One of the fastest-growing sectors
Due to the pressing issues faced by the transportation industry today, it is not a surprise that Smart Mobility has been one of the fastest-growing sectors within the startup universe. Players in this sector tackle problems such as transport safety, congestion, costs and accessibility to mobility, environmental-friendly transport, efficient use of roads and resources, and many more.
Based on a 2019 McKinsey report, $220 billion have been invested worldwide into more than 1100 companies across the sector from 2010 until 2019. The Smart Mobility market is expected to grow to $150 billion until 2023, with a CAGR of 14.7%. In fact, even in the present day, total market valuation of tech players in the automotive space is now higher than that of traditional OEMs.
The digitalization and transformation of the automotive industry takes on many different shapes and forms; however, there are three distinctive trends that can be observed:
- Electrification of vehicles. The number of electric passenger cars surpassed 5 million in 2018, and in 2019, EVs captured 2,2% of the global vehicle market. With multiple countries announcing partial or full bans on internal combustion engines in the near future, consumers and manufacturers are forced to adapt by switching to more sustainable transportation choices.
- Connected and autonomous vehicles. By using sensor technologies such as LiDAR, radar, cameras, GPS and ultrasound, vehicles can communicate with each other and their environment, making driving more reliable, safe, and convenient. This connectivity is a necessary step towards an ultimate goal – building fully autonomous, computer-driven vehicles.
- Mobility-as-a-Service (MaaS). Personal vehicles spend 95% of the time unused, which is why the main objective of MaaS is replacing vehicle ownership with service-based transport. These, so-called “on-demand mobility” solutions primarily include car sharing, ride hailing, carpooling, and similar solutions like e-scooters and e-bikes.
Most startups in the Smart Mobility landscape aim to solve problems that are either directly or indirectly related to these three trends. As an example, within the autonomous vehicles space, technologies improving assistance systems, mapping and navigation, sensors and training data can be found. The connected vehicles space includes, among others, vehicle-to-vehicle communication, fleet management, maintenance, and in-vehicle data. There are also various other solutions which can be included under the umbrella term of Smart Mobility, such as battery and charging tech, vehicle selling marketplaces, finance and insurance, parking, and many more.