Latin America Carsharing Market Research Report: Forecast (2024-2029)

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, and 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 & Analysis: Latin America Carsharing Market (2024-29):

The Latin America Carsharing Market is valued at 93.65 million in 2023 and is estimated to grow at a CAGR of around 22.7% during the forecast period, i.e., 2024-29. The market growth 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 allow users to pay only for the distance they have traveled, which helps reduce travel costs & traffic congestion. Hence, these services are gaining increasing traction across Latin America.

Additionally, the rapidly increasing greenhouse 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. Furthermore, rapid urbanization in the region's major cities has led to increased congestion and a heightened need for alternative transportation solutions. Consumers are increasingly gravitating towards shared mobility for its convenience & cost-effectiveness.

Government support, including incentives & environmental policies, encourages the adoption of car sharing. The competitive landscape is evolving, spurring innovation & flexible pricing models. As technological advancements enhance the user experience & consumer behavior continues to shift, the Latin American Carsharing Market is expected to play an increasingly prominent role in the region's transportation landscape, offering a viable solution to the challenges posed by urbanization & environmental issues.

Moreover, with the increasing focus on curbing carbon emissions, the governments of different countries across Latin America are laying out stringent regulations, which picture out as a prominent driving factor for the market since the increasing adoption of carsharing services can reduce these emissions, traffic congestions, and solve several environmental issues. As a result, emerging as an effective mobility solution among the Latin American population.

Latin America Carsharing Market Driver

Rising Urban Population in Latin America to Soar the Demand for Carsharing Services – The increasing population in Latin America, propelled by expanding employment prospects, income growth, and enhanced living standards, has led to a surge in daily commuters, consequently leading to mounting traffic congestion. As a result, there is a notable upsurge in demand for carsharing services, particularly among daily commuters sharing similar routes.

In response to this growing demand, numerous carsharing service providers are extending their operations into various countries of Latin America. Furthermore, due to its cost-effectiveness, adaptability, and accessibility, the Latin American Carsharing Market is destined for sustained growth in the years to come.

Latin America Carsharing Market Opportunity

Mounting Adoption of Autonomous & Electric Vehicles to Boost the Market – The emergence & increasing adoption of autonomous & electric vehicles across Latin America is projected to create remunerative growth opportunities for the Latin America Carsharing Market during the coming years. Several fleet-managing companies are likely to adopt these vehicles & eliminate the requirement for drivers to operate the car.

In addition, with enhanced connectivity & better services in autonomous vehicles, the prices of shared cars are anticipated to fall marginally and gain increasing adoption among Latin Americans in the coming years. Moreover, the rising inclination toward electric vehicles across the region would also emerge as an area of lucrative growth opportunities for the leading market players in the future years.

Latin America Carsharing Market Challenge

Hesitation in Adopting New Transportation Modes Might Hinder the Market Growth – Unawareness among people about the benefits of using carsharing services & their hesitation in switching from traditional transportation modes to carsharing services might act as a growth restraint for the market in the coming years. Poor infrastructure across different parts of Latin America might also pose threats to the market.

The availability of cheaper alternatives like shuttles & micro-transits, carpooling & vanpooling, rise splitting, and various others can also challenge the market growth. Moreover, reluctance to share rides with strangers, excessive travel costs, and other such factors are some crucial aspects expected to hamper the Latin America Carsharing Market growth.

Latin America Carsharing Market Trend

Expanding Fleet Investments to Fuel Carsharing Growth in Latin America – In recent years, there has been a noticeable uptrend in carsharing companies securing increased investments to expand their vehicle fleets within the market.

With rising demand for car sharing across Latin America, numerous start-ups are actively raising capital to bolster their fleet sizes & compete effectively. This influx of investments is set to diversify the options & resources available to the Latin American population, exerting a positive influence on demand & fueling the growth of the Latin America Carsharing Market during the forecast period.

Latin America Carsharing Market (2024-29): Segmentation Analysis

The Latin America Carsharing Market study of MarkNtel Advisors evaluates & highlights the major trends & influencing factors in each segment & includes predictions for the period 2024–2029 at the Latin America, regional, and national levels. In accordance to the analysis, the market has been further classified as:

Based on Model:

• Business to Consumer (B2C)
• Peer-to-Peer (P2P)

The P2P model held a major share of the Latin America Carsharing Market in the past years and is also predicted to flourish in the years ahead, principally due to easy access to private rental cars. This business model is a collaboration between car owners & car renters that enables private vehicle owners to rent their cars that are not in regular use to those who seek vehicles across different platforms. The P2P model allows car owners to charge a rental fee and provide extra benefits like maintenance & insurance.

The P2P model is gaining momentum by creating a medium for owners to earn extra income. Moreover, with the emergence of this model, prominent market players are also actively participating & building such platforms to run an efficient P2P business, thus contributing to enhancing the market shares.

Based on Business-to-Consumer Model:

• Round Trip
• Free-floating Service
• One-way Service

One-way service is anticipated to display substantial growth in the coming years, mainly due to its benefits like flexibility, accessibility, and convenience. One-way service helps users rent a car from their location & leave it at any operational area. This service is gaining increasing traction, owing to facilities like convenient intercity traveling, thereby minimizing the number of private cars & reducing traffic, pollution, and carbon emissions.

Moreover, this business model offers consumers a higher level of flexibility since the user does not have to return the vehicle to its pickup location. Therefore, more people are opting for these services & augmenting the Latin America Carsharing Market growth.

Latin America Carsharing Market (2024-29): Regional Projection

Geographically, the Latin America Carsharing Market expands across:

• Brazil
• Mexico
• Argentina
• Chile
• Colombia

With the largest share in the Latin America Carsharing Market, Brazil is anticipated to observe a significantly higher prevalence of carsharing services in the coming years. It owes principally to the low quality of public transportation infrastructure in the country, which does not suffice the requirement of the public in terms of both scalabilities across different areas & quality, such as overcrowding, frequent delays, and poor conservation.

Therefore, the demand for carsharing services is displayed as a relatively better option of conveyance, and observing increasing demand across the country. Besides, with a higher level of informal employment, it is becoming an attractive way of earning income for numerous Brazilians.

Latin America Carsharing Industry Recent Development:

• 2023: DiDi Subsidary 99taxis planned to double the number of electric cars serving its passengers in Brazil, with a goal of reaching 1,000.
• 2022: Bla Bla Car raised an investment of nearly USD 15 million to support the shared-travel platform’s growth and boost access to affordable, convenient, and environmentally-friendly travel.

Gain a Competitive Edge with Our Latin America Carsharing Market Report

1. Latin America Carsharing Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
2. This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
3. Latin America Carsharing Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.