Market Assessment

Background

With increasing focus by government and the public on traffic congestion, its impact on the environment and unpopular fuel duties, the introduction of programmes such as  the London’s  Congestion Charging Scheme fundamentally changed the political landscape by demonstrating that Road Pricing can be successfully introduced within the UK and that the technological and political barriers can be overcome.

The success of the London scheme led to proposals for similar schemes in cities worldwide. This burgeoning market is attracting an increasing interest from a number of large service providers and systems integrators.  A Global European based systems integrator and consulting organisation wished to further understand the dimensions of these changes and the resulting road pricing market as well as their positioning to take advantage of it.

Business Challenge

Our client faced issues of understanding:

• Their competitive position in the UK road pricing and ITS market
• The amount and focus areas for investment
• Growth scenarios for the UK road pricing and ITS market
• The roles of the public and private sectors
• The impact of Europe and Global road pricing
• The trends in the development of road pricing and ITS technology

Our Approach
 
Consulting Stream created a research framework to quantify the key market attributes and identify, interview and analyse the output from various stakeholder groups, such as government, systems integrators, service providers, technology providers, research institutions, associations and experts.
We developed a market model analysing market scenarios and evaluated potential impacts of each scenario.  This resulted in proposed market structures, a competitive landscape and the market opportunities and challenges for this organisation.  We also conducted a competitive analysis positioning this organisation vis-à-vis their competitors. 
Our team was able to provide:

• Significant experience of Road-User Pricing in the UK and internationally;
• An understanding of the commercial, policy and political landscape associated with Road User Pricing both in the UK and in Europe;
• Working on Client side procurements of Road User Pricing Schemes;
• Extensive contacts and relationships across the ITS market, both in the public and private sectors.

Business Outcome

The study formed the basis for a board level investment decision on where and what amount our client would commit to this market.  These investment decisions resulted in funding of specific capabilities, partnerships and market facing propositions.  The findings of the study provided decision scenarios driven by distinct stakeholder groups (domestic and international) and how hybrid scenarios would impact the value, timing and development of the market for future road pricing and intelligent transport systems. This resulted in a presentation to the global non-executive board which focused long term investment in developing the organisation to prepare for this growing market.

Services Provided

• UK and European Road Pricing and ITS legal and policy framework analysis
• Road-User Pricing and ITS technology experience
• Stakeholder management
• Market research and analysis
• Business case development

Skills Deployed

• Commercial, policy and political understanding;
• Research framework development;
• ITS/Road Pricing technology expertise;
• Market and scenario modelling.

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