Smart and sustainable urban mobility is undergoing one of the most transformative periods in modern history. A confluence of digital innovation, regulatory change, shifting consumer behavior, and climate imperatives is reshaping the way people move through cities. The recently released Urban Mobility Value Pool Report 2024 by the Oliver Wyman Forum provides a comprehensive vision of what urban transportation might look like by 2035—and the picture is as dynamic as it is complex.
A turning point in urban mobility
According to the report, the global urban mobility market is set to grow from $389 billion in 2023 to a staggering $1.1 trillion by 2035. This growth is not evenly distributed; it is propelled by disruptive technologies like electric vehicle (EV) charging and advanced driver-assistance systems (ADAS), supported by digital platforms and evolving public-private partnerships. It also reflects a gradual but decisive shift away from private vehicle ownership toward shared, electric, and connected modes of transport.
Let’s explore the key trends revealed in the report which are shaping the future of smart and sustainable urban mobility, including cleaner transport systems, digital solutions, and next-generation transit innovations. Cities are moving away from car-centric design and toward systems that are cleaner, smarter, and more inclusive. That future hinges on digital tools, public-private cooperation, and rethinking what “mobility” really means in the 21st century.
Digital services: the new backbone of smart and sustainable urban mobility
Forget flying cars for now. The real transformation is happening under the hood—in software, data, and connectivity. Digital services will drive over half of urban mobility revenue by 2035, reaching $610 billion annually. These include:
- Electric vehicle (EV) charging
- Advanced driver-assistance systems (ADAS)
- Smart parking
- Navigation and in-vehicle digital services
These services are growing at an average of 25% per year—nearly triple the overall market rate. They offer real, measurable benefits: lower emissions, safer roads, and better experiences for drivers and passengers alike.
EV charging: powering the transition
Despite the changing policies of some countries, such as the United States, EV charging is expected to grow drastically. China, which registered nearly 60% of all new EVs globally in 2023, leads the way. Cities like Hong Kong and Singapore are racing to expand charging infrastructure, aiming for tens of thousands of public chargers within the decade.
ADAS: automation that matters
ADAS is the fastest-growing mobility segment. From lane assist to Level 3 autonomy, this market will soar from $1.7 billion to $307 billion by 2035—a stunning 54% annual growth rate.
More than 40% of global consumers say they’d pay extra for autonomous driving features. In India, that number jumps to over 70%. Regulations are catching up: the EU now requires many ADAS features in all new vehicles. China, Japan, and the U.S. are expanding road tests of hands-free driving. ADAS isn’t just about convenience. It promises fewer crashes, better traffic flow, and more equitable access for those unable to drive.
Connected mobility technologies & smart parking
In-car digital services are also booming. Subscriptions and one-time purchases—from Wi-Fi to streaming—could hit $182 billion by 2035. These upgrades are becoming central to how automakers differentiate their offerings.
Smart parking, still small today, has massive potential. As more cities digitize parking systems, drivers will save time and fuel, and cities will manage curb space more efficiently. Northern Europe leads, but Asia is catching up fast.
Modal shifts: from ownership to access
Private cars are losing ground. In 2023, they made up 66% of global trips. By 2035, that share could fall below 50%. In their place: shared, electric, and lightweight options.
Car-as-a-service: flexible, not fixed
Car-sharing, subscriptions, and rentals are growing—especially in Asia and Africa, where owning a car is expensive or impractical. In Singapore, for instance, just getting a car license can cost $76,000.
Globally, car rentals will rise from $91 billion to $174 billion by 2035. Subscriptions, already popular in parts of Asia, will double. These models offer flexibility in an era when ownership is less appealing, especially for younger consumers.
Ride-hailing and robo-taxis
Ride-hailing will grow slowly, from $223 billion to $285 billion by 2035. But the real story is autonomy. Robo-taxis could cut prices and increase access—especially in dense cities where labor costs make current services expensive.
Younger riders are on board: over half of 18–34-year-olds would pay extra for autonomous taxis. For providers, the upside is not just rides, but new revenue from in-car media and services.
Micromobility: two wheels, big impact
Micromobility—bikes, scooters, mopeds—isn’t niche anymore. It’s a vital part of the mobility mix, expected to triple in value to over $34 billion by 2035.
Asia: micromobility capital
In cities across Asia, shared mopeds and bikes are embedded in daily life. In India and Indonesia, over 90% of respondents in one survey said they’d used moped-sharing. Bike rides cost as little as 19 cents. Governments are building new lanes and redesigning streets to prioritize these modes.
Europe: cycling as culture
European cities like Amsterdam and Copenhagen are expanding cycling networks. Bike-sharing will more than double by 2035. Scooter-sharing is growing too, though slowly, and often faces regulatory pushback—like Paris’s 2023 ban on free-floating e-scooters.
Africa: building from the ground up
In African cities, micromobility offers affordable alternatives where formal transit is lacking. Lagos and Nairobi are investing in bike infrastructure, and startups like AWA are working to improve safety and access—especially for women.
Regional snapshots: one trend, many paths
Asia: leading the charge
Asia is the fastest-growing region, with an 11% annual growth rate and a projected $573 billion market by 2035. China dominates EVs. India’s startup ecosystem is reshaping ride-hailing. Super-apps make seamless mobility the norm.
Europe: regulate and lead
Europe’s growth is slower but focused. ADAS is growing 53% annually thanks to new mandates. EV charging is scaling fast, supported by massive EU investments. Public transport and cycling remain dominant.
North America: digital first
Despite lower population density and car dependency, the U.S. and Canada will see strong growth in digital services like ADAS, charging, and smart parking. Public transit and micromobility face structural challenges.
Middle East: mobility as lifestyle
Car use is still dominant, but policies in the UAE and Saudi Arabia are shifting toward EVs. Car-sharing and subscriptions are catching on, especially in digitally connected urban centers like Dubai.
Africa: greenfield opportunity
Africa’s market is small but growing at 8% annually. EVs, ride-hailing, and micromobility all have room to expand. Public-private partnerships, like Lagos Ride, are leading the way.
Strategy for the next decade: adapt or miss out
Urban mobility isn’t just about movement anymore. It’s the backbone of smart cities and sustainable living. The report suggests three strategic imperatives:
- Partner across sectors: Governments and tech firms must collaborate to build regulations that encourage innovation while protecting users.
- Rethink business models: Car ownership is giving way to subscriptions, platforms, and pay-per-use services. Monetizing software will be as important as selling vehicles.
- Think regionally: Asia’s super-apps, Europe’s regulations, Africa’s leapfrogging potential—mobility strategies must reflect local conditions.
Urban mobility is no longer just about getting from A to B. It has become the engine for smart and sustainable urban mobility. The choices we make now—about infrastructure, regulation, and technology—will define the next generation of cities.The road to 2035 is wide open. The question is: who will lead the way?
You can read more about sustainable transport solution here and about cylcling in cities here.
