The automotive and transportation sectors will be looking very different in the near-term future, according to a report by Navigant Research.
In its new white paper, “Transportation Outlook: 2025-2050,” Navigant Research looks at the market and regulatory factors moving mobility toward vehicle electrification, autonomous vehicles, and carsharing and ridesharing services, and which will be causing substantial upheaval between now and 2050. Connectivity and advanced vehicle technologies are key drivers for change, along with electric drive technology becoming more efficient and affordable.
Navigant Research based the report four key trends – vehicle connectivity, vehicle autonomy, on-demand mobility, and vehicle electrification. The progress of urbanization is another topic explored in the study. The long-term trend of people moving to live in ever growing urban areas is driving demand for mobility options and forcing cities to regulate private car usage. Consumers are expecting 24/7 connectivity and on-demand services in transportation. With the push toward urbanization, governments are increasingly pushing for reductions in emissions; this is driving more demand for electric vehicles, according the study.
The trend toward mobility on-demand and away from individual vehicle ownership is analyzed in the study. Carsharing services such as Zipcar and Car2Go are seeing growth in cities across the U.S. and Europe, and ridesharing (also known as ride-hailing) service providers Uber and Lyft are becoming pervasive in metro markets.
The Navigant paper considers how the transformation of individual mobility will affect the overall vehicle market, vehicle manufacturers, and other key stakeholders involved in automotive industry technology development. The game is expected to change dramatically for the auto industry in the near future.