The automotive revolution is speeding up (4)

Friday, 8 December 2017

A perspective on the emerging personal mobility landscape

Reconciling disruptive technologies with traditional products and services

While about 20 percent of revenue in new vehicle sales could shift to disruptive technologies, traditional products and services may still account for over 60 percent of the total value in new Mobility-as-a-Service business models.

The growing importance of new business models is accompanied by a shift in technological focus, which is required both in classic vehicle sales and aftermarket as well as in new, disruptive business models. Emerging technologies in the fields of electronics and software stand in contrast with more traditional areas, which are likely to remain a relevant share of the overall value pool.

Considering our base case, by 2030, about 20 percent of value generated from classic vehicle sales might shift toward new technologies, such as xEV powertrains or autonomous-vehicle software and components. But more than 60 percent of revenue from disruptive business models could still be carried by traditional elements, such as the shared vehicle itself or fleet operations (Exhibit 4).

McKinsey - The automotive revolution is speeding up