5 minute read 9 Sep 2021

Autonomous driving, connectivity, electrification and shared mobility are shaping the mobility sector.

Building the future of mobility today

By Hendrik Serruys

EY Belgium People Advisory Services Partner

Creative mind and out-of-the-box thinker. Solution-driven and passionate business partner. Addicted to new technologies. Love to wine and dine.

5 minute read 9 Sep 2021

Autonomous driving, connectivity, electrification and shared mobility are shaping the mobility sector.

  • Four key trends, identified as ACES, are driving the mobility sector in the short-term.
  • The ownership of cars will significantly reduce while the majority can change to broad, cheaper, and faster shared offerings to manage daily life.
  • Mobility as a Service applications will leverage the convenient and easy switch between private and shared mobility.

In light of the European Mobility Week (16 – 22 September 2021) our dedicated teams share their inspiring learnings and refreshing insights. Make sure to check-in regularly for all the latest articles and prepare for your own mobility of the future.

Short-term development of the mobility market

Since 2010 investments in innovative mobility have been less affected by the car manufacturing industry's recession than people expect. Technology, Venture Capital, and Private Equity companies invested much more than car manufacturers in new technologies and innovation. Because of the reliable support of various investment and technology companies and the different automobile manufacturers the future of mobility is looking bright and is making steady progress. We see several global trends, identified by the acronym ACES: autonomous driving, connectivity, electrification, and shared mobility. ACES technologies will continue to develop and disrupt the automotive ecosystem.

Autonomous Driving – Disruptive technologies for autonomous driving will change the concept of mobility, increase safety and require changes in business models in most industries. In the future, safety will always come first, while another focus will be on passenger comfort. Most forecasts point to a market entry at the earliest in 2030. In the short-term however, so-called level 4 autonomy will start playing a significant role, where the first cars are expected as soon as 2021-2022. Level 4 is considered entirely autonomous driving, even though a human driver can request control and the car still has a cockpit. The driver must remain fit to drive and be able to take control at any time if required. Autonomous driving brings considerable advantages. These include increased personal safety, mobility for non-drivers, time savings for drivers, reduced environmental impact, and lower transport costs.

Connectivity – As vehicles become increasingly connected, the data will unbolt new advantages and challenges for customers, car manufacturers, high-tech giants, and many new companies active in the value chain. The increased connectivity will impact both the user and the vehicles:

  • Car2X allows users to connect and network with the world outside their vehicle. They will be able to communicate, work, access multimedia services or surf the internet while driving.
  • Car2Car refers to exchanging information between different cars and connecting to transport infrastructure, such as devices to measure traffic or traffic lights.

Electrification – Electrified vehicles are approaching a turning point due to changes in regulatory policy, consumer attitudes, battery economics and infrastructure, therefore creating opportunities for the automotive industry. Last year, the percentage of newly registered Electric Vehicles and Plug-in hybrid electric vehicles accounted for 2,68% in Belgium, which is the best result in the EU after Sweden. One of the main challenges in our country however, is the infrastructure of charging points. Today the majority of charging stations in Belgium can be found on companies’ premises rather than in public spaces or on one’s private property. Companies operating under the corporate tax system benefit from an increased deduction on investments in charging infrastructure under the condition that they are accessible to the public. Therefore their investment will pay off much faster. Another positive trend is the energy and climate plan of the Flemish government that plans to invest 300 million EUR in additional charging infrastructure. This investment will allow for 1 charging station for shared mobility cars per 100 inhabitants by 2030.

Shared Mobility – There is a rapid expansion of new and different modes of mobility such as e-hailing (the process of ordering a car, taxi or any other form of transportation pick up via virtual devices) , self-service bicycles, scooters, car sharing and more. Their characteristics make them cost-effective, convenient, and less stressful alternatives to car ownership. Shared mobility is an important complement to the traditional public transport system and the company car in our efforts to reduce traffic, pollution, and CO2 emissions. In Europe, in regards to the density of shared mobility, the Brussels-Capital region comes second to only Paris.

 

The long-term development of mobility

In summer 2020, EY started working on a new mobility policy that will not only significantly reduce its CO2 emissions, but that is also attractive and tailored to the needs of its employees. A policy focused on the electrification process, including more flexibility by providing several options next to the company car. Launching this new strategy in April 2021 was only the start of an ambitious mobility vision that goes beyond the electrification process, shared mobility, usage of the bicycle, and homeworking.

At EY, we have collaborated with multiple industries to understand the collective vision for the future, but a little imagination is required to envision them. Imagine a world of ultimate personal freedom, where people care and share. Even though the vehicles may be autonomous transport pods, their owners will still cherish them because they are highly personalized and customized based on their lifestyle, mood, and activity.

Cities where cars, public transport , bicycles, e-scooters, and even offices are shared and rented by the hour. These transport modes would operate under subscriptions that offer low costs for slower journeys or a premium price for speedy luxury vehicles.

Cities where private cars are owned, but the usage is regulated to avoid congestion and pollution, especially within urban areas. Inside cities, no private vehicles are permitted to control the quantity and ensure smooth and fast travel. Instead, private cars can be used to commute between cities or when going on vacation. Switching between private and shared mobility will be effortless, convenient and easily manageable through a few advanced Mobility as a Service applications supported by intelligent technology and fast logistic systems.

That is the type of world we imagine and believe to be possible in the near future. In our upcoming series of mobility articles we will offer valuable insights about the steps companies can and should take to prepare their mobility strategy for the future.

 

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Summary

This article offers insights on recent developments in the global and local mobility market while giving prospects on how mobility will look around 2030 and beyond. EY has a clear vision of how companies will adapt their mobility policies in the future to a more sustainable, flexible way where people care and share.

About this article

By Hendrik Serruys

EY Belgium People Advisory Services Partner

Creative mind and out-of-the-box thinker. Solution-driven and passionate business partner. Addicted to new technologies. Love to wine and dine.