Regional Deep Dive: The Evolution of Mobility in North American Suburbs and Rural Areas

Introduction

The landscape of mobility in North America is undergoing a profound transformation, but much of the industry conversation has focused on urban centers and European cities. Yet, the future of transportation in North America will be shaped just as much—if not more—by the unique needs and challenges of suburban and rural communities. As Gen Z and Millennials increasingly migrate out of cities, and as electrification, shared mobility, and digital retail reshape the industry, understanding the suburban and rural context is critical for OEMs, utilities, and mobility providers seeking to capture new growth and deliver meaningful impact.

The Distinct Mobility Context of Suburbs and Rural Areas

Suburban and rural regions in North America present a markedly different mobility environment compared to urban centers. While cities benefit from dense public transit networks and a proliferation of shared mobility options, suburban and rural communities often face limited infrastructure, longer travel distances, and fewer alternatives to personal vehicle ownership. For many residents, the car remains not just a convenience but a necessity, with public transportation options sparse or non-existent and daily commutes stretching across significant distances.

This context shapes both the pace and nature of mobility innovation. Electrification, digital retail, and shared mobility are advancing, but adoption rates and consumer expectations diverge from those in urban markets. The digital divide—gaps in broadband access and digital literacy—further complicates the rollout of new mobility services and digital retail experiences.

Electrification: Opportunities and Obstacles

The push toward electric vehicles (EVs) is a defining trend in North American mobility, driven by regulatory mandates, consumer demand for sustainability, and OEM innovation. However, the path to electrification in suburban and rural areas is not without hurdles:

Charging Infrastructure: While urban areas see rapid deployment of public charging stations, rural and suburban communities often lag behind. The lack of charging infrastructure, coupled with concerns about grid reliability and range anxiety, remains a significant barrier to EV adoption. For example, even in leading states like California, grid strain during peak periods has led to calls for EV owners to limit charging, highlighting the need for advanced, resilient charging networks that can balance demand and integrate renewable energy sources.
Public-Private Partnerships: Addressing these infrastructure gaps requires collaboration between OEMs, utilities, local governments, and third-party providers. Initiatives to standardize charging systems and expand networks—such as multi-OEM alliances to install thousands of new charge points—are critical to making EVs viable for suburban and rural drivers.
Data-Driven Solutions: Connected car data and AI-driven analytics can help optimize charging station placement, predict energy usage, and inform grid planning. By leveraging vehicle and infrastructure data, stakeholders can better address the unique travel patterns and needs of non-urban residents.

Shared Mobility: Promise and Practicality

Shared mobility—encompassing car-sharing, ride-hailing, micro-mobility, and subscription models—has transformed urban transportation, but its impact in suburban and rural areas is more nuanced:

Economic Viability: Lower population density and longer travel distances make it challenging to operate profitable shared mobility services outside cities. While urban residents can easily access a range of options, rural communities often lack the scale needed to support frequent, on-demand services.
Emerging Models: Despite these challenges, there is growing interest in flexible, hybrid models that blend ownership and usership. Subscription services, peer-to-peer car sharing, and community-based ride programs are gaining traction, particularly among younger generations who value flexibility and digital convenience. For many, the car is becoming one option among many, rather than a default purchase.
OEM and Dealer Roles: OEMs and dealers have an opportunity to evolve from product sellers to mobility service providers, offering bundled solutions that include insurance, maintenance, and access to shared fleets. Dealers, in particular, can serve as local mobility hubs, educating consumers about new options and supporting the transition from ownership to usership.

Digital Retail: Bridging the Urban-Rural Divide

The digital transformation of automotive retail is reshaping how consumers shop for, purchase, and service vehicles. In suburban and rural areas, digital retail offers both promise and complexity:

Omnichannel Experiences: Consumers increasingly expect seamless, personalized experiences across online and offline channels. While many begin their car-buying journey online, the physical dealership remains important for test drives, consultation, and aftersales support—especially in regions where digital literacy or broadband access may be limited.
Dealer Evolution: The role of the dealership is shifting from inventory management to experience facilitation. Dealers in suburban and rural areas can differentiate themselves by offering virtual consultations, streamlined digital paperwork, and localized aftersales services, all supported by robust data sharing with OEMs.
Addressing the Digital Divide: Ensuring equitable access to digital retail experiences requires investment in broadband infrastructure and digital education. OEMs and mobility providers must design solutions that are inclusive, intuitive, and adaptable to varying levels of digital readiness.

The Future of Car Ownership vs. Usership

The traditional model of car ownership is being reimagined, but the pace and form of change differ outside major cities:

Ownership Remains Essential: In many rural and suburban communities, car ownership will remain the norm for the foreseeable future, driven by necessity and limited alternatives. However, expectations around ownership are evolving, with consumers seeking more flexible financing, bundled services, and digital engagement throughout the vehicle lifecycle.
Usership on the Rise: Younger generations, influenced by the subscription economy and digital platforms, are more open to usership models—leasing, sharing, or subscribing to vehicles as needed. As these consumers move to the suburbs, they will bring expectations for connected, flexible mobility solutions, challenging OEMs and dealers to innovate beyond the sale.
Integrated Mobility Ecosystems: The future lies in integrated mobility platforms that consolidate various services—ownership, usership, maintenance, insurance, and charging—into cohesive, data-driven ecosystems. OEMs, utilities, and third-party partners must collaborate to deliver value across the entire customer journey, leveraging data and digital tools to personalize experiences and optimize operations.

Conclusion: Seizing the Suburban and Rural Mobility Opportunity

The evolution of mobility in North American suburbs and rural areas is a story of both challenge and opportunity. Electrification, shared mobility, and digital retail are reshaping the landscape, but success depends on understanding and addressing the distinct needs of these communities. For OEMs, utilities, and mobility providers, the path forward requires:

Investing in resilient, scalable infrastructure and digital platforms
Building public-private partnerships to bridge gaps in access and adoption
Leveraging data and AI to personalize experiences and optimize operations
Evolving business models to support both ownership and usership
Designing inclusive solutions that address the digital divide

By embracing these imperatives, industry leaders can unlock new growth, foster customer loyalty, and drive sustainable, inclusive mobility for all North Americans—no matter where they live.