For many people, owning a car represents freedom and flexibility. This is especially true in the U.S., where 91.3% of households have access to at least one vehicle. But with emerging mobility trends and shifting consumer behaviors, will traditional car ownership become a thing of the past? While few expect personal vehicles to disappear anytime soon, significant cultural and economic shifts – pandemic-related and otherwise – may offer a glimpse of what’s to come.
Demand for alternative mobility solutions
It’s hard to imagine life without cars – our relationship with them has been going strong for the past century. But in some ways and for some people, owning a vehicle today is making less and less sense. Our cities are already crowded, and urban centers are being stretched to their limits. Globally, there are an estimated 1.4 billion vehicles on the road, with over 70 million more hitting the market each year. By 2050, two out of every three people are likely to be living in cities or other urban centres, the UN estimates. To move forward towards sustainability and keep our cities livable, Mobility-as-a-Service (MaaS) solutions will be needed to improve transportation efficiencies.
Consumer attitudes towards mobility are evolving, driven by access to in-vehicle technologies, convenience, and cost. In today’s mobility ecosystem, there are more viable alternatives to car ownership than ever before. With the rise of Netflix-style car subscription models – alongside the advent of car sharing, ride-hailing and self-driving vehicles – unique and enhanced mobility solutions may pave the way for a new era of ‘access over ownership’. For automakers, this shift presents an opportunity to create user-centric experiences and adapt to an on-demand marketplace.
The future of car ownership
According to a pre-pandemic survey from 2019, nearly half (48%) of respondents said they would consider giving up car ownership if autonomous mobility solutions, such as self-driving buses or taxis, were available. Although 96% of car owners still expect to own a car in the future, the rise of shared mobility services offers a complementary solution to private ownership. With the average car parked and unused 95% of its lifetime, it’s clear that traditional vehicles are underutilised.
In the future, connected, sustainable and autonomous technologies could transform vehicles into revenue-generating robotaxis, serving a multitude of riders 24/7 while creating profit for vehicle owners. These changes will drive efficiency and profitability, and connected software solutions will be key in making this a reality.
Transformation through waves of change
While it’s hard to predict exactly how these mobility trends will reshape traditional car ownership, change rarely happens all at once – it comes in waves. As disruptive technologies like EVs, autonomous driving and MaaS continue to evolve, the automotive industry will shift from a product-focused model to one that emphasises services and experiences.
