SANTA CLARA, Calif., 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.
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"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.
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Start-ups Disrupting the Global Automotive and Mobility Industry, 2016–2017
Corporate Communications – North America
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SOURCE Frost & Sullivan