Public transit system is a disappointment in most places and Latin America is not very different in that department. It could do more than just customary improvement. However, the situation is privy to provide an array of opportunities for creative service providers, tech companies, and all those who can benefit.

Eyes, well headlights to be more specific, are on Brazil right now. Brazil, being the growing economy that it is, is planning to fulfill the insatiable demands of the fast moving population. In the early 2020s, it’ll corner the market for connected cars with more than five million of them – more than two thirds of all the vehicles in Latin America. Companies like General Motors (GM) and BMW will play an even bigger role in the connected car market than it is now.

Those already in the business of connected cars know that it can be delivered in two ways – tethered and embedded. All three come with their own list of pros and cons when it comes to their services. But here’s a piece of information if you are a company seeking information on whether to invest on tethered or embedded connectivity. By 2023, 44 percent of the connected cars will feature tethered technology compared to the 56 percent of embedded technology in Latin America connected car market.

But there’s a very important point to consider here.

Right now, people are looking for a more economical alternative to move around. This notion is supported by the escalating popularity of ridesharing companies and their very savvy apps compared to the fluctuating sales report from the carmakers.

By 2025, major Brazilian cities like Sao Paulo, Recife, Rio de Janeiro, etc., will be a hub for the ride sharing businesses. Companies like Zazcar and JoyCar will get to be in the thick of ride sharing trade. And if you’ll believe us, ridesharing companies worldwide will amount to more than 10 percent of the global revenue by the end of this decade.

Internet access coupled with ridesharing will mean you can create a virtual office anywhere, even on your way to the favorite pizza joint! (Although why you would do that, we leave it up to you.)

Even if you won’t be using ride sharing and will be a vehicle owner, you will have a plate full of smart options that will make your life better.

And what that might be?

Automated driving, a concept where you can behave like a passenger and ride without any constraints, looks like a probable reality in Latin America. Safety measures will be taken beyond Advanced Driver Assistance Systems (ADAS) to that which will be sensitive to the heart rate and body functions of the riders. Your car is likely to be your next gaming zone with the technology at hand. All this thanks to intelligent mobility, which will be a part of daily life.

It is, of course, the core of what makes connected cars interesting. That means cars that corresponds and considers the environment and the infrastructure at their disposal, besides being sensitive to the needs of the users and intuitive to their desires. It will further look after the wellness of the passengers, convenience of the drivers, and link them to newer mobility-related services.

This will change the game for the traditional auto industry. These predictions prepare and give them a glimpse to the imminent future, so that the companies and the industry can profit from it. This will lead to the initiation of an entirely different business module with very precise requirements. For example, these vehicles with intelligent mobility will have features such as pedestrian detection, curbing congestion by enabling people to travel without having to build more roads, and other smart attributes.

What a win-win situation for all.

The best part? 2025 is not that far. Looking forward to the future has never been this exciting!


Sachi Mulmi is a researcher with Frost & Sullivan. She can be reached at sachi.mulmi@frost.com


Sapan Agarwal drives content and marketing for Frost & Sullivan. Sapan is based out of Kuala Lumpur Malaysia and can be reached at sapan.agarwal@frost.com | +603 6204 5830