The transportation market is on the verge of a monumental shift as a new trillion dollar market is on the rise.
Just as the smartphone and the personal computer were transformative, autonomous cars coupled with mobility services will likewise mark a turning point in the consumer experience with automobiles. Unlike the smartphone, however, these vehicles won’t be adopted instantly across the world. As I explained in an article for CIO Review, this market will thrive by providing tailored services fit to match the complex and varying needs of each metro market. Early autonomous cars will operate most effectively in geofenced city centers, where manufacturers can make frequent observations of the driving environment to gather data. Everything from distance of commute to means of transportation will be analyzed to best suit these cities or “Islands of Autonomy.”
As the adoption of autonomous vehicles increase, personally owned vehicle will decrease—we estimate a 60% drop in personal vehicles from 5.4 million today to 2.1 million in 2030. For automakers, this means that future business model will revolve around understanding the data derived from consumer behavior and using it to find platform scale.
Read our 2018 Global Automotive Executive Survey to learn more about the future of the automotive market here.