Connected and automated mobility revolution will deliver £66 billion by 2040
The UK is poised to benefit from a £66 billion annual economic uplift by 2040, according to a new report published by the Society of Motor Manufacturers and Traders (SMMT).
Connected and automated mobility: The UK economic and market opportunities sets out the extensive socio-economic benefits for Britain if connected and automated mobility (CAM) technology is adopted in a range of commercial applications, from self-driving cars and logistics vehicles to automated buses, taxis, shuttles and even tractors.
CAM tech enables vehicles to drive without human intervention while connecting with each other and surrounding infrastructure. Boosting rollout would not only cement the UK’s status as a global leader in this next gen tech, but it would also create some 342,000 additional jobs across the economy from now to 2040, with 12,250 in automotive manufacturing.
Nealy 4000 lives could be saved, too, with 60,000 serious accidents prevented across the same period, all while delivering potentially lower insurance premiums, less stressful journeys and greater travel freedom for those with disabilities. Businesses could benefit from more efficient movement of goods and industrial processes.
With a significant public-private investment of more than £600 million already committed to CAM testing since 2015, government and industry must now create the conditions to safely and responsibly deploy the technology across passenger cars, services and commercial and industrial vehicles, says the SMMT.
While Britain is already well placed to implement CAM technology into passenger cars, significant new opportunities for growth exist in eight other markets, thanks to the ability of CAM tech to deliver efficiency and productivity gains in everyday transport and business activities.
The report, summarising a study by KPMG and funded by Innovate UK, with support from the Automotive Council and Zenzic, reveals that among these markets, on-road logistics has the potential to be the largest, with annual revenue of £15.2 billion by 2040 from rolling out CAM tech in the sector.
CAM tech in on-road passenger services, such as buses, taxis and ride-hailing (£3.7 billion) and off-road logistics, including vehicles used in warehouses, ports and airports (£2.3 billion) rank as the second and third largest markets. Some of the earliest deployment opportunities could also be found in the mining and agricultural sectors, given the nature of these environments with little or no public access.
Says Mike Hawes, SMMT Chief Executive:
“While fully automated road journeys are still some way off, advances in connected and automated mobility technology means they’re within our future – presenting a significant opportunity to revolutionise transport in the UK.
Government must work with all stakeholders to implement the necessary framework needed to deliver this exciting revolution swiftly and effectively, ensuring that consumers can reap the lifesaving and cost saving benefits. Failing to do so risks leaving the UK in the slow lane, jeopardising our competitiveness and impeding growth and job creation.”
