Market Definition
Carsharing is when individuals share vehicles to commute short distances. This approach is very convenient, flexible, and helps reduce the number of vehicles on the road, kilometers driven, & overall car ownership costs, thereby obtaining several sustainable environmental goals. With the swiftly rising awareness regarding cost efficient & convenient mobility among people, the adoption of carsharing services is increasing rapidly across Latin America.
Market Insights
The Latin America Carsharing Market is projected to grow at a CAGR of around 26.02% during the forecast period, i.e., 2021-26. The growth of the market is driven primarily by the swiftly rising urban population, surging vehicle ownership costs, and the increasing affordability of carsharing services to commute across different areas. Carsharing services facilitate users to pay only for the distance they have traveled, which helps reduce travel costs and traffic congestions.
| Report Coverage | Details |
|---|---|
| Study Period | Historical Data: 2016-19 |
| Base Year: 2020 | |
| Forecast Period: 2021-26 | |
| CAGR (2021-2026) | 26.02% |
| Countries Covered | Brazil, Mexico, Argentina, Chile, Colombia & Others |
| Key Companies Profiled | Turbi, Awto, Kinto Share, MoObie, Movmi, GEOTAB, Cambio Carsharing, Turo, Float CarShare, DiDi Colombia, Others. |
| Unit Denominations | USD Million/Billion |
Hence, these services are gaining increasing traction across Latin America. Using these services, consumers can book, modify, and cancel their rides instantly based on their convenience. Moreover, the rapidly increasing Green House Gas (GHG) emissions, accelerating environmental concerns, and the burgeoning adoption of novel mobility solutions are anticipated to benefit the overall market growth across the region.
Several environmental & traffic congestion issues can be well-addressed with the reduced number of vehicles on the road, owing to the adoption of carsharing services, which, as a result, have emerged as an effective mobility solution among the Latin American people.
Impact of Covid-19 on the Latin America Carsharing Market
The Covid-19 pandemic had a decelerating effect on most industries in 2020, where the Latin America Car-sharing Market was no exception. While the government of the regional countries imposed stringent movement restrictions & lockdowns, the demand for carsharing services fell drastically.
Besides, even when the pandemic situation seemed to improve, the governments uplifted the restrictions, yet people were afraid of sharing cars with others. In fact, the stringent norms of maintaining social distance further restrained the public from using shared vehicles.
Consequently, the overall market underwent a significant decline & massive financial losses amidst the crisis. However, with the rollout of Covid-19 vaccines, the public confidence in shared traveling increased in compliance with stringent safety measures & guidelines, which, in turn, is enabling the market to regain its usual pace in the coming years.
