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Today, the world is undergoing a global mobility transition that is largely driven by the unprecedented growth in population. Mobility is the backbone of cities and essential for urban development. The development of an economy also relies on it. However, over a billion people lack access to transport services across the world.

According to the World Economic Forum, around 300 million people in India lack access to all-weather roads, creating roadblocks for their access to mobility, affecting economic opportunity and basic services like healthcare and education. Also, there is a major challenge for emerging economies to embrace new-age technologies as they move to higher economic growth paths and balance environmental risks, while keeping mobility accessible and affordable to all simultaneously.

Urbanization Drives Demand for Mobility

As per the United Nations estimations, the world’s population will grow by 918 million through 2030 and 2.1 billion through 2050, most will be increasingly urban. The move to urbanization will create vastly different cities. As said by the UN, the world is projected to have 43 megacities with more than 10 million inhabitants by 2030, most of them in developing regions.

Europe is advanced in terms of urbanization and more than two-thirds of its populace lives in urban areas that will continue to grow. Thus, this increasing rate of urbanization requires effective mobility solutions that are intelligible with land use policy.

Efficient transport and mobility, based on both public and private transport and reliant on the structures of each city, will also continue to be the spine of the growth of emerging economies.

Moreover, new markets also pose unique opportunities for global mobility. Global players always look for new markets to reach new customers and business opportunities. In this regard, Asia, particularly, continues to be a focus for many companies to expand and grow their business. The region has a wealth of human resources but the lack of skills and experience of talent at a local level always remains an issue.

Future Economies Influenced by Transportation

The development of transportation infrastructure has an enormous impact on emerging economies. Today, the automotive sector is witnessing a transformation towards organized mobility services with digital platforms, low-carbon vehicles and electric and hybrid technologies.

The evolution of the new mobility and electric vehicle industry also brings an opportunity for developing economies to entice massive capital as well as build a workforce with advanced skills, driving higher economic value for the long term.

In recent years, the move towards electric vehicles has seen the emergence of several new players in the industry worldwide. In China alone, nearly 500 manufacturers are registered to make EVs. On the other hand, with localization of electric powertrains and battery-pack assembly, India could realize a 6 percent higher output value addition for its auto industry, in a scenario in which EVs make up 30 percent of passenger vehicle sales.

Thus, smart and effective mobility will be one major need for emerging and developing countries amongst whatever solution they opt for. This not means to just build new ring roads or new lanes; it is a sustainable process and will be expanded on a sustainable basis.