Start-ups ‘steering growth and innovation in global automotive and mobility industry’

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, say Frost & Sullivan researchers. 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
May 24, 2017 Read time: 2 mins
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, say 2097 Frost & Sullivan researchers. 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 1731 BMW Start-up Garage, the JLR Incubator Program, 278 Ford Mobility and 1959 GM Ventures, are fuelling start-up investment and the race to bring autonomous electric mobility to market.

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

“By 2025, mobility solution revenue is expected to reach €1.89 trillion, and OEMs will look to capitalise 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 6328 Harman’s investment in aftermarket head-up display provider Navdy.”

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

For more information on companies in this article

Related Content

  • Car-sharing operators move to smartphone-based car access systems
    November 27, 2015
    New analysis from Frost & Sullivan, Strategic Analysis of the Vehicle-sharing Technologies Market, finds that the global car-sharing user base will reach 26 million members by 2020. Car-sharing operators (CSOs) in North America will lead the way in terms of technology deployments, followed by Europe. To meet the growing demand, partnerships among CSOs, technology companies and original equipment manufacturers will gather pace. Over the years, vehicle-sharing technologies have evolved from simple manual
    Read More
  • Report forecasts major growth in smart parking
    September 24, 2013
    According to new analysis by Frost & Sullivan, Future of Vehicle Parking Management Systems in North America and Europe, growth opportunities are expected to attract new start-ups in the parking industry, providing real-time parking applications. The industry is expected to witness investments and funding from venture capitalist (VC) firms, ranging from US$200-$250 million in the next three to five years. This is made evident through the emergence of companies, such as Streetline (US and Europe), ParkatmyHo
    Read More
  • China to ‘see unparalleled urban growth by 2025’
    November 7, 2012
    New analysis from Frost & Sullivan, New Mega Trends in China: Macro to Micro Implications of Mega Trends to 2025, says that China is set to become the largest economy in the world by 2025 with a nominal GDP value of US$38 trillion. Fuelled by a strong urbanisation rate, a favourable corporate environment, huge infrastructure investment and the largest working age population, the Chinese economy will finally transform itself from being the manufacturing site of the globe to one of the biggest and largest con
    Read More
  • Ford targets fully autonomous vehicle in 2021
    August 17, 2016
    Ford has announced its intention to have a high-volume, fully autonomous vehicle in commercial operation in 2021. The new vehicle will be a Society of Automotive Engineers-rated level 4-capable vehicle without a steering wheel or gas and brake pedals. It is being specifically designed for commercial mobility services, such as ride sharing and ride hailing, and will be available in high volumes. SAE level 4 is one level below full automation and is defined as ‘mode-specific performance by an automated
    Read More

Highlighted Content