Key Takeaways

• Funding
  • Mega rounds in the Auto Tech industry drove funding growth: The Passenger Mobility Tech sector raised USD 8.2 billion in Q3, up 47.5% YoY. This growth was largely led by autonomous vehicle makers (such as Waymo, which raised USD 5 billion) in Auto Tech, which used the funding to develop self-driving technology further and enhance operations. Waymo expanded its driverless ride-hailing service to Los Angeles and Austin while opening up rides in San Francisco to all users without a waitlist. The only other industry to witness growth in funding was Smart Mobility Information (up 12.8% YoY), as opposed to EV Economy (down 51.7% YoY despite Lucid’s USD 1.5 billion deal), Passenger eVTOL Aircraft (down 44.7% YoY), and Shared Mobility (no funding).

• Partnerships
  • Auto Tech companies focused on expanding autonomous shuttle and taxi services while enhancing connected car features and safety: Providers like Beep, Oxa, and May Mobility formed partnerships to expand their reach and Uber looked to add robotaxi to its platform with Cruise, Cruise, Wayve, Waymo, and WeRide. Like Q2, GenAI integration was a key focus, with Volkswagen partnering with Google Cloud and Cerence to improve in-car infotainment. These advancements are expanding the autonomous shuttle market and enhancing user experience by improving how passengers utilize travel time, potentially impacting shuttle operations and user engagement.
  • The expansion and enhancement of charging infrastructure for EVs and eVTOLs continued: Notable collaborations in the EV Economy included automakers teaming up with third parties to expand EV charging networks (e.g., Mercedes-Benz, Toyota, GM). Passenger eVTOL Aircraft players, such as Lilium, Supernal, Wisk Aero, and EHang, also concentrated on vetiport infrastructure building. This continued trend of building EV and eVTOL infrastructure may support future adoption. Archer Aviation, Lilium, Dufour Aerospace, EHang, and Crisalion Mobility also continued receiving eVTOL aircraft orders.

• Product updates
  • Passenger eVTOL geared up for commercialization with new product launches and meeting testing milestones: As eVTOL players inched closer to commercialization, several aircraft unveilings by BETA Technologies, ERC-System, Vertical Aerospace, Supernal LLC, and Joby Aviation (similar to Sirius Aviation in Q2) were announced this quarter. Similarly, this was reinforced by achieving testing milestones by Archer Aviation, Xpeng AeroHT, Dufour Aerospace, Lilium, Volocopter, and EHang (similar to Archer Aviation in Q2). 
  • Autonomous and automated driving tech and EV battery tech development continued: Alphabet’s Waymo and GM’s Cruise continued their autonomous vehicle testing in new geographies, especially in Californian cities. Similarly, Helm.ai launched a GenAI-based advanced driver assistance system (ADAS) and Level 4 driving simulation, which would help improve safety and reduce gaps in testing. On the EV side, CATL and LG Energy Solution introduced new battery technologies, another persistent trend from previous quarters, also led by CATL and ACC. Notably, EV companies introduced new charging solutions, where multiple connector types can be combined into one charging port or vice versa, and enhanced the compatibility of existing systems (Beam Global, ChargePoint, and GM).

• M&As
  • Smart Mobility Information and Auto Tech industries drove M&A deals: Six notable M&A deals took place related to Smart Mobility Information (3), Auto Tech (2), and EV Economy (1). Several companies engaged in acquisitions to enhance technology and expand services within these industries (e.g., Optibus, Swiftly, Volvo Cars, and Beam Global).

• Regulations
  • Regulators set the stage for safer autonomous vehicle and eVTOL aircraft development and deployment: We noted new legislative actions in California and Kentucky for tightened and enforced regulations on autonomous vehicle deployments by requiring operators to report detailed operational data while granting more approvals for autonomous vehicle testing in California (WeRide). Similarly, China approved autonomous driving tests in Shenzen and Beijing (Pony.ai and Mercedes-Benz). Meanwhile, companies worldwide secured approvals for eVTOL development (Beta Technologies, Archer Aviation, Vertical Aerospace, and EHang) with notable progress in the US. 

• Outlook
  • The autonomous vehicle and eVTOL aircraft industries progressed toward commercialization, backed by regulatory support and consistent product launches: With increasing regulatory support, more states are approving autonomous vehicle technology and issuing testing and commercialization approvals for autonomous vehicles and eVTOL aircraft, signaling a promising future for these industries. Regular product testing by companies like Waymo and Cruise and new launches from May Mobility and Beep are expected to continue. Infrastructure development for eVTOLs (e.g., Lilium, EHang, and Eve Air Mobility) and EVs will further drive growth in both the eVTOL and autonomous vehicle sectors.
  • The development of EV charging infrastructure and batteries is expected to continue as key challenges persist: Incompatible chargers, varying speeds, and complex payment systems make public EV charging difficult, while limited fast chargers and technical issues further hinder the user experience. To accelerate EV adoption, charging infrastructure needs to become more standardized and widely accessible. Recent partnerships between infrastructure providers and manufacturers (e.g., GM, Toyota, Mercedes-Benz, E.ON, Vinfast, and NIO) reflect this trend. Additionally, high EV prices remain a barrier, which could be alleviated through innovations in low-cost battery development.
  • Smart Mobility Information to see growing demand for improved urban mobility: The Smart Mobility Information industry is poised for significant advancements, emphasizing improved public transit (e.g., Via and Volvo Buses) and parking efficiency (Flash, Mobile Smart City, and ParkMobile). These developments highlight a future where better-advanced mobility solutions contribute to safer and more efficient transportation networks.