The global automotive startup ecosystem is witnessing rapid growth. Original Equipment Manufacturers (OEMs) are continuously scouting, investing, and acquiring startups that will be relevant to their businesses in the long term.  

Frost & Sullivan segments the start-up ecosystem into Electric Vehicle Infrastructure, Telematics, In-Vehicle Technologies and ePlatforms. The report focuses on key funding patterns, OEM interests, partnerships and product capabilities. The study also focuses on business strategy and future investment avenues.

Service aggregators and app-based start-ups—part of ePlatform—have greater penetration, scalability and recurring revenue stream compared to Telematics and in-vehicle technology startups. Service aggregators received $130 million in funding, while electric vehicle infrastructure accrued $380 million in 2016.

For the ePlatform segment, distribution channel and channel enablers such as garages, mechanics and retailers are the key to deploying last-mile service to the consumer and providing a well-rounded service. While telematics-based aftermarket solutions depend on retail and auto repair shops for their market penetration. In-vehicle technologies are relatively in their nascent stage and are expected to grow once their prototypes are market ready. Government policies, safety regulations and real world behavior are the deterrents of this segment.

The report also sheds light upon product benchmarking and distribution channel benchmarking across segments. Regional technology trends and growth potential for the next 5 years are some of the highlights covered as part of the benchmarking.

The base year for this analysis is 2016, and the forecast period is 2016 to 2023. Funding is provided in US dollars. The study concentrates on key global regions falling under developed markets such as North America and Europe and emerging markets such as India, and China.

Key Questions This Study Will Answer
1.    What is the spectrum of OEM interest, funding and investor numbers in the start-ups?
2.    What are the product technologies and future investment avenues for the start-ups in the aftermarket?
3.    What are the potential revenue hotspots where new entrants can invest in the near future?
4.    What are the key service channels and partnerships in the aftermarket supply chain?
5.    What are the potential legislations and regulations that could float or sink the start-ups in an economy?

We have determined that the service aggregators segment is likely to be the highest growth segment in developed and emerging markets, with a few companies already worthy of immediate acquisition or several companies on the cusp of significant growth or game-changing innovation.