Latin America Electric Mobility Market Size, Trends, Growth and Forecast Report 2025

Author: Joey Moore

Market Overview

The Latin America electric mobility market reached a size of USD 39.60 Billion in 2024. It is expected to substantially grow and reach USD 415.20 Billion by 2033, exhibiting a CAGR of 26.50% during the forecast period 2025-2033. Growth is driven by factors such as government incentives, increasing environmental concerns, rapid urbanization, expanded charging infrastructure, and advances in technology.

Study Assumption Years

  • Base Year: 2024
  • Historical Year/Period: 2019-2024
  • Forecast Year/Period: 2025-2033

Latin America Electric Mobility Market Key Takeaways

  • The market size was USD 39.60 Billion in 2024.
  • The market is forecast to grow at a CAGR of 26.50% between 2025 and 2033.
  • Market forecast projects a size of USD 415.20 Billion by 2033.
  • Government incentives such as tax cuts, import duty exemptions, and purchase subsidies are increasing EV adoption.
  • Environmental concerns including air pollution and carbon emissions propel the demand for electric mobility.
  • Rapid urbanization leads to increased need for efficient and emission-reducing transportation solutions.
  • Expansion of public charging infrastructure supports faster market growth.

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Market Growth Factors

Government Incentives

Government incentives play a significant role in driving electric vehicle uptake in Latin America. Tax cuts, exemptions from import duties, and subsidies for electric vehicle purchases have made electric mobility more economically viable. Public sector programs are also in place to electrify transport fleets, and several governments are fostering policies to develop charging infrastructure, further accelerating market growth. This combination of economic support and infrastructure development strengthens the expansion of the Latin America electric mobility market.

Environmental Concerns

Environmental issues, particularly air pollution and carbon emissions in densely populated Latin American cities, have catalyzed the growth of electric mobility solutions. Since fossil fuel vehicles contribute heavily to urban pollution, electric vehicles offer the advantage of zero tailpipe emissions. With increasing use of renewable energy sources like wind, solar, and hydropower, the carbon footprint of electric mobility continues to decline. Governments and green organizations recognize EVs as essential in mitigating urban pollution and carbon emissions, driving both businesses and consumers towards EV adoption.

Rapid Urbanization

Latin America experiences one of the world's highest urbanization rates, resulting in traffic congestion, pollution, and a demand for efficient transport systems in growing urban centers. Electric vehicles present an economical and environmental solution by reducing emissions and improving urban mobility. Urban planners are responding by integrating public EV charging points within primary urban areas. This rapid urban growth necessitates sustainable transportation, thereby propelling market expansion for electric mobility products and services.

Market Segmentation

  • Drive Type: The market categorizes by belt drive, chain drive, and hub drive, encompassing major electric mobility components related to mechanical power transmission.
  • End-Use: Market applications are segmented into personal and commercial use, covering individual consumers and businesses adopting electric mobility solutions.
  • Battery: The market includes lead-acid batteries, lithium-ion batteries, and other battery types, representing key power sources for electric mobility devices.

Regional Insights

Brazil, Mexico, Argentina, Colombia, Chile, Peru, and other Latin American countries constitute the major regional markets analyzed in the report. These regions witness increasing demand due to government initiatives, urbanization, and environmental concerns driving electric mobility adoption. The report does not provide specific market share or CAGR data by region.

Recent Developments & News

In July 2024, LOBO EV Technologies expanded their presence in Latin America by opening a new office in Suriname, serving the growing demand for electric bicycles, mopeds, tricycles, and off-highway shuttles. In August 2024, Odysse Electric and Sun Mobility teamed up to promote electric mobility across Africa, Latin America, and Southeast Asia, leveraging Sun Mobility’s battery swapping technology to enhance accessibility and convenience through a Battery-as-a-Service (BaaS) model.

Competitive Landscape

The competitive landscape of the industry has also been examined along with the profiles of the key players.

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About Us

IMARC Group is a global management consulting firm that helps the world’s most ambitious changemakers to create a lasting impact. The company provide a comprehensive suite of market entry and expansion services. IMARC offerings include thorough market assessment, feasibility studies, company incorporation assistance, factory setup support, regulatory approvals and licensing navigation, branding, marketing and sales strategies, competitive landscape and benchmarking analyses, pricing and cost research, and procurement research.