Discover the future of mobility: shared rides, electric vehicles, autonomous driving, and more. How are these trends shaping the way we travel?
Mobility is evolving faster than many of us could have perceived. From shared mobility becoming more democratised to innovations in sustainable energy use and mobile intelligence via autonomous cars and drivers, the trends are taking shape sooner than we can imagine, especially considering our perceptions of mainstream preferences are being challenged.
A recent report by McKinsey revealed that while private cars are still preferred for all trips, the dynamic is shifting, and 30% of commuters are considering more frequent use of e-bikes and e-scooters over the coming decade. Almost half of all car owners are eyeing shared transport as a viable alternative. The pandemic helped put many things into perspective for commuters, who saw the impact of less car use on the environment and are now considering viable alternatives to heavy combustion-engine infrastructure. Countries are listening, with many, such as the UAE, starting to re-forge their existing infrastructure to cater to the increasing reliance on e-bikes, electric vehicles, and more.
As we look ahead, it is clear that mobility transformation will continue accelerating. Here are my considerations for the fastest-moving trends in mobility worldwide and in the GCC.
Integrated, Frictionless Travel
There has been a significant move in terms of innovation and investment towards making travel smoother and more seamless, primarily through adopting Mobility as a Service (MaaS). MaaS integrates various forms of transportation into a single accessible service, providing end-to-end travel solutions with minimal stoppages. What I find critical are key elements that include infrastructure optimisation, the creation of mobility hubs for multimodal transportation, and innovations in micro-mobility and last-mile connections. MaaS platforms aim to offer demand information, transport details, and payment options all in one place, making it easier for users to navigate their travel choices.
Consumers are now more demanding for one-touch, single-interface solutions, which is becoming more apparent in mobility. We are seeing mobility super-apps such as Yango find their footing in Dubai and the region, starting as simple ride-sharing solutions and burgeoning into a one-stop-shop mobility solution at one’s fingertips, and this is only set to grow more as electric vehicles, autonomous transport, and route optimisation become mainstream. By 2029, the global MaaS market is projected to surge to US$ 774.93 billion from $187.31 billion in 2021, as reported by Fortune Business Insights. The UAE alone is expected to hit a market share of $3.8 billion in that same period.
Autonomous and Electric Transportation
If you pardon the pun, autonomous vehicles, and electric transportation are leading the charge in transforming the industry. This is more than just self-driving cars, but also autonomous trucks and electric vehicles (EVs), which are becoming more common and are expected to significantly impact road safety, traffic efficiency, and emissions reduction. Electric transportation, with its continuous advances in battery technology and charging infrastructure—something the UAE is improving on but requires a lot more focus in other countries – contributes to reducing greenhouse gas emissions.
It’s no surprise then that, with the increased interest in sustainable vehicles and transport, the value of the global autonomous vehicle market is forecast to top $1.8 trillion by 2030, up from about $94.4 billion in 2021, growing at a CAGR of almost 39 percent, according to data from Precedence Research. McKinsey indicates advanced driver-assistance systems and autonomous driving could generate between $300 billion and $400 billion in the passenger car market alone by 2035, just a decade away.
Dubai is continuing to spearhead initiatives in this area, with ambitious plans to transition 25% of total transportation in the city to autonomous modes by 2030. Goldstein Research estimates the Middle East will account for more than 1 million autonomous vehicles by 2035, and the UAE alone plans to have 42,000 EVs on the road in the coming six years. Queues are now visible at almost every public EV charging port across Dubai, and the public is constantly demanding more, putting pressure on authorities to deliver the infrastructure required for such sustainable mobility needs once this large number of EVs hits the market.
Route Optimisation
An interesting development is the increased investment and innovation in route optimisation, which leverages technology and real-time data to identify the most efficient and cost-effective travel routes by considering static factors like distance and road conditions and dynamic factors such as traffic congestion and weather conditions.
According to ResearchGate, route optimisation alone significantly lowers fuel costs by 20%. This should come as a boon to customers in cities in the GCC where rush hour and a car-focused road system have created major traffic woes, resulting in considerable time and fuel wasted due to inefficient routing. While many ride-hailing apps rely on third-party mapping solutions, Yango leverages proprietary mapping systems that not only utilise AI-driven routing algorithms but also incorporate cultural and local insights, offering more accurate route predictions.
The market for route optimisation software is estimated at $3.7 billion and is anticipated to reach $12.4 billion by 2030. Underscoring this is the increase in the GPS tracking market, which feeds directly into this technology and is expected to grow to $3.5 billion, demonstrating the rising need for GPS technology in route planning, according to Straits Research.
Teledriving
Another trend I have observed growing fast is remote taxis, or teledriving, as it is more popularly known. To alleviate safety concerns in driverless cars, teledriving is when a human driver commands the vehicle from a remote location, using advanced real-time communication, an array of sensors, and state of the art control systems to establish a seamless connection with the vehicle. This allows them to behave as if they were physically present, enabling precise manoeuvring from afar.
The global robotaxi market is currently valued at $400 million and is expected to reach $45.7 billion by 2030, according to Markets and Markets. As a predictable extension of this technology, tele driving for taxis is considered a safer alternative to robotaxis. This development will surely interest ride-hailing providers in the UAE, where the user base is set to hit 3.25 million by 2027.
Looking ahead
Mobility as a service will continue to undergo significant transformation, driven by innovative technologies, rapidly shifting consumer preferences, and a continued sustainability focus. As cities like Dubai lead the way with ambitious plans for autonomous and sustainable transport, the industry can only benefit from such plans. At Yango, we are continuously growing our portfolio of services to cater to these developments as we envision a future where mobility is not just a means of transport but a seamless, integrated experience that enriches urban life, contributing to a more sustainable lifestyle.
Our commitment to redefining mobility in the UAE and beyond is unwavering. We incorporate the latest technologies, including autonomous and electric transportation, route optimization, and smart driving, into our services for the greater well-being of the UAE’s residents.
