Key takeaways

• Funding
  • Mega rounds in the EV Economy industry drove funding growth: Passenger Mobility Tech raised USD 7.8 billion in Q1, up 178.2% YoY and 26.2% QoQ. This growth was largely led by EV battery developers and passenger EV manufacturers (such as NorthVolt and Lucid Motors) in EV Economy, with support from ride-hailing service providers in Shared Mobility (such as Lyft and inDrive). However, funding declined in the Auto Tech, Passenger eVTOL Aircraft, and Smart Mobility Information industries. Technological complexities and regulatory hurdles may delay autonomous vehicle deployment at scale—hence, the industry witnessed funding support withdrawals (e.g., General Motors’ [GM’s] Cruise, and Motional).

• Product updates
  • Autonomous and automated driving tech updates and AI feature integrations fueled the Auto Tech industry: Autonomous vehicle tech companies (Amazon’s Zoox, Waymo, and and advanced driving assistance systems (ADAS) makers (BMW, Mobileye, Luminar, and Magna International) continued to enhance and update their respective technologies. However, product discontinuations, closures, and layoffs in the industry reflect the challenges in the sector.
  • EV updates centered on new EV models, infrastructure developments, and improving battery supply: EV Economy saw a surge in innovation and growth, with new EV models launched by Rivian, and Additionally, efforts to fortify the EV ecosystem were evident, as companies focused on improving charging infrastructure. EV battery manufacturers also dedicated efforts to augment battery supply and advance technology this quarter.
  • Smart Mobility Information saw geographic expansion, while Passenger eVTOL commercialization began: Smart Mobility Information players experienced significant geographic expansions. Significant milestones were achieved in Passenger eVTOL Aircraft, with launching the world's first commercial customer eVTOL flights, while others continued to progress with the launch of online aircraft sales and unveiling prototypes.

• Partnerships
  • NVIDIA supplied ADAS compute platforms to Auto Tech players, while others focused on AI integrations: NVIDIA was seen forging back-to-back deals with EV manufacturers and technology developers for the advancement of safety and driving assistance technologies. AI integrations remained a key trend, with industry players looking to update their ADAS and connected vehicle features with AI integrations.
  • EV Economy and Passenger eVTOL Aircraft industries saw expansion and enhancement of charging infrastructure: Notable collaborations in EV Economy included major automakers, energy companies, and highway systems teaming up with third parties to expand EV charging networks or access to existing networks. Passenger eVTOL Aircraft disruptors also concentrated on infrastructure building, while some also looked to expand their geographical coverage.
  • Smart Mobility Information advanced multimodal mobility management: Players working on multimodal mobility management technologies looked to integrate advanced technologies to improve user experience and expand geographical coverage.

• M&As
  • Q1 saw limited activity in industry consolidations: Only two notable M&A deals took place and were related to the Auto Tech and Smart Mobility Information industries: 1) Karma Automotive acquired Airbiquity to enhance its EVs with advanced connected software capabilities and 2) ParkHub merged with JustPark, aiming to bolster parking solutions and geographical reach across North America and the UK.

• Regulations
  • As the landscape for Passenger Mobility Tech evolves rapidly, it is shaped by regulatory frameworks, government funding, and geopolitical considerations: Companies worldwide are advancing by securing approvals for robotaxi deployments, with notable progress in the US and China. However, local concerns in the US over the safety of autonomous vehicle deployments have led to legal and legislative pushbacks against state-level authorizations. Concurrently, significant investments in EV and smart mobility technologies from authorities aim to bolster the adoption of EVs and improve infrastructure for safer, smarter mobility. Amid this push toward innovative transportation solutions, US national security concerns over Chinese auto tech companies introduce additional regulatory complexities.

• Outlook
  • Active engagements from leading OEMs in the Auto Tech space signal a rising trend in AI integration within ADAS and connected car technologies. We noticed companies are increasingly collaborating with AI specialists, paving the way for a generation of vehicles that are smarter and more secure—a trend observed in past quarters as well. While companies strive for long-term commercial success, resource reallocation has led to layoffs, which may persist, as businesses adjust capacities, potentially leading to further layoffs.
  • The ongoing expansion of the EV ecosystem, particularly in charging infrastructure, and introducing new models from manufacturers are expected to bolster EV adoption. Improved infrastructure, a wider range of models, advancements in battery technology, and customer incentives are key trends contributing to this positive outlook, consistent with observations from previous quarters.
  • Smart Mobility Information’s global expansion indicates widespread demand for advanced mobility solutions. As smart mobility becomes more user-centric by incorporating personalized features and improved accessibility, the sector is poised for a dynamic and technology-driven future.
  • Passenger eVTOL Aircraft should continue marching toward commercialization as evidenced by LIFT Aircraft’s customer launch, Pivotal’s online sales opening, and several other partnerships with infrastructure providers, indicating positive signs for commercialization in the future.