New report highlights how UK can unlock the opportunity of Connected & Automated Mobility

A new report from techUK members Shoosmiths and KPMG has highlighted that, whilst the Automated Vehicles Act 2024 (AV Act) - a crucial milestone in and of itself - has laid the groundwork for Connected and Automated Mobility (CAM) deployment in the UK,  informed secondary legislation and considered business models are required to unlock the benefits of CAM. This legislation is vital for providing businesses with the clarity and confidence needed to invest in CAM technologies. 

The report underscores the substantial economic, social, and environmental benefits that CAM can deliver, citing an annual economic growth of £66 billion by 2040. KPMG’s underlying analysis, delivered last year for the SMMT and Automotive Council, illustrates the variety of commercial uses for CAM, including autonomous vehicles such as robo-taxis and buses, and automated agricultural and industrial machinery. However, the success of these technologies is dependent upon several key enablers, such as a robust regulatory frameworks, vehicle standards, infrastructure readiness, and a skilled workforce. 

One of the report’s primary insights is the complexity and uncertainty that have characterised the UK’s regulatory environment, historically hindering CAM development. The AV Act seeks to resolve these issues by introducing new legal regimes and amending existing laws to eliminate barriers and clarify ambiguities. The development of detailed regulations, expected between 2025 and 2026, will be essential for the successful deployment of on-road CAM technologies. 

Another critical factor is an international regulatory alignment, as the UK must at least to some extent, harmonise its CAM regulations with those of key international bodies like the United Nations Economic Commission for Europe (UNECE) and the European Union. This alignment is crucial for maintaining the UK’s attractiveness as a CAM investment destination and ensuring seamless integration with global CAM markets. 

The report also provides an overview of KPMG’s ‘9 Levers of Value’ framework and how it can help businesses to shape, accelerate, and execute future CAM propositions by building a comprehensive understanding of the markets CAM is being deployed within and customer needs within these markets. Use of the Framework can then help businesses to understand buying behaviours, the products or services that meet these needs, the competitor propositions (both CAM and non-CAM) competing for those needs, and the operating model required to realise the CAM opportunity

The report concludes by asserting that the UK is perhaps one of the best operating environments in the world for CAM deployment, highlighting its strong automotive heritage, skilled workforce, advanced technology sector, and supportive legal environment 

techUK, through its Self-Driving Vehicles Working Group, is bringing the UK’s CAM sector together to help inform emerging regulatory framework and unlock barriers to deployment. You can read more and request access to the working group by following this link.  

You can read the full KPMG and Shoosmiths’s report here. 

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