by Nada Welker | Nov 3, 2021 | Market development & Trends
E-bikes, e-scooters, and so on – micromobility includes all means of transport that offer space for a maximum of two people and are suitable for shorter distances. To be more precise, in most cases these are electrically powered vehicles. These are grouped together under the term “miniature electric vehicles“. The focus of micromobility is on resource-saving and flexible locomotion as well as relieving the burden on road traffic. These micro-vehicles mainly offer a solution in overcrowded big cities and are gaining more and more importance nowadays. Micromobility is revolutionizing the way we get around.
What makes micromobiles so special?
One important aspect of micromobility is flexibility in getting around. Nowadays, the focus is primarily on what is known as “shared mobility” or “mobility as a service (MaaS)“. This means booking mobility online when you need it. Various vehicles and different types of vehicle use are offered via a central platform. Interested parties can therefore choose the right vehicle for the route they want to take. In most cases, the principle of “free-floating” applies. This allows the driver to park the micromobile anywhere, so there is no fixed return location. In addition, the provider is responsible for charging and maintaining the vehicle. Other advantages are that the user can avoid traffic jams within the city and the problem of the annoying search for a parking space is eliminated.
Great potential is seen above all in the so-called first and last mile. Here, micromobility is linked with public transport: for example, the e-scooter can be used instead of the car for the journey to the S-Bahn or the journey from the S-Bahn to the workplace. As a result, resources are conserved and emissions are reduced. Micromobility benefits the environment and the general public by improving the air in cities while providing flexible transportation for urban society.
Regulations and restrictions within micromobility
Due to the ever-increasing importance of micro electric vehicles in recent years, an ordinance with current regulations was put into effect in June 2019. Basically, people 14 years and older are allowed to use electric vehicles. Possession of a driver’s license is not necessary for this purpose. The use of e-vehicles is permitted in public areas, provided they are limited to the maximum speed of 20 km/h and have a steering or stop bar. Operation is only permitted on inner-city roads and cycle paths and therefore not on sidewalks or motorways. In addition, traffic safety requirements, for example in the area of braking and lighting systems and electrical safety, must be ensured.
So far, some questions remain unanswered
Despite some advantages and opportunities in the field of micromobility, some serious problems still remain to be solved today. For one thing, there is the question of how environmentally friendly electric vehicles really are when the factors of production, battery and the expense of maintenance are taken into account. A large proportion of e-scooters are produced in China, largely using energy from coal-fired power plants. In addition, there is a high environmental impact in the production of the batteries due to the use of rare raw materials.
In the statistics shown, initial research on the environmental footprint of e-scooters in 2019 is presented. It is clear that the electric scooters, with approximately 130 grams of CO2 per kilometer, performed significantly better than a mid-range passenger car. Compared to a diesel-powered vehicle, however, the smallest vehicles are not in a good light: they emit twice as much CO2 as a diesel-powered bus.
Basically, e-vehicles only make environmental sense if they replace car or motorcycle trips. The more people use micromobility as a new means of transportation, the less people will then potentially resort to cars in the inner city area. Furthermore, wildly parked e-scooters and scooters create a social nuisance. Although the providers’ apps mark the areas where the scooters may be parked, it is not uncommon to find the e-scooters in rivers, in the middle of the sidewalk or even on trees. Locating the offender is almost impossible in most cases, which is why the providers have to bear the costs of disposal. So far, it is still questionable which further measures will be considered here. In addition, the aspect of road safety has not yet been sufficiently examined: Currently, there is no helmet obligation.
The illustrated statistics show that in the months from January to March 2021, a total of 356 accidents with personal injury were recorded when using very small electric vehicles, and in 49 cases there were serious injuries. One of the reasons cited for the high number of accidents is that it is not possible to tell exactly when the e-scooter driver is accelerating or braking.
Micromobility meets IAA
Under the motto “How do we want to move in the city of the future?”, mobility was examined from other angles for the first time at the IAA 2021 in Munich. These included sustainable and urban mobility, innovative public transport and intelligent infrastructure. A total of 109 exhibitors presented their visions of sustainable mobility in these thematic areas. Classic car manufacturers such as Porsche, VW or BMW followed the latest trend of the bicycle and presented their innovations. Young companies and start-ups also had a strong hand in the micromobility sector at this year’s IAA Mobility. Visitors were able to experience inner-city mobility first-hand, for example, from BMW X2City and other vehicles on a parcour or during guided tours.
Although opinions differ on the presentation of micromobility at a previously car-only trade show, the new mobility seems to be a complete success: The transformation of mobility is moving in the direction of digitalization and sustainability – and this has been implemented through the new concept of IAA Mobility. It is also clear that there has long been more than just the car or the e-bike, but that mobility options are being combined to create solutions for both rural and metropolitan regions.
Meanwhile, the IAA is considered the largest mobility event in the world.
Where is the micromobility journey headed?
The global forecast for micro electric vehicles over the next few years is promising, according to the statistics below. According to the report, the demand for inner-city mobility continues to rise. While in 2010 the global demand of micromobility was 25.8 trillion passenger kilometers, it is expected to increase to 48.4 trillion passenger kilometers by 2050.
According to a study by the world’s leading management consultancy McKinsey & Company, micromobility will generate up to $150 billion in Europe by 2030, and as much as $500 billion worldwide. The market for micro electric vehicles is growing two to three times faster than car sharing or e-hailing services. These include apps for mobility.
It therefore remains exciting to what extent electromobility will continue to develop and whether the majority will soon be turning to e-scooters instead of their own cars. We at magility will keep an eye on further developments for you.
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by Nada Welker | Jul 20, 2021 | Automotive Industry, Future Trends, New Mobility, strategy in change
The automotive industry is undergoing a profound transformation. Digitization and artificial intelligence are the two drivers that, individually but also in combination, have the potential to fundamentally change the business models of this industry. Back in 2018, we pointed out in our article “Smart Mobility- where is the journey of mobility heading?” that traditional carmakers will have to adapt their business models, because components that cannot be digitally controlled or integrated are no longer relevant for automotive manufacturing today. “Smart mobility” as a key element of the “smart city” is the order of the day, i.e. the increasing networking of transport infrastructure and means of transport, and only vehicles designed to match this integration are still marketable today. OEMs are making correspondingly great efforts to keep pace with developments and to influence and shape them through technical innovations and the adaptation of their business models. However, in doing so, especially with regard to the all-dominant topic of autonomous driving, they are encountering fierce competition from established IT giants, which is ensuring that there is a growing willingness to enter into strategic collaborations in important fields.
Transformation from pure automaker to integrated mobility group with software expertise
As a result of the advancing digital transformation and the increasing use of artificial intelligence, the entire automotive industry and its whole supply chain is undergoing a transformation process of unprecedented proportions. In this process, artificial intelligence offers completely new possibilities for adapting to the individual needs of vehicle owners and drivers. Functions such as the designable on-screen cockpit, voice control, control panels or touch screens for controlling interior functions such as heating, seats or navigation play a central role here. These technical innovations contribute to the fact that the car has long since grown beyond the stage of a simple means of transportation.
Last year, the software and technology company CARIAD was launched, a subsidiary of Europe’s largest automaker, the Volkswagen Group. CARIAD aims to accompany Volkswagen’s transformation into a digital, software-based mobility provider. This includes, among other things, the development of driver assistance systems and the software for autonomous driving. Furthermore, the focus is on increasing VW’s innovation speed, which should initially lead to a new automotive experience that seamlessly integrates into our digital world.
“The transformation in the automotive industry over the next ten to 15 years will be incomparable to what we have seen so far” (quote Volkswagen CEO Herbert Diess).
According to the Volkswagen Group’s own statements, 4,000 developers, engineers and designers from Audi, Porsche and Volkswagen are currently working worldwide on a uniform, central software for the vehicles of the entire Volkswagen Group. The uniform operating system is expected to find its way into all Volkswagen Group models starting in 2025. By that year, the number of employees is expected to grow to around 10,000. Almost 2.5 million EURO will be invested annually in the CARIAD software.
Current challenges for the automotive industry
In addition to the transformation to electromobility, advancing digitalization is causing fundamental changes in the automotive industry. While electromobility is exclusively about CO2-saving drive options, digitalization represents a more profound change for customers and, beyond that, for the entire mobility industry. Consequently, business models will change fundamentally in the future. This also becomes clear when looking at statistics that show how the distribution of sales in the automotive industry will change by 2030.
The statistics shown clearly indicate that digital services as well as new technologies and software solutions, which previously played hardly any role in the automotive industry, will account for a significant share of global automotive sales by 2030.
Competition gives rise to strategic cooperation
In the mobility services sector, the two competitors BMW and Daimler are entering into a strategic alliance to cooperate in some business areas in the future. The aim of their cooperation is to drive forward automated driving. By networking the expertise of the two technology leaders, the aim is to generate tangible benefits for customers as well as cost savings. As early as 2025, the first self-driving cars from Daimler and BMW are expected to be on the road on highways and parking without human control, i.e. with autonomy level four of five of the so-called SAE levels. The SAE levels describe how independently and autonomously a vehicle can act in road traffic. Level four includes complete control and monitoring on highways and when parking – but in city traffic, the driver must still intervene himself, which is why the steering wheel and pedals must still be present.
BMW and Daimler board members agree:
“Instead of individual stand-alone solutions, we are concerned with a reliable overall system that brings tangible benefits to our customers” (quote Daimler CEO Ola Källenius)
Waymo in first place in the transformation to autonomous driving
Waymo was launched in 2009 as Google’s self-driving car project. For several years, Waymo has been involved in the future operation of autonomous vehicles and holds the leading position in this sector.
“We are building the world’s most experienced driver” (quote on Waymo website).
Waymo’s vehicles have already been tested several times on public roads, numerous traffic situations have been recreated, and the collected data from these journeys has been evaluated and used for further developments. This is therefore not a driver assistance system in which the driver is still actively at the wheel, but a fully autonomous technology. The “Waymo Driver” has full control from pickup to destination. Using a perception system that decodes complex data collected by multiple sensors and accurately captures the environment, it can detect and identify pedestrians, vehicles, stop signs and more. The goal is to make traffic on the roads safer and easier. Since April 2, 2018, the first self-driving vehicles, without a driver behind the wheel, have been registered in the US state of California – so far without any major incidents or traffic accidents.
Apple as a serious competitor of the future?
What is certain is that the software in the vehicle will become one of the most important revenue generators in mobility in the future. Autonomous driving will make an important contribution to individual mobility. For this reason, it would not be unlikely for the IT group Apple to enter the automotive industry. Its distinctive software competencies could open up new opportunities and doors for the technology company. Reports about the probably planned “Apple Car” have been circulating for 2 years already. When and whether an electric vehicle from Apple will actually reach market maturity is currently still written in the stars – but it is not unlikely!
[infobox headline=”Summary in a nutshell”]
- Traditional automakers will have to adapt their business models, because components that cannot be digitally controlled or integrated are becoming less and less important.
- Artificial intelligence brings new opportunities for customization to meet the individual needs of the driver.
- The technology company CARIAD, a subsidiary of the Volkswagen Group, is taking its first steps toward transforming Volkswagen into a digital, software-based mobility provider.
- BMW and Daimler are entering into a collaboration to advance automated driving. As early as 2025, the first self-driving cars from Daimler and BMW are expected to be on the road.
- This is autonomy level four. It includes complete control and monitoring on highways and when parking.
- Waymo is engaged in the future operation of autonomous vehicles and takes the leading position in this field.
- It is a fully autonomous technology – so there is no need for a driver to be in the car.
- Digitalization is leading to a decisive transformation in the automotive industry – and we are right in the middle of it.
[/infobox]
If we allow ourselves a leap in time to the year 2030, the automotive industry could look like this:
- Mobility providers use higher-level traffic control to utilize traffic and reduce congestion.
- Autonomous vehicles make up at least 30% of vehicles in cities, including mainly buses and cabs.
- Extensive connected services and electric drives are implemented in new vehicles.
- Full synchronization of connected services in the car and smartphone apps.
- Possibility of switching on equipment elements for the vehicles.
- New production and logistics concepts: 3D printing of spare parts and components.
- Driver assistance systems have become so established and advanced that they can learn independently and individually from the respective driver through the use of AI and thus cover individual customer needs.
- At least 50% of business processes in the automotive industry are automated.
As a result of digitalization, the automotive industry is facing a decisive transformation: car manufacturers are being driven to adapt their vehicles to the spirit of the times and to rely on new digital business models. The trend toward autonomous driving is becoming increasingly relevant: Currently, we are still at the stage of partially automated driving using assistance systems. In some vehicles, you can already find functions such as automatic overtaking of other cars, automatic lane changing, and the ability to leave braking and parking to the vehicle without the driver’s influence. However, fully autonomous vehicles can so far only be used on test tracks with special permission. Yet, the full-scale deployment of autonomous vehicles is already being planned. But it is still uncertain when the necessary infrastructure and legal framework will be in place. We at magility will be happy to keep you up to date on further developments in the automotive industry. The transformation is picking up speed, and we are right in the middle of it. If you have any questions, please feel free to contact us!
