technology develops, new substitutes may emerge, increasing competition.

Competitive Rivalry

Competition in the Connected Mobility Solution Market is high. It is characterized by the presence of numerous established players and new entrants who are vying for market share. Companies are launching new products and services, and forming strategic alliances to gain a competitive advantage. The rapid pace of technological development and the growing demand for smart mobility solutions are intensifying competition among the companies.

SWOT Analysis

Strengths

• Rapid technological advancements in connectivity and automation.
• Growing consumer demand for smart transportation solutions.
• Strong investment from automotive and tech companies in R&D.
• Integration of IoT and AI enhancing user experience and efficiency.

Weaknesses

• High initial costs for implementation and infrastructure.
• Data privacy and security concerns among consumers.
• Fragmentation in standards and regulations across regions.
• Dependence on stable internet connectivity for optimal performance.

Opportunities

• Expansion of electric and autonomous vehicle markets.
• Potential for partnerships with urban planners and municipalities.
• Increased focus on sustainability and reducing carbon footprints.
• Emerging markets showing interest in connected mobility solutions.

Threats

• Intense competition among established players and new entrants.
• Rapid technological changes leading to obsolescence.
• Regulatory challenges and compliance issues in different regions.
• Economic downturns affecting consumer spending on mobility solutions.

Summary

The Connected Vehicle Market 2023 is characterized by strong growth drivers such as technological developments and a strong demand for connected mobility solutions. However, challenges such as high costs and data privacy concerns are also faced. Opportunities are mainly based on the growing areas of electric mobility and automation. Threats from competition and legal barriers are also to be expected. Strategically, a focus on cooperation and sustainability can help companies navigate through these dynamics successfully.