Challenges and Opportunities in the Latin American Micromobility Market, Forecast to 2025

The globally ongoing revolution in mobility technology and business model innovations will disrupt urban ecosystems, changing the way people, goods, and information are transported and localized within cities.

New York, Feb. 11, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Challenges and Opportunities in the Latin American Micromobility Market, Forecast to 2025" - https://www.reportlinker.com/p06021709/?utm_source=GNW
In recent years, shared micromobility services, such as dockless scooters and bikesharing systems, have become increasingly popular across Latin American cities.

Both local governments and private operators have been driving this market through various innovative business models and technological solutions adapted to the specific complexities of Latin American urban dynamics. The first bike-sharing systems were introduced in Latin America early in 2010, in Mexico City and Buenos Aires.

However, those beta test systems were relatively rudimentary in terms of technology as well as operative efficiency.As years passed, more and more public systems were inaugurated across the region, and notable participants (operators, technology suppliers, or both together) positioned themselves in the fast growing shared micromobility market.

The implementation of policies to incentivize active mobility has intrinsic objectives of diminishing private car usership, mitigating the negative effects of greenhouse gas emissions, promoting healthier lifestyles, and a general compact and highly efficient and resilient urban design. Many cities such as Santiago or Mexico City have made enormous progress in developing a mature and competitive micromobility service ecosystem. In late 2019, there were more than 59.5 thousand bikesharing units in operation in Latin American cities, operated by more than 30 companies. Moreover, there were 11 recently introduced shared scooter operators available in dozens of cities, with an estimated fleet in excess of 36.5 active devices.This research service examines the challenges and opportunities in the operation of shared micromobility services in the region. Many companies across the region have been facing substantial restraints for the development of their activities. Some of these are: the overall vulnerability of some business models, lack of profitability, stringent and inefficient municipal regulations, vandalism and theft impacting asset safety, and the devastating short-term impacts of COVID-19 lockdown measures in early 2020. There was a 31.6% fall in revenue from the bikesharing market and a 74.9% decline in shared scooter service market revenue, with many operators leaving the market. However, in the mid term, this research service has identified considerable growth opportunities for the overall shared micromobility market in LATAM, driven by market innovations, changes in mobility habits and transport modal choice behavior, and the vacant demand left after the 2020 COVID-19 crisis. By 2025, market revenue is expected to grow at 6.6% CAGR for the bikesharing market with in excess of 127 thousand units in operation, and at 25.4% CAGR for the shared scooter market that is expected to have more than 100 thousand units in operation.
Author: Martin Singla
Read the full report: https://www.reportlinker.com/p06021709/?utm_source=GNW

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