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Start-ups Steering Growth and Innovation in the Global Automotive and Mobility Industry


News provided by

Frost & Sullivan

16 May, 2017, 13:15 GMT

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Electrification, mobility and connected car technologies start-ups are gaining traction, finds Frost & Sullivan's Mobility team

SANTA CLARA, California, May 16, 2017 /PRNewswire/ -- From devising driver monitoring systems to mapping services and driver safety data on the go, start-ups are rapidly emerging in every technological vertical in the automotive space. Over 1,700 start-ups are focusing on developing technologies that enable electrification, autonomous cars, and mobility solutions to reduce the cost of ownership and enhance user experience. Meanwhile, original equipment manufacturer (OEM) start-up initiatives such as BMW Start-up Garage, the JLR Incubator Program, Ford Mobility, and GM Ventures, are fuelling start-up investment and the race to bring autonomous electric mobility to market.

Frost & Sullivan's latest analysis, Start-ups Disrupting the Global Automotive and Mobility Industry, 2016-2017, finds the total start-up funding across various technological verticals garnered $1.55 billion in 2016, with major investment focused on mobility, electrification and connected car technologies.

To learn more about Frost & Sullivan's research or to sign up for your Growth Strategy Dialogue, a complimentary one-hour interactive session, with Frost & Sullivan thought leaders please visit: https://goo.gl/rnOpyg 

"By 2025, mobility solution revenue is expected to reach €1.89 trillion, and OEMs will look to capitalize on this by acquiring or investing in mobility start-ups across the globe," said Frost & Sullivan Mobility Industry Analyst Ramnath Eswaravadivoo. "Tier 1 suppliers are also engaging in acquisitions and investments in start-ups in order to enhance their existing portfolio, gain a competitive edge, and become one-stop solution providers as evinced by Delphi's acquisition of Movimento, Microsoft's acquisition of Maluuba, and Harman's investment in aftermarket head-up display provider Navdy."

Developments and trends driving automotive and mobility start-up growth include:

  • Bosch focusing on developing start-ups in India and investing close to €1.2 billion in Internet of Things technology in this region.
  • Europe expanding fixed long-distance ridesharing; more than 50 major ridesharing companies operate in the region as major cities are easily accessible with a sizeable population of frequent travelers.
  • Burgeoning start-ups in Israel; from 50 a few years ago, start-up numbers have crossed 300 with focus on smart mobility, cyber security, and electric mobility.
  • High original equipment funding for the electric vehicle battery and charger segments, stronger distribution and channel enablers for service aggregators, and robust retail channels for telematics and in-vehicle technologies
  • Artificial intelligence in self-learning cars to grow exponentially with increasing data; by 2025, such cars will have a fully autonomous driving mode and be capable of assisting users.

"In the future, all OEMs will look toward digitalization of their ecosystem; Increasing digital retail and adoption of blockchain technologies will be critical success factors," noted Eswaravadivoo.

Start-ups Disrupting the Global Automotive and Mobility Industry, 2016–2017, is part of Frost & Sullivan's Automotive & Transportation Growth Partnership subscription.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Contact us: Start the discussion

Start-ups Disrupting the Global Automotive and Mobility Industry, 2016–2017
K128-18

Contact:
Clarissa Castaneda
Corporate Communications – North America
P: 210.477.8481
F: 210.348.1003
E: clarissa.castaneda@frost.com

http://www.frost.com

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