As per MRFR analysis, the South America Mobility Demand Market Size was estimated at 11.41 (USD Billion) in 2023.The South America Mobility Demand Market is expected to grow from 12.51(USD Billion) in 2024 to 34.15 (USD Billion) by 2035. The South America Mobility Demand Market CAGR (growth rate) is expected to be around 9.562% during the forecast period (2025 - 2035).
Key South America Mobility Demand Market Trends Highlighted
Urbanization has a significant impact on the mobility demand market in South America because to the ongoing growth and development of cities. Rapid urban population growth in nations like Brazil, Argentina, and Colombia is driving up demand for accessible and effective transportation options.
One of the main factors driving this market rise is the increase in demand for ride-sharing services, public transportation systems, and cutting-edge mobility options like electric bicycles and scooters. Furthermore, there is a growing movement in the area to promote sustainability.
Interest in electric and hybrid vehicles is rising as a result of governments' push for more environmentally friendly modes of transportation to help reduce pollution and traffic. In the field of smart city initiatives, there are a lot of prospects to investigate in South American nations.
Technology and infrastructure investments can significantly increase mobility efficiency, creating opportunities for businesses that provide integrated transportation solutions. Furthermore, there is a trend toward the use of clean energy and shared mobility services as people get more conscious of the advantages of sustainable transportation.
With the growth of smartphone applications that enable ride-sharing and multi-modal transportation, there has been a discernible change in the mobility sector recently toward digital solutions.
This has significantly changed South Americans' access to mobility options, making them more connected and convenient. All things considered, the South American mobility demand market is continuing to change due to urbanization, sustainability issues, and transportation technology breakthroughs.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
South America Mobility Demand Market Drivers
Urbanization Leading to Increased Demand for Mobility Solutions
Urbanization in South America is a significant driver for the South America Mobility Demand Market. As urban areas expand, the need for efficient public transportation and mobility solutions rises. According to the United Nations Economic Commission for Latin America and the Caribbean, approximately 80% of South America's population is expected to live in urban areas by 2040.
This population shift demands innovative transportation solutions to alleviate congestion and improve accessibility, which directly supports the growth of the mobility demand market.
Organizations such as the Inter-American Development Bank have emphasized the need for integrated urban mobility systems to manage this growth effectively. With cities like So Paulo and Buenos Aires experiencing high rates of population density, enhanced mobility solutions are increasingly becoming a priority, driving the sector's expansion.
Government Initiatives for Sustainable Transport
Government initiatives to promote sustainable transport in South America have become a key driver in the South America Mobility Demand Market. Multiple countries in the region are investing in sustainable transportation projects, spurred by green policies and international agreements on climate change.
Brazil's National Policy on Urban Mobility, for instance, aims to improve public transportation networks and promote non-motorized transport. The Brazilian government's goal to reduce greenhouse gas emissions by 37% by 2025 underlines a significant commitment to sustainability.
Moreover, organizations such as the United Nations Environment Programme have lauded these government efforts, further boosting investor confidence in sustainable mobility solutions, leading to market growth.
Technological Advancements in Mobility Solutions
Technological advancements play a crucial role in driving the South America Mobility Demand Market. The adoption of smart technologies in transportation has revolutionized the way mobility services are delivered.
According to a report by the World Bank, investments in smart mobility, such as connected vehicles and intelligent transportation systems, have seen an increase of 47% in South America over the past five years.
Companies like Uber and local start-ups are leveraging technology to provide innovative solutions, thereby increasing accessibility and efficiency. With increasing internet penetration and mobile device usage in South America, there is a growing trend towards on-demand mobility services and digital platforms, accelerating the market growth.
Mobility Demand Market Vehicle Type Insights
The Vehicle Type segment within the South America Mobility Demand Market showcases a diverse landscape, primarily dominated by Micro Mobility Vehicles and Four-wheelers. This segment reflects a significant shift in consumer preferences towards sustainable and efficient transportation solutions, aligning with urbanization trends across South American cities.
The Micro Mobility Vehicles category, which includes electric scooters, bikes, and similar vehicles, has emerged as a pivotal player due to its capacity to ease congestion in densely populated urban areas while contributing to environmental sustainability.
These vehicles cater to short-distance travel, tapping into the growing demand for flexible mobility alternatives. Additionally, Four-wheelers maintain a strong presence, serving both personal and commercial transport needs across the region.
With a rising middle-class population and increasing disposable incomes, the demand for Four-wheelers is bolstered as they represent convenience, safety, and comfort for families and businesses alike. The South America Mobility Demand Market statistics highlight not only the growth of these segments but also the challenges such as infrastructure development and regulatory policies that need to be addressed.
Both segments face pressures to adapt to technological advancements and eco-friendly standards, which present opportunities for innovation. Moreover, governments are prioritizing investments in public transportation infrastructure, further solidifying the position of both Micro Mobility Vehicles and Four-wheelers in the mobility landscape.
This dynamic interplay between demand and infrastructure readiness is critical for understanding the South America Mobility Demand Market revenue and its future trajectory within the Vehicle Type segment. As urban areas continue to expand, the resilience and adaptability of these vehicles will remain vital in shaping the region’s mobility solutions.
The outlook for these segments will be underscored by advancements in electric vehicle technology and an increasing focus on smart city initiatives, driving further growth within the South America Mobility Demand Market.
The evolving landscape hints towards a transformative approach to transportation in South America, as both Micro Mobility Vehicles and Four-wheelers strive to meet the changing needs of commuters while addressing sustainability challenges.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Mobility Demand Market Internet connectivity Insights
The South America Mobility Demand Market, particularly in the realm of Internet connectivity, is witnessing notable advancements fueled by increasing smartphone penetration and digitalization across the region. As the demand for seamless connectivity escalates, technologies such as WiFi and 5G are rapidly gaining traction.
WiFi remains a prevalent choice due to its ability to provide high-speed access in homes and businesses, facilitating the growth of remote work and online learning. Meanwhile, 5G technology is emerging as a significant player, offering faster data speeds and lower latency, thus enabling a plethora of applications, from smart cities to enhanced mobile experience.
4G continues to serve as a foundational layer of connectivity, ensuring reliable service to a large user base, while 3G, though gradually declining, remains important in reaching underserved areas where newer technologies have yet to establish.
The diverse landscape of Internet connectivity underscores the continuous evolution and segmentation within the South America Mobility Demand Market, addressing varied consumer needs and driving a wave of innovation throughout the region.
The increasing focus on digital transformation and infrastructural investments further bolsters growth opportunities in this segment, highlighting its crucial role in the overall market dynamics.
Mobility Demand Market Service types Insights
The South America Mobility Demand Market has experienced significant growth, driven by increasing urbanization and a shift towards more flexible transportation options. Within the service types segment, Car Rental, E-hailing, Station-based Mobility, and Car Sharing play crucial roles.
Car Rental offers convenience for both tourists and business travelers, while E-hailing services have rapidly transformed urban transportation, providing an on-demand solution for commuters. Station-based Mobility solutions, such as bike-sharing and e-scooter rentals, cater to short-distance travel needs and support eco-friendly initiatives in cities.
Furthermore, Car Sharing has gained popularity as consumers seek cost-effective and sustainable alternatives to vehicle ownership, aligning with shifting perceptions about mobility. The South America Mobility Demand Market has been notably shaped by governmental policies promoting public transport and sustainable practices, enhancing the appeal of these service types.
As a result, the competition among these services is escalating, creating diverse options for consumers and contributing significantly to the market growth trajectory. Overall, the landscape for service types within the South America Mobility Demand Market reflects a dynamic response to changing travel behaviors and environmental concerns.
Mobility Demand Market Data Service Insights
The Data Service segment within the South America Mobility Demand Market plays a crucial role in enhancing digital infrastructure and user experiences across the region. This segment includes key areas such as Information, Payment, Navigation, and others, each contributing to a robust ecosystem supporting mobile applications and services.
As urbanization and smartphone usage surge in South America, the demand for real-time information, seamless payment solutions, and effective navigation tools is paramount. For instance, Information services are vital for providing users with essential updates and alerts about travel safety and traffic conditions, helping them make informed decisions.
Payment services facilitate ease of transactions, enabling users to engage in cashless activities, which aligns with growing trends in digital payment adoption. Navigation services assist users in navigating complex urban landscapes, thus solving mobility challenges prevalent in rapidly developing cities.
Overall, these facets of Data Service significantly enhance user experiences and engagement in the South America Mobility Demand Market, reflecting the increasing reliance on technology for daily activities.
Mobility Demand Market Regional Insights
The South America Mobility Demand Market is experiencing notable growth driven by factors such as urbanization, increased disposable incomes, and a rising need for efficient transportation solutions across the region. Brazil holds a significant share of the market, owing to its vast population and urban centers that require innovative mobility solutions.
Meanwhile, Mexico showcases a robust demand for mobility services as urban populations continue to expand, making it a crucial player in the market. Argentina demonstrates a growing interest in sustainable mobility options amidst economic changes, positioning it as an emerging market for innovative solutions.
The Rest of South America also contributes substantially to the market, with various countries aiming to enhance their transportation infrastructure. Collectively, these regions reflect an evolving landscape for the South America Mobility Demand Market, as advancements in technology and shifts in consumer preferences set the stage for future growth and increased competitiveness in the industry.
Overall, the South America Mobility Demand Market data indicates a sector poised for transformation, with various opportunities emerging in service delivery and technological integration.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
South America Mobility Demand Market Key Players and Competitive Insights
The South America Mobility Demand Market is witnessing significant growth driven by various factors such as urbanization, increased digitalization, and changing consumer preferences. This market is characterized by a dynamic competitive landscape where companies strive to enhance service offerings, optimize operations, and expand their reach.
Key players are leveraging technology and innovative solutions to cater to the diverse needs of consumers, including ride-sharing, public transportation, and fleet management services. Understanding the competitive insights in this market is crucial for companies aiming to establish a strong foothold and navigate the evolving mobility landscape in South America.
Cabify is another prominent player in the South America Mobility Demand Market, recognized for its comprehensive services ranging from ride-hailing to logistics solutions. The company's strategy focuses on delivering high-quality experiences tailored to local needs, and it has carved a niche for itself by emphasizing safety and reliability.
With a wide operational presence in major cities, Cabify stands out for its strong brand reputation and commitment to customer service. The company is continuously expanding through strategic partnerships and acquisitions, allowing it to enhance its service portfolio and infrastructure.
Additionally, Cabify's advantageous position in the mobility sector is reinforced by its innovative technology integration, which supports efficient ride matching and payment solutions, thereby solidifying its competitive position in South America.
Key Companies in the South America Mobility Demand Market Include
South America Mobility Demand Market Developments
Uber Technologies Inc. announced a strategic partnership with the Brazilian delivery giant iFood in May 2025. The partnership will enable Uber users to access iFood's grocery, pharmacy, food, and convenience delivery services through the Uber platform beginning in the second half of 2025, and iFood users to book Uber rides directly within the iFood app.
Uber and 99 together contested São Paulo's long-standing motorcycle ride-hailing ban in April 2025 by temporarily running their services in violation of local regulations. This led to legal action and highlighted Uber and 99's aggressive push into two-wheeler mobility in Brazil.
Following its complete acquisition of 99 in 2018, DiDiChuxing continues to expand its footprint in key Latin American markets in 2024 by customizing services like as DiDi Food, negotiated-fare DiDi Flex, and low commission structures to accommodate local labor conditions and improve driver involvement.
Despite a slight decline in revenue due to Argentina's currency fluctuations, Cabify, which operates in several South American countries, including Argentina, Chile, Colombia, Peru, and Uruguay, reported record profitability in 2024 in May 2025.
The company also announced plans to introduce new shared van services and delivery formats in 2025, as well as increase its investments in R&D and electric vehicle infrastructure. Ultimately, Cabify obtained US$110 million in funding in March 2023 to expand its operations to over 25 Latin American cities and hasten its transition to a fleet that is entirely emission-free in the region by 2030.
South America Mobility Demand Market Segmentation Insights
| Report Attribute/Metric Source: | Details |
| MARKET SIZE 2023 | 11.41(USD Billion) |
| MARKET SIZE 2024 | 12.51(USD Billion) |
| MARKET SIZE 2035 | 34.15(USD Billion) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) | 9.562% (2025 - 2035) |
| REPORT COVERAGE | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR | 2024 |
| MARKET FORECAST PERIOD | 2025 - 2035 |
| HISTORICAL DATA | 2019 - 2024 |
| MARKET FORECAST UNITS | USD Billion |
| KEY COMPANIES PROFILED | Swell, Cabify, 99, Uber, Ola, BlaBlaCar, Bolt, Wheely, Yellow, Rappi, Movile, Grin, Easy Taxi, Kangu, DiDi |
| SEGMENTS COVERED | Vehicle Type, Internet connectivity, Service types, Data Service, Regional |
| KEY MARKET OPPORTUNITIES | Electric vehicle adoption surge, Ride-sharing platform expansion, Public transportation modernization projects, Infrastructure development investments, Smart city initiatives integration |
| KEY MARKET DYNAMICS | urbanization trends, increased smartphone penetration, government investments, rise in ride-sharing services, sustainability initiatives |
| COUNTRIES COVERED | Brazil, Mexico, Argentina, Rest of South America |
Frequently Asked Questions (FAQ) :
The South America Mobility Demand Market is expected to be valued at 12.51 USD Billion in 2024.
By 2035, the market is projected to reach a valuation of 34.15 USD Billion.
The expected CAGR for the South America Mobility Demand Market is 9.562% from 2025 to 2035.
Micro Mobility Vehicles are valued at 3.5 USD Billion in 2024 and are expected to reach 9.1 USD Billion by 2035.
The four-wheelers segment is valued at 8.51 USD Billion in 2024, increasing to 25.05 USD Billion in 2035.
Brazil is anticipated to dominate the market with a valuation of 4.5 USD Billion in 2024, rising to 12.15 USD Billion by 2035.
Mexico's mobility demand market is expected to grow from 3.2 USD Billion in 2024 to 9.15 USD Billion by 2035.
Challenges such as regulatory changes and infrastructure development could impact growth in the mobility demand market.
Major players include Uber, Cabify, 99, and DiDi among others in the mobility demand ecosystem.
Argentina's mobility sector is projected to reach a market value of 5.8 USD Billion by 2035.
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Team Lead - Research she holds an experience of about 6+ years in market research and business consulting, working under the spectrum of information communication technology, telecommunications and semiconductor domains. aarti conceptualizes and implements a scalable business strategy and provides strategic leadership to the clients. her expertise lies in market estimation, competitive intelligence, pipeline analysis, customer assessment, etc.
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