UP.Partners Releases 2024 Edition of The Moving World Report: Macro and Micro Trends in Mobility

The report details emerging sustainability opportunities and challenges facing the global mobility industry on land, in the air, on the sea, and in space.

DUBAI, United Arab Emirates–(BUSINESS WIRE)–UP.Partners, a mobility-focused investment firm, has released the 2024 edition of

Key takeaways from the report include:

Defense: U.S. Department of Defense (DoD) Helps Drive Global Tech Investments as Defense Innovation and Spending Surge Amidst the Rapid Rise of China

• The U.S. DoD is the largest customer of mobility-related technologies.
• DoD Small Business Innovation Research program grew by 400% in seven years.
• Defense-focused venture capital is increasing at a rate of 30% per year in response to global conflicts.
• 2023 data indicates that 34% of U.S. tech employees are more likely than last year to apply their skills to military-related technologies.
• China’s military is nearing parity with the U.S., spending approximately a quarter of the annual U.S. defense budget.
• China leads in 37 of 44 critical technologies, with the U.S. leading in only 7.
• China possesses 232 times the shipbuilding capacity of its competitors.

Space: SpaceX and Starlink Spearhead a 1000% Surge in Satellite Constellations, Outshining Global Launch Providers as Space Investments Skyrocket

• Satellite constellations, led by Starlink, have increased by 1000% in four years.
• SpaceX far surpasses all other launch providers, carrying about 400% more payload.
• Venture capital investment in space startups has risen nearly 3500% in the last decade.
• Most space SPACs have performed poorly.
• If successful, SpaceX’s Starship will drastically reduce the cost of lunar payload delivery compared to the Apollo program.
• China is rapidly accelerating its space program and already landing reusable rockets.

Drones: Drone Deliveries Surpass 1 Million as Costs Approach One Third of Conventional Methods, with Walmart Leading the Way

• The cost of drone delivery is nearing one third of that of automobile delivery, at approximately $4 per delivery.
• Drone delivery flights have increased by 135% per year since 2018, exceeding 1 million deliveries in 2023.
• Walmart is a major driver of drone development globally, outside of the war in Ukraine.
• 1.8 million U.S. households in the Dallas-Fort Worth area are eligible for drone delivery through Walmart and its partners.

Aviation: Amidst a Deepening Pilot Shortage, the Industry Requires Rapid Advancements in Technology and Innovation to Reach its Sustainability Targets

• The pilot shortage is worsening, adding pressure to an already fragile airline system.
• A deficit of 65,000 pilots is expected by 2030.
• EVTOLs have an 18,000-unit backlog, valued at $111 billion.
• China introduced the world’s first commercial electric air taxi flight in 2023.
• The design of the Boeing 737 is closer in time to the Wright Flyer than to the present day.
• Blended Wing Body commercial airframe design could reduce fuel consumption by 50%.
• Electrifying all flights under two hours could reduce aviation CO2 emissions by 28%.
• Sustainable Alternative Jet Fuel is still 43% more expensive than conventional fuel.
• Flying cars, such as Pivotal’s Helix and the Jetson One, have entered service.

Artificial Intelligence in Mobility: Tesla’s Full Self-Driving Milestones and AI-Driven Advances Set the Stage for a Safer, More Efficient Future in Transportation

• Tesla leads in Full Self-Driving data, with over 170 million miles accumulated.
• Two-thirds of startups in the 2023 Y Combinator winter class focused on AI.
• Microsoft and others are utilizing AI for battery innovation.
• Humanoids are now nearly 60% less expensive than warehouse hourly labor.
• Waymo’s autonomous driving is six times safer than human drivers in reducing injury-causing crashes.
• Neural networks are being trained to enhance machine capabilities, as seen in Tesla’s FSD v12.12.
• Humanoid co-pilots for aviation may soon be a reality.

Auto: China Leads in EV Production, BYD Tops the Global Market, Tesla Dominates the U.S., and Rapid EV Growth Demands 28 Million Charging Ports by 2030

• EV sales reached a record 15 million in 2023.
• China is the largest electric vehicle producer, producing 6 times more than the USA.
• BYD, backed by Berkshire Hathaway, is the largest EV producer globally.
• However, Berkshire Hathaway reduced its BYD position 11 times in 2023, anticipating competition with Tesla.
• Tesla leads the U.S. EV market with 655,000 sales in 2023 — more than all other non-Chinese OEMs combined.
• The U.S. needs 28 million EV charging ports by 2030, a 34% annual growth rate from the 2022 installed base.
• Tesla sets the standard for North American EV chargers.

Freight: Recent Trucking Recession Causes 50,000 Closures, and Global Factors like Canal Risks and Marine Fuel Changes Impact Freight

• A major trucking recession in 2023 led to the closure of 50,000 companies.
• Used truck prices have normalized.
• The Panama Canal is at risk due to drought in Panama, potentially impacting 40% of U.S.-bound freight.
• The Suez Canal is at risk of disrupting 30% of global container traffic due to Houthi attacks.
• Cutting sulfur from marine fuel may have unintended consequences, such as heating the Atlantic due to the loss of sea clouds.

Energy: The Energy Landscape Evolves with Rising Emissions, China’s Leadership, Germany’s Transition, and Innovative Deals like Helion’s Fusion Energy Partnership

• Mobility CO2 emissions are expected to grow by 11% by 2030.
• Exponential growth in climate technology is required by 2030 in order to reach net-zero targets.
• China is the largest investor in energy transition, nearing $400 billion.
• China has the world’s largest nuclear reactor capacity.
• BRICS+ leads in oil reserves and production.
• Germany is shifting away from fossil fuels, resulting in high electricity prices and a return to 1978 usage levels, leading to de-industrialization.
• U.S. strategic petroleum reserves are at a 40-year low.
• Sam Altman-backed Helion’s fusion energy deal with Microsoft aims for production in 2028.
• Arkansas is benefiting from the lithium rush due to the Smackover brine reserve.
• A cooling EV market has reduced lithium demand and prices, reaching a 13-year low.
• China dominates 50% of global lithium battery demand.
• There is an urgent need for battery recycling development, led by Redwood Materials.

“As the mobility landscape continues to evolve with groundbreaking technological advancements, the 2024 Moving World Report offers critical insights and analysis. This year’s edition highlights key developments, from significant tech investment in defense and space to transformative progress in AI, electric vehicle infrastructure, and more,” said Cyrus Sigari, Co-Founder and Managing Partner of UP.Partners. “Our goal with this report is to equip industry leaders, entrepreneurs, and policymakers with a comprehensive understanding of these changes, enabling them to effectively navigate and shape the future of mobility.”

The full 2024 edition of The Moving World Report: Macro and Micro Trends in Mobility is available for download here.

About UP.Partners

UP.Partners is Transforming the Moving World by building and investing in companies that move people and goods cleaner, faster, safer, and at lower cost — on the ground, in the air, on the sea, and in space. The multi-strategy firm achieves this goal through its unique and virtuous ecosystem encompassing UP.Ventures, UP.Labs, and UP.Summit. UP.Ventures invests in companies and technologies to enable the future of mobility, working with some of the world’s most innovative investors and entrepreneurs. With flagship launch partner Porsche, UP.Labs is a first-of-its-kind venture lab, partnering with the world’s largest corporations to identify the most pressing challenges that they, and broader society, face. The UP.Summit is an invitation-only experience co-hosted with Tom and Steuart Walton and Ross Perot Jr., in Bentonville, AR and Dallas/Ft. Worth, TX respectively, bringing together the world’s most innovative minds to rethink the future of transportation. For more information, visit www.UP.partners or follow on X/Twitter @UpPartnersVC or LinkedIn.

Contacts

Mollie Gonzalez

[email protected]