The majority of Israeli startups are based on disruptive technology innovation. Israel’s innovation sector is a strong magnet for many of the world’s largest companies. The computerization of motor vehicles and their surroundings, coupled with significant advances in technologies such as Artificial Intelligence, Computational Capability and advancements in the manufacturing of sensors, radars and batteries, are rapidly disrupting the transportation sector and the automotive industry.

Smart transportation

Smart transportation is the use of different types of technology to streamline travel, by making it shorter, safer and cleaner. In most cases, the concept of smart transportation includes Intelligent Transport Systems (ITS) that use advanced technologies to achieve these goals.

The definition of this new and developing field is not constant and is based on a variety of approaches (e.g., use of technology, activities performed by the system, goals of the system, and the design approach). Israeli smart transportation companies have become world-renowned for their achievements in this field. These companies develop products based on software innovation and cutting-edge technologies, like products developed for the automotive industry.

Alternative fuels

Recent years have shown a significant increase in the development of fuel alternatives that are more efficient and less pollutant than the common oil-based fuels (diesel and petrol).The Israel Fuel Choices Initiative was launched in 2011, and included the establishment of a dedicated administration in the Prime Minister’s Office. The administration is responsible for promoting the development and integration of fuel alternatives for transportation, in order to reduce Israel’s dependency on oil for both security and sustainability reasons. The objective of this initiative is to reduce oil usage for transportation in Israel by 30% by 2020 and by 60% by 2025.

Electric mobility

The electric mobility sector comprises around 80 businesses founded in the past 20 years. Since Israel has no access to major natural resources, Israelis have always sought to use energy efficiently. Following the early development and intensive adoption of solar power, Israel has been experimenting with the use of electricity for mobility. Local companies focus on components for electric drivetrains, from electric machines, power electronics and batteries to full vehicles. Electric mobility is seen as an opportunity for emission-free last-mile mobility and many electric urban scooter concepts are found in the region.

Autonomous mobility

Startups in the autonomous mobility sector usually combine hardware and software development. Definitions of automated, or self-driving vehicles, differ. The most widespread one, created by SAE International, defines full automation as occurring when “automated-driving system undertakes all aspects of dynamic driving throughout a drive, under all roadway and environmental conditions that human drivers can manage”, and creates a classification, ranging from Level 0 (no automation) to Level 5 (full automation), with Level 3, Conditional Automation, requiring the human driver to respond to eventual requests for intervention.

Smart mobility

The smart mobility startup scene is continuously searching for inefficiencies in the daily lives of millions of people, aiming to make those lives more enjoyable. The businesses often utilize a Big Data or community-based approach to gather information and build new services. Companies focus on infotainment, navigation, shared mobility offers, smart navigation including parking management, and complete fleet management with logistics optimization. Developments are tested on the Israeli market, whose size is manageable, then later exported to selected larger markets depending on the service and the framework conditions.

Conventional vehicle technology and other fields

The vehicle technology sector in Israel has the longest history of all the sectors. It focuses on diverse technology topics that can for the most part be applied to any vehicle, irrespective of the type of drivetrain or level of connectivity. The sector includes technologies for engines, energy efficiency, passive safety, security, and production.

For more information about this industry, please contact

Ms. Pearlini Wathore; Trade Officer, Mumbai