The need to address various requirements in ride share and ride-hailing expedites purpose-built vehicle (PBV) market growth, finds Frost & Sullivan‘s recent analysis. This sector involves original equipment manufacturers (OEMs) designing, fabricating, and selling highly customized vehicles that adapt to customers’ application needs. With three innovative business models——build-and-own, build-and-sell, and configure-and-buy—the PBV market improves automotive business models’ vertical integration and brings customers and manufacturers closer by eliminating gaps.
“Conventional business models have multiple stages before vehicles reach consumers, resulting in end customers receiving incorrect, inaccurate, or incomplete information,” said Thanigesh Arumugam Parthasarathi, Mobility Research Analyst at Frost & Sullivan. “The PBV market, on the other hand, offers optimization feasibility and enables customers to co-create vehicles with OEMs according to their requirements.”
Parthasarathi added: “The rise in the adoption of electric vehicles (EVs) drives shared service providers and OEMs to develop electric-driven PBVs. Further, the modular EV skateboard and electrical/electronic architectures followed by many PBV makers will enable new technological developments in vehicle design.”
Customers’ increasing preference for PBVs presents growth prospects for market participants in different areas, including:
- Disrupting the cargo delivery vehicle market: Logistics companies can commission PBVs to achieve maximum cargo space and reduce the fleet number and operational costs incurred by each fleet.
- Facilitating the advent of autonomous shuttles and robotaxis: Companies developing purpose-built shuttle services can consider optimizing the vehicle design to convert the same vehicle to autonomous shuttles and robotaxis in the future.
- Creating opportunities for start-ups: Automotive start-ups can leverage the PBV market to offer fresh concepts and create technologically updated vehicles for ride share and ride-hailing services.
Global Purpose-built Vehicle Strategic Insights and Growth Opportunities is the latest addition to Frost & Sullivan’s Mobility research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.