Car-based "mobility services" will become a trillion dollar industry by 2040—up from virtually zero a decade ago—with China at the forefront of tIHS transformation, according to insights from a new research service.

Dr. Daniel Yergin (r), vice chairman of IHS Markit, releases their latest research report 'Reinventing the Wheel: Mobility and Energy Future' on Dec. 12, 2017. [Photo by Li Huiru / China.org.cn]

One day ahead of the International Energy Executive Forum 2018, IHS Markit, a world leader in critical information, analytics and solutions, released its latest research report "Reinventing the Wheel: Mobility and Energy Future" on Dec. 12, saying that the growth in mobility services is one of the major driving forces of change in the automotive ecosystem that is already transforming how consumers buy, use and power cars.

"The growth of mobility services will lead to more miles traveled by cars and increased access to mobility via car use around the world. People will have greater access and other options than ever before," said Dr. Daniel Yergin, vice chairman of IHS Markit. The Pulitzer Prize winner is the project leader of the new research service. The service delivers short and long term insights and projections of how changes in the automotive ecosystem impact the oil industry, automotive manufacturers and their suppliers, as well as the chemical industry.

"China is at the forefront of the automotive transformation due to its large and growing car market," Dr. Yergin said. "In 2018, IHS Markit expects car sales in China to reach 28 million compared to 17.1 million in the United States, the second largest national car market in the world."

China is the world's largest market for electric cars (passenger cars and light trucks). From January to September, China sold more than 234,000 electric cars, a 24 percent year-on-year increase, according to the latest figures from the new IHS Markit service, while over the same period, the United States sold just over 140,000 electric cars—a 26 percent increase compared to the previous year.

New mobility services offer the temporary use of a car to consumers without ownership. The most common way IHS is done today is via app-based ride-hailing or car-sharing services, such as those offered by Didi Chuxing in China.

Growth of mobility services, together with other factors, will bring change in the automotive ecosystem.

"The combined impact of mobility services, driverless technologies, electric cars and government policies will propel a transformation in personal mobility," said Jim Burkhard, vice president and head of crude oil markets at IHS Markit.

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