Historic investment, future potential, and lessons for companies, investors, and the UK Government.
Investment in mobility sectors has increased dramatically over the last 10 years. We estimate that $450 billion has been invested inorganically into electric vehicles, connected and autonomous vehicles, shared-mobility services, and related industries over the last five years alone.
UK-headquartered companies have varied representation across the mobility sub-sectors, generally showing stronger representation in the more established areas. The UK also has a notably smaller proportion of venture capital and a larger proportion of private equity investment compared to the global average.
We conclude that more needs to be done to stimulate investment and growth in early-stage companies and in developing the start-up ecosystem around these leading-edge mobility areas.
For future investment, we identify four clusters of industrial activity that UK investors and Government can drive. In particular, we identify the vehicle lifecycle as an important area where UK companies can take a leadership role.
The emerging areas of shared-mobility services, high-value software and mobility manufacturing represent areas that would require a more concerted effort to develop, though there is a role the UK can play. Success is likely to require a degree of specialisation, as well as focus from public sector policy and resources.
How can different actors drive future success in the mobility ecosystem? We identify five themes that corporates, start-ups, financial investors and public sector bodies should consider as part of their strategy.
We also highlight the need for two broader ‘ecosystem capabilities’: the ability to partner and collaborate across organisations, as well as government willingness, and ability, to intervene when appropriate.
From a UK perspective, we think that the focus areas for Government should be: long-term infrastructure investment; supporting the scaling of businesses, and; direct intervention to resolve industry issues and accelerate adoption of markets with public interest outcomes.
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