A new study by Juniper Research has found that MaaS (Mobility-as-a-Service) subscribers will generate $53 billion in revenue for MaaS platform providers by 2027.
This would represent a whopping 900% rise from a $5.3 billion this year.
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.
The new report, titled 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.
It noted that account-based ticketing allows travelers 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 digitalization of transportation networks, which is already widespread in Europe and Asia Pacific, but not quite popular in Africa.
It accordingly predicts that over 85% of MaaS subscriber revenue will be attributable to Europe and Asia by 2027.
Research author Adam Wears explained: “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 discussed how business travelers globally will use MaaS platforms to complete 25.7 million business trips annually by 2027, as companies look to minimize 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.
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