Mobility-as-a-service subscriber revenue to increase 900% by 2027

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A new study by Juniper Research has found that MaaS (Mobility-as-a-Service) subscribers will generate $53 billion (€45.27 billion) in revenue for MaaS platform providers by 2027; rising from $5.3 billion (€4.53 billion) in 2021. MaaS is the provision of multimodal end-to-end travel services through single platforms, by which users can determine an optimal route and price.

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.

Account-based ticketing crucial to growing MaaS acceptance

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, travelcards, 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 accordingly predicts that over 85% of MaaS subscriber revenue will be attributable to these regions by 2027.

Research author Adam Wears explains, “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.”

MaaS usage to flourish among business travellers

The report also discussed 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 highlights 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.

For more insights, download our free whitepaper: How Ridesharing and Micromobility Are Driving MaaS Adoption

Comment on this article below or via Twitter: @IoTNow_OR @jcIoTnow

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