The European mobility, transport and automotive ecosystem, which includes the automotive, rail, water and cycling sectors and their extensive supply chains, is undergoing a fundamental transformation. This ecosystem is a key driver of the European economy and labor market, employing more than 17.6 million people and generates approximately EUR 1.2 trillion, which represents about 7.6 % of total EU GDPThe new EU industrial strategy has identified this sector as one of the 14 industrial ecosystems, which are at the center of the transformation. This report monitors progress in the green and digital transformation in this important sector.

Green Transformation: Efforts and Challenges

The green transition is a priority, driven by goals to reduce greenhouse gas emissions. In 2024 25 % companies in the mobility ecosystem has introduced a specific strategy to reduce the carbon footprintThe most commonly used green technologies are aimed at energy efficiency, with 41 % companies implementing energy-saving technologies.

Despite these efforts, patents related to green transformation created in 2010-2021 less than 10 % of all patents in the EU mobility ecosystem. The area of clean manufacturing technologies has seen a steady increase in patent applications, while renewable energy technologies are growing again after a decline.

The circular economy is also gaining importance. The most commonly implemented circular practices are measures to saving resources, such as energy saving, waste minimization, material and water saving, with an adoption rate between 53 % and almost 70 %. Interestingly, only 30 % surveyed companies reported direct positive impacts of these measures on production costs, while almost 40 % reported an increase. This suggests that the transition to greener practices may initially require higher investment or operating costs, which may affect competitiveness in the short term.

Public funding plays a key role in supporting the green transition. The European Regional Development Fund (ERDF) has allocated €1.1 billion to green transition projects in the mobility ecosystem during the 2014-2020 period. 37 % (33 billion EUR) of the total allocation for the sector. Horizon 2020 dedicated more than EUR 253 million to the green transition and the follow-up Horizon Europe programme has further intensified this focus. The Recovery and Resilience Fund (RRF) contributes EUR 87.9 billion on sustainable mobility, representing 25.7% of total green spending.

The challenge remains upskilling and reskilling of the workforce for the green transformation. In the automotive industry, 25% of employees are over 50 years old and 2.4 million workers will need retraining or upskilling by 2030. The share of professionals with skills relevant to the green transition was only 7.36 % in 2024. Demand for green transition-related skills was low in online job advertisements (0.7 % in 2023), although there is high demand for experts in EV and battery technologies.

Despite the increase in demand for electric vehicles, future demand remains uncertain due to possible changes in incentive systems. Most marine vessels still use fossil fuels due to the cost disadvantages of alternative fuels.

Digital Transformation: Potential and Obstacles

The digital transformation is key to Europe's future value creation and competitiveness. Approximately one third of companies in the mobility ecosystem has a specific digital transformation strategy, which is significantly below the EU Digital Decade targets for 2030.

Patent activity related to digital transformation grew until 2020, but there was a significant decline in 2021. The growth in patent applications related to advanced manufacturing and robotics indicates a strong focus on efficiency in automated manufacturing processes. Artificial Intelligence (AI) and Big Data are seeing an increase in patent applications, signaling a shift towards their use for analytics and mobility management. However, Internet of Things (IoT), augmented and virtual reality (AR/VR), and blockchain technologies are still underrepresented in patent applications.

When it comes to the adoption of digital technologies, cloud solutions have the highest adoption rate (nearly 40 % in 2024). IoT adoption has grown significantly to nearly 32 % in 2024. AI and Big Data adoption has doubled to around 20 % in 2024. AR/VR and blockchain adoption remains low (around 5 %).

Public funding for the digital transformation is significantly lower compared to the green transformation. Only 5 % of ERDF funding was allocated to digitalisation initiatives in the mobility sector. In the Horizon programme, the share of funding for digital transformation was reduced from 46 % to 40 %. This investment gap poses a risk to comprehensive industrial transformation efforts.

More than 50 % surveyed organizations indicated acquiring new skills as a very important factor for changeThe share of professionals with advanced digital skills (AI, Big Data, cloud, etc.) increased significantly between 2022 and 2024. Artificial intelligence has become the most relevant advanced digital skill in 2024. Demand for advanced digital skills in online job advertisements reached 16.6 %, with Big Data/data analytics is the most sought-after skill. However, there is a significant lack of graduates with these key digital skills.

The EU mobility ecosystem faces the dual challenge of green and digital transformation. While there are positive trends in technology adoption and investment in certain areas (e.g. e-mobility, cloud, IoT), significant challenges remain in terms of skills, uneven public funding and uncertain market demand for some green and digital solutions. Addressing these challenges through targeted policies and investments will be crucial to ensure a sustainable and competitive future for the European mobility ecosystem. Spring

Analytical report: 2024 edition

Glossary of key terms

• Mobility ecosystem: It covers sectors as diverse as automotive, rail, water transport and cycling, as well as related value chains including manufacturing, maintenance, services and infrastructure.
• Green transition: Transition to a sustainable and more environmentally friendly economy and society in the mobility ecosystem, including innovation, the introduction of green technologies and circular practices.
• Digital transition: Integrating digital technologies into all aspects of the mobility ecosystem, with the aim of improving efficiency, competitiveness and introducing new services.
• Green technology patent applications: Patent applications related to technologies that contribute to reducing environmental impact and promoting sustainability in the mobility ecosystem.
• Circulation procedures: Actions and strategies aimed at minimizing waste, conserving resources, reusing and recycling materials within the mobility ecosystem.
• Venture Capital (VC): A form of private financing provided by investors to startups and young companies with high growth potential, often focusing on innovative technologies.
• Battery Electric Vehicles (BEVs): Vehicles powered exclusively by electric batteries, which are a key element of the green transition in road transport.
• End-of-life vehicles (ELVs): Vehicles that have reached the end of their useful life and are subject to EU regulations on reuse, recycling and recovery.
• Greenhouse gas emissions (GHG): Gases released into the atmosphere that contribute to climate change, with transport being a significant contributor to these emissions.
• Particulate matter (PM2.5 and PM10): Fine particles in the air that have a negative impact on air quality and health, with transport being one of the sources of their emissions.
• Exiobase: A database file providing environmentally extended multi-regional input-output tables used to measure the environmental impact of industrial ecosystems.
• Digital transformation: The process of implementing digital technologies to change business processes, models, and culture to improve efficiency, innovation, and customer value.
• Digital skills: The knowledge, skills and attitudes needed to successfully use digital technologies in the work environment, which are key to the digital transition.
• European Regional Development Fund (ERDF): An EU fund that supports regional development and economic and social cohesion, including investments in the green and digital transitions.
• Horizon Europe: The EU Framework Programme for Research and Innovation, which funds projects related to the green and digital transformation.
• Recovery and Resilience Facility (RRF): A key EU funding instrument to support the recovery from the COVID-19 pandemic and the implementation of reforms and investments in Member States, including sustainable mobility.
• Innovation Fund (IF): An EU fund that supports the demonstration of innovative low-carbon technologies.
• Connecting Europe Facility - Transport (CEF-T): An EU financial instrument to support Trans-European Transport Network (TEN-T) projects, including investments in sustainable mobility.
• European Investment Bank (EIB): The EU bank, which provides loans and guarantees to support EU projects, including sustainable transport projects.