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Business Times
6 days ago
- Automotive
- Business Times
Digital tech will fuel Asia's US$573 billion mobility market
ASIA is expected to have the world's largest mobility market by 2035, thanks to technological developments, infrastructure investments and a growing middle class eager to spend on next-generation transport. While other regions will see significant growth in electric vehicle (EV) charging, ride-hailing, car rentals and advanced driver-assistance systems (Adas), the Asian market is set to climb from US$161 billion in 2023 to US$573 billion by 2035 and account for half of the global market, which is expected to be $1.1 trillion, according to research by the Oliver Wyman Forum. Some Asian nations, like China, are at an advantage in deploying cutting-edge mobility technology thanks to access to massive amounts of data available, significant investments in infrastructure, and a rich ecosystem of leading startups and workforce talent. Consumers are also eager to adopt these new solutions, translating into an above-average willingness to pay more for these services compared to those from other regions. And while global tariff circumstances may hinder development to some extent, much of Asia's mobility growth will come from digital services that may be less sensitive to potential trade barriers within the region. These mobility services are fuelling Asia's next decade: Advanced driver-assistance systems Capital and technical expertise from the region's leading tech firms and fierce competition between Asia's equipment manufacturers are accelerating the development of 'Level 2 and 3' driver-assist abilities. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up These features offer partial autonomous features, such as steering and acceleration, to decision-making abilities, like moving past a slow-moving vehicle. Those forces are enabling Asia's Adas market to skyrocket by 56 per cent annually, from US$798 million in 2023 to a likely US$170 billion by 2035. Asian consumers also are more willing to pay a premium for an autonomous vehicle, and more eager to switch car brands for better driver assistance offerings than consumers in other regions, according to an Oliver Wyman Forum survey of more than 16,700 respondents in 17 nations completed in the last quarter of 2024. Some 68 per cent of consumers from India, Indonesia, Hong Kong and Singapore are willing to pay premium prices for autonomous features, compared to the global average of 61 per cent. Additionally, 91 per cent would switch car brands to access superior driver-assistance systems – again, higher than the 82 per cent global average. And while recent accidents with driver-assistance technology in the region may shake consumer sentiment in the short term, the market is still set to grow exponentially. Government and industry players are accelerating investment and on-road testing of autonomous vehicles, particularly in China. At least 16 cities across China, for example, allow autonomous vehicle providers to test on public roads, with roughly 20 Chinese automakers and suppliers involved as at 2024. In 2034, China is projected to sell enough 'Level 4' autonomous vehicles – those that are fully autonomous under certain conditions – that it nearly matches that of the combined American and European markets, according to an S&P forecast. Private capital is following Asia's lead. The region's entire value chain, from autonomous driving startups to microchip suppliers, secured US$6.5 billion in 2024, more than double the US$2.9 billion raised in 2023, according to an Oliver Wyman analysis. Ride-hailing Ride-hailing in the region is expected to almost double in size to US$150 billion, up from US$98 billion at a 3.6 per cent annual rate, as a growing middle class seeks more convenient travel in dense cities – some of which have restrictive paths to car ownership. That is a larger market size than the combined forecast for Europe, Africa, the Middle East and North America, which is expected to be roughly US$134 billion. Nearly three-fourths of Asian consumers regularly use ride-hailing services – far exceeding the global average of 44 per cent, according to an Oliver Wyman Forum survey. Super-app providers have boosted this demand by creating seamless ecosystems that make ride-hailing more affordable than in Western markets. Asian consumers pay an average of US$0.92 per kilometre compared to US$2.34 in Europe and US$1.78 in North America, research by Oliver Wyman Forum found. Across Asia, proactive regulation will continue to grow the market: Japan lifted a ban on ride-hailing services in Tokyo in 2024, with services now operating in all 47 of Japan's prefectures as of 2025. Elsewhere, Singapore's Land Transport Authority granted two provisional licences to ride-hailing operators to begin operating in 2025, while one ride-hailing platform began operating in Hong Kong in November 2024. Electric vehicle charging Asia is historically a leader in EV adoption, particularly in China, but many other Asian economies are following suit. EV sales rose 40 per cent from 2023 to 2024 in the region's emerging and developing economies, according to the International Energy Agency. Indeed, roughly 43 per cent of consumers in Asia plan to buy an EV, according to a November 2024 Oliver Wyman Forum survey, compared to the global average of 38 per cent. A widening EV market share in Asia is in part fuelling a charging services industry that is expected to grow from US$1.9 billion in 2023 to US$27 billion by 2035, at a 25 per cent annual rate. Many providers and governments are working in tandem to accommodate strong consumer demand. One Chinese automaker, for example, announced in March 2025 an ultra-fast charging system that it claims can power up a battery nearly as fast as refuelling a petrol-powered car. Elsewhere, Singapore aims to build 60,000 charging points by 2030. The broader EV ecosystem – from raw material miners to battery manufacturers and recyclers – is also expanding through a surge in venture capital into startups that support the full battery life cycle. Chinese startups collected US$5.3 billion in funding between 2021 and 2024, according to an Oliver Wyman analysis. The writers are from Oliver Wyman. Dr Andreas Nienhaus is a partner in the firm's automotive and mobility, and private capital practices. He is also co-lead of its think tank Oliver Wyman Forum's mobility initiative. Frank Fang is a principal in Oliver Wyman's transportation and advanced industrials practice, and Jonas Junk is an engagement manager in the firm's automotive and mobility practice.
Ottawa Citizen
12-05-2025
- General
- Ottawa Citizen
Phillips: Clear transportation plan works for Helsinki; why not here?
The last decade has not been kind to Ottawa's transportation infrastructure and public transit. This must change if the Official Plan's goal is to be achieved: to become the most livable mid-sized city in North America. Article content Article content Ottawa's Official Plan calls for densely populated 15-minute neighbourhoods linked by equally dense and integrated public transit and networks for safe walking and biking. The city's newly released draft Transportation Strategy is a key instrument to realize this goal. To work, however, it must establish clearly defined measurable outcomes. Article content Article content Outcomes state desired changes in the quality of life for people, environmental conditions and economic vitality. Key indicators inform better decisions by staff, management and council. Ongoing tracking of progress allows staff to adapt quickly and cost effectively. Can anyone see 10 years ahead? Does any organization always get things right the first time? No. So the city must constantly assess implementation and innovate in real time. Article content To understand what is required, Helsinki, a city much like Ottawa in size and values, offers a results-oriented model with its Transportation Strategy. At the heart of Helsinki's strategy lies the Transport System Plan for the City Centre. It demonstrates the city's commitment to continually monitor and assess whether an adaptive, efficient and sustainable urban mobility network is emerging from its strategy. Article content Helsinki is internationally recognized for its innovative urban development and forward-thinking public transport solutions. The 2023 Urban Mobility Readiness Index — produced by the Oliver Wyman Forum in partnership with the University of California — evaluated 67 international cities on how well their transit systems and mobility infrastructures are prepared to meet future challenges. Helsinki topped the ranking, based on its current transit but also its strategic foresight to adapt new technologies such as autonomous transport and smart infrastructure. Article content Article content Article content In response to rapid urban growth and escalating demands on city infrastructure, Helsinki prioritized clear targets and constantly reassesses them. Rather than implementing static measures, the city sets ambitious performance goals and key performance indicators (KPIs) to capture progress. Helsinki constantly refines its strategies based on real-time data. Article content The process began with a well-articulated vision: to transform the city centre into a hub where sustainable mobility is the norm, and where walking, cycling and public transit become the preferred modes of travel over private cars. This vision is underpinned by specific, quantifiable targets such as reducing travel time, lowering carbon emissions, reducing accidents and injury and increasing public transport usage. By defining KPIs from the outset, the plan ensures that every initiative is measurable and aligned with the overall vision. Article content A continuous cycle of action, evaluation and adjustment integrates feedback loops through mechanisms such as citizen juries and digital data analysis. Public opinion is actively sought, supporting real-time refinements. When a specific measure falls short, the strategy component is recalibrated, allowing for flexible, data-informed decision-making. Each desired outcome such as 'improved urban air quality' is matched with a metric, in this case 'reduced concentrations of carbon dioxide, nitrogen oxides, and particulate matter' that is monitored through data tools.
Free Malaysia Today
11-05-2025
- Business
- Free Malaysia Today
Go beyond assembly lines and semiconductors, Malaysia advised
Malaysia has been caught in isolated segments of manufacturing, says management consultant Ben Simpfendorfer, making it difficult to attract strategic investments. (Bernama pic) KUALA LUMPUR : Malaysia should broaden its manufacturing ecosystem beyond assembly lines and semiconductors to fully capitalise on foreign investments, according to an international management consultant. Ben Simpfendorfer, a partner at the consultancy Oliver Wyman, said solar panels, battery storage systems, heat pumps, and electrolysers are among the clean energy products that Malaysia could also start manufacturing given the huge potential they hold. 'There is a growing interest from Chinese firms in clean energy manufacturing,' he said. Simpfendorfer, who is also the head of Oliver Wyman Forum, the consultancy's think tank, said Malaysia has to move beyond basic assembly work and set itself up as a complete manufacturing hub. 'It shouldn't be just another stop in the process,' he told FMT. He said that while Malaysia has the opportunity to be a big winner in the reconfiguration of global supply chains, it needs to have a holistic master plan as well as an ecosystem that that has both breath and depth. 'That means building full vertical supply chains – not just isolated segments of manufacturing,' he said. Simpfendorfer said the time has come for Malaysia to act given that it has already attracted investments from companies aiming to build resilience in their supply chains, particularly in semiconductors. 'The foundations here are very strong as Malaysia has a solid legal framework and robust foreign investment policy incentives but there's obviously more that can be done. 'The next stage in the process is to focus on building the ecosystem,' he said. Simpfendorfer shared these insights after a roundtable in Kuala Lumpur with senior leaders from both the public and private sectors recently. He noted that while many are uncertain about near-term possibilities, and some sectors are still in the 'wait-and-see' mode, long-term prospects in the region remain strong. He singled out Malaysia as one of the countries that stand to benefit as supply chains are de-risked and Chinese interest grows amid global trade tensions. 'Malaysia has a unique window of opportunity as multinationals reconfigure their geographic footprints and rebalance supply chains,' he said. Simpfendorfer said Asean is increasingly seen as the place to be, with few other regions offering the same scale and manufacturing base, with Mexico being the only other exception. Last year, Malaysia crossed a milestone with RM378.5 billion in approved investments, the highest in the nation's history, with key strategic investments coming in from the US, Germany, China, Singapore and Hong Kong. Preparing to stay in high-tariff world He said some businesses are already making strategic plans to reconfigure their supply chains given that 'we are not returning to a low-tariff world'. 'With tariffs expected to be higher than before, now is the time to consider what future global supply chains might look like. 'Companies must plan for new trade corridors, such as China to Asean or Asean to India, and position themselves to capitalise on these opportunities,' he said. With this in mind, he said, more firms need to focus on identifying emerging trade opportunities and positioning themselves to make the most of future possibilities.
Al Etihad
22-04-2025
- Business
- Al Etihad
UAE cities stand out for connectivity, commercial centres in global hub index
23 Apr 2025 00:31 KHALED AL KHAWALDEH (ABU DHABI)UAE cities' connectivity and vibrant commercial centres stood out as major strengths in a new report that measures the viability of emerging hubs around the world.'The Cities Shaping the Future' report by global firm Olyver Wyman ranks cities on an index, measuring them across four factors that impact their viability as global centres for commerce and trade in a changing world. These factors include the strength of their commercial hubs, their manufacturing base, their connections to the outside world, and climate ranked 8th for its commercial hubs and fourth for its mobility and connectivity. Abu Dhabi follows on the 29th spot for its commercial hubs and 34th for its connectivity.'The global economy is undergoing the biggest transformation in a generation. Geopolitical tensions, protectionist pressures, and a wave of industrial policies are prompting corporations to rethink where they produce and market their goods and services. At the same time, demographic shifts are fuelling the emergence of new centres of production and consumer demand,' the report read.'[Dubai] will benefit from the megatrends reshaping opportunities across our 15,000 cities,' it its strong aviation and port services, retail brand and financial centre, Oliver Wyman Forum believes the city will only grow as a centre point between East and West, and it is well capitalised to win in a more fragmented world. It said this was evidenced by the city's increasing cargo and passenger flows, as well as strong economic and Abu Dhabi scored moderately on their manufacturing capability, ranking 127th and 222nd, a ranking which Olyver Wyman Forum said would likely rise amid shifting global supply chains.'Forces are creating new drivers of growth and innovation, shifting the global economy's centre of gravity away from the North American and European markets that powered the 20th century,' the report read. 'This is happening most dramatically and visibly in the fast-growing cities of Asia, Africa, Latin America, and the Middle East.' Regionally, Riyadh and Istanbul also stood out in the rankings, ranking above Dubai owing to their more favourable climate.
Zawya
22-04-2025
- Business
- Zawya
Dubai, Riyadh emerging top commercial hubs globally, says report
The cities of the GCC are rapidly establishing themselves as leaders in business, industry, and mobility, according to Oliver Wyman Forum, which underscores the rise of fast-growing urban centers of Asia, Africa, Latin America, and the Middle East. Dubai ranked 4th as a mobility hub and 8th as a commercial hub, while Saudi capital Riyadh ranks 15th amongst the commercial hubs globally, stated Oliver Wyman Forum in its 'The Cities Shaping The Future' report. This new landscape presents an enormous opportunity for corporations, and the new Cities Shaping The Future index ranks cities across Asia, Africa, Latin America, and the Middle East in four categories: *Export Champions benefiting from shifts in global supply chains. *Mobility Connectors that facilitate the movement of goods and people. *Commercial Hubs with vibrant corporate, industrial, retail, and hospitality sectors. *Climate Resilient Cities less exposed to risks of flooding and extreme heat or taking action to strengthen their resilience. Ranking the business attractiveness of 1,500 cities in those regions, it reveals a shift of the global economy's center of gravity away from the North American and European markets that powered the 20th century. The findings reveal a global economy undergoing its biggest transformation in a generation. Geopolitical tensions, protectionist pressures, and a wave of industrial policies are prompting corporations to rethink where they produce and market their goods and services to make their businesses more resilient, said Oliver Wyman Forum. At the same time, demographic shifts are fueling the emergence of new centers of production and consumer demand. This is happening most dramatically and visibly in the fast-growing cities of Asia, Africa, Latin America, and the Middle East, it stated. The key ranking makes Dubai a major regional and international mobility hub that will benefit further from global growth rebalancing and supply chain shifts. The shift of supply chains and the rise of India's manufacturing will strengthen Dubai's role as a regional and global cargo hub, stated the report. On the Dubai growth, the Oliver Wyman Forum findings said Jebel Ali Port ranks among the world's top 20, serving as a major transshipment center for countries of the GCC, the Indian subcontinent, and Africa. Owned by Dubai-based DP World, the port is part of an expanding global network that includes 18 ports and terminals across Asia Pacific and ensures that the emirate is connected to a region that accounts for 40% of global trade. Dubai is a global aviation hub and home to the world's busiest international airport, receiving over 90 million passengers in 2024, with flights to over 250 different cities. Without Dubai, connectivity between cities in Africa, the Middle East, Asia, and even Latin America would be significantly weaker, it stated. Riyadh ranks 15th amongst the commercial hubs across the world. The Saudi capital is a rapidly growing commercial hub with a strong retail sector and corporate presence, and ambitious aviation plans. The city's rise reflects the importance of national industrial policy, a key megatrend. Riyadh's commercial landscape has changed rapidly during the past 10 years, even as a range of so-called giga-projects transform other parts of the country. The city may equally benefit from supply chain de-risking, as manufacturers seek options outside of China, especially in sectors that are energy intensive or reliant on petrochemical inputs. Riyadh has an affluent and strong retail sector compared with some other hubs. Luxury brands have a strong presence in the city and the number of five-star hotels is growing rapidly. Global retailers are also expanding their footprint. A vibrant international tourism sector boosting air connectivity and retail is a common feature among the largest commercial hubs on the report's list. Riyadh's role as a hub for a large domestic market also contributes to its ranking. The city serves as headquarters for a large and growing number of listed domestic companies. The number of multinationals based in the city is smaller but expanding rapidly in line with the economy's growth. Ben Simpfendorfer, a Partner at Oliver Wyman, based in Hong Kong, said: "The cities of the GCC are rapidly establishing themselves as leaders in business, industry, and mobility. With a combined population of 42 million and a GDP of $1.815 trillion, the Gulf's urban centers present substantial opportunities for growth and innovation." "This progress is driven by the fact the GCC is a vital connector between Asia, the Middle East, and Africa, fostering the flow of capital, talent, and technology," he added. -TradeArabia News Service Copyright 2024 Al Hilal Publishing and Marketing Group Provided by SyndiGate Media Inc. (
