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

  • Global number of car sharing users to reach 650 million by 2030
    March 12, 2015
    Car and ride sharing is just one example of the new on-demand economy allowing real-time matching of supply and demand through connected smartphone applications. According to ABI Research, successive forms of vehicle sharing approaches represent paradigm shifts in uptake and popularity; each new generation seeing adoption rates at least an order of magnitude larger than the previous: Car sharing 1.0 - street rental service: Cars parked on the street can be located, unlocked, used, and left behind. Examples
  • Report identifies innovations that will change transportation
    June 25, 2013
    Four new solutions based largely on existing technology could drastically improve the safety and efficiency of travel and transportation by 2025, according to a new report by the World Economic Forum in collaboration with The Boston Consulting Group. The report, Connected World: Transforming Travel, Transportation and Supply Chain, is the product of a cross-industry effort involving over fifty leading companies from the travel, transportation, and information and communications technology industries. It out
  • Self-driving shared vehicles ‘could take most cars off city streets’
    May 1, 2015
    Fleets of TaxiBots and AutoVots could deliver today’s mobility with significantly fewer cars, says a new study. Self-driving shared cars could make 90 per cent of conventional cars in mid-sized cities superfluous, according to the study published by the International Transport Forum at the OECD. Even during peak hours, only one third of the current number of cars would be needed to provide the same number of trips as today. ITF researchers used actual transport data from Lisbon, Portugal, to model the
  • Siemens: self-driving minibuses are the future of first-/last-mile
    February 26, 2020
    Markus Schlitt, CEO of intelligent traffic systems at Siemens Mobility, talks to ITS International about safety and why it is important for cities to offer additional shared and connected transit options.