Ride share and Ride-hailing Boost Global Purpose-built Vehicle Demand

The purpose-built vehicle market improves vertical integration and brings customers and manufacturers closer by eliminating gaps,says Frost & Sullivan

SAN ANTONIO,June 23,2022 -- 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.

Purpose-built vehicle design

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"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 Opportunitiesis 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.

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Global Purpose-built Vehicle Strategic Insights and Growth Opportunities

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