Home
All updates- EDGE Insights
Industries
Company Search
My Watchlists (Beta)
Overview & Market size
Use cases
Market map
Disruptors
Funding history
Competitive analysis
Incumbents
Notable Investors
Related Content- Company list
Auto Tech
Overview
Autonomous and connected technologies shape the future of the automotive industry
In recent years, the automotive industry has come under the pressure of evolving consumer demands, global climate change concerns, and the imperative to reimagine the future through innovation. In response, tech developers have launched next-generation technologies and tools, with a focus on road safety, fuel efficiency, driver convenience, and security. Collectively referred to as “Auto Tech,” these technologies comprise Light Detection and Ranging (LiDAR) and other sensors, safety and driving assist tools, autonomous and connected passenger vehicles, data capture and analytics platforms, infotainment, and Internet of Things (IoT)-enabled vehicle security. Notably, these auto technologies are synergistic and inter-dependent. Most have already been commercialized, with the exception of the autonomous passenger vehicles segment, which is still in the pre-commercial stages.
Industry Updates
Market Sizing
The US Auto Tech market could reach USD 23.0 billion–29.0 billion by 2028
USD 0.0 Bn
USD 0.0 Bn
USD 0.0 Bn
Use cases
Auto tech solutions are widely adopted across various industries, particularly the consumer discretionary and industrials sectors. This specifically includes the automobile manufacturers and auto components subsegments under consumer discretionary as well as the ground transportation subsegment for industrials.
Adoption rates are notably high for auto tech products integrated into connected vehicle solutions such as vehicle data capturing, analytics, connected car platforms, and infotainment. These products have proven to enhance customer satisfaction and consequently boost revenue from subscription-based services. Additionally, LiDAR solutions have gained widespread adoption, particularly among automakers, as they effectively enhance vehicle safety and driving assistance features, further improving overall functionality.
We have identified key Auto Tech use cases below:
Market Mapping
Startups dominate the auto tech space, particularly in segments like LiDAR and other sensors, autonomous passenger vehicles, and data capture and analytics. Despite being relatively capital-intensive, segments like LiDAR and other sensors and autonomous passenger vehicles have attracted significant startup activity, boosted by the self-driving vehicle industry and the declining cost of autonomous technology. For example, Waymo managed to bring its Laser Bear Honeycomb LiDAR prices down by around 90% to roughly USD 7,500 by 2019 from the industry norm of USD 75,000 a few years before.
Almost all the players in the LiDAR and other sensors, connected vehicles, data capture and analytics, IoT-enabled vehicle security, and infotainment segments have commercialized their product offerings and today operate either in early or growth stages. However, most of the autonomous vehicle tech developers and some safety and driving assist tools providers are yet to commercialize their product offerings and are hence classified as seed or pre-seed.
Most of the incumbents operating in the space are either automotive companies such as Toyota, Tesla, and General Motors or tech giants such as Google, Amazon, and Nvidia. Incumbents dominate the infotainment segment, likely given the level of research and development (R&D) required to truly distinguish these offerings in response to pressing consumer demands. Incumbents also hold a notable presence in autonomous passenger vehicles, safety and driving assist tools, and connected car segments.
LiDAR and other sensors
Safety and driving assist tools
Autonomous passenger vehicles
Connected car platforms
Data capture and analytics
Infotainment
IoT-enabled vehicle security
The Disruptors
The Auto Tech market is led by startups serving the LiDAR and other sensors and the safety and driving assist tools segments. These include listed companies like Luminar Technologies, Innoviz Technologies, Aeva, and Cepton, as well as well-established startups like LeddarTech and Nauto.
The LiDAR and other sensors segment has been the most attractive segment for investors, having collectively drawn more than USD 7 billion in funding as of November 2023. Most of the LiDAR-related startups are publicly listed and have commercial-scale customers. Luminar Technologies and Innoviz Technologies are considered the most significant pure-play LiDAR startups in terms of funding and are listed on Nasdaq.
Autonomous passenger vehicles represent another segment attractive to investors, despite the tech being in the pre-commercialization stage. Collectively, this segment had raised over USD 6 billion as of November 2023. Aurora Innovation and Pony.ai are the most well-funded startups in this space, while the former is also listed on Nasdaq. Furthermore, Aurora Innovation is the only autonomous vehicle startup that also develops in-house LiDAR sensors for its vehicles.
The industry also includes several companies that have been listed, all via special purpose acquisition companies (SPACs). The companies that went public via SPAC deals include LiDAR makers Luminar Technologies, Aeva, Innoviz Technologies, AEye, Cepton, and Arbe. SPAC deals also include data capture and analytics provider Wejo and autonomous vehicle startup Aurora Innovation.
Funding History
Competitive Analysis
Incumbents
Automotive and tech giants racing to develop autonomous cars and driving assistance systems
Most incumbents in the auto tech space develop autonomous passenger vehicles and safety and driving assist tools. Well-established automakers such as Tesla, Toyota, and General Motors (GM) and tech giants like Google, Nvidia, and Amazon alike operate in these segments.
Several incumbents operate across multiple segments in the auto tech industry, likely driven by the interrelated nature of the tech. Players like Bosch, Tesla, Toyota, Volkswagen, Nvidia, and GM operate in as many as three to six segments. Only a few incumbents—Ouster, Amazon, Bridgestone Americas, and Intertrust—appear to specialize in a specific technology and operate in a single segment.
Acquisitions represent a popular means for incumbents to enter the auto tech space or strengthen their offering by acquiring related tech startups that can complement in-house product development efforts. In fact, several well-known incumbents such as Amazon, Intel, and Samsung only entered the auto tech space after acquiring related startups—Amazon via the acquisition of Zoox, Intel via Mobileye, and Samsung via the addition of Harman International Industries. Meanwhile, companies such as Google, GM, Tesla, Toyota, and Ouster engage in in-house product development, coupled with inorganic growth to support tech development.
Notable Investors
