The automotive industry is in a state of flux: the convergence of four megatrends – electrification, autonomous driving, connectivity and the sharing economy – is revolutionizing today’s automotive businesses. And while Original Equipment Manufacturers (OEMs) still dominate the automotive business, the game is changing. New players with customer-centric business models are entering the automotive space bringing with them a range of new mobility services that appeal to the changing needs of the customer.
In our latest research we found that by 2030, revenues from manufacturing and selling vehicles (around €2 trillion) will be only marginally higher than they are today, and that profits from car sales will even shrink slightly. By contrast, revenues from mobility services are projected to soar to almost €1.2 trillion—with profits reaching as much as €220 billion.
New business models
Automotive players are still in a good starting position to win the customer but will have to adopt new business models that enable them to strengthen their existing capabilities - developing new mobility services while managing their core business. Three things need to be considered:
The service business opportunity
There is no doubt that there will be a lot of change, a lot of work, and uncertainty, but the future holds plenty of opportunities for automotive OEMs. Cooperation across the “ecosystems” can create considerable advantages and the right handling of data and customer experiences can not only strengthen customer loyalty - but also increase sales and margins. An important prerequisite for success is for companies to have a clear vision of their own future and a viable strategy to be competitive. Those that have both will thrive. The service business poses an opportunity and those who know how to master it will win.
CAR Symposium February 6-7
Join Axel Schmidt, Global lead of Accenture’s Automotive practice on February 6 at the CAR Symposium in Bochum, Germany where he will outline potential strategies OEMs can employ to position themselves as a mobility service business.