Skip to main content

New research finds huge sustainability benefits from new urban mobility models

New research by UK communications technology specialist BT and Frost & Sullivan finds that new urban mobility models such as ride-sharing, smart parking technologies and ride-on-demand could reduce the amount of cars needed on urban roads globally by up to 20 million vehicles per year in 2025, offering huge sustainability benefits and an improved experience for travellers. The research, Environmentally Sustainable Innovation in Automotive Manufacturing and Urban Mobility, suggests that consumer trends t
June 29, 2016 Read time: 3 mins
New research by UK communications technology specialist 1974 BT and 2097 Frost & Sullivan finds that new urban mobility models such as ride-sharing, smart parking technologies and ride-on-demand could reduce the amount of cars needed on urban roads globally by up to 20 million vehicles per year in 2025, offering huge sustainability benefits and an improved experience for travellers.

The research, Environmentally Sustainable Innovation in Automotive Manufacturing and Urban Mobility, suggests that consumer trends towards ‘on demand’ access rather than product ownership is prompting car manufacturers to consider ride-on-demand business models. When combined with the integration of smart vehicles and smart roads and cities, all connected, these business models will lead to fewer and more efficient journeys, reducing journeys in private cars overall by 360 billion kilometres per year within the next decade.

According to the research, these developments stand to reduce carbon dioxide (CO2) emissions by 56 megatonnes per year in 2025, an amount equivalent to more than half the yearly emissions from transport in the UK. A further reduction of 121 megatonnes of CO2 equivalent emissions could be achieved by automotive companies due to the reduction of the global car output by 20 million vehicles per year.

The challenge to car manufacturers isn’t limited to reducing pollution, says the report. Changing needs and habits of a young, always-on generation increasingly open to using Mobility as a Service (MaaS), and less likely to own a car, pose a challenge to traditional automotive companies.

Hubertus von Roenne, vice president global industry practices, BT says the findings show that IoT solutions will transform the entire industry. Traditional car manufacturers are rethinking their business models and will become personal mobility service providers.

According to Martyn Briggs, industry principal, Frost & Sullivan, ICT solutions are enabling service providers to overcome some of the challenges inherent in urban mobility, whilst improving the user experience and encouraging more sustainable travel. New mobility business models can achieve exactly this, he says.

With technology enabling a new way to approach urban mobility, a paradigm shift from the current ‘predict and provide’ of transportation to a ‘sense and respond’ will be introduced, using historical analytics and real-time information to deliver mobility services on-demand.

“The logic of our analysis was to reveal both the potential impacts and benefits of new mobility business models. We quantified the potential reduction in embodied carbon from vehicle manufacturing with the future reduced volume of vehicles required,” Briggs continues.

Related Content

  • May 22, 2015
    Advanced telematics and integration to revolutionise global connected car market
    Advanced infotainment systems, over-the-air (OTA) updates, big data analytics, mobility services and in-car security are key technologies that will shape the global connected car market in 2015. Human machine interface (HMI) input and output solutions, as well as, heads up display (HUD) are set to take centre stage. However, car makers must create consumer-centric HMI solutions that will strike a balance between reducing driver distraction and meeting consumer need for connected services. New analysis f
  • June 7, 2017
    Technology and finance shapes up to make MaaS happen
    The technology and finance aspects needed for Mobility as a Service (MaaS) to become widely adopted are taking shape as Geoff Hadwick and Colin Sowman hear. Sampo Hietanen, CEO of MaaS Global and ‘father’ of MaaS, started his address to ITS International’s recent MaaS Market conference in London by saying: “All of the problems that can be solved by a company or group of companies have already been solved, and now we are left with the big ones such as housing, transport and health. He called MaaS the “Netfli
  • June 8, 2017
    Mobility, autonomous vehicles, connected cars and big data analytics ‘present growth opportunities in 2017’
    New research by Frost & Sullivan indicates that e-mobility solutions, autonomous vehicle technology, and other digitisation advances are creating new and exciting opportunities in the automotive industry.
  • October 5, 2016
    Evolving commuters' demands to pave the way for car-sharing business models
    Physical integration of public transit systems with car-sharing will enhance convenience and drive growth opportunities, finds Frost & Sullivan's Mobility Team. Its latest study, Future of Car-sharing Market to 2025, says that with vehicle automation rapidly gaining currency, cars-haring operators (CSOs) are developing novel business models to address the evolving mobility demands of commuters. They will initially offer self-parking services, allowing members to drop off vehicles at designated parking lo