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February 2, 2022

Global new mobility market insights: Automotive connectivity start-ups

In Part 3 of our study on the global new mobility market, we investigate automotive connectivity start-ups by analysing funding and acquisitions. The key takeaways of our research are summarised in the following.

Funding:

  • Global funding amounts for connectivity start-ups have grown since 2011 and reached $1,221 million in 2021
  • In the years between 2011 and 2020, 85% of the total funding was raised by 25 connectivity start-ups, which accumulated funding of $956 million in 2021

Funding – Top 25 connectivity start-ups:

  • Asia is dominating funding into connectivity companies with a share of 55%
  • Connectivity Onboard and Connectivity Services are dominated by Asian start-ups, while Connectivity Offboard is led by North American newcomers
  • Banma Information Technology, Newlinks Technology and Wejo are the highest funded companies in their respective sectors

Acquisitions:

  • During the past decade, 43 acquisitions were conducted in our research area of automotive connectivity
  • Most of the companies which acquired in the field of connectivity are active in the industry of Parking & Mobility
  • While Automotive Suppliers focused their acquisitions on Connectivity Onboard companies, Automotive OEMs were selecting Connectivity Service start-ups

Summarising, funding into connectivity start-ups is still on the growth path, despite a decline in the 2020 Covid pandemic. Especially Connectivity Offboard start-ups have achieved to increase their funding in recent years.

Among the top funded companies, we see trending business activities in the fields of data analysis (Wejo), car operating systems (Banma Information Technology) and fleet management (Newlinks Technology).

Acquisitions in connectivity companies differ between Automotive Suppliers and OEMs. While Automotive Suppliers acquired companies in technical fields, OEMs focused more on innovative mobility and car related services.

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