Next-Gen Mobility Stocks: Institutional Adoption Drives Sector Transformation in 2025

The next-gen mobility sector is undergoing a seismic shift, driven by institutional capital inflows and technological breakthroughs. As global funding for mobility technologies surged to $54 billion in 2024—up from $38 billion in 2023—investors are increasingly targeting companies at the forefront of the CASE (Connectivity, Autonomous, Sharing, and Electrification) framework. This transformation is not merely speculative; it reflects a strategic realignment of capital toward industries poised to redefine transportation in the 21st century.

Electrification: The Cornerstone of Institutional Bet

Electric vehicles (EVs) and charging infrastructure remain the largest draw for institutional investors, with sustainability-focused funding reaching $19.6 billion in 2024 : [2025’s Mobility Investment Radar Shows Surge In Funding]^[1]. China's dominance in EV adoption, coupled with U.S. policy tailwinds like the Inflation Reduction Act (IRA), has created a dual-engine growth model. The IRA alone is projected to catalyze $100 billion in private investment by 2030, according to a report by Oliver Wyman : [2025’s Mobility Investment Radar Shows Surge In Funding]^[1]. Companies such as Nissan Motor Corporation and Toyota Connected are leveraging these trends, with the latter integrating AI and cloud-based services to optimize EV performance and battery management : [Top Performers: 28 Pivotal Connected Car Companies]^[2].

However, the electrification boom is not without challenges. Infrastructure gaps, particularly in rural and emerging markets, remain a hurdle. Startups like It's Electric are addressing this by deploying community-based charging solutions that utilize spare electrical capacity, reducing costs for operators : [Top Four Clean Mobility Startups Shaping 2025]^[3].

Autonomous and Connected Technologies: AI as the Catalyst

Connected and self-driving solutions attracted $18.2 billion in 2024, driven by advancements in artificial intelligence (AI) and machine learning : [2025’s Mobility Investment Radar Shows Surge In Funding]^[1]. Waymo (Alphabet) and Tesla are the sector's titans, with Waymo expanding its robotaxi operations and Tesla refining its vision-based Full Self-Driving (FSD) system. Institutional investors are also eyeing Cambridge Mobile Telematics (CMT), whose AI-driven telematics platform provides granular insights into driver behavior, a critical asset for insurance and mobility-as-a-service models : [Top Performers: 28 Pivotal Connected Car Companies]^[2].

Regional divergence in regulatory approaches adds complexity. While the U.S. focuses on private-sector-led innovation, China's state-backed AV ecosystems are accelerating commercialization. This duality is creating both opportunities and risks for global investors.

Shared Mobility: From Niche to Mainstream

The shared mobility market, valued at $217.80 billion in 2025, is expanding at a 10.24% CAGR, according to a NewtonIM analysis : [Shared Mobility Industry Analysis Report 2025]^[4]. Traditional players like Uber and Lyft are adapting to a multi-modal future, while startups such as Dollaride and Yank Technologies are disrupting the space. Dollaride's EV leasing model targets “transit deserts,” while Yank's long-range wireless charging technology could revolutionize manufacturing and aerospace logistics : [Top Four Clean Mobility Startups Shaping 2025]^[3].

Institutional interest in this segment is fueled by demographic shifts and urbanization. As consumers prioritize flexibility over ownership, shared mobility platforms are becoming essential infrastructure.

Institutional Investment Trends: A Strategic Shift

Institutional investors are increasingly favoring companies with clear technological moats and regulatory alignment. The 2025 Mobility Investment Radar highlights a shift from early-stage startups to established businesses with scalable solutions : [2025’s Mobility Investment Radar Shows Surge In Funding]^[1]. For example, Aptiv and HARMAN International are securing large rounds for their electrification and connectivity platforms, while Solum—a solar-powered smart mobility startup—is attracting ESG-focused capital : [Top Performers: 28 Pivotal Connected Car Companies]^[2].

Geopolitical tensions, however, remain a wildcard. Supply chain disruptions and trade barriers could delay the sector's growth, particularly in battery materials and semiconductor manufacturing.

Outlook: A Multi-Year Journey

The next-gen mobility sector is transitioning from hype to execution. While challenges like infrastructure gaps and regulatory fragmentation persist, the alignment of technological innovation, policy incentives, and institutional capital suggests a durable growth trajectory. Investors who target companies with strong CASE integration—such as Waymo, Toyota Connected, and Dollaride—are likely to outperform in this evolving landscape.

As the sector matures, the focus will shift from “if” to “how fast.” The winners will be those who can scale solutions across geographies while navigating the complexities of a globalized, AI-driven mobility ecosystem.