Market Introduction

The global sustainable mobility solutions market was valued at USD 36 billion in 2023 and grew at a CAGR of 20% from 2024 to 2033. The market is expected to reach USD 222.90 billion by 2033. The growing climate change concerns will drive the growth of the global sustainable mobility solutions market.

Sustainable mobility solutions refer to green mobility solutions that offers transport options and networks with low-emission and sustainable transport. These solutions aim to reduce effects of climate change, growth of urban infrastructure, and exhaustion of resources while addressing the needs of all people and providing connections for everyone. Public transportation is one of the essential signposts that people want to achieve in sustainable mobility. Both light and heavy vehicles like the buses, train and trams have significant impacts of cutting down the number of overall vehicles hence yielding minimal emissions and fewer cases of traffic jam. Multimodal transport refers to the passenger transfer between buses, trains, bicycles, etc; it enhances the pace and usability of transport structures. Another important component of sustainable mobility solutions is electric vehicles (EVs). EVs greatly reduce emissions and the use of fossil fuel in transport. The other form of transport that is essential for long term sustainable transport system is undertaking activities by walking or cycling. Bike lanes for cyclists, sidewalks, and pedestrian-only areas convince people to select cycling or walking instead of car traveling. Car-sharing and ride-sharing application are one of the best examples that illustrate how technological advancement backs up sustainable mobility. These services enable the maximal usage of vehicles, and this means few individuals own personal cars and hence there’s less harm to the environment. These platforms reduce congestion by calling for car sharing or pooling resources hence reducing emissions. Therefore, sustainable mobility comprises of a complex system of transportation that includes public transport, electrified automobile transport, active transport, collaborative consumption transport and quality urban design.

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Recent Development

• Leaders from a variety of industries came together for a roundtable discussion titled "Building Last Mile Connectivity: Flexible, Affordable, Sustainable Solutions" hosted by the Confederation of Indian Industry (CII). The conversation centered on strategies to establish a more inclusive and sustainable transportation environment in India, with specific emphasis on public-private partnerships to boost last-mile connectivity. The promise of smart mobility solutions, such as bike taxis, and the ways in which public-private partnerships could assist in meeting the increasing need for smooth, reasonably priced transit were major points of emphasis.

Market Dynamics

Drivers

The growing environmental and climate change concerns – environmental factors such as pollution and global warming, legal necessities and evolving city geometrics play an essential role in determining the demand for sustainable mobility solutions. With the increasing cases of climate change and subsequent consequences for consumers, businesses, and governments globally have shifted the focus towards green means of transport. This has created a new emphasis on sustainability due to the need to cut carbon emissions thus increasing the market for green mobility solutions. Policies and laws are one of the key aspects of the sustainable mobility as governments around the world have been raising sustainable requirements and offering rebates for buyers of electric cars and other environmentally-friendly transport. Promoting and improving the provision of public transportation, expanding the networks of bicycling and walking facilities are also specific strategies, which are also contributing to the market’s growth. Furthermore, the population density, especially in cities, continues to rise which leads to more problems, more traffic, pollution, using up of the existing infrastructure and so on. With the growth of population, there is increasing demand for adequate modes of transport to cater for this populace. To manage these urban problems, better, sustainable mobility solutions are being implemented such as improved urban transport options, cycling, and walking infrastructures.

Restraints

High initial costs – The major challenge related to utility-scale deployment of sustainable mobility solutions, including EVs and other environmentally friendly transportation modes, is high initial costs. There are certain hidden costs that make electric cars initially more costly than regular cars running on gasoline, which has to do with battery technology paramount to electric vehicles. Costs of installing charging infrastructures are also very high. Although the government always provides incentives and subsidies to the buyers of the electric cars and charging facilities, they are far from sufficient to meet the investment necessary to support an extensive charging infrastructure. This high initial cost factor is further exacerbated by consumers’ understanding of EVs in which the purchase price is considered a negative attribute and in addition to that, the cost of maintenance and the resale value. This means that consumers are willing to sacrifice long-term benefits in order to benefit in the short run which means that many will stick to tradition vehicles.

Opportunities

Technological advancements – Innovation is one of the key peculiarities of the modern world that plays a significant role in the whole process of the sustainable shift in the means of transportation. Probably one of the largest milestones in recent years is the emergence of electric vehicles (EVs) using innovative battery technologies to minimize reliance on carbon resources and minimize emissions. Challenges in battery technology and charging infrastructure have seen manufacturers come up with better batteries thus make EVs more reasonable for consumers. Smart mobility is also being developed with the use of applications and platforms on intelligent-base mobility, shared transportation, car-sharing, and other techniques of shared online transport and public transportation planning. These applications allow the users to access real-time information and thus the client is in a position to make the right decision in relation to the mode of transport to hire. In addition, smart traffic management incorporates the use of data analysis to better manage traffic signals to minimize congestion on existing roads making the existing traffic better. Combined, these technologies render transport systems more efficient and environmentally friendly while creating forces that influence consumers to change their transport habits in favour of greener solutions.

Segment Analysis

Regional Segmentation Analysis

The regions analyzed for the market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. North America emerged as the most significant global sustainable mobility solutions market, with a 38% market revenue share in 2023.

North America is one of the most influential regions in the market of sustainable mobility solutions predominantly because of the increased spending on the development of EV technology, maintaining the related infrastructure, and adopting suitable policies. The US has now emerged as a leading global market for electric automobiles with some of automakers including Tesla, General Motors and Ford all moving significantly towards the electrical automotive technology. The supply of various models of EV and advancement of battery technology have all played an effective role in cutting down costs and improving the overall performance which has definitely made EVs an more attractive proposition. There have been certain measures supported by different governments of North America that strengthens the landscape for sustainable mobility.

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Electric vehicles (EVs) Segment Analysis

The electric vehicles (EVs) segment is divided into battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs), hybrid electric vehicles (HEVs), and fuel cell electric vehicles (FCEVs). The battery electric vehicles (BEVs) segment dominated the market, with a market share of around 39% in 2023. Battery Electric Vehicles (BEVs) do not emit any pollutants directly through their tailpipe and entail nearly 40% lower emissions of green-house gases during their entire life cycle. This attribute is compatible with climate change mitigation initiatives after which people and governments look for BEVs. Improvement in battery systems has greatly boosted the standing of BEVs in recent past. The innovation has benefitted from high-capacity lithium-ion batteries not only increasing the range of EVs but also helped the cause by lowering costs. When battery prices decrease, BEVs become economically feasible for an increasing number of consumers. Moreover, the increased availability of charging stations especially fast charging stations reduces range and charging time barriers associated with the ownership of a BEV. Government policies as well as incentives extend support to the growth of BEVs. Government across the world incentivize electric vehicles through subsidies, tax credits or rebates and investments on charging stations.

• Vertelo and JK Tyre & Industries have formed a strategic alliance for "connected mobility solutions," which is a cloud-based monitoring program. Vertelo is a supplier of electric mobility solutions, offering customized electric cars that facilitate an easy switch to electric fleets. According to this cooperation, JK Tyre will offer Vertelo’s fleet with the brand-new product, the 255/70R22.5 JUXe EV tyres with linked Treel sensors as well as real time monitoring. They will start offering mobility services at Vertelo depots all throughout the nation in Mumbai. JK Tyre will offer off-road facilities around-the-clock, and a dedicated staff of experts will share their skills on spot help.

Public transportation Segment Analysis

The public transportation segment is divided into buses, trains, ferries/water transport and others. The buses embedment anchors segment dominated the market, with a market share of around 48% in 2023. Buses are a leading segment on the market of sustainable mobility solutions because of their ability to transport a significant number of people with fewer negative effects on the environment. Due to traffic jams and poor air quality in cities, buses remain the best solution to urban transport challenges by reducing the need for individual cars. One of the most significant influences making buses hegemonic in sustainable transport is electrification. For improvement of their public transport systems, many cities are putting resources into electric and hybrid buses. Electric buses provide no direct emissions to the atmosphere and are less noisy than traditional diesel buses. The socialist transformation of this transport system is further complemented by policies set and implemented by the government instrumentality that involves funding and incentives for a cleaner public transport sector. In addition, buses are inherently more flexible and may easily be incorporated into existing transport systems.

• In the upcoming years, Hitachi Energy expects to invest ₹2,000 crore in the electricity sector in India. The investment will boost the country's power supply systems as it pushes toward renewable energy. The global electronics giant's Indian subsidiary, Hitachi Energy India Ltd., will lead the endeavor. The company's primary goal will be to develop technology for more environmentally friendly power transmission and sustainable public transportation mobility solutions.

Smart mobility solutions Segment Analysis

The smart mobility solutions segment is divided into mobility as a service (MaaS), smart traffic management systems, integrated transportation apps, and data analytics for transportation. The mobility as a service (MaaS) segment dominated the market, with a market share of around 37% in 2023. Mobility as a Service (MaaS) is a concept that enables the planning, booking, and payment of transport. Here, several transport modes, including public transport, ride-hailing, car-sharing, and bike-sharing, are bundled in a single application with easy access and use to encourage efficient and sustainable mobility. This method enables the user to switch easily from one system to the other depending on the type of transport required hence greatly minimizing the use of single-use automobiles. Another benefit usually associated with the concept of MaaS is its potential in improving the existing urban mobility organization. As the central components of an integrated mobility system, MaaS platforms provide timely and accurate data and analysis to support the clients’ decision-making, recommendations on the most efficient routing, and reduction of the time spent on the trip. Authorities and municipalities are gradually coming to appreciate the use of MaaS in reaching goals of sustainable transport. A large number of them are designing, deploying, expanding, and supporting the MaaS platforms and other support framework needed to foster synergy among various transport services.

• A zero-emission intra-city electric bus, the Tata Ultra EV 7M, was unveiled by Tata Motors during Prawaas 4.0, a three-day biennial event that showcases smart, safe, and sustainable integrated mass mobility solutions. The Tata Magna EV, Tata Magic Bi-fuel, Tata Ultra Prime CNG, Tata Winger 9S, Tata CityRide Prime, and Tata LPO 1822 are just a few of the passenger transport options that the company has demonstrated in addition to this. They are all designed to provide customized solutions in a variety of applications and duty cycles.

Alternative fuels Segment Analysis

The alternative fuels segment is divided into hydrogen fuel, biofuels and compressed natural gas (CNG). The hydrogen fuel segment dominated the market, with a market share of around 41% in 2023. Hydrogen fuel is becoming the industry’s most preferred solution in the sustainable mobility solutions as it emits no emissions, and burns purely to create steam, which makes it a very strong candidate for the role of a clean fuel supplement in the fight against fossil fuel emissions. While many nations and industries seek to promote renewable energy to reduce pollutants, hydrogen is emerging as a key player as it is known to have a low carbon footprint standard. Second, hydrogen has a much larger energy density than batteries which makes it suitable for usage in rigs like trucks, busses. This has flexibility compared to battery-electric vehicles (BEVs), which take a rather long time in charging. Furthermore, the governments across the globe are solely focusing on hydrogen economy where current trending of policies and subsidies for hydrogen production and hydrogen refuelling stations. Furthermore, hydrogen can be generated from different resources, and, in particular, from renewable energy; therefore, it is a critical element of the sustainable transition to a cleaner economy.

• The pioneer of sustainable mobility, Kia, introduces Kia E-Ground, an area where sustainability and innovation converge to symbolize the brand's dedication to a sustainable future and its connection to nature. This building demonstrates Kia's commitment to lowering carbon emissions and encouraging an eco-friendly lifestyle by fusing technology innovation with environmental management.

Some of the Key Market Players

• BMW AG
• BYD Company Ltd.
• ChargePoint, Inc.
• Ford Motor Company
• General Motors
• Hyundai Motor Company
• Nissan Motor Co., Ltd.
• Siemens AG
• Tesla, Inc.
• Toyota Motor Corporation
• Volkswagen AG
• Volta Charging

Report Description