As technology advances, the future of transportation is being shaped by the rise of alternative-fuel vehicles, autonomous driving, and new business models. Government directives and commercial interests are driving these changes, with more electric vehicles (EVs) on the roads and increasing numbers of charging points being installed worldwide.
Alternative-Fuel Vehicles and Micromobility
Automakers are racing to develop electric and hydrogen-powered vehicles, as traditional internal combustion engine (ICE) cars face increasing scrutiny from authorities. micro-mobility options, such as electric scooters and e-bikes, are also on the rise, with investments in the industry resuming growth in 2021 after a contraction in 2020.
Autonomous Vehicles and Mobility-as-a-Service
Autonomous driving technology is making significant progress, but fully autonomous vehicles are still in development. Mobility-as-a-Service (MaaS) is an emerging concept that merges different transportation modes into a single service, requiring public-private partnerships to become a reality. By 2030, revenues from hailed mobility could reach between $450 billion and $860 billion, accounting for 80 to 90 percent of consumer spending in shared mobility.
Urban Air Mobility and Flying Cars
Urban air mobility (UAM), or flying cars, is another innovative concept being developed by startups for personal transportation. More than 150 cities are working on measures to reduce private vehicle use, and investors have directed over $100 billion into shared-mobility companies since 2010. The shared-micro mobility market is expected to generate up to $90 billion in 2030, with a compound annual growth rate (CAGR) of over 200 percent from 2018 to 2019 in annual yearly trip revenues.
Preparing for Changes in the Automotive and Mobility Industry
Michigan State University (MSU) is at the forefront of research and education in the field of mobility, with nearly 50 experts and their connected staff working on autonomous and connected vehicle technology. MSU has invested almost $75 million in research and development in this field over the past five years and is developing new technologies, such as algorithms and sensors, to make vehicles and roadways safer and more efficient for the future.