Insights for Jun-24

1. MoneyWeek: Speed Bumps Will Not Slow The Car Industry

I am pleased to share my feature in MoneyWeek, where I discuss evolving perceptions and trends surrounding electric vehicles (EVs).

Over the years we have seen the EV landscape advance, with many challenges such as cost no longer being one of the biggest concerns amongst consumers. The opportunity for mass EV adoption is clear, and although many people still have some negative perceptions, our data shows satisfaction from current owners and notable interest from those who have never owned an EV, will eventually drive others to make that purchase in the future.?

Despite the noticeable bumps and challenges, there has been a fundamental change that is happening within a short period of time that is transforming the industry.

Read the full article here.?

Becrom Basu

2. Unique Insights Into the Future of Mobility: Shifting Attitudes To Travel

We are pleased to publish a deep dive into the findings from our 8th Annual Global Mobility Study, building on our webinar earlier this year. It provides a detailed look into the shifting attitudes towards travel and the adoption of Electric Vehicles (EVs) globally. Over the last 8 years, across multiple countries, we have tracked and investigated the trends shaping the industry, witnessing significant changes across geographies and generations. For example, cost being the number one barrier to EV adoption in the UK, US and Australia has now been replaced with concerns of battery life, uncertain resale value and lack of charging stations.??

Through identifying these trends, understanding consumer segments and their attitudes, companies can effectively craft EV strategies amidst an evolving mobility landscape.??

Download our Executive Insights for a detailed look into this rapidly shifting sector and what it means for your organisation.??

Becrom Basu Natasha Santha Emile Santos Matthew Wayne Rob Haslehurst James Carter Dave Fish, Ph.D.

3. Shaping the Future of Advanced Air Mobility?

Shaping the Future of Advanced Air Mobility

Establishing a new industry like Advanced Air Mobility (AAM) poses numerous challenges. First of all, there’s the uncertainty. Is it even real? When will it happen? Is it right for our country? Should we invest in this or other investment priorities? Secondly, it involves breaking traditional industry boundaries to forge a new path and uniting stakeholders to align on readiness and support needs.

Over the last 12 months I have been working with the Australian Association for Uncrewed Systems (AAUS), and industry stakeholders across Australia in the AAM sector to develop an industry vision that represents a consolidated view of the future for the sector and the challenges ahead. In collaboration with the AAUS, L.E.K. provided valuable insights to create a landmark report. ?

2027 is a date you’ll want to mark in your calendars. This is when many people in the industry expect to see the first commercial service in Australia, however it could be earlier in other jurisdictions. This is a key milestone and a point we need to start planning backward from, however, there’s a lot to be done to get us to the point of first commercial launch:

• An agreed regulatory and permitting path forward for aircraft certification, training, maintenance, and infrastructure ?
• The ability to access airspace in a non-disruptive way, integrating with the existing air traffic management architecture
• Available infrastructure including vertiports but also grid connectivity, and access to radio frequency spectrum
• Social license to operate was mentioned often. As with any new technology, there is a natural mistrust which must be overcome. Success will be determined by the industry’s ability to effectively address concerns regarding noise, visual impact, privacy, security and safety.
• Last but not least, we need a certified aircraft, and the necessary financial and human capital to bring this to market. ?

We’ll start with small numbers, growing cautiously over time, before we reach a sustainable and significant industry of scale. There are some differences in opinions about timing, and how fast we’ll get there, but there is general consensus about the phases of the scale up process. ?

In the early days of commercialisation, it’s all about proving the value of the service, showing ‘no harm’ and building social licence. Services will be expensive, operated by individuals with pilots in low-risk areas. The initial use cases are crucial to demonstrate success, benefits, and generate community interest. This phase is the toughest for the industry, presenting the common challenge seen in new industries—the chicken-and-egg problem.

For the industry to witness returns, investments are necessary, but the return on investment will be less significant at a smaller scale or utilisation level. But it’s going to take time to scale, and getting to scale is dependent on a number of external factors; (1) social acceptance (2) customer willingness to pay, and (3) integration into airspace from higher risk locations … which are typically landing locations where there is likely to be a higher end user demand.

The less time we can spend in this phase, the better. Once we’re out of this ‘crawl’ or ‘prove’ phase and early uses cases are proven, consumer interest and demand is expected to grow. The industry expects to see aspects of automation introduced but with pilots still on board. Vertiports, will become more akin to intermodal hubs. As scale increases, and utilisation improves, we will start to see costs of services reduce making AAM accessible to more Australians. At scale, we’ll start to see AAM across all parts of our urban and regional communities. Remote piloted operations will become more commonplace, with services becoming affordable and highly accessible. ?

This future state is what industry is aspiring to.

For more insights and to see the full vision and road map for the industry, download the report.

Natasha Santha

4. L.E.K. Consulting Expands Presence and Capabilities in Gulf Cooperation Council Region??

L.E.K. is set to open a new office in Riyadh, Kingdom of Saudi Arabia, as client demand in the region continues to grow. We look forward to working alongside clients across the Gulf Corporation Council region. L.E.K.’s Global Managing Partner, Clay Heskett, anticipates mounting demand for its education, healthcare and transport consulting teams.

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