The urban mobility field meets continuous innovation actions backed by rapid development and expanding market demands, as various supporting trends and technologies advance and become more accessible. On one hand, the electrification of powertrains, such as battery electric vehicles (BEVs), plug-in hybrid vehicles (PHEVs), and fuel cell electric vehicles (FCEVs), comes as a measure towards carbon neutral environmental goals, while on the other hand, alternatives for optimization of vehicle fleets are shown in the form of autonomous vehicles (AVs) and machine learning (ML) algorithms implementation on already existing infrastructure. By focusing on reducing the impact on the environment through different approaches, smart mobility actions offer great benefits in the chase of a cleaner and more sustainable future. Part of these initiatives combine multiple disciplines in advanced products, such as connected and autonomous vehicles (CAVs), which are often available on the market with zero-emission powertrains. CAVs are using V2X communications to form an interconnected environment of vehicles, infrastructures, networks, and users, allowing for complex scheduling and planning of transport routes, optimization of energy consumption, improvement of comfort and performance in urban mobility, while ensuring a high level of traffic safety and reducing congestions. In addition, by using fleet management systems, costs of operation and maintenance are reduced, while the inoperability times of fleets are minimized. To facilitate the acceleration of the CAVs adoption rate in the current context, this paper gives an overview of CAV technologies and discusses the challenges and opportunities of CAV implementation in existing urban setups.