The DACH region’s1 mobility ecosystem stands at a critical juncture. Development opportunities are plentiful, but barriers to growth are significant. For example, although the German mobility industry generates about 10 percent of global mobility market volume, only about 1 percent of global mobility unicorns succeed in Germany, according to McKinsey Center for Future Mobility (MCFM) analysis. In a recent series of discussions with mobility start-up CEOs, we identified three main factors slowing down the mobility transition in the DACH region: a highly fragmented mobility ecosystem, insufficient funding for start-ups, and slow consumer and corporate adoption of new mobility solutions. In this blog post, we explore potential approaches and concrete actions that, combined, can help remove existing impediments and foster considerable growth.
Supporting a cohesive and dynamic mobility ecosystem
Although complex and fragmented—with municipalities, authorities, and city planners often working separately—the DACH region’s mobility ecosystem offers strong potential for collaboration and innovation. The region’s mobility sector includes many start-ups, leading automotive and micromobility companies, and large cities that could achieve sizable social and economic benefits from the mobility transition. Several DACH cities, such as Hamburg, are laying the groundwork for behavior changes, and there are examples of successful mobility transitions in surrounding regions. In Paris, Amsterdam, and Oslo, targeted actions combining different modes of mobility have helped accelerate a disruptive shift in mobility behavior (exhibit).
Solutions that target supply-side needs (such as infrastructure investments) might catalyze progress; meanwhile, strong collaborative private and public efforts can help secure the resources needed to enhance the mobility sector’s growth prospects. Additionally, considering ways to streamline regulatory environments and approvals for large-scale pilot projects that deploy, for example, shared autonomous electric vehicles (EVs) could help make a more dynamic and adaptive regional mobility market a reality sooner rather than later.
Instilling public and corporate confidence in the sector and in new mobility solutions hinges on all regional mobility stakeholders working together to cultivate a culture of innovation and renew commitments to EV targets and other sustainability goals. This culture starts with ensuring that regional stakeholders have the ability to understand the potential advances and benefits of new mobility technologies and solutions as well as the expertise to incorporate them into the ecosystem. OEMs can help solidify the foundation of a robust mobility market with steady, well-considered planning and clear vision.
Likewise, integrating new solutions can be more seamless when standardized, highly interoperable, and scalable systems are implemented alongside clear governance for mobility-as-a-service platforms. Streamlining the process can, in turn, help fuel optimism and confidence in the sector and create a more harmonious and efficient ecosystem. And when it comes to promoting public and corporate trust in start-ups, visibility matters: Prominent role models and success stories can considerably accelerate the adoption of innovative solutions.
Lowering barriers to start-up funding with collaborative efforts
For mobility start-ups in the DACH region, access to capital is often limited. And in recent years, securing investments has become more fraught as competition and investor fatigue have ramped up and project lead times have grown longer. In fact, global funding volume fell from a high of $81 billion in 2021 to a low of $22 billion in 2022 before rebounding somewhat to $54 billion in 2024, according to MCFM analysis. Given these fluctuations and the rapid pace of innovation in the mobility industry, using capital to secure sustainable growth is essential, despite promising investments in autonomous vehicles, expanding profitability, and increasing M&A activity. It is also possible that growth could be enhanced with additional investments in existing funding instruments, such as the European Union’s European Institute of Innovation and Technology, Germany’s Toll Collect, the United Kingdom’s Future Mobility Zones Fund, and the World Resource Institute’s Urban Mobility workstream (part of the WRI Ross Center for Sustainable Cities).
Mobility ecosystem stakeholders can pool their resources and knowledge to create a more supportive environment for emerging start-ups. For example, greater collaboration in sharing investor insights and connections could help boost funding. Additionally, using existing networks to make strategic introductions could significantly improve access to capital.
Story and strategy: Keys to mobility disruptor success in 2025 and beyond
To attract investment going forward, disruptive mobility start-ups will need a detailed and compelling value proposition combined with a clear and sustainable fundraising strategy.
A winning value proposition should comprise a balanced market perspective outlining different scenarios (including mitigation plans for downside scenarios), a focus on clear KPIs, and a comprehensive path to achieving targets. To tell this story most convincingly, the value proposition should include the following elements:
- A detailed understanding of the market landscape: The rationale for the attractive addressable market should be based on facts, and the market share ramp-up plan should be grounded in reality.
- Distinctive company attributes: The competitive advantages of the proposed breakthrough product or service should be clearly defined and emphasized.
- A business plan and clear KPIs: The business plan and KPIs should be grounded in favorable unit economics, have realistic milestones, attract targeted investors, and outline a clear path to scaling revenue and adapting to market changes.
- A solid business network or partners: Ideally, a business network includes long-term relationships that can provide ongoing strategic support beyond capital, such as a forum for testing ideas and a source for information or guidance.
- A clear fundraising plan: The fundraising plan should be conveyed in a well-prepared and robust document that is supported with clear financial data.
Accelerating the pace of adoption
As is the case throughout Europe, consumers and corporations in the DACH region have been slow to adopt new mobility solutions, despite indicating a strong affinity for sustainable transport (see sidebar, “Consumer trends in European mobility markets”).
The slow pace of adoption for new mobility technology in the DACH region can be partly attributed to a lack of visible role models in the industry. To bridge this gap, all participants in the ecosystem can contribute to joint efforts and coordinated outreach to influential individuals to expand the visibility of successful projects, innovative technologies, and profitable mobility players. An accessible and broadly disseminated public narrative that highlights the benefits of new mobility technologies could be enormously effective in inspiring confidence, encouraging engagement and adoption, and, ultimately, advancing the mobility transition in the DACH region.
What’s the central takeaway from our discussions with start-up CEOs? Accelerating the DACH region’s mobility transition depends on all stakeholders combining collaborative efforts with innovation and strategic engagement. Only such concerted actions can address the issues underlying the fragmented ecosystem, funding challenges, and lagging adoption and ensure that the DACH region fulfills its great promise in the mobility sector.
Kersten Heineke is a partner in McKinsey’s Frankfurt office, Timo Möller is a partner in the Cologne office, and Sophie Westphal and Timm Höfer are consultants in the Munich office.
The authors wish to thank Kathrin Kiefer for her contributions to this blog post, in addition to the 20 mobility CEOs whose insights informed its content.
1. The DACH region comprises three countries: Germany, Austria, and Switzerland.