As global urbanization continues to be a rising trend, traffic congestion, frequent car accidents, and high vehicular carbon emissions have become the three major issues in modern society’s transportation sector. While electric vehicles (EVs) can reduce carbon emissions and have brought the concept of future mobility into the spotlight, “electrification” is not the only solution to transportation problems. The so-called “future of mobility” involves rethinking how we get around, not just changing the type of power we use.
If our daily lives and habits never really change, one mode of transportation would suffice. However, humans always evolve and adapt as individuals and communities. Whether the task is running out for a quick snack, dropping kids off at school, socializing at a bar, or taking the whole family to the airport, our lives are full of diverse mobility needs. Outside of metropolitan areas, one or two vehicles might still suffice, but in densely populated urban centers, traditional and outdated modes of transportation need to give away to more versatile, flexible, and sustainable solutions.
Future mobility is not simply about buying an electric car, or even a “flying car” in the distant future. It is about how technologies such as smart vehicles, vehicle-to-everything (V2X) communication, and mobility as a service (MaaS) will develop. What opportunities could Taiwan seize in this changing landscape?
Smart Vehicles: Autonomous Driving, Intelligent Cockpits, and Opportunities for Taiwan’s Supply Chain
To solve traffic congestion and reduce accidents, smart vehicles are crucial. Using various sensors to collect environmental information, computers can assist in driving decisions. This is a capability that is already seen in current autonomous driving technologies. Most new cars on the market now feature Level 2 automated driving assistance (also known as Partial Driving Automation). This level, which involves the use of advanced driver assistance systems (ADAS), helps alleviate driver fatigue. At the same time, many automakers and tech giants are beginning to test more advanced Levels 3 and 4 autonomous driving capabilities.
To further develop smart vehicles, it is necessary to advance both autonomous driving and intelligent cockpits. The core of autonomous driving lies in sensors and computing power, whereas intelligent cockpits are designed to enhance human-machine interaction and improve the in-car experience in response to new driving behaviors.
The hardware required for autonomous driving includes sensors such as radar, LiDAR, cameras, infrared, and ultrasonic sensors. The vehicle’s on-board computer also needs a more powerful processor core. On the software side, a robust map system, AI algorithms, and extensive driving data are crucial. Additionally, for effective communication with the computer, smart vehicles must be equipped with interfaces such as touchscreens and voice recognition functionalities.
“For automakers, the biggest challenge still comes from the software,” says TrendForce analyst Caroline Chen. She points out that currently, European and American automakers heavily rely on Tier-1 suppliers for software, resulting in poor hardware-software integration. Conversely, the automotive market of China, with its fierce competition and rapid pace of development, has already surpassed European and American markets in terms of autonomous driving and infotainment technologies.
It is also worth noting that traditional automakers have long focused on vehicle drivetrains (engines, transmissions, driving experience), but as autonomous driving capabilities advance—with widespread adoption of Level 3 autonomous driving anticipated by 2025—automotive brands that emphasize intelligent cockpit features such as in-car information and entertainment will attract more attention from car buyers.
Overall, while Taiwan does not have international automotive giants or Tier-1 suppliers, companies located on the island have a significant presence in many aspects of the smart vehicle industry, especially in automotive displays and sensing technologies. Taiwan-based companies are consistently on the procurement lists of Tier-1 suppliers. They manufacture components such as camera lenses, radar transmitters, and ultrasonic sensors. Automotive displays are particularly notable, as Taiwan-based display panel manufacturers are key suppliers for high-end electric vehicles EVs.
In terms of software, Taiwan-based companies find it more challenging to enter the market. On a global scale, only a few major players dominate the market for autonomous driving software. As for mapping-related software, this market is mainly occupied by local companies that specialize in this field and are relatively unaffected by issues involving the international supply chain.
In the coming years, one of the major challenges may not be technological but geopolitical. In response to the ongoing tensions between the US and China, many Taiwan-based companies have already moved their production bases to countries such as Thailand, Indonesia, and Mexico to mitigate the risks associated with relying on a single market. In April 2025, Taipei is set to host the 360° Mobility Mega Shows, where various solutions for EVs, autonomous driving, and smart mobility ecosystems will be exhibited. This event aims to provide a comprehensive overview of the latest developments in Taiwan’s automotive electronics sector.
V2X: Moving from Individual Vehicle Intelligence to Integrated Smart Transportation
The development of autonomous driving goes beyond just the technology within the vehicle; equally important is external connectivity, known as “vehicle-to-everything” or V2X. This technology enables vehicles to connect with the outside world through the internet. For example:
- V2V (vehicle-to-vehicle): Vehicles exchange information with one another. For instance, Volvo’s “slippery road alert” function notifies trailing vehicles when a car detects slippery road conditions.
- V2I (vehicle-to-infrastructure): Smart traffic signals adjust light sequences dynamically based on traffic flow to improve traffic efficiency.
- V2P (vehicle-to-pedestrian): Vehicles communicate with pedestrians’ mobile devices to issue warnings and prevent accidents.
Moreover, some countries are testing smart highways where trucks can drive in platoons. Through V2X communication, logistics vehicles can follow one another automatically while maintaining a stable speed and distance, reducing fuel consumption and enhancing road safety while minimizing driver fatigue. Collectively, these external vehicle data connections are referred to as the V2X network.
Working from the same concept, we can even envision a future where all cars on a highway communicate with one another, knowing each other’s destinations. Computers could then coordinate the optimal lanes and speeds for each vehicle, ultimately achieving the ideal of zero accidents and zero congestion.
Nevertheless, the dream of V2X technology becoming a reality is still distant. “Firstly, the infrastructure costs are high, requiring additional road and vehicle equipment,” explains Chen. “Many countries are still in the demonstration and testing phase, and the most advanced implementation so far is limited to smart traffic signals that adjust timing based on off-peak traffic flow.
Currently, there is no unified communication standard for V2X networks, with DSRC and C-V2X still competing. Without a unified standard, the widespread adoption of V2X will be restricted. Additionally, there is the challenge of developing interoperable data transmission technology among different automakers. The lack of interoperability limits current V2X functionality to vehicles of the same brand.
Another significant obstacle pertains to the social and cultural differences in driving habits, which can greatly affect the effectiveness of V2X applications. For example, Volvo’s slippery road alert works well in snowy regions. When a driver detects slippery conditions, they activate the hazard lights, and nearby Volvo vehicles receive a warning. However, when this feature was introduced in Taiwan, where hazard lights are frequently used for roadside parking and sudden stops, it resulted in numerous false alarms. Consequently, many drivers disable the feature altogether. Thus, V2X applications need to be adapted to local driving habits and conditions to be truly effective.
To be fair, V2X technology is still in its early development stage. While the vision is clear and feasible, bringing it to fruition will require extensive collaboration across countries and between different automakers.
MaaS: The Challenge of Cross-Sector Integration
Building on the premise of connected vehicles, the broader vision for future mobility aims to expand into “mobility as a service” or MaaS—a seamless, integrated transportation system that allows users to plan and execute all their journeys through a single platform. This concept includes not just cars but also bicycles, scooters, motorcycles, buses, trams, boats, and airplanes. Overall, the goal of MaaS is to integrate all mobility needs to reduce costs and improve the efficiency of public transportation.
For example, if we need to travel from Taipei to Kaohsiung for a business trip, we often require multiple modes of transportation. An ideal MaaS solution would allow us to book a taxi from home to the high-speed rail station, purchase high-speed rail tickets, and arrange transfer tickets in Kaohsiung. It could also offer alternative options like YouBike or shared scooters when needed. If we need to drive ourselves, MaaS services could provide information on parking lots, gas stations, charging stations, or short-term car rental services.
According to analysis by Gartner, the market value of the MaaS industry is expected to rise significantly from USD 42 billion in 2018 to USD 372 billion by 2026. This growth is driven by the increasing intelligence of vehicles and transportation facilities, which can offer more comprehensive and efficient mobility services.
However, the advancement of MaaS has not been as smooth as anticipated. In 2023, Finnish company MaaS Global, which had been a global leader in promoting MaaS services, declared bankruptcy. This event was a wake-up call for this industry. To launch a comprehensive MaaS solution requires precise integration of vast amounts of data and cooperation between governments and businesses. Until a mature business model is found, there is still a long way to go.
More Diverse and Multi-Faceted Mobility Services
The future of mobility may go beyond our wildest dreams. Transportation modes will not only get smarter but also become more versatile and even capable of flight. With ongoing advancements in drone and battery-powered technologies, the development of low-altitude flying vehicles such as electric vertical take-off and landing (eVTOL) aircraft has made rapid progress in recent years. For instance, South Korea and Mainland China have already tested air taxis and aerial ambulances. However, the broader implementation of these technologies is still hindered by regulations, infrastructure, and safety standards.
Earlier this year, an American startup successfully tested a flying car capable of vertical takeoff, allowing it to fly over traffic and then land to continue driving. Understandably, regulatory authorities are cautious about vehicles taking off from streets. Both eVTOL aircrafts and flying cars remain in the testing phase, with only a few companies starting initial trial operations. Nonetheless, the future looks promising for these innovations.
In the nearer term, smart vehicles will continue to play a key role in future mobility. With enhanced connectivity and autonomous driving capabilities, these vehicles promise to make transportation safer and more convenient. However, pushing autonomous driving technologies forward will require more powerful AI systems and significant governmental collaboration with respect to data integration and standardization of communication protocols.
This transitional period towards smart transportation and future mobility presents numerous opportunities for Taiwan. Beyond its robust manufacturing base, Taiwan can strengthen its position in the international automotive supply chain by enhancing vehicle certification processes and scaling up production.
