<aside> 💡 “Going forward, people will move within smaller distances as urban hubs are expected to grow even more in the upcoming years” @Deloitte.
Transport has become one of the leading causes of the ongoing climate change crisis, accounting for approximately 25% of all greenhouse gas emissions, and according to PWC - 72% of those emissions come from road transportation. Innovation in this sector is key to achieving net-zero emissions. It is needed in technologies such as electric vehicles, alternative fuels, shared transportation, and other types of high efficiency vehicles.
Urban hubs have a big problem in common: terrible mobility solutions, causing traffic, people spending many hours of their day commuting, and low business productivity. Deficiencies in mobility are seen in most Latin American countries, with citizens suffering from a lack of good public transportation, bad urban city planning, terrible air quality, and unsafe roads, among others. There is also a strong inverse relationship between population density and private car ownership in the region as daily trips become smaller and transportation by car becomes difficult (congestion), causing a larger spend on commuting alternatives.
In the future, people will move within smaller distances as urban hubs are expected to grow even more in the upcoming years; sustainable and accessible transport is key. As Latin America’s population becomes more dense at the same time as it is becoming more affluent, there will be a significant increase in demand for transportation and mobility services because people will need faster and easier ways to move around cities as well as services that finance the access to these mobility solutions.
The friction caused by these problems has given birth to different solutions, such as developing more efficient engines and new designs & materials for vehicles used in air, land, and sea. Micro-mobility solutions such as electric scooters & bikes and the development of innovative battery technologies for mobility are other solutions being implemented within the region. Nonetheless, there is a strong gap in the required infrastructure to scale these solutions and democratize their access within the region.