We’ve seen a lot of funding and exit activity in Transportation Technology over the past few years. The Transportation Technology sector includes companies that revolutionize the way people move around. It also includes technology companies that enable people to interact with their transportation options.
What are the different components of Transportation Technology? How do they make up this startup ecosystem? On our transportation technology research platform, we have classified the companies into 17 categories. This blog post examines these categories and how they compare with one another.
Automotive Telematics Is the Largest Transportation Technology Category
Let’s start off by looking at the Sector Map for the Transportation Technology sector. As of March 2018, we have classified 1,238 Transportation Technology startups into 17 categories that have raised $117 billion in funding. The Sector Map highlights the number of companies in each category. It also shows a random sampling of companies in each category.
We see that Automotive Telematics is the largest category with 210 companies. This category contains companies that collect, analyze, and distribute car data. This data is used by owners to optimize their automotive use. Their products include on-board data readers, diagnostic tools, and notifications to mobile devices. Some example companies in this category are Zubie, Otonomo, Airbiquity, and CloudCar.
We have seen what the different categories making up this sector are and the number of companies in each category. What about their funding and maturity in relation to one another? Let’s look at our Innovation Quadrant to find out.
Most of the Transportation Technology Categories Are Pioneers
Our Innovation Quadrant divides the Transportation Technology categories into four different quadrants.
We see that Pioneers quadrant has the most Transportation Technology categories with 11. The Pioneer categories are in the earlier stages of funding and maturity. 5 categories are in the Established quadrant for having reached maturity with less financing. Ride Hailing is a Disruptor for acquiring significant financing at a young age.
We’ve now seen the Transportation Technology categories and their relative stages of innovation. How do these categories stack up against one another in total funding? Let’s look at the Total Funding and Company Count Graph.
Ride Hailing Startups Have the Most Funding
The graph below shows the total amount of venture funding and company count in each category.
As the above graphic implies, the Ride Hailing category leads in funding with $61 billion. Its funding is almost 250% of the funding of the next category, Smart City. Most notably, about 67% of Ride Hailing funding ($41 billion) comes from two companies: Uber and Didi Chuxing.
Ride Hailing companies enable consumers to schedule a ride either in real time or in the future. They include transportation network companies, white label mobile applications, and website booking portals. Some example companies in this category are Uber, Didi Chuxing, Lyft, and Ola Cabs.
Conclusion: Automotive Telematics and Ride Hailing Lead the Sector
The analysis above highlights that the Automotive Telematics category leads the sector in total companies, and the Ride Hailing category in total funding. Most of the other categories are Pioneers and their growth potential will be determined in the coming years.
What are your thoughts on this? Let us know in the comments section below.
To learn more about our complete Transportation Technology report and research platform, visit us at www.venturescanner.com or contact us at firstname.lastname@example.org.