Which frontier technologies matter most for companies in 2025? McKinsey’s annual tech trends report highlights the latest technology breakthroughs, talent trends, and use cases, as well as their potential impact on companies across various sectors, such as mobility.
The mobility landscape is undergoing rapid transformation, shaped by technological innovation, sustainability demands, and evolving urban dynamics. From autonomous vehicles and electric vehicles to drones, urban air mobility (UAM), and micromobility, the future of mobility aims to create transportation systems that are more efficient, safer, and sustainable.
Technology at the Core
Autonomous vehicles (AVs) are advancing, with shared autonomous fleets already operational in cities such as Los Angeles and Phoenix. However, technical complexities, high costs, and safety concerns have delayed broad adoption by two to three years. Roughly half of the surveyed stakeholders cite safety as a primary barrier. Despite these challenges, improvements in AI, edge computing, and fail-safe systems are helping to pave the way for safer and more efficient AV operations.
Electric vehicles (EVs) remain central to the transition toward sustainable transport. While EV sales in the U.S. slowed in 2024 due to waning incentives and high production costs, China saw a 36% surge, supported by government backing and expanding infrastructure. In Europe, EVs have become more affordable, with battery electric vehicles (BEVs) averaging $44,000, less than comparable gasoline vehicles.
Electrification technologies are advancing rapidly, including solid-state batteries, bidirectional charging, and hydrogen fuel cells. These systems offer a more extended range, faster charging, and smarter grid integration. At the same time, digital innovations such as software-defined vehicle architectures and AI-powered battery management systems are extending vehicle life and enhancing performance.
Mobility in Three Dimensions
Drones are becoming a cornerstone of last-mile delivery, with the market projected to hit $29 billion by 2034. Integration with AVs is improving delivery speed and efficiency, though safety and privacy remain key public concerns. Underwater drones are also emerging for maritime surveillance and operations.
Urban air mobility, particularly electric vertical takeoff and landing (eVTOL) aircraft, is nearing commercial launch. Companies are moving through regulatory certification to carry passengers, with Abu Dhabi and other cities preparing for limited deployment. Challenges include infrastructure development and airspace coordination; however, the sector represents a significant leap in short-distance travel.
Rise of Micromobility and Water-Based Solutions
Micromobility, including e-scooters and e-bikes, is rebounding after early oversupply setbacks. Falling costs and the introduction of new models, such as micro-EVs, are driving consumer demand, while cities integrate these modes into their public transportation ecosystems. In Europe and Asia, electrified two-wheelers are thriving under supportive policies.
Innovations in water mobility are also gaining momentum. Autonomous barges with robotic cranes and computer-controlled hydrofoil vessels are enhancing port operations and reducing energy use. These solutions highlight the broadening scope of mobility beyond roads and rails.
Systemic Changes and Emerging Questions
Shared-mobility platforms, combined with dynamic fleet management and Mobility-as-a-Service (MaaS) systems, are reshaping how people move through cities. Materials innovations—like recyclable aerogels and biobased composites—support lightweight, durable, and sustainable vehicle design. Meanwhile, digital twins and AI simulations are optimizing maintenance and operations across fleets.
Yet, key uncertainties loom. Lithium supply shortages threaten to slow EV adoption, while high infrastructure costs—such as $100,000+ for high-speed EV chargers—create investment hurdles. Public trust in AVs remains limited, with a mobility confidence index score of just 39 out of 100 in the U.S. Cybersecurity is another critical issue, as connected vehicles collect and transmit sensitive data.
Looking Ahead
Mobility leaders must navigate a complex web of regulatory, technical, and societal challenges. Key questions include:
- How will geopolitics impact the supply chains of mobility?
- What roles will public infrastructure and private capital play?
- How will public trust evolve concerning autonomy and data privacy?
- How quickly can regulations adapt to enable the development of transformative technologies?
The mobility revolution is underway. While hurdles remain, collaboration between industry, government, and the public will determine how quickly and equitably this future unfolds.
Source: McKinsey