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Top Automotive OEM Mobility Strategies Include Integrating Services on a Single Platform
March 30, 2017 | Frost & SullivanEstimated reading time: 1 minute
The mobility market is evolving rapidly away from a car ownership-centric model to one that is car-access centric. Technology disruptions and changing customer preferences are aggressively driving original equipment manufacturers (OEMs) toward new business models and service solutions that are application based, on demand, and encourage access over ownership. Most OEMs’ mobility initiatives are currently concentrated in Europe and North America, with expansion plans for the Asia-Pacific market.
“OEMs will eventually move towards integrating all their mobility services on a single platform so that customers have a one-stop shop for their mobility needs,” said Frost & Sullivan Mobility Research Analyst Albert Priya.
Competitive Benchmarking of OEM Mobility Strategies, recent research from Frost & Sullivan’s Automotive & Transportation Growth Partnership subscription, finds that car companies are evolving from the business of merely manufacturing and selling cars to also providing related services and multi-modal mobility solutions in order to target new customers and future-proof their business.
BMW, Daimler, Ford, and General Motors are few of the key disruptors in the OEM mobility space with a broad mobility portfolio and a mobility-specific unit. Notable developments and upcoming trends in the market include:
- Launch of mobility service offerings by 12 out of 14 key OEMs, either as a pilot or a full-fledged service
- Spinning off of wholly owned subsidiaries to handle non-traditional car ownership models. 7 out of 14 key OEM’s have done this.
- Partnerships with ridehailing companies such as Uber and Gett to prepare for a shift in consumer choice away from vehicle ownership; Volkswagen, Toyota, Daimler, and General Motors have already begun
- Focus on autonomous cars that will allow OEMs to unlock new revenue streams, such as personalized services and geo-fenced advertising
- Taking mobility to higher levels by integrating vehicles into users’ personal digital lives through devices like smartphones and smart watches
“In order to succeed in a fiercely competitive market, and align with emerging shared economies and self-driving transformations, OEMs have been investing in and acquiring third-party solutions around autonomous driving, shared mobility, and artificial intelligence,” added Priya.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community.
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