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.

For more information on companies in this article

Related Content

  • Sprawl spreads the costs and confines the benefits
    June 8, 2015
    A new report says car-centric planning leads to inefficient cities and divided communities as lead author Todd Litman explains. Between 1950 and 2050 the human population will have approximately quadrupled and shifted from 80% rural to nearly 80% urban; by the middle of this century the United Nations predicts an additional 2.2 billion urban residents in developing countries than there are today. How these cities grow has huge economic, social and environmental impacts and implementing proper policies can c
  • Amey upgrades 64,000 Edinburgh streetlights
    July 19, 2021
    Amey says energy reduction will save Scottish capital's council £54m over next 20 years
  • Smart parking key to sustainable urban mobility
    April 26, 2013
    Smart parking looks like a market poised to take off in the US. It could bring many benefits, not just for parking facility operators and their customers but also for society as a whole. Steven Bayless, senior director, telecommunications and telematics at ITS America, looks at some of the opportunities and challenges involved. Parking is an estimated $24-25 billion industry in the US and although highly fragmented, it is experiencing a growing trend towards consolidation and outsourcing of parking operatio
  • Digital Transformation is the way to comprehensive transportation 
    March 31, 2021
    Transportation worldwide needs to keep up with a variety of challenges: Frederic Giron of Forrester Consulting explains how digital technologies will be the key to making the necessary changes...