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 /PRNewswire/ -- 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 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.
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Global Purpose-built Vehicle Strategic Insights and Growth Opportunities
Source: Frost & Sullivan