Technological innovation is transforming every aspect of the mobility sector, and more companies are beginning to investigate disruptive technology. A McKinsey analysis identifies the trends to watch.
GLONew insights from McKinsey on technologies driving change in mobility.
Key takeaways:
The technological shifts propelling change within the mobility sector are becoming increasingly apparent. In many urban areas, the adoption of scooters and shared e-bikes has become commonplace, indicating a growing acceptance of alternative transportation options. A recent survey revealed that nearly half of the participants are willing to explore alternatives to private vehicle ownership within the next decade. Concurrently, the automotive industry is witnessing significant transformations, with the advancement of Electric Vehicles (EVs) and the integration of autonomous-driving features garnering substantial investments.
These changes are largely facilitated by technological advancements, which not only drive innovation but also facilitate the transition towards more sustainable and inclusive transportation systems. Notably, improvements in battery technology and the reliability of EVs have contributed to their increasing adoption rates. Among the numerous technological advancements shaping the mobility landscape, the latest McKinsey Technology Council report highlights ten key trends:
- Enhanced connectivity
- Application of Artificial Intelligence (AI)
- Cloud and edge computing
- Generative AI
- Immersive reality technologies
- Industrialization of machine learning
- Next-generation software development
- Quantum technologies
- Trust architecture and digital identity tools
- Web3
The report indicates that a significant portion of companies (20%) are actively involved in developing products or services aligned with these trends, with many having secured substantial investments for their initiatives. These companies exhibit strong financial performance, collectively receiving funding exceeding $200 billion. Notably, a majority (64%) of these entities are focusing on applied AI applications or technologies empowered by applied AI, making it the predominant technological trend in the mobility sector.
Source: McKinsey
