Luxembourg’s new strategy for automated driving has a clear objective: fostering innovation and positioning the country as a true living lab for the mobility of the future. Unveiled by the government on 23 October 2025, it positions Luxembourg as a European hub for automated mobility, building on national key strengths such as:
- An advanced digital ecosystem
- An agile governance
- A strong capacity for experimentation
- A culture of cross-sector cooperation
“This strategy is about making Luxembourg a trailblazer in automated driving,” commented Minister of the Economy, SMEs, Energy and Tourism Lex Delles, noting that it includes measures to support innovation and validate technologies “from closed sites to their deployment in real-world conditions”.
Five priority use cases in automated driving
The strategy identifies five priority use cases for commercial deployment, each addressing specific mobility needs:
- Motorway chauffeur – enabling safer, smoother driving on major roads
- Robotaxis – providing on-demand driverless transport services
- Last-mile automated shuttles – integrated into public transport networks
- Valet parking and restricted-access sites – automating manoeuvres in controlled environments
- Automated logistics – addressing freight transport challenges
A draft law transposing Directive 2010/40/EU of the European Parliament and of the Council of 7 July 2010 regarding the framework for deploying intelligent transport systems in road transport and for interfaces with other transport modes was submitted to the parliament by the Minister of Mobility and Public Works on 20 January 2026.
If adopted, the first commercial applications are expected to be operational by 2027.
Paving the way for the smart mobility of the future
This initiative highlights the government’s commitment to responsibly integrating automated driving into Luxembourg’s multimodal transport system. “The goal is to integrate this technology into transportation to pave the way for smart mobility that makes our roads safer, creates new jobs and is resolutely future-oriented,” said Minister of Mobility and Public Works Yuriko Backes.
Smart cities and new mobility trends in Luxembourg
Luxembourg recently hosted a smart cities event bringing Europe’s innovators together to discover the trends reshaping mobility.
When discussing the rapid evolution of the mobility sector in the context of the Smart cities / EIT Urban Mobility – Landing in Luxembourg event, which took place on 27 January 2026, Erez Arye, Head of the Automobility Incubator at Technoport, offered a clear perspective on what is driving change. Working closely with startups, corporates and public officials, he sees the main trends emerging not as distant developments but as practical shifts already influencing Europe.
AI and emerging technologies reshaping the mobility landscape
One of the most visible forces reshaping mobility is AI. Mr Arye explained how AI has become central to efforts to reduce congestion, enhance safety and improve traffic management with tools ranging from smarter traffic lights to next‑generation navigation tools. At the same time, human-machine interfaces are becoming more intuitive. Drivers are increasingly able to speak to their vehicles and receive seamless assistance, whether for navigation or basic in‑car operations. Physical AI is also entering the urban landscape, most visibly through autonomous vehicles and robotics.
While energy transition challenges continue to influence mobility, Mr Arye instead highlighted another accelerating rapidly area: drones. Once limited to specialised contexts, drones are now entering civilian use as technology advances.
“I think in five years, smart cities will be safer, less congested and more sustainable. That is the goal.”
Erez Arye, Technoport
These ambitions are at the core of today’s smart city development.
Smart cities in action: autonomous vehicles and digital twin technology
Luxembourg is not only observing these trends, it is actively testing them. The autonomous shuttle operating in Esch-Belval is a notable example. Running on public streets, it places Luxembourg among Europe’s frontrunners in deploying autonomous mobility in real‑life environments rather than closed campuses.
Another concrete initiative is BISTWIN, a digital twin of the town city of Bissen developed by the Luxembourg Institute of Science and Technology (LIST). This virtual model focuses on mobility planning and uses historical traffic data to simulate congestion, evaluate the need for new traffic lights and assess how new business sites might affect flow.
The tool also allows researchers to uncover hidden causes of congestion. As Mr Arye explained, “sometimes massive traffic jams can be caused by a small traffic light in a nearby city that is not working in an optimal way”. Digital twins make it possible to identify, analyse and address such phenomena, supporting far more informed urban planning. Over time, BISTWIN will integrate additional data, from weather patterns to pedestrian flows, further enhancing its insight.
The Automobility Incubator, situated within a larger automobility campus, plays an increasingly important role in shaping Luxembourg’s mobility landscape. According to Mr Arye, Europe needs a recognised hub for cutting‑edge mobility innovation. Luxembourg, small yet international, can play that role by moving quickly, adjusting to recent tech trends and attracting expertise from around the world.
“Luxembourg has a golden opportunity. It is in the right place at the right time.”
Erez Arye, Technoport
This opportunity will be supported by partnership with EIT Urban Mobility, Europe’s largest innovation community for urban mobility. It even has an investment arm, something that will be of particular interest to young companies.
Uniting the mobility ecosystem to accelerate urban innovation
On 27 January 2026, the Luxembourg ecosystem officially welcomed this collaboration. The event organised by Technoport together with Luxinnovation and LIST marked the start of a three‑year partnership during which EIT Urban Mobility will support local innovation and create bridges between Luxembourgish companies and major European cities. As Mr Arye put it, “startups can talk to us and we will make sure to find the right collaboration partner all across the EU, together with EIT Urban Mobility”.
For startups, the event offered:
- direct access to EIT Urban Mobility’s European network
- the chance to meet corporates, municipalities, researchers and potential customers in one place
- matchmaking for pilots, proof‑of‑concepts and commercial partnerships
- visibility towards an organisation with a dedicated investment arm
- exposure to real needs from cities and industry, helping validate solutions faster
Startups, investors and mobility leaders converged at the event to spark new collaborations and spotlight Luxembourg’s drive toward building cleaner, safer and more sustainable cities.
Caption & Photos credit:
- Minister of Mobility and Public Works Yuriko Backes and Minister of the Economy, SMEs, Energy and Tourism Lex Delles presenting the “Automatiséiert Fueren 2028” strategy (Photo: © MMTP)
Authors/Article credit:
Lena Martenson – Senior Communication Officer ‑ Content & Social
Jean-Michel Gaudron – Senior Communication Officer ‑ Content & Press Relations
