Latin American automotive business boosted by new mobility applications
The Latin American market is rapidly embracing new mobility business models with a focus on an on-demand, integrated, multi-modal mobility network, driven by changing demographics, preferences, and technology. Frost & Sullivan finds that converging trends will lead to a paradigm shift from vehicle ownership to vehicle usage. Mobility solutions such as eHailing, bike sharing, and integrated mobility are experiencing significant growth following enthusiastic consumer adoption. In addition, municipalities are looking for ways to include new mobility services within the modality mix. For these reasons, it is 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.
Frost & Sullivan's analysis, “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 toward 2023, focusing on Argentina, Brazil, Chile, and Mexico.
Key insights uncovered in the report include:
- Focus on traditional modes of mobility: Mobility in Latin America, although rapidly changing, still focuses heavily on traditional modes and personal vehicle ownership.
- Automotive OEMs expanding: OEMs began testing car-sharing pilots in 2016 and are expected to further venture into offering mobility solutions by 2018, in partnership with other market participants.
- Mobility in Latin America will be platform enabled in the future: Integrated mobility is a single platform that offers seamless, flexible, first- to last-mile connectivity that is customer controlled and cost-effective.
- Sharing economy: The sharing economy pushes for a pool of several users or members to create shared value toward value for many. At times of volatile economics, the sharing economy is a possible answer for value creation and addition. Between 2016 and 2023, bike sharing is expected to experience a 100% growth in bike volumes, while the car sharing fleet is set to experience a tenfold increase.