COVID 19 has accelerated our path into a mobility society
The COVID-19 pandemic rapidly upended supply chains and consumer demands, changing the way we move about the world. Now, post-pandemic, the world is accelerating towards a mobility society. And it will only continue as more people choose to work from home, demand more delivery services and drive more connected vehicles.
After looking at historic market trends, I estimate that the world will begin to see more widespread adoption of mobility services by 2025. Leading up to 2030 35% of global transportation will move into a shared mobility solution. By 2030, the mobility industry will be worth $2 trillion US dollars.
This impending disruption means that companies should be ready and flexible enough to adapt to changes by 2025.
The meaning and roots of mobility
Mobility is defined as the ability to move or be moved freely and easily. The mobility industry is formed from the merging of automotive, retail and other sectors of the economy, making it easier for the goods and services we need to get to us.
Ridesharing and delivery apps, as well as connected vehicle technology, first disrupted traditional transportation industries. These services also revolutionized our relationships with cars and represent just the beginning of where the mobility society begins. Organizations like Uber and Lyft have challenged normal business models. By the time we reach a fuller mobility society we are going to start to see new customer experiences based on some of these initial ideas.
The first phase of this shift, shared mobility, will center around the car and transportation. While the second phase, intelligent mobility, will focus more on the connected home and different ways to consume goods and services. Eventually, intelligent mobility will completely remove the need for the individual to travel
The pandemic slowed down physical movement but sped up the adoption of video conferencing and other co-working technology. Individuals, now working from home, reevaluated their relationships with cars and were forced to adapt to new ways of moving around and communicating.
For companies, the mobility storm has already started
COVID-19 caused a surge in the adoption of mobility services. Companies seeing this intensity of change are now wanting to start experimenting with new business strategies and offerings much more quickly.
Mobility disruption is an S-curve, starting in 2025 when the industry is estimated to be worth $500 billion USD. In between 2025 and 2030 35% of the world’s transportation industries will move towards shared mobility solutions.
In 2030, the mobility sector will be worth $2 trillion. 5-years may seem like a short transition period, but data has shown that disruption periods have been gradually shortening since the introduction of personal computing.
Companies should be ready by 2025 and their success will depend on how flexible they can be. Automotive companies, which make up about 8% of private-sector employment in the U.S., will need to adapt and figure out how they fit into the new service-oriented ecosystem. Reinvention ultimately means that a company must transform, not only digitally, but also in how they meet customer needs through technology and services.