US Role of Transportation Market Report 2023

Overview

• What you need to know
• This Report looks at the following areas
• Definition
• Market context

Executive Summary

• Top takeaways
• Consumer trends
• Younger consumers are the most likely to have used alternate transportation
  • Figure 1: Alternate transportation usage, by generation, 2022
• Reliability, convenience and safety are core considerations among consumers
  • Figure 2: Factors driving transportation choices, by generation, 2022
• Personal cars hold highest perceptions
  • Figure 3: Perceptions of transportation modes, 2022
• Consumers look to transportation to maintain cleanliness practices
  • Figure 4: Attitudes toward transportation – Cleanliness, by generation, 2022
• Millennials are most interested in new modes of transportation
  • Figure 5: Attitudes toward transportation – Future, by generation, 2022
• Competitive strategies
• Auto brands leverage brand heritage, history
  • Figure 6: Honda highlights its history and innovations
• Uber taps automakers for specialized vehicles
  • Figure 7: Uber working with automakers to design lower-cost ridesharing vehicles
• Auto manufacturers look to alternate mobility
  • Figure 8: Bugatti introduced its first electric scooter
• Market predictions
  • Figure 9: Role of transportation outlook, 2023-28
• Opportunities
• Drive interest by offering month-to-month subscription programs for personal vehicles
• Position car sharing or car rentals as part of the experience; create experiences
• Promote sustainability efforts
• Develop partnerships with other services to improve perceptions, borrow equity
• Continue to improve and educate consumers on safety practices

Market Drivers

• Consumer confidence, inflation and unemployment drive consumers to be more critical of their spending
  • Figure 10: Consumer Sentiment Index and unemployment, 2000-23
• Gas prices could push consumers to alternate modes of transportation
  • Figure 11: US gasoline and diesel retail prices, 2007-23
• Prices of new and used vehicles present barriers, driving consumers to affordable modes of transportation
  • Figure 12: Consumer Price Index, new vehicles and used vehicles – Seasonally adjusted, 2018-23
• Emerging consumer segments present opportunities transportation industry
  • Figure 13: Population, by generation, 2017-27
  • Figure 14: Population by race and Hispanic origin, 2017-27
• E-BIKE tax credit proposed

Competitive Strategies and Market Opportunities

• Auto brands leverage history, personal connection to drive interest in personal vehicle ownership
• The opportunity: Leverage long-standing expertise to create an emotional connection
  • Figure 15: Honda highlights its history and innovations
• Uber taps auto manufacturers to develop ridesharing vehicles
• The opportunity: Introduce new offerings to drive interest, improve service
  • Figure 16: Uber working with automakers to design lower-cost ridesharing vehicles
• Auto manufacturers invest in electric scooters, bikes
• The opportunity: Introduce consumers to the brand with affordable, new offerings
  • Figure 17: Bugatti introduced its first electric scooter
• Car-free communities emerge
• The opportunity: Leverage the emergence of car-free communities
  • Figure 18: Community with car-free zones announced in Houston area
• Consumers’ interest in personalization highlights opportunity
• Position car sharing or car rentals as part of the experience

The Consumer – Fast Facts

Methods of Transportation Used

• Younger consumers are driven to various modes of alternate transportation
  • Figure 19: Alternate transportation usage, by generation, 2022
• Women look to their personal vehicles; public transportation must improve perceptions
  • Figure 20: Lyft highlights safety checklist
  • Figure 21: Alternate transportation usage, by gender, 2022
• Access drives usage for consumers across areas
  • Figure 22: Alternate transportation usage, by area, 2022
• • Figure 23: Attitudes toward personal vehicles – Benefits, by area, 2022
• Multicultural consumers gravitate to alternate transportation
  • Figure 24: Alternate transportation usage, by race and Hispanic origin, 2022

Choosing How to Get Somewhere

• Reliability, convenience and safety are core factors driving transportation choices
  • Figure 25: Factors driving transportation choices, by generation, 2022
• Consumers won’t compromise core factors, regardless of financial stability
  • Figure 26: CTA highlights short and long term transit passes
  • Figure 27: Factors driving transportation choices, by financial situation, 2022
• Hispanic, Black consumers prioritize price and convenience equally
  • Figure 28: MBTA highlights delay and speed limit reports
  • Figure 29: Factors driving transportation choices, by race and Hispanic origin, 2022

Perceptions of Transportation Methods

• Personal cars lead in terms of perceptions; alternate mobility provides an opportunity
• • Figure 30: Mercedes-Benz highlights a commitment to recycled materials
• • Figure 31: Automakers introduce last-mile transportation offerings
  • Figure 32: Perceptions of transportation modes, 2022
• Ridesharing challenges public transportation in terms of consumers’ perceptions
  • Figure 33: Perceptions of transportation modes – Shared, 2022
• • Figure 34: Perceptions of transportation modes – Shared, by gender, 2022
• Car sharing services have room to grow in terms of perceptions
  • Figure 35: Perceptions of transportation modes – Personal, 2022
• • Figure 36: Perceptions of transportation modes – Personal, by generation, 2022

Attitudes toward Transportation

• Consumers are interested in cleanliness practices, policies
  • Figure 37: Attitudes toward transportation – Cleanliness, by generation, 2022
• Millennials are most open to new modes of alternate transportation
  • Figure 38: Attitudes toward transportation – Future, by generation, 2022
• • Figure 39: Attitudes toward personal vehicles – Benefits, by generation, 2022
• Multicultural consumers look to the future
  • Figure 40: Attitudes toward transportation – Future, by race and Hispanic origin, 2022
• Consumers’ feelings toward personal vehicles vary
• • Figure 41: Attitudes toward personal vehicles – Feelings, by generation, 2022

Appendix – Data Sources and Abbreviations

• Data sources
• Consumer survey data
• Consumer qualitative research
• Abbreviations and terms
• Abbreviations