Car sharing, smart parking, autonomous vehicles, connected logistics, vehicle-to-everything, usage-based insurance and connectivity are some of the emerging opportunities, finds Frost & Sullivan's Mobility team
SYDNEY, April 26, 2017 /PRNewswire/ -- Increasing traffic congestion in urban areas as well as rising car insurance and maintenance costs are forcing Australia to transform its mobility industry. At the same time, with the emergence of smart cities, government and automotive OEMs are investing in intelligent mobility solutions. The mobility market in Australia is at a crucial turning point with immense growth opportunities emerging.
Frost & Sullivan predicts that the industry will grow at a remarkable compound annual growth rate (CAGR) of 61.2 percent during 2016-2025 to reach revenues of AUD 15.5 billion. This market, which was worth AUD 211.2 million in 2016, is expected to double in value as early as 2018.
A new analysis on the future of the Intelligent Mobility Market in Australia – examines the trends in the Australian intelligent mobility market for 2016-2025 across car sharing, smart parking, autonomous vehicles, connected logistics, vehicle-to-everything (V2X), usage-based insurance (UBI), and connectivity segments. The study also profiles original equipment manufacturers (OEMs), provides case studies, and details market development initiatives. 'Australian Intelligent Mobility Market: Trends, Technologies and Opportunities 2016-2025' is included in Frost & Sullivan's Mobility Growth Partnership Service program.
To know more about the Intelligent Mobility Market in Australia and to talk to us, please click here.
"Infotainment, vehicle safety, tracking, and other security features for cars will become high-value services that customers are willing to pay for by 2025," explains Vijayendra Rao, Research Director, Intelligent Mobility Practice, Frost & Sullivan Australia & New Zealand.
"This will create strong demand for faster and reliable networks, such as long-term evolution and 5G. By 2025, almost half of the cars in Australia are expected to be connected vehicles leveraging these technologies," he noted.
Key growth areas in the Australian intelligent mobility market include:
- Cellular connectivity for passenger cars: This market will be driven by in-car service, hardware and OEM providers.
- Car share services: This market is likely to reach AUD 180 million by 2025 with GoGet, Hertz, and GreenShareCar being major participants.
- Smart parking: These services are projected to generate more than AUD 78 million by 2025. A vital component of the smart city—smart parking—will optimise urban parking spot utilisation, increase revenues, and alleviate traffic congestion.
- UBI: With decreasing data and hardware costs, and increasing consumer acceptance, UBI uptake is set to improve. Wireless carriers, smartphone solution providers, and OEMs will engage actively in the value chain.
- Autonomous vehicles: The introduction of low-cost autonomous cars could promote uptake in Australia. However, the logistics sector will be the biggest beneficiary of autonomous vehicles in terms of safety and efficiency.
"Australia is testing the efficacy of the cooperative intelligent transport systems (C-ITS) in reducing accidents and congestion," notes Vijayendra Rao.
"As a result, roll-out of V2X technology and dedicated short-range communications (DSRC) in particular, is expected to increase in the next two years. This will generate opportunities for several non-automotive companies to enter the market," he added.
Since the regulatory framework is yet to be finalized, it will be at least three to five years before fully autonomous vehicles become a reality on Australian roads. Governments, automakers, insurance companies, and other industry stakeholders must work together to drive the growth of autonomous vehicles that can be used for future car sharing applications. In the logistics sector, Internet of Things will transform the trucking industry by improving the traceability and controllability of in-transit freight, boosting profits by 10 per cent to 15 per cent annually.
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Australian Intelligent Mobility Market: Trends, Technologies and Opportunities 2016-2025
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