The move towards servitisation will require companies to explore new business models, which has significant implications for auto finance leaders.
Research carried out by White Clarke Group found that concerns around servitisation and the circular economy were a key area of focus during discussions with industry leaders.
The majority expected rapid growth in subscription services within the next five years, but they questioned the future growth of the pay-per use market, with key concerns including complex payment structures for customers.
As a result, industry executives suggested that any growth in models such as pay-per-mile is not likely to be seen for at least a decade.
Despite these disparate views on progress, the industry will need to prepare for change by developing new employee skills and considering where future opportunities for growth lie.
Colin Fleischmann, EMEA Business Development Director at White Clarke Group, said: “Business process re-engineering will require new solutions and technology. The old technology that you have today will not support the future. We are moving from a sales culture to a service culture.”
Learn more in this exclusive video recorded during the International Asset Finance Network conference.