Smart cities and new mobility trends in Luxembourg

When discussing the rapid evolution of the mobility sector ahead of the Smart cities / EIT Urban Mobility - Landing in Luxembourg Event on 27 January 2026, Erez Arye, Head of the Automobility Incubator at Technoport, offers 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 explains 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. Alongside this, 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 highlights another area accelerating rapidly: 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 jammed 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 enables researchers to uncover hidden causes of congestion. As Mr Arye explains, “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 allow such dynamics to be identified, analysed and addressed, 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. Luxembourg 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 will officially welcome this collaboration. The event organised by Technoport together with Luxinnovation and LIST marks 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 puts 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 offers:

• 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 decision makers are invited to join and discover how Luxembourg is shaping a cleaner, safer and more sustainable future for cities.

Click here to register for the event