Mobility-as-a-Service (MaaS) subscribers will generate US$53bn (£38.7bn) in revenue for MaaS platform providers by 2027; rising from US$5.3bn (£3.87bn) in 2021, according to a new study by Juniper Research.
The research identified a monthly subscription model as key to increasing adoption of MaaS among consumers. However, it cautioned that, until users trust the proposition of a subscription-based transport service, MaaS platforms must ensure pricing models are flexible, for instance, by offering pay-as-you-go journeys and short-term subscriptions.
The new report, Mobility-as-a-Service: Business Models, Vendor Strategies & Market Forecasts 2021-2027, recommends that platform providers leverage account-based ticketing to provide flexible pricing models. Account-based ticketing allows travellers to be billed on account, with smartphone apps, travel cards, and wearables used to prove travel eligibility.
However, the research warned that account-based ticketing will require significant digitalisation of transportation networks, which is already widespread in Europe and Asia Pacific. It predicts that over 85% of MaaS subscriber revenue will be attributable to these regions by 2027.
Research author Adam Wears said: “Account-based ticketing is an essential prerequisite for MaaS, given that it enables multimodal interoperability and supports the accurate apportionment of revenue between transport operators, both of which are key to driving mobility partnerships and buy in from local authorities.”
The report also stated how business travellers globally will use MaaS platforms to complete 25.7 million business trips annually by 2027, as companies look to minimise spend associated with corporate travel, such as fleet maintenance.
However, it highlighted that for the financial benefits of these programmes to be appreciable, businesses must have a high level of travel spend and a large number of employees. It therefore recommends that when targeting this segment, MaaS platforms emphasise the societal benefits of their offerings, to attract corporations looking to reinforce their environmental credentials.
