Under the heavy pressure of rising costs of vehicle’s ownership in the recent few years, the market of Mobility as a Service or MaaS has shown tremendous growth.
According to Juniper Research’s latest study, MaaS (Mobility as a Service) will generate fuel cost savings of $10.8 billion by 2027 globally; increasing from $2.8 billion in 2022 – a growth of 282%. The research anticipates these savings will be achieved by MaaS’ ability to reduce congestion by displacing private vehicle usage with public transport over MaaS platforms.
MaaS platforms provide consumer urban transport solutions, such as ride hailing, bus and metro, integrated into a single platform.
Increase in Private Vehicle Fuel Costs Driving Growth
The research predicts that consumers will turn to MaaS, as fuel costs increase globally. Juniper Research’s Urban Mobility Survey found that 41% of respondents ranked the cost of transport as being the most important factor when it comes to transportation. MaaS growth is due not only to MaaS being a cheaper travel alternative, but also to the convenience it provides by offering transportation with planning, purchasing and ticketing combined in a single app.
Furthermore, the report predicts that CO2 reduction from private car journeys displaced is also fuelling the growth of MaaS. Research author Cara Malone remarked, “MaaS has the ability to improve corporate social responsibility, as a result, MaaS vendors must appeal to companies by demonstrating how MaaS can significantly reduce their carbon emissions from travel.”
Micromobility Set for Strong Growth
The research anticipates that the distance travelled via micromobility, a form of transportation using lightweight vehicles such as bicycles and scooters, is set to grow 780% globally between 2022 and 2027. Micromobility enables users to traverse through highly congested cities for the first and last mile of their journey. The growth will be driven by the increased deployment of micromobility infrastructure, including docking stations, bicycles and scooters.