Mobility as a Service Market Analysis

Mobility as a Service Market Deep Dive – PESTLE, Porter, SWOT

The Mobility as a Service (MaaS) market is about to revolutionize the way people and communities think about transportation, integrating various modes of transportation into a single seamless service. With the rapid increase in urbanization and the growing need for sustainable and efficient mobility, MaaS platforms are emerging as the key players reshaping the transportation system. In combination with smart technology, such as mobile applications, real-time data analysis, and interconnected transportation networks, MaaS enables a shift from the ownership of vehicles to the use of transportation services. This not only enhances the convenience of the end-user but also promotes the sustainability of the transportation system through the efficient use of resources and the reduction of traffic congestion. While public and private institutions work together to develop new solutions, the MaaS landscape is becoming more and more complex, offering both challenges and opportunities for the industry. To make sense of this complex world and take advantage of the opportunities, the following is a must-read for all industry players.

PESTLE Analysis

• Political:
  In 2024, national policies are increasingly favourable to the development of mobility as a service. In more than thirty countries, a national strategy for the integration of transport systems has been adopted. For example, the European Union has allocated some €1500 million to improve the public transport network and promote the development of MaaS solutions. In many local authorities, regulatory frameworks are being put in place to encourage the development of public-private partnership between public transport operators and private mobility companies, with the aim of improving urban mobility and reducing traffic congestion.
• Economic:
  The MaaS economy in 2024 is characterized by an increase in the number of smart transportation solutions. It is estimated that by then, an investment of 10 billion dollars will have been made in mobility technology and mobility-related facilities. This investment is motivated by the need for inexpensive transportation alternatives, which is caused by the increasing urban population. Moreover, the average price of public transport in large cities has risen by 5% compared to the previous year, and consumers are looking for flexible and inexpensive mobility alternatives that MaaS can offer.
• Social:
  A recent survey shows that 65% of the population of major cities is willing to use integrated mobility services. This change is largely due to the growing concern for the environment and the desire for mobility to be as convenient as possible. Also, the generation of millennials and Generation Z, which now represents more than 40% of the urban population, is more likely to use shared mobility solutions, which will increase the demand for MaaS solutions.
• Technological:
  The MaaS market will be shaped in 2024 by technological advances. Almost 70 percent of the MaaS platforms will use artificial intelligence to optimize the route planning and the customer experience. In addition, the integration of mobile applications is growing strongly, with over 200 million downloads of MaaS-related applications worldwide, which is a sign of the growing importance of digital technology for transport solutions. In addition, the implementation of 5G is expected to increase the speed of data transmission, thereby enabling real-time data transmission and the seamless integration of services.
• Legal:
  In 2024 the legal framework of MaaS is still evolving. In fifteen countries, new regulations are introduced on data privacy and the protection of consumers in the field of mobility. The companies offering mobility services are often obliged to comply with strict data management practices in order to protect the confidentiality of customer data. Many countries also introduce licenses for ride-hailing and micro-mobility services. In the major cities of the world more than a thousand licenses are issued to ensure compliance with local laws.
• Environmental:
  A major consideration in the MaaS market is the environment, with a reported 25 per cent reduction in carbon dioxide emissions in cities where integrated mobility solutions have been adopted. In 2024, more than 50 cities will have introduced policies to encourage the use of shared electric vehicles as part of their MaaS strategy, contributing to cleaner cities. In addition, a 15 per cent reduction in private car ownership is expected to further improve the environment and reduce urban congestion.

Porters Five Forces

• Threat of New Entrants:
  The Mobility-as-a-Service market in 2024 will face a moderate threat of new entrants. The market is growing quickly, but the initial investment in the development of technology, the establishment of business relations with transport operators and the implementation of legal frameworks is considerable. New entrants are also faced with the problem of brand awareness and customer loyalty, which the existing market players have already established. However, the development of technology and the increasing demand for integrated mobility solutions may encourage new companies to enter the market.
• Bargaining Power of Suppliers:
  The suppliers’ bargaining power is relatively weak in the MaaS market. The market relies on a wide range of service suppliers, including public transport operators, ride-hailing companies, and technology suppliers. The MaaS operators can easily switch suppliers to get better deals. Also, the trend towards combining different transport modes further weakens the bargaining power of individual suppliers.
• Bargaining Power of Buyers:
  The bargaining power of buyers in the market for mobility as a service will be high in 2024. There are many mobility options and platforms that enable consumers to easily compare services and prices. Competition between mobility service suppliers gives consumers the power to demand better service, price and features. The consumers are getting more and more informed and discerning. Their expectations for more efficient and more seamless mobility solutions will continue to rise.
• Threat of Substitutes:
  The threat of substitutes in the MaaS market is moderate. Besides the aforementioned taxis, cars and public transport, the new mobility solutions such as bike-sharing, e-scooters and driverless cars also pose a threat. However, the integration and comfort of MaaS platforms can offset this threat. They offer a comprehensive solution that combines different mobility services.
• Competitive Rivalry:
  Competition is high in the M as S market in 2024. The field is crowded with many competitors, both old transport companies and new entrants. The competition is further intensified by the rapid pace of technological development and the drive for sustainable mobility solutions. In order to win and keep customers, the companies constantly improve their offerings and the customer experience, which leads to aggressive marketing strategies and price wars.

SWOT Analysis

• Strengths:
  • Integration of multiple transport modes into a single platform enhances user convenience.
  • Growing urbanization and demand for sustainable transport solutions drive market growth.
  • Technological advancements in mobile applications and data analytics improve service efficiency.
• Weaknesses:
  • High initial investment costs for technology and infrastructure development.
  • Dependence on regulatory frameworks which may vary significantly across regions.
  • Challenges in user adoption due to existing transportation habits and preferences.
• Opportunities:
  • Expansion into emerging markets with increasing urban mobility needs.
  • Partnerships with local governments and transport providers to enhance service offerings.
  • Incorporation of electric and autonomous vehicles to attract environmentally conscious consumers.
• Threats:
  • Intense competition from traditional transport services and new entrants in the market.
  • Potential cybersecurity risks associated with data management and user privacy.
  • Economic downturns that may reduce consumer spending on mobility services.

In 2024, the Mobility as a Service market will be characterized by its strengths in the form of convenience and technological development, and by its weaknesses, such as high initial costs and regulatory dependencies. Opportunities for growth will come from emerging markets and through strategic cooperation. The threat of competition and the risk of cyber attacks will need to be strategically managed. Success in this emerging market will depend on the ability to turn strengths into opportunities and threats into strengths.