In just two decades, autonomous vehicles (AVs) have gone from being unreliable and “too futuristic” to being a viable and feasible option for mass urban mobility. The proliferation of ride-hailing services and rapid advances in sensor technology are playing key roles in AV advancement, while startups and emerging companies are developing the underlying technology-driven supporting solutions to truly make autonomous vehicles a reality.
Major automakers already offer Level 1 autonomy for most of their cars, with features like cruise control. More recently, more cars are equipped with technology (Level 2 and Level 3) that can keep them in lane and monitor their surroundings. Ride-hailing and sharing services are increasingly experimenting with Level 4 autonomy, where the driver does not need to pay full attention to the road but still needs to be attentive. AVs present several major challenges, including improved perception and safety, forcing policymakers to remain cautious about allowing and stating autonomous driving.
Top 5 autonomous vehicle startup hubs in the world
Using the StartUs Insights platform, we analyzed the geographic distribution of global activity around autonomous vehicles. We identified 22 regional hubs* where autonomous vehicle technology and solutions are actively being developed across industries including automotive, mobility, manufacturing, and construction.
According to our data, Silicon Valley, London, New York, Tel Aviv and Los Angeles are home to 344 startups and emerging companies*, accounting for 33% of global activity. Let’s take a look at some promising autonomous vehicle startups from these five top hubs.
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According to our data, more than half of the global activity in autonomous driving is taking place in the U.S. Outside of Silicon Valley, startups are developing AV solutions from Portland to Chicago to Washington, D.C. A third of the global activity is also taking place in Europe, with major hubs in London and Tel Aviv.
Singapore and Sydney are also seeing increased AV startup activity. Asia’s innovation hubs in India and Southeast Asia face tougher challenges in terms of both infrastructure and government policies. Africa already has some solutions for autonomous vehicles, which has the potential to connect remote parts of the continent. China has also shown a strong interest in AV development and is hosting a series of tests for developers.
#1 in Silicon Valley | 150 Startups and Emerging Companies
In Silicon Valley, the biggest hub for autonomous driving technology, more and more big companies are opening specialized centers for AV development. As a result, industry giants are collaborating with startups, emerging companies, and each other to make truly autonomous vehicles a reality. The US state of California has also passed an AV bill that sets regulations for on-road testing. As AVs become safer, regulations will likely follow.
Based in Mountain View, California, Phantom Auto is a startup developing remote operation solutions for a range of autonomous vehicles. The startup’s solutions enable fleet managers to remotely operate and monitor autonomous vehicles. From passenger and commercial vehicles to yard trucks, forklifts, and last-mile delivery robots, the startup enables autonomy through remote monitoring, remote assistance, and real-time remote driving. Phantom Auto’s software development kit (SDK) bridges the gap between AV testing and deployment.
#2 London | 66 Startups and Emerging Companies
Transport for London (TfL) is part of the Greater London Authority, which sets regulations for testing connected and autonomous vehicles. Several trials have already been carried out, and Londoners are eager to see how AVs will perform in real-world scenarios. Indeed, the success of AV testing on London’s narrow, winding streets is spurring the development of AVs and their supporting technologies.
London-based startup Humanising Autonomy is developing a pedestrian intent prediction platform to make autonomous vehicles safer and more efficient in urban environments. The startup’s software integrates with driver assistance systems (ADAS), autonomous vehicle stacks, and smart infrastructure systems to provide real-time accident and near-miss prevention support. Primarily, the company’s human-machine interaction software informs autonomous vehicles of parameters such as pedestrian distraction level, crossing intent, and risk level.
#3 New York City | 47 Startups and Emerging Companies
New York City was a little late in arriving, but the first self-driving cars have begun testing in the city. The state also has the strictest regulations for testing and operating self-driving cars; for example, current rules only allow fleets of self-driving cars to operate in less populated areas of the city. While lawmakers are considering the benefits of advancing self-driving technology to increase public transportation use, safety concerns are clouding current self-driving policy.
In the face of these tightening regulations, New York City AV startups are focusing on advancing the underlying technologies that power AVs, such as sensors and navigation. Voyant Photonics is a startup working on technology to replace bulky LiDAR systems by incorporating a lot of hardware onto a tiny chip. The fingerprint-sized chip significantly reduces costs and enables semiconductor scaling of 3D sensor technology. In addition to autonomous driving applications, the chip is also suitable for drones, robots, factories, and personal devices.
#4 Tel Aviv | 39 Startups and Emerging Companies
For the past five years, policymakers in Tel Aviv have allowed autonomous vehicles to operate on public roads. With the backing of startups from across Europe, Tel Aviv presents a number of challenges for testing AVs and related technologies. With a large number of roundabouts and the presence of two-wheeled vehicles on the roads, AVs tested here are likely to be more reliable. And with a strong research and development (R&D) track record, Israel’s AV technology development is noteworthy. Indeed, the industry also enjoys favorable government support.
Trieye is an Israeli startup operating out of one of the world’s most advanced R&D hubs, developing advanced sensing technology for autonomous vehicles. Trieye uses complementary metal-oxide semiconductor (CMOS) image sensors that enable shortwave infrared (SWIR) capabilities. This semiconductor-based design also allows such powerful sensing technology to be scalable at low cost. Additionally, the startup uses existing artificial intelligence (AI) algorithms to solve low visibility challenges faced by AVs and ADAS.
#5 Los Angeles | 39 Startups and Emerging Companies
In Los Angeles, state officials are actively working to advance AV technology. Policymakers sit on an AV Development Committee and are exploring ways to increase federal funding for AV projects. Car owners are eager for AVs to help ease the frustrations of gridlock, but city planners and officials are well aware of the potential challenges AVs must overcome to operate safely alongside regular cars and drivers. Additionally, Southern California is now becoming an important hub for technology-based transportation solutions.
COAST Autonomous is a Los Angeles-based startup that provides self-driving car and AV technology to its customers. The startup’s AV software uses mapping and localization techniques to create 3D maps of areas. It is built with robotics software that uses AI to perform functions such as accelerating and braking. Additionally, COAST Autonomous offers autonomous fleet management solutions, leveraging its proprietary technology suite to provide a range of low-speed autonomous vehicles for city streets, campuses, parks, and goods movement.
What’s next?
As autonomous vehicles continue to learn to share the road with humans, improvements will come in terms of safety and infrastructure. It is also important that policymakers guide the industry first, given the need for permits and rigorous vetting. Enabling quick wins, such as enabling automation up to Level 3 in long-distance freight transport, will bring both humans and autonomous systems closer to improved, if not fully streamlined, coexistence. Meanwhile, we expect to see an increase in testing leading to the realization of Level 5 autonomous vehicles.
*Hubs are defined as geographic centers of activity on this topic, covering a 100km radius of the center. Startups and emerging companies are defined as companies founded after 2010.