Automobile, Smart Mobility and Drones

Accelerating safe, smart and sustainable mobility

Luxembourg has identified automotive, smart mobility and drones as one of the priority sectors for its economic diversification strategy. The aim is to generate growth and employment, while fostering forward-looking solutions based on innovation, data and public‑private cooperation.

Driven by its specific mobility challenges, the country is committed to decarbonising transport and to implement an integrated multimodal mobility system. The goal is to position Luxembourg as a European pioneer — a living laboratory for smart mobility solutions.

A solid industrial base and a transforming ecosystem

Luxembourg builds on a well-established automotive industrial base (component development and production, R&D and sales offices for Europe) and a dynamic mobility ecosystem bringing together companies, start‑ups, scale‑ups, spin‑offs and research centres. This environment promotes the development of advanced technologies and innovative services for more digitalised and sustainable mobility.

According to the sector mapping by Luxinnovation, around 700 companies are active in the field: 58% have automotive and mobility as their main activity, and 47 are start‑ups, over half of them with high disruptive potential (data/AI, services for more sustainable mobility).

Missions of the “Automobility” Unit

The “Automobility” Unit within the Directorate General for Industry, New Technologies and Research has the following main tasks:

• Develop the sector at national level and stimulate innovation by supporting the emergence of new players, technologies and business models in automotive, smart mobility and drones.
• Position Luxembourg as a Living Lab leveraging mobility data, promoting real‑scale use cases and ensuring infrastructure interoperability — notably for the implementation of Cooperative, Connected and Automated Mobility (CCAM).
• Ensure coordination with other priority sectors, including industry and value chains (LINK*), circularity (LINK*), disruptive technologies (LINK*) and cybersecurity (LINK*), as well as the space sector (LINK*).
• Ensure interministerial coordination, notably for the implementation of the national strategy for automated driving, under the chairmanship of the Interministerial Committee for Automated Driving. The goal is to create a safe, coherent and innovation‑friendly framework.
• Actively participate in the cross‑border digital testbed for cooperative, connected and autonomous driving, assessing CCAM technologies and related services under real conditions.
• Represent Luxembourg within European and international organisations and working groups (e.g. Euro NCAP, Data for Road Safety), in order to support sectoral growth, contribute to road safety improvement and promote data valorisation from vehicles and infrastructures.
• Contribute to strategic reflections on the digitalisation of the stakeholders of the sector and its broader ecosystem, creating synergies with national initiatives as outlined in the Luxembourg Data Strategy.

These actions complement Luxembourg’s diversification policy and align with its overarching approach: fostering an ecosystem conducive to digital transformation (sovereign cloud, MeluXina supercomputer, AI and data strategy, (cyber)security and resilience) in the service of competitiveness.

Key priorities

• Safety and trust: Testing and validation of advanced automated driving functions, cooperative automation, secure data sharing (including for improved road safety).
• Connected mobility and services: Platforms, APIs and data spaces to support multimodal services, smart coordination, predictive maintenance and digital twins of infrastructure.
• Decarbonisation and efficiency: Electromobility, batteries, charging infrastructures, hydrogen refuelling stations, flow optimisation, ultra‑light materials, eco‑design and component circularity.
• Drone integration: Developing a drone value chain and deploying civilian use cases (e.g. infrastructure inspection, last‑mile logistics, public services) in line with European frameworks and safety requirements.

Automobility Incubator and Campus

At the heart of the Luxembourg Automobility Innovation Campus in Bissen, a dedicated incubator for innovative mobility companies aims to strengthen the national competitiveness of the automotive and mobility sector and support the development of new activities in this field.

Operated by Technoport, the site seeks to attract start‑ups/scale‑ups, spin‑offs, SMEs and international players focused on innovation, research and the development of new technologies. The goal is to bring varied key stakeholders together in a spirit of collaboration and to build strategic partnerships that help accelerate the market deployment of smart and sustainable mobility solutions.

As a true open‑air laboratory, the campus fosters the establishment of research and innovation activities. Since 2024, it hosts the first eco‑circular car park in Luxembourg.