Digital tech will fuel Asia's US$573 billion mobility market
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.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CNA
8 minutes ago
- CNA
China tariff deadline can be rolled forward 90 days: US Treasury chief
WASHINGTON: A deadline for tariffs between the United States and China to snap back to higher levels could be extended in a "90-day increment", US Treasury Secretary Scott Bessent said on Wednesday (Jul 23), ahead of trade talks next week. Top officials from the world's two biggest economies are set to meet in Sweden on Monday and Tuesday, with Bessent in the US delegation and Chinese Vice Premier He Lifeng attending the talks. "We're in a very good place with China now," Bessent told Bloomberg Television on Wednesday. He added that the upcoming talks would likely move beyond rare earths and export controls, and "on to bigger discussions". Asked about the Aug 12 deadline, when reduced tit-for-tat tariffs are due to bounce back to steeper levels, Bessent signaled openness to a significant extension. "I think that we could roll it forward, maybe in a 90-day increment," he said in the interview. "Both sides have de-escalated, and I think we can get into a very good cadence of regular meetings with them," he said. Washington and Beijing had slapped escalating tariffs on each other's exports in April, reaching prohibitive triple-digit levels, but both sides reached an agreement to temporarily lower them after negotiations in Geneva. The truce, however, is set to expire in August.
Business Times
38 minutes ago
- Business Times
Moody's profit tops estimates in sign of credit market's rebound
[WASHINGTON] Moody's, a bond grader and financial data provider, reported second-quarter revenue that beat analysts' estimates, underscoring credit markets' relatively quick recovery from April's tariff-fuelled tumult. Moody's adjusted earnings per share of US$3.56 topped analysts' forecasts of US$3.38. Its second-quarter revenue came in at US$1.9 billion or 4.5 per cent higher year-over-year. The company also lifted the lower end of its 2025 profit guidance that it had reduced in April, and said it expects revenue from its ratings unit to increase this year. The results highlight how corporate credit issuance was able to recover in the latter part of the second quarter, even as President Donald Trump's tariffs and the market meltdown that ensued pushed companies to delay issuing debt for several days at the start of April. Moody's earned 18 per cent more from grading blue-chip debt in the second quarter than it did in the same period last year, buoyed by one of the busiest first halves of the year for the market and relatively consistent bond sales following a turbulent period in April. That helped offset the decline Moody's faced in the leveraged loans segment, where its ratings revenue was a third lower than in the second quarter of 2024. Companies had abandoned the bank loan market for 14 straight trading days in April, the longest such streak in data going back more than a decade. But that market has since rebounded sharply, and Moody's said it no longer expects the amount of debt it rates this year to decline by as much as it had indicated in April. BLOOMBERG
International Business Times
an hour ago
- International Business Times
Markets Rally on Surprise US-Japan Trade Deal; Investors Await EU Talks, Earnings Reports
Asian markets climbed after President Donald Trump said that he had struck a trade deal with Japan. The deal shrinks tariffs on Japanese auto exports to the U.S. from 25% to 15%, lifting sentiment. Japan's Nikkei index (.N225) jumped 3.2% to also close at a year high. Toyota's shares soared 15%, and Mazda's were up 17% on the news. The yield on the 10-year Japanese government bond rose 9 basis points, too, as diminished trade uncertainty appeared to open the possibility of interest rate increases by the Bank of Japan. Early gains for the Japanese yen reversed, with the dollar up 0.2% at 146.9 yen. That came after Prime Minister Shigeru Ishiba was reported to be considering resigning in the wake of his party's defeat in Sunday's upper house election. Freepik EU, South Korea, and China Join the Talks Hope for a wider trade resolution increased after South Korea said it would send officials to Washington for more trade talks. At the same time, EU representatives from 27 member nations planned to be in the U.S. on Wednesday to renegotiate. Optimism around a possible EU-U.S. deal sent European stock futures up 1.1%. American and Chinese officials will also meet in Stockholm next week to discuss extending the current deadline on tariffs. These are developments that market participants are monitoring very closely as they influence the global mood. Earnings tin Focus: Tesla, Alphabet, and the Tariff Effect Markets now turn their attention to second-quarter earnings reports. Alphabet and Tesla, two members of the "Magnificent 7" of tech stocks, will also report results today after the market close. Analysts are eager to hear how the companies are coping with higher tariffs and shifting global demand. Early signs are mixed. General Motors dropped 8.1% after reporting a $1 billion tariff-related loss in its most recent quarter. Investors have become more attuned to earnings for evidence of a wider economic slowdown or deeper fallout from Trump's trade policies. What's Next? Market direction is still uncertain, with more tariffs ahead and fresh corporate earnings on the schedule. Here's what you need to know at the end of the day. U.S.- EU TRADE TALKS E.U. Trade Commissioner Resigns Amid Inquiries Sabine Weyand, the bloc's deputy Brexit negotiator, said on Wednesday that the 30-member European Union was ready to discuss trade terms with the United States as well.
