The world is on the cusp of a new revolution in mobility. Brought about by a blend of increased efficiency and new automotive technology, the impact of environmentalism, urban sprawl, and the connectivity of the internet, the way we make it from point A to point B is changing and the options for mobility have never been greater or more attainable, offering both choice and customisation for different living environments.
Still, before discussing how we’re getting to an estimated EUR 350 billion market by 2020, it’s important to fully understand how we got to this point. Overall, the market that we currently have is a direct result of the 1970’s and the mid-2000s energy crisis. While the 1970 crisis forced automotive manufacturers to begin pushing money into increasing efficiency and looking towards alternative fuel sources, such as biodiesel, the crisis of the mid-2000s created a situation which allowed for cheaper, alternative markets to bloom – necessity truly has been the mother of invention.
The “invention” in this case has been multiple innovations. Naturally, for the automotive manufacturers themselves, this has translated into a greater emphasis on hybrid and electric vehicles, which, combined, have sold 14 million units in the last 20 years, lighter (yet stronger) building materials, and smaller (yet equally safe and more spacious), yet more efficient vehicles. Beyond simply the car makers, the car users now have the ability to conveniently rent a vehicle or a ride as needed, with carsharing services expected to hit more than EUR 15 billion in revenue and attract 20 million users by 2023 (with the free floating model to attract 90% of the users, thanks to the ability to get in and out of cars instantly without the need to place a prior booking or schedule a return time, compared to the station-based model), and the consumer preferences shifting from the traditional car ownership to the new mobility services of carsharing and e-hailing expected to result in the decline of car production with more than a half million cars by 2021.
Beyond cars altogether, some, especially for daily commuting or simply for quick, urban transit, are opting for scooter- and bicycle- sharing or rental, where transport-sharing giant Uber has purchase rental company JumpBike and Ford is sponsoring San Francisco’s bike sharing program.
As for what solution works best and where, it understandably depends on the needs and dynamics of the location and the consumers. For example, in cities confined by space or with already established metro transit options, bicycle-based mobility makes sense; however, in urban areas that tend to sprawl or places with strict environmental rules, electric car rental may be a more viable option. Or a commuting would require a much lower price level compared to a typical ride-hailing, meaning new technologies, like for example autonomous driving, should be implemented.
The personal-mobility landscape may look very different in the future, with value likely to shift toward new business models, with shared mobility and connectivity solutions potentially accounting for up to 25 percent of total automotive revenue in 2030; and each side must understand its responsibilities. For the automotive industry, it must continue to meet the increasing needs and concerns of consumers while, at the same time, being mindful and working in conjunction with the municipal authorities regarding transportation issues. On the other side of the equation, municipal authorities have a responsibility to find the intersection where popular needs, partnerships options, and available funds/space meet, along with the creation of a smart traffic infrastructure such as charging stations and mobility management systems.
Finding this balance, local government, the market, and industry will all stand to gain from the reduced congestion, needs-based transportation, and environmental benefits that the revolution in mobility will produce.
And as with all revolutions, the new revolution in mobility would also lead to disruptions, though hopefully, in a positive way, with new disruptive business models and disruptive technologies to create value. All players in the automotive industry will have to adapt their business models and follow the future of mobility trends resulting from automation, connected services, personalisation and big data.
OEMs will have to determine whether to change their traditional business models from producing and selling vehicles and offering financing services, to becoming an end-to-end mobility services provider and making profits from platform solutions, connected mobility management and user data.
And EVS Translations is here to facilitate the new revolution in mobility and help all players in the automotive industry to best identify and meet the needs of the mobility consumers of the future.
EVS Translations – a market leader for business language solutions for top-tier automotive suppliers and automobile manufacturers, with a global presence, over 25 years’ experience and the ability to work across time zones – focuses on four areas to perform as a strategic partner to global companies: an unique Translation as a Service (TaaS) concept in line with international standards, the delivery of technology solutions (CAT tools, system integrations, platforms and machine intelligence), process innovation (options for process automation to coordinate and control high volume demand), consulting (actionable insights for businesses seeking to construct an internal translation technology architecture or support for developing a bespoke machine intelligence system).