Auto Tech Market Overview
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The auto tech market is experiencing significant investment and transformation, with over $10 billion raised in the past two years as consumer behaviors shift towards digital solutions in vehicle ownership and maintenance. The U.S. automotive industry, valued at approximately $700 billion, is adapting to trends like connected cars and shared mobility, which challenge traditional ownership models. Notable developments in electric and autonomous vehicles are paving the way for a redefined automotive landscape, though hurdles remain in technology and infrastructure.
![2
Investor’s Perspective:
• This is an interesting time to get involved – Auto Tech companies have raised over $10bn in the
last 2 years [3] including from a number of Auto Tech focused VCs, automotive strategics and
Internet giants.
• Vehicles are changing rapidly and the tendencies by which consumers acquire, own, maintain
and dispose of their vehicles are changing too.
• Recent technology developments including EV technology, ridesharing and (the early stages of)
autonomous vehicles foretell a dramatic change in car ownership models; the entire industry
supply chain is and will continue to reorient itself around this shift.
Market Size
• US Automotive Industry is a $700bn industry, representing ~3% of the US economy. [1]
• Employs 4.3mm people. [2].
Auto Tech Overview
Automotive Tech (“Auto Tech”) includes various technology solutions provided to the
automotive industry as well as solutions that enable commercial and government
entities and consumers to acquire, own, maintain and dispose of automobiles.
[1] Center for Automotive Research
[2] Bureau of Labor Statistics
[3] CB Insights Auto Tech](https://image.slidesharecdn.com/autotechresearchreportv85-190502154949/85/Auto-Tech-Market-Overview-2-320.jpg)
![4
Emerging Trends in the Automotive Market
• Changing consumer preferences are
forcing the hand of automotive OEMs and
dealers to reinvent the automotive retail
experience.
• While dealers have long used websites for
lead gen., dealers are now investing in
digital capabilities that will allow them to
“ecommerce” more parts of the purchase.
Purchasing and
Servicing Autos is
Becoming
Increasingly
Digitized
• Vehicles are designed to last longer.
• As vehicles age, they require a greater
degree of services and more replacement
parts.
• Many automobiles and trucks change
hands 2+ times in their lifetime.
[1] Deloitte Global Automotive Consumer Study (2018)
[2] IHS Automotive
[3] Bureau of Transportation Statistics
Longer Auto
Lifecycle
• Declining hardware costs and greater
connectivity have driven the growth of the
“Connected Car”:
• Lower warranty costs
• Rise of predictive maintenance
• Higher complexity of servicing
vehicles
Connected and
Computerized Car
Technologies
Continue to
Proliferate
27%
52%
61%
77%
20%
37%
67%
80%
10%
21%
68%
86%
Boomers
Gen X
Gen Y / Z
Salesperson
Printed
Materials
Mobile
In Store Tablet
Usefulness of Info Channels at a Dealership [1]
152mm
2.0bn
2020 2025
Connected Cars on the Roads Globally [2]
13.1x; 67% CAGR
Average Age in Years of Household Vehicles in Operation [3]
0
5
10
15
20
1969 1977 1983 1990 1995 2001 2009 2017
Automobile Van Sport utility
Pickup Other truck RV/motor home](https://image.slidesharecdn.com/autotechresearchreportv85-190502154949/85/Auto-Tech-Market-Overview-4-320.jpg)
![5
The Automotive Industry in the Long Run
• Various hurdles to clear before true AV-4
& 5 standards are reached, include:
• Improvements to computer vision
technology
• Public opinion
• Regulatory approval
• Telecom infrastructure
Autonomy
Standards Are
Incremental
• Ride-hailing, ride-sharing, carsharing and
car subscriptions are introducing
consumers to “Shared Mobility” – the idea
that consumers do not need to own a
vehicle to have all of its benefits.
• This transformation will have profound
implications throughout the industry.
[1] J. P. Morgan Estimates
[2] evadoption.com
[3] The International Council on Clean Transportation
Shared Mobility is
Challenging the
Consumer-Owned
Vehicle Model
• To date, EV growth in the US has been a
story of fits and starts, just surpassing 1%
of new sales in 2017. [2]
• Within the top 100 US metros, only 12
have more than half the charging
infrastructure necessary to support the
3mm electric vehicles forecasted on the
road by 2025. [3]
Electric Vehicles Are
Establishing a Beach
Head
AV-5: Full Autonomy
AV-4: High Autonomy (human intervention)
AV-0: Analog Vehicles
AV-1: Driver Assistance (cruise control, steering assistance)
AV-3: Conditional Autonomy (highway autonomy)
AV-2: Partial Autonomy (traffic jam assist, self-parking)
Society of Automotive Engineers Autonomy Levels
Shared Mobility
Ride-Sharing
CarsharingCar Subscriptions
Ride-Hailing
1% 4%
12% 20%
7% 20%
39%
98% 89%
68%
41%
2015 2020 2025 2030
EVs Hybrids Internal Combustion Engine Vehicles
Electric Vehicles as % of New Car Sales [1]](https://image.slidesharecdn.com/autotechresearchreportv85-190502154949/85/Auto-Tech-Market-Overview-5-320.jpg)
Auto Tech Market Overview
- 1. Auto Tech Market Overview May 2019 Kirk Mahoney & Kapil Desai
- 2. 2 Investor’s Perspective: • This is an interesting time to get involved – Auto Tech companies have raised over $10bn in the last 2 years [3] including from a number of Auto Tech focused VCs, automotive strategics and Internet giants. • Vehicles are changing rapidly and the tendencies by which consumers acquire, own, maintain and dispose of their vehicles are changing too. • Recent technology developments including EV technology, ridesharing and (the early stages of) autonomous vehicles foretell a dramatic change in car ownership models; the entire industry supply chain is and will continue to reorient itself around this shift. Market Size • US Automotive Industry is a $700bn industry, representing ~3% of the US economy. [1] • Employs 4.3mm people. [2]. Auto Tech Overview Automotive Tech (“Auto Tech”) includes various technology solutions provided to the automotive industry as well as solutions that enable commercial and government entities and consumers to acquire, own, maintain and dispose of automobiles. [1] Center for Automotive Research [2] Bureau of Labor Statistics [3] CB Insights Auto Tech
- 3. 3 Auto Tech Asset Lifecycle Auto Tech exists to digitize, automate and otherwise improve various phases of the auto asset lifecycle: Secondary Retail Sales Insurance Retail Outfit List Research Inspect Transport Broker / Transact OwnershipPrimary Retail Wholesale & Distribution OEM Design Assembly Disposal Salvage Recycle Parts, Goods & Accessories Insurance Claims Desking Fuel / Charge Park Roadside Assistance Parts Procurement Transport Manage (Fleets)Market ServiceWarehouse Loan Refinancing
- 4. 4 Emerging Trends in the Automotive Market • Changing consumer preferences are forcing the hand of automotive OEMs and dealers to reinvent the automotive retail experience. • While dealers have long used websites for lead gen., dealers are now investing in digital capabilities that will allow them to “ecommerce” more parts of the purchase. Purchasing and Servicing Autos is Becoming Increasingly Digitized • Vehicles are designed to last longer. • As vehicles age, they require a greater degree of services and more replacement parts. • Many automobiles and trucks change hands 2+ times in their lifetime. [1] Deloitte Global Automotive Consumer Study (2018) [2] IHS Automotive [3] Bureau of Transportation Statistics Longer Auto Lifecycle • Declining hardware costs and greater connectivity have driven the growth of the “Connected Car”: • Lower warranty costs • Rise of predictive maintenance • Higher complexity of servicing vehicles Connected and Computerized Car Technologies Continue to Proliferate 27% 52% 61% 77% 20% 37% 67% 80% 10% 21% 68% 86% Boomers Gen X Gen Y / Z Salesperson Printed Materials Mobile In Store Tablet Usefulness of Info Channels at a Dealership [1] 152mm 2.0bn 2020 2025 Connected Cars on the Roads Globally [2] 13.1x; 67% CAGR Average Age in Years of Household Vehicles in Operation [3] 0 5 10 15 20 1969 1977 1983 1990 1995 2001 2009 2017 Automobile Van Sport utility Pickup Other truck RV/motor home
- 5. 5 The Automotive Industry in the Long Run • Various hurdles to clear before true AV-4 & 5 standards are reached, include: • Improvements to computer vision technology • Public opinion • Regulatory approval • Telecom infrastructure Autonomy Standards Are Incremental • Ride-hailing, ride-sharing, carsharing and car subscriptions are introducing consumers to “Shared Mobility” – the idea that consumers do not need to own a vehicle to have all of its benefits. • This transformation will have profound implications throughout the industry. [1] J. P. Morgan Estimates [2] evadoption.com [3] The International Council on Clean Transportation Shared Mobility is Challenging the Consumer-Owned Vehicle Model • To date, EV growth in the US has been a story of fits and starts, just surpassing 1% of new sales in 2017. [2] • Within the top 100 US metros, only 12 have more than half the charging infrastructure necessary to support the 3mm electric vehicles forecasted on the road by 2025. [3] Electric Vehicles Are Establishing a Beach Head AV-5: Full Autonomy AV-4: High Autonomy (human intervention) AV-0: Analog Vehicles AV-1: Driver Assistance (cruise control, steering assistance) AV-3: Conditional Autonomy (highway autonomy) AV-2: Partial Autonomy (traffic jam assist, self-parking) Society of Automotive Engineers Autonomy Levels Shared Mobility Ride-Sharing CarsharingCar Subscriptions Ride-Hailing 1% 4% 12% 20% 7% 20% 39% 98% 89% 68% 41% 2015 2020 2025 2030 EVs Hybrids Internal Combustion Engine Vehicles Electric Vehicles as % of New Car Sales [1]
- 6. 6 Auto Tech Market Map Note: this landscape is intended to be a representative sampling and is not an exhaustive list. Please direct inquiries to [email protected]. Automobile Auto Aftermarket Trucks & Trailers Motorcycles & Other Rec. Vehicles Manufacturing & Wholesale Primary Retail Ownership Disposal Secondary Retail
- 7. Please send any inquiries to [email protected]