Analyst Take: In Q3 2024, funding recovered sharply, increasing 47.5% YoY to USD 8.2 billion after a two-year low in Q2. This resurgence was driven by Auto Tech, which accounted for 73.6% of the sector’s funding; Waymo alone secured USD 5 billion or 61.1% of the total raised by Passenger Mobility Tech players. Smart Mobility Information was the only other industry to see an uptick in investment, while sectors like Shared Mobility, EV Economy, and Passenger eVTOL Aircraft saw declines. Notably, Lucid Motors’ USD 1.5 billion raise in post-IPO debt and equity was the only other deal that raised over USD 1 billion, despite the downturn in EV funding overall.
Analyst Take: Incumbents continued to play a key role in partnerships (41%), leading with GM, Volvo Cars, and Uber signing several. Most partnerships in Q3 2024 focused on Auto Tech, with autonomous shuttle deployments continuing as a key trend. Similar to Q2, companies like Beep, May Mobility, and Oxa remained active in launching autonomous shuttles and urban mobility solutions. Autonomous shuttles are gradually transitioning from pilot projects to commercial deployments, thanks to strategic partnerships to improve urban mobility. These shuttles connect key areas such as city centers and airports. Uber’s multiple partnerships to integrate autonomous vehicles into its platform also stood out this quarter.Most of the partnerships in EV Economy were related to EV charging infrastructure development to deliver better access to customers, which is a continuing trend, with GM engaging in similar deals in Q2. Most of the partnerships in Passenger eVTOL Aircraft were driven by companies building operational infrastructure, securing orders, and looking into the feasibility of deploying eVTOLs globally. This may indicate future commercialization among companies, supported by elevated consumer readiness (studies indicate that ~75% of consumers are willing to fly within a year of the technology's arrival). In the Smart Mobility Information industry, Optibus continued forming partnerships this quarter to enhance multimodal mobility management, continuing the trend seen in Q1 and Q2 2024.
Analyst Take: The Passenger Mobility Tech sector saw six acquisitions during Q3 2024 compared with two M&A deals in Q2 2024 and four in Q3 2023. Players across Smart Mobility Information, Auto Tech, and EV Economy engaged in acquisitions to inorganically enhance their solutions, including Optibus, Swiftly, Volvo Cars, and Beam Global. Meanwhile, Almaviva acquired Iteris in Smart Mobility Information to boost innovation and the global expansion of the latter, while Koito Manufacturing acquired Cepton in Auto Tech to complement its existing sensor technologies.
Analyst Take: Recent legislative moves (including approvals for autonomous vehicle testing) in regions like the US and China looked to foster a secure environment for autonomous vehicle deployment. However, US national security apprehensions are creating regulatory challenges for Chinese connected vehicle developers, which may result in the downsizing or ceasing of their operations in the US—a similar concern observed earlier this year. Passenger eVTOL Aircraft players also obtained licenses and regulatory support across the globe during the quarter, indicating the drive toward commercialization.The upcoming presidential election could have a major impact on the EV economy. The Democratic Party's policies largely support the industry, focusing on electrifying school buses, transit systems, federal vehicles, and freight to achieve zero emissions. They also plan to strengthen clean energy supply chains by building facilities for batteries, EVs, and renewable energy infrastructure. A Republican presidency, however, may reverse emissions mandates, potentially shifting the auto industry’s focus back to more affordable, fossil-fueled vehicles.
Analyst Take: Outbound logistics were central in Q2, largely driven by partnerships. Most outbound logistics-related partnerships were related to the EV Economy industry, predominantly focusing on EV charging infrastructure development and enhancement. Major partnerships included deals inked by automakers such as GM, Toyota, Mercedes-Benz, and Volvo Cars, as well as EV infrastructure providers such as ChargeLab, BP, E.ON, and Noodoe. Manufacturing/operations efforts also saw many activities driven by partnerships, most of which were related to Auto Tech, specifically for autonomous vehicle deployment. Uber entered four partnerships to deploy robotaxis on its platform, while startups such as May Mobility, Beep, and Oxa partnered with city authorities and public transportation service providers to launch their autonomous shuttle services.
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