Deloitte Study: Realizing Future Mobility Revenue Streams

Deloitte Study: Realizing Future Mobility Revenue Streams

The U.S. automotive mobility market is expected to double to $281B by 2035, creating significant revenue opportunities.

Deloitte announced the release of its report, “The Future of Automotive Mobility to 2035,” which examines the macro trends shaping the industry, along with the strategic imperatives to help successfully monetize emerging profit streams throughout the entire vehicle lifecycle. 

New mobility structures and disruptive profit streams will accelerate significant change in the automotive industry, according to the Deloitte report.

The study is based on a survey of more than 9,500 consumers across nine countries; insights from a series of industry executive interviews conducted between August and November of 2022; and Deloitte’s newly developed profit pool simulation tool, which incorporates proprietary and public databases, decades of industry project experience and Deloitte analysis.

Deloitte says key findings include:
  • Realizing new profit structures: Traditional one-time vehicle sales will be challenged by new and recurring revenue structures as the addressable market for mobility providers is expected to become a $281 billion industry by 2035with a compound annual growth rate (CAGR) of 5% from 2022. This represents growth of 21% in the U.S. alone. 
  • Changing ownership models: Following experiences with shared transportation, more than one-third (38%) of 18-34-year-olds in the U.S. question their need for personal vehicle ownership. 
  • Declining ICE value: With EV adoption rates continuing to grow, more than half (55%) of U.S. respondents show concern over the residual value of aging combustion-based platforms. 
  • Curbing subscription fatigue: As consumers increasingly opt for hassle-free mobility solutions, more than half (51%) of U.S. respondents are interested in making one monthly payment that covers many vehicle-related costs, including insurance and maintenance.
  • Adapting to ecological pressures: Calls for more sustainable practices will force mobility providers to tighten around corporate carbon footprints (CCF) and restructure core assets away from ICE business areas.
  • Creating loyalty through sustainability: Consumers value environmental motivations as three-quarters of U.S. respondents (74%) regard well-articulated plans for battery recycling and re-use as an important factor in their choice of EV brand.

“Among the significant macro trends shaping the future of the automotive mobility sector, there will likely be a particularly strong emphasis on securing the right technological competency and developing an efficient architecture to monetize data effectively,” said Jeff Paul, managing director and U.S. auto captive finance leader, Deloitte Services LP. “The evolution of automotive mobility will likely also demand new levels of orchestration and coordination among sector players. Strategic partnerships and M&A integrations will become crucial to capitalizing on emerging profit pools going forward.” 

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