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Passenger Mobility Tech (Q3 2024): Two landmark deals boost funding; autonomous vehicle and EV innovations lead

This Edge Insight focuses on notable activity from July 2024 through September 2024 (Q3 2024) relating to five SPEEDA Edge industries under the Transportation & Logistics vertical: EV Economy (excluding commercial EVs), Auto Tech, Shared Mobility, Smart Mobility Information, and Passenger eVTOL Aircraft.

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.
  • 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.

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