New analysis from business consulting firm Frost & Sullivan has revealed that the Latin American market is undergoing a rapid paradigm shift in regards to mobility, with greater emphasis being placed on the creation of an on-demand, integrated, multi-modal mobility network. The transition is being driven by changing demographics, preferences and technology.
Frost & Sullivan’s Latin America New Mobility Business Models, Forecast to 2023 explores the market for, and impact of, new business models in Latin America, and analyzes the growing trends in shared and integrated mobility towards 2023, focusing on Argentina, Brazil, Chile and Mexico.
The analysis finds that mobility solutions such as eHailing, bike sharing and integrated mobility are experiencing significant growth following enthusiastic consumer adoption. Between 2016 and 2023, bike sharing is expected to experience a 100 percent growth in bike volumes, while the car sharing fleet is set to experience a tenfold increase. According to Frost & Sullivan, eHailing is one of the fastest growing new mobility business models in Latin America, and is expected to generate $34 billion by 2025. Uber, 99Taxis and Cabify are playing a key role in driving this trend.
But consumers aren’t the only ones to embrace new mobility solutions. Municipalities are also looking for ways to incorporate new mobility services within the modality mix. It is, therefore, imperative for stakeholders in the mobility value chain to develop innovative business model solutions to achieve long-term business sustainability and create new avenues for revenue growth.
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“Wide-scale disruption with the entry of new mobility business models is heavily impacting traditional market structures and the positioning of traditional ecosystem participants among the new competition. This leads to changes in terms of regulations, investments and market structure,” said Yeswant Abhimanyu, Latin America Mobility Research Manager.
“It is vital for stakeholders to discuss how these new solutions aimed at the better use of existing structures can be included as a part of the public and private mobility mix. In addition, investment in infrastructure in order to enable more integrated and cost-effective services, through direct and indirect incentives, is pivotal. Infrastructure is the bedrock of a well-functioning mobility.”
While shared mobility is on the rise, there remains a focus on traditional modes of mobility, namely personal vehicle ownership. Investments and developments in traditional modes of transport and related infrastructure, and a transition towards technology supported mobility, will continue to be significant, laying the necessary foundation for the offering of new mobility business models.
Latin America New Mobility Business Models, Forecast to 2023 is part of Frost & Sullivan’s Global Mobility Growth Partnership Service program.
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Published Jan 5, 2018 6am EST / 3am PST / 11am GMT / 12pm CET