In our last blog post, we dove into the Energy and Sustainability sector as part of our continuing series introducing each of six evolute core sectors. If you have not had a chance to read all of them, please take a minute to do so here. This week will be dedicated to a sector that saw modest performance last year but is arguably going to be one of the biggest in 2025.: mobility & aerospace. The deep dive will be done by giving a brief overview of the sector supported by market data and a discussion of some of the booming sub-verticals. 

Definition of Mobility & Aerospace

The mobility & aerospace sector comprises technologies improving how we move, connect, and explore, offering transformative solutions for all types of travel. This domain includes advancements like autonomous and alternatively powered vehicles, next-gen propulsion systems, and drone technologies. Spanning logistics to surveillance and defense. 

In addition, these technologies enable smarter infrastructure and increase global communication. From reducing the barriers to space flight and satellite-based internet access to creating next-generation military drones, the mobility and aerospace sector is at the forefront of building a more efficient, interconnected and safer world.

Mobility & Aerospace 2024 Performance 

Fueled by the modern space race, geo-political tensions, and the pursuit of autonomous vehicles, this sector has surged into the spotlight in the past year. The poster child of the year for this sector was undoubtedly Waymo, the autonomous taxi company, with their $5B raise at a $41B valuation. The Waymo raise in general, reflected investor sentiment toward autonomous vehicle software and capabilities. Compared to 2023, deal volume saw modest growth, with ~7% more deals occurring in 2024 for a total of 308 recorded deals; with outliers removed, total capital raised stayed consistent YoY. Breaking down by deal stage, approximately 14% were classified as seed, 18% as early-stage VC, and 32% were classified as later-stage VC, with the rest being m&a, IPO, grants, refinancing, or other. This space was especially unique to watch last year, given their bucking of typical VC trends and seeing stronger activity in later-stage deals than early stage. Ultimately signalling that investors believe there is extreme room for growth beyond their billion-dollar investments. 

2025 Outlook

While global sentiment on electric vehicles may be cooling, other areas of this sector continue to grow; some key segments to watch in the second half of 2025 include air taxis, autonomous delivery, in-space manufacturing, and electric flight. All in addition to the current boom in defense tech. These spaces have reported H1 metrics higher than last year in deal volume, total capital invested, and average age of companies, proving market validation and strengthening the later-stage pipelines.

Source: Pitchbook

Conclusion

The mobility and aerospace sector is extremely cyclical; however, given the growing global demand for these types of technologies, it is becoming a key sector of the deep tech landscape and a reflection of societal ambitions to build a safer, more autonomous society. All while continuing to find the quickest way off the planet! As we monitor these evolving sub-verticals, it’s clear that mobility and aerospace will continue to blast off.

*All data used in this report is sourced from Pitchbook. Interested in our methodology? We will soon publish our State of Deep Tech in Europe 2024 Report which dives deeper into each section and outlines how we conducted our research.