Mobility as a Service industry: What top agencies say

Efficient commuting no longer hinges on car ownership or rentals, even with limited public transportation. The rise of mobility-as-a-service (MaaS) is driving this shift.

Shared mobility services combine different types of transportation. These include ridesharing, carsharing, bikesharing, scooters, and public transit. They create easy-to-use, connected platforms for users.

A Data Bridge study shows that the global mobility as a service market was worth USD 125.26 billion in 2023. Analysts expect it to grow to USD 1,275.13 billion by 2031. This growth represents a CAGR of 33.65%.

With such strong growth, it is no wonder that top consulting firms like Accenture, Deloitte, and McKinsey have looked into this trend. They have also helped shape the discussion about MaaS.

Understanding MaaS

Mobility-as-a-service operates through a combination of several components, helping users easily access various types of transportation:

Multimodal transportation options: Combining ride-sharing, car-sharing, bike-sharing, scooters, public transit, and walking into one service.

Real-time information and updates: Providing information on transportation options, availability, pricing, traffic conditions, and service updates via a single app or platform.

Integrated payment system: Allowing users to pay for various transportation services through a single account or payment method.

Data analytics and insights: Offering insights into user behavior, travel patterns, service usage, and operational performance.

Connectivity and IoT devices: Facilitating real-time data exchange, communication between vehicles and infrastructure, and connectivity within the MaaS ecosystem.

Collaborations and partnerships: Relying on cooperation among transportation providers, technology companies, government agencies, and urban planners.

The evolution of MaaS

Advances in technology drive the development of MaaS in the transportation industry. Changing consumer preferences and the need for sustainable, efficient urban mobility solutions also contribute to this shift.

Shared mobility began with ride-sharing services and on-demand transportation options. Companies like Uber and Lyft pioneered the use of smartphone apps. Apps are able to connect passengers with drivers for convenient and personalized rides.

MaaS platforms have emerged to provide a user-friendly way to get around. They offer a complete transportation experience in one place.

The evolution of MaaS emphasizes sustainability and shared mobility solutions. MaaS promotes shared rides, electric vehicles, bike-sharing, and walking. By doing so, it aims to reduce congestion, emissions, and reliance on single-occupancy vehicles. This contributes to a more sustainable and efficient transportation system.

Current state and future of MaaS

The mobility-as-a-service industry is dynamic and rapidly evolving. Technological advancements like mobile apps, IoT devices, AI algorithms, and data analytics drive the growth and scalability of MaaS platforms.

Governments and regulatory bodies increasingly recognize the potential benefits of MaaS and implement frameworks to support its growth. MaaS platforms currently focus on encouraging user adoption through marketing strategies, incentives, and educational campaigns. These efforts highlight the benefits of shared mobility, convenience, and sustainability.

Accenture, Deloitte, and McKinsey have plenty to say on MaaS development. We will walk through the challenges and opportunities in this field, and what it means for automotive OEMs and Tier 1 and Tier 2 suppliers.

Accenture’s insights on Mobility as a Service

According to Accenture’s study, there are different limitations for different business models within the mobility-as-a-service industry. However, the agency highlights a key barrier to profitability that is common across all business models: the absence of a balanced marketplace.

Regulators tend to treat mobility services and private transport as similar entities, while in reality, mobility services are a hybrid between private and public transport, ignoring the potential value these services offer society.

At the same time, providers themselves hinder a profitable market: they fail to recognize that their services more aptly resemble public utilities. What’s more, mobility apps and data aren’t seamlessly integrated with platforms or data sources, and business models rarely tie into city traffic and public transportation management.

Despite this challenge, Accenture offers a positive 2030 market outlook for the MaaS industry and predicts that it will be driven by the need to move comfortably and safely from point A to point B, and by changing customer expectations that services are available on-demand, readily accessible to use rather than privately owned.

Key recommendations for service suppliers

To capitalize on the mobility-as-a-service trend, Accenture provides three key recommendations for service suppliers:

1. Establish new rules for a new game: Society needs to achieve a balanced market where various services and transport modes compete fairly and collaborate efficiently. This is vital for building and sustaining the profitability of mobility services. Such a market should accommodate services to capture value across all four dimensions—value to the individual, society, environment, and economy. Additionally, mobility services require integrated collaboration across a wide range of stakeholders and ecosystem players.
2. Optimize mobility across the fleet: To maximize uptime and efficient use of vehicles (and, therefore, profitability), service providers should pool their fleets into a single, seamless platform. Companies can optimize fleet utilization by using artificial intelligence (AI) and analytics. Both technologies support mobility applications such as predictive maintenance and demand forecasting.
3. Pivot from core products: Service providers should avoid segmenting customers along vehicle ownership and mobility usage. Instead:
   • Mobility players need to build close-to-ownership models that reflect existing services, while public transport providers need to focus on innovating their services. For instance, OEMs with core car sales businesses can initially prioritize subscription models. This approach will help move customers from traditional mobility to new mobility services and support synergies between business models.
   • Service providers can start by applying circular economy concepts and introducing purpose-built vehicles designed for as-a-service use cases, heavy and efficient use, and optimal investment utilization. This approach can potentially decrease the lifetime costs of vehicles by up to 14 percent. Additionally, there is significant potential to reduce repair and maintenance costs for on-demand fleets by leveraging purpose-designed vehicles.

Deloitte’s take on Mobility as a Service

Deloitte firmly believes that MaaS is the future of transportation, and it is already here. Cities such as Paris, Eindhoven, Gothenburg, Montpellier, Vienna, Hanover, Las Vegas, Los Angeles, Denver, Singapore, and Barcelona, already have pilots for MaaS platforms.

The initiative in Finland’s capital aims to make it unnecessary for any city resident to own a private car by 2025. Since 2016, Helsinki residents have been able to use an app called Whim to plan and pay for all modes of public and private transportation within the city. The goal of the initiative is to show that people switch from car ownership not because they’re forced to but because the alternative is more appealing.

One of the major challenges that MaaS aims to solve is traffic congestion resulting from a growing urban population. However, Deloitte emphasizes that simply expanding road infrastructure is not a good option, as people want to make cities more livable, which means making them less vehicle-centric. This calls for service integration, digitalization, new transportation business models, and new consumer behaviors.

Changing consumer behaviors may seem like a serious issue, but consumers have increasingly embraced new mobility options and apps over the last decade. Carsharing had nearly 5 million members worldwide in 2014, up from around 350,000 in 2006. Additionally, journey planning apps have become commonplace. The natural next step is to bring all transportation options together on a common platform.

According to Deloitte, there are four critical components of MaaS that must work together for the paradigm to succeed:

1. Infrastructure: This includes widespread smartphone penetration on 3G/4G/5G networks, high levels of connectivity, secure and dynamic updates on travel options and schedules, and cashless payment systems.
2. Data providers: These intermediaries manage data exchange between multiple service providers and the end user, providing API gateways and analytics on usage, demand, planning, and reporting.
3. Transportation operators: Public transportation operators should introduce new modes of travel, such as bikesharing, or collaborate with complementary modes like carsharing.
4. Trusted mobility advisor: The newest and most integral component of MaaS involves third-party aggregators. Using an asset-light model similar to Alibaba, Airbnb, or Uber, these advisors link the services of various private and public operators, arranging bookings and facilitating payments through a single gateway.

Deloitte believes that MaaS is in its early stages of development. Over the next few years, the number of pilot programs is expected to rise.

Incumbent transport operators will realize the need to change business models. The number of private-sector providers may also increase, seeking to fill gaps in local transportation services. However, an important factor in making MaaS a success will be getting all players to work together.

Deloitte’s strategic advice for MaaS stakeholders

• City governments should buy in: Government leaders need to see the benefits and support MaaS in their cities.
• Establish public-private partnerships: These partnerships should be established and must be open.
• Agree on technology architecture: Municipalities should create an open architecture that private partners can integrate with while still meeting the needs of their citizens.
• Include municipal transportation: Ensure that municipal transportation is part of the MaaS ecosystem.

Deloitte remains optimistic about the future of MaaS and the collaborative efforts required to make it successful.

McKinsey’s perspective on Mobility as a Service

According to McKinsey’s consumer survey, 56% of today’s consumers are willing to replace trips taken in private vehicles with future shared autonomous vehicles.

Over the past decade, shared mobility has also become an attractive field for investors. More than 150 cities are currently working to introduce measures aimed at reducing private-vehicle use, McKinsey’s analysis finds.

McKinsey highlights three trends shaping shared mobility:

1. Transition from individual to pooled use of vehicles: Passengers could prefer riding with others because it is cost-effective (with multiple people splitting the bill) and convenient (since ridesharing provides door-to-door service and consumers do not drive).
2. Shift from self-driving to being driven: For example, with shared autonomous vehicles. The commercial launch of robo-taxis and robo-shuttles could provide consumers with more affordable options for point-to-point travel.
3. Shift from larger to smaller vehicles: Many consumers in crowded areas struggle to find parking and no longer want to battle traffic during their daily commutes. McKinsey’s previous research has shown that almost 70% of consumers are willing to use micromobility vehicles for commuting.

The shared-mobility market could grow rapidly within the next several years. Ride-hailing (including the emergence of shared autonomous vehicles) would likely generate the biggest revenues, followed by shared micromobility, car sharing, and urban aerial mobility (UAM). McKinsey developed two scenarios for the development of MaaS:

Scenario 1: Acceleration of shared mobility

• By 2030, about two out of five consumers choose to travel sustainably.
• Cities adopt legislation that strongly drives the growth of pooled ride-hailing, and the number of private vehicles on the road drops sharply.
• Consumers require more shared-mobility options in a variety of modes.
• Robo-taxis and robo-shuttles are launched and begin to scale, operating in urban and suburban areas.

Read more about shared mobility and services in the 2024 Automotive Industry Trend Analysis.

Scenario 2: Growth continues its current trajectory

• In the base scenario, cities enact regulations that modestly drive the growth of pooled ride-hailing.
• One out of five consumers choose sustainable modes of travel, leading to modest gains in public transit and micromobility.
• With fewer private vehicles, fewer parking spots are needed, freeing up space for public use, including parks. Fewer cars on the road mean fewer lanes are needed, making roads narrower.

Regardless of which scenario is more realistic, McKinsey believes that MaaS players should put in effort to develop the trend successfully:

• Cities: Proactively promote micromobility (including shared micromobility), continue to invest in public transit, and strongly support the early adoption of robo-shuttles.
• Mobility players: Develop customer-centric offerings, including appropriate pricing schemes and a best-in-class technology platform that provides real-time data on services, travel timelines, and costs. Focus on developing integrated shared-mobility offerings that supplement existing services such as public transit.
• Automakers: Consider developing vehicles for specific purposes within this market, such as shuttles for pooled ride-hailing or shared autonomous vehicles. This may also include three-wheeled vehicles for extended shared-micromobility and microcar offerings.

Comparative analysis

Accenture, Deloitte, and McKinsey share similar views on the future of the mobility-as-a-service (MaaS) market. They agree that MaaS is reshaping the transportation industry and will continue to grow significantly in the coming years. The agencies highlight several common topics:

Public-private partnerships are vital for creating a balanced marketplace for MaaS. Both public and private players should understand that mobility services are a hybrid between private and public transport and adjust their offers accordingly.

Cities play an important role in the development of MaaS. They can support the market with urban planning, development expertise, and people-centric policies. Consumers have already demonstrated acceptance of shared mobility services in urban areas, indicating public interest and demand for MaaS.

Diverging perspectives

While Accenture, Deloitte, and McKinsey do not contradict each other, they do emphasize different aspects:

Accenture emphasizes fleet optimization as a recommendation for service providers to maximize uptime and efficient use of vehicles. The agency suggests pooling fleets into a single, seamless platform.

Deloitte highlights the role of third-party aggregators, or trusted mobility advisors, who link the services of various private and public operators, arranging bookings and facilitating payments through a single gateway.

McKinsey uniquely focuses on robo-taxis and robo-shuttles as the future of MaaS. These transportation modes could provide more affordable options for point-to-point travel.

Challenges and opportunities in the future of MaaS

Opportunities for automotive players:

Diversification of revenue streams: MaaS offers automotive companies the chance to diversify beyond traditional vehicle sales. By providing mobility services like ride-sharing, car-sharing, and subscription-based models, companies can generate additional income and adapt to changing consumer preferences.

Increased customer engagement and loyalty: MaaS platforms allow automotive companies to engage with customers daily, providing personalized mobility solutions and building long-term relationships.

Collaboration and partnerships: MaaS encourages collaboration among automotive companies, technology providers, mobility start-ups, public transportation agencies, and other stakeholders to develop innovative solutions and expand service offerings.

Data-driven insights and analytics: MaaS generates data on user behavior, travel patterns, vehicle usage, and operational performance, which automotive companies can use to optimize fleet management and improve services.

Sustainable transportation solutions: MaaS promotes sustainable options, reduces emissions, and supports environmental initiatives by offering shared mobility services and promoting electric vehicles.

Read more from about how Valona helps automotive manufacturers avoid missing out on some of the biggest trends.

Challenges for automotive players:

Regulatory barriers: Navigating regulatory compliance, obtaining permits, and ensuring legal clarity can be complex and fragmented.

Infrastructure limitations: A robust and interconnected transportation infrastructure is essential for MaaS, including public transit systems, charging stations, and designated pick-up/drop-off zones.

Data privacy and security concerns: Ensuring data privacy, implementing strong cybersecurity measures, and complying with data protection regulations are significant challenges.

Technological complexity: Developing and integrating the required technology stack for MaaS can be complex and resource-intensive.

Customer adoption and behavior change: Encouraging consumers to shift from traditional car ownership to shared mobility services requires targeted marketing, education, and incentives.

Actionable insights for businesses

Implications for Automotive OEMs

• Shift from ownership to usership: MaaS encourages a shift from traditional car ownership to a model where users access transportation services on demand. OEMs may need to adapt to this change.
• Collaboration and partnerships: OEMs should collaborate with technology companies, mobility service providers, infrastructure developers, and regulatory bodies to establish and operate MaaS platforms.
• Impact on vehicle design and features: OEMs may need to prioritize flexibility, durability, connectivity, and shared-use capabilities in their vehicle designs.
• Brand positioning and customer loyalty: OEMs can position their brands as providers of integrated mobility solutions, enhancing brand perception and building customer loyalty.

Implications for Automotive Tier 1 Players

• Shift towards integrated solutions: Tier 1 players are transitioning from supplying individual components to providing integrated solutions that support MaaS platforms.
• Collaboration with technology partners: Partnering with technology companies, software developers, mobility service providers, and other stakeholders is essential for delivering innovative solutions.
• Focus on connectivity and data analytics: Investing in connectivity solutions and data analytics capabilities is crucial.
• Adaptation to new business models: Tier 1 suppliers should explore opportunities to offer subscription-based services, SaaS solutions, and value-added services.
• Regulatory and cybersecurity challenges: Navigating regulatory requirements, data privacy laws, and cybersecurity risks is essential.

Implications for Automotive Tier 2 Players

• Demand for specialized components: Tier 2 players may need to develop innovative solutions for electric vehicles, autonomous vehicles, and connectivity features.
• Collaboration with Tier 1 suppliers: Close collaboration with Tier 1 suppliers is essential for seamless interoperability and high performance.
• Emphasis on cost efficiency and scalability: Adapting production methods, supply chains, and quality control mechanisms to meet the volume demands of MaaS providers is necessary.  
• Innovation in sustainability and safety: Developing eco-friendly components, advanced safety features, and intelligent systems is crucial.
• Regulatory compliance and quality standards: Adhering to stringent regulatory requirements, quality standards, and industry certifications is essential.

As with any market trend, mobility-as-a-service brings both opportunities and challenges. Experts predict that MaaS will revolutionize the automotive industry and provide a promising opportunity to diversify revenue streams. Automotive industry players should start implementing this trend in their operations.

Even though the implications of the MaaS trend vary between automotive tiers, the most important common points are close collaboration, new business models, and regulatory compliance. Progress is irreversible, and the sooner you start working on it, the more of a competitive advantage you will acquire.

The future of MaaS

The insights from Accenture, Deloitte, and McKinsey collectively underscore the transformative potential of MaaS, and how we think about transportation. As MaaS continues to grow, it promises to enhance urban mobility, reduce environmental impact, and provide more efficient, user-friendly transportation options.

For automotive OEMs, Tier 1, and Tier 2 suppliers, the shift towards MaaS represents both a significant opportunity and a complex challenge. Embracing collaboration, leveraging data analytics, and adapting to new business models will be essential for success in this rapidly evolving landscape.

Ultimately, MaaS is not just a trend but a fundamental shift towards a more connected, sustainable, and efficient future in transportation.

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