Europe leads global mobility funding amid market transition

Source: Zag Daily

A recent report by business accelerator Via ID and data provider Dealroom.co reveals that Europe accounted for 40% of all global mobility transactions in 2024, surpassing both Asia (30%) and the United States (21%). This significant share underscores Europe’s prominent role in driving innovation within the mobility sector.

The “State of the European Mobility Startups 2024” report highlights key trends shaping the industry. Since 2018, Europe has consistently led in mobility deal volume, despite an overall decline in venture capital (VC) funding following the post-COVID boom. In 2024, total funding for the European mobility sector fell by 30% compared to 2023, dropping from $9 billion to $6 billion—a figure reminiscent of 2019 levels. This contraction saw the sector slip from the third to the fifth most-funded industry in Europe, though it has remained a top-five sector for the past decade.

Pierre Gonnet, Corporate Innovation Manager at Via ID and the report’s principal contributor, emphasised Europe’s enduring strength in global mobility innovation.“Europe continues to demonstrate its importance in global innovation, accounting for 40% of all deals in the mobility sector. Sectors such as EV infrastructure and manufacturing are reaching maturity, turning to debt financing. The market favours B2B, asset-light, and technology-intensive business models.” Gonnet explained.

The mobility sector experienced a notable dual transition in 2024. Capital-intensive models, such as electric vehicle (EV) charging, saw a threefold increase in debt financing, amounting to $9 billion between 2023 and 2024. Meanwhile, equity financing grew significantly for asset-light models like software-as-a-service (SaaS) solutions, which comprised 38% of total mobility investments in 2024, up from 14% the previous year.

Gonnet concluded that “the European sustainable mobility ecosystem is well-positioned to grow and shape the future of transportation.” As the sector continues to evolve, the report suggests that Europe’s innovative edge and adaptability will keep it at the forefront of global mobility developments.