Connected and Autonomous Vehicles: Unlocking the Opportunities - SMMT
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
Connected and autonomous vehicles:
unlocking the opportunities
David Wong
Senior Technology and Innovation Manager
Intelligent Mobility, Intelligent Cities
techUK
2 October 2017
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
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‘Connected’ and autonomous’ vehicles – one and the same?
How will CAVs improve our lives?
How can we unlock the opportunities?
THE SOCIETY OF MOTOR MANUFACTURERS AND TRADERS LIMITED
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‘Connected’ and autonomous’ vehicles – one and the same?
How will CAVs improve our lives?
How can we unlock the opportunities?
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Connectivity: enabling V2X
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Connected vehicle services today and in the future
Vehicle-to-
Infrastructure
(V2I)
Vehicle-to-
Vehicle (V2V)
Vehicle-to-Cloud
Vehicle-to-
Person
Smartphone
Mirroring
Navigation
Location-based
Services
Emergency Call
Stolen Vehicle
Tracking
Roadside
Assistance
Software-over-
the-air
Fleet
Management
Remote Vehicle
Interaction
Connected
vehicle
services
Entertainment
High-Definition
Map Updates
Insurance
In-car WiFi
Mobility Services
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Defined levels of automation
L0 L1 L3 L4
AutomationLevel
Driver
continuously in
control of speed
and direction
Driver
continuously
performs the
longitudinal or
lateral dynamic
driving task
Driver must
monitor the
dynamic driving
task and the
driving
environment at
all times
Driver does not
need to monitor
the dynamic
driving task nor
the driving
environment at
all times; must
always be in a
position to
resume control
Driver is not
required during
defined use
case
No intervening
vehicle system
active
The other driving
task is performed
by the system
System performs
longitudinal and
lateral driving
task in a defined
use case
System performs
longitudinal and
lateral driving
task in a defined
use case.
Recognises its
performance
limits and
requests driver
to resume the
dynamic driving
task with
sufficient time
margin
System performs
the lateral and
longitudinal
dynamic driving
task in all
situations in a
defined use
case
System performs
the lateral and
longitudinal
dynamic driving
task in all
situations
encountered
during the entire
journey. No
driver required
Driver
only
Assisted
Partial
Automation
Conditional
automation
High automation
Full
automation
Driver
L5L2
Example: Park Assist Traffic Jam Assist Highway Patrol
Urban Automated
Driving
Full end-to-end
journey
OICA’s Levels of Automated Driving, based
on SAE J3016
Longitudinal + lateral control
Adaptive Cruise Control with
Lane Departure Warning and
Lane Keeping Assistance
Traffic Jam Assist
ACC with Lane Keeping Assistance
Parking and manoeuvring
Automated Cross Parking Assistance
Automated Parallel Parking Assistance
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Connected cars in the UK fleet: deployment projection
Source: KPMG (2015), Connected and Autonomous Vehicles: The UK Economic Opportunity.
0%
20%
40%
60%
80%
100%
2014/15
2015/16
2016/17
2017/18
2018/19
2019/20
2020/21
2021/22
2022/23
2023/24
2024/25
2025/26
2026/27
2027/28
2028/29
2029/30
Non-Connected Connected
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Over 1.5m British new car buyers benefit from driver
assistance systems
Source: JATO Dynamics analysis based on SMMT new car registration data 2015.
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Testing and announced early stage deployment
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Convergence: a future of ACES
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‘Connected’ and autonomous’ vehicles – one and the same?
How will CAVs improve our lives?
How can we unlock the opportunities?
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Unprecedented opportunities
• >94% of accidents due to
human error
• Low-speed AEB – ↓38% real
world rear-end crashes
• 2,500 lives saved, 25,000
serious accidents prevented
(2014-2030)
• Truck platooning: potential headway gap 6-
22m (0.3-1.0 sec) at 50mph
• Urban roads, peak traffic, low numbers of
AVs: -12% delays, +21% journey time
reliability
• ITS using V2V and V2I: ↓CO2 emission
≤20%
• 6/10 with limited mobility – quality of life
• 1/2 young people would use an AV today if
they could
• 1/2 with mobility-related disabilities –
pursue hobbies outside home; 2/5 – better
access to healthcare
• 47% older people – more easily fulfil day-
to-day tasks (e.g. grocery shopping)
• £51bn value added p.a. by
2030 (2014 prices)
• 320,000 additional jobs by
2030 (25,000 in automotive
manufacturing)
• US study: 15% tighter parking
spaces, overall ↓5.7bn m2
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An estimate of the value of time where consumers can
make more use of the time spent in their vehicles
through increased connectivity
£20bn
More efficient journeys lead to greater productivity and
labour market flexibility
£15bn
Other savings for consumers including reduced costs
in insurance, running costs and parking
£5bn
Producer impact is based on expected growth in
profit from increased sales due to demand of
connected and autonomous vehicles and increased
local content
• An increase in tax revenues is assumed from direct
taxations such as revenue from income tax due to
the increased number of jobs and increased
revenue from corporation tax
• Increased revenue from indirect taxes such as
increased demand in fuel therefore an increase in
revenue generated from related taxes
• It is assumed that 94% of accidents occur due
to human error as estimated by the DfT. This
is forecast to halve by 2030.
• Infrastructure investments and road maintenance costs
will rise
• Travel and freight costs reduce across the economy
• Trade and exports increase across the economy
• Telecommunications data traffic increases by 12% CAGR
• Consolidation of monoline motor insurers
• Revenue growth for creative industries including digital,
advertising, media
• Revenue growth for digital retailers
• Revenue growth for service industries – IT, technology,
electronics
• Better use of space in cities, energy management and
impact on property values
£40bnConsumer Impacts
£2bnProducer Impacts
£16bnWider Impacts
£2bnTaxation
£2bnSafety
(£11bn)Cost
Source: KPMG (2015), Connected and
Autonomous Vehicles: The UK
Economic Opportunity.
£51bn
economic
impact
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CAV market value forecast
Source: Transport Systems Catapult (2017), Market Forecast for
Connected and Autonomous Vehicles.
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‘Connected’ and autonomous’ vehicles – one and the same?
How will CAVs improve our lives?
How can we unlock the opportunities?
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Four overarching challenges
Technology and
infrastructure
Policy, regulation
and standards
Behavioural issues
and public
acceptance
Business
models
• Sensor fusion, AI, machine
learning, deep learning for L4/5
• Fully fail-operational system
• HMI and control handback
• High precision mapping
• Virtual testing and validation
• Digital (e.g. LTE-V, 5G, ITS G5)
and physical infrastructure
• Insurance/liability framework
• Highway Code and Construction
& Use Regulations
• Harmonised international
regulations (UNECE Reg. 79)
• Type approval, certification and
future MOT
• Data protection and data sharing
• Driver licensing and future
‘driving test’
• 5G and IoT standards
• Public perception and misconceptions
• Co-existence with legacy motor parc
and other traffic
• Social behaviours (e.g. playing
chickens)
• Reshaping future cities and urban
centres
• New opportunities from
‘servitisation’ and
‘horizontalisation’ of the
product
• New insurance business
models (e.g. PAYD)
• Who pays for connectivity?
• Towards integrated mobility
solutions
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2014
2015
Summer
2015
2016
2017
2017
Government funding (match funded by industry)
Dec: £19m for 3 driverless cars
consortia
Mar: £100m Intelligent Mobility
Fund
£5m EPSRC-JLR fundamental
research
£1.2m Traveller Needs & UK
Capabilities Study
Feb: £20m CAV1 Competition
8 CR&D projects + 14
feasibility studies
Autumn Statement: £100m for
CAV testing ecosystem;
£740m for local full fibre
networks and 5G test
beds/trials
Apr-May: £31m CAV2 Competition
for 24 projects + £38m from the
Industrial Strategy Challenge Fund
for Level 4 AI and control systems
Jul: £16m for 5G test network at 3
universities
Closed Jul 2017: £55m CAV Test Bed
Competition; awaiting results
Open until 25 Oct
2017: £25m CAV3
Competition
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Government-industry funded projects
Illustration courtesy
of C-CAV
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Homegrown British technology
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UK testing ecosystem
Illustration courtesy of
C-CAV
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Virtual testing and validation
Illustration courtesy of HORIBA MIRA
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The original Intelligent Mobility roadmap
Source: Automotive
Council Technology
Group 2013
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The new Intelligent Connected Vehicle roadmap
Source: Automotive
Council Technology
Group 2017
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5G test beds and trials
Illustration courtesy of DCMS
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Mobile network coverage on the UK road network
Source: RAC Foundation analysis
using Ofcom data, 2015.
Almost 4,600 miles (2%) of British roads have no 2G coverage from any network provider, whereas only
43,000 miles (18%) and 119,000 miles (48%) have full 4G and 3G coverage respectively.
Miles (%) of road in Britain with…
Full network coverage Partial network
coverage
No network
coverage
2G 211,753
(86%)
28,975
(12%)
4,561
(2%)
3G 119,057
(48%)
111,679
(45%)
14,554
(6%)
4G 43,070
(18%)
65,950
(27%)
136,271
(56%)
Note: percentages might not add up to 100% because of rounding. Partial network coverage means that
at least one of the four network providers – Vodafone, O2, EE, Three - will offer a signal.
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VHS vs Betamax all over again?
ITS-G5 (aka 802.11p, WAVE or DSRC) Cellular V2X (LTE-V, 5G in the future)
Illustration courtesy of 5G Automotive Association
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Physical infrastructure
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Regulatory review and insurance reform
Queen’s Speech 21 June 2017:
Automated and Electric Vehicles Bill
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Security by design and default
Illustration courtesy of BMW Group
5*StarS consortium on assurance
framework for vehicle security
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Using AVs: people’s willingness vs preference
Source: VENTURER Consortium.
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Vehicle generated and personal data
Type of data Type 1: Non-brand differentiated data Type 2: Brand differentiated data Type 3: Personal data
Description of
datasets
1A: Data in the public
interest that is contributed
for improvement of traffic
management and safety
1B: Defined datasets
across participating
vehicle manufacturers
for potential third-party
commercial services
2A: Data with vehicle
manufacturer-specific IP
relevance
2B: Data for component
analysis and product
improvement
3: Data that supports services
requiring user or vehicle
identification, or the use of personal
data including but not limited to the
VIN
Examples Local hazard
warning/activation of hazard
warning light, accident
position, position of active
emergency vehicles,
roadblocks, icy roads,
potholes, average
speed/traffic flow, ambient
temperature
Ambient temperature,
average speed, road
sign recognition, on-
street parking
Engine operating map,
gearbox operating map,
lane marking perception,
proprietary sensor data,
software algorithms
Actuator data, engine
injection behaviour, fuel
pump performance,
automatic transmission
shifting behaviour, fault
memory data, battery
performance, stability
control data, battery status,
brake pad wear
Vehicle location, movement profile,
average speed, acceleration, fuel
and consumption levels (along with
VIN); navigation destinations,
address book, personalised access
to third-party services, infotainment
settings, personalised in-car settings
(e.g. seat), health and wellbeing data
Potential data
processors
Public authorities (e.g.
Highways England, local
authorities)
Commercial or non-
commercial third parties
(e.g. app developers,
aftermarket)
Vehicle manufacturer,
partner(s) on vehicle
manufacturer’s behalf
(e.g. dealers,
subsidiaries)
Vehicle manufacturer,
supplier(s), partner(s) on
vehicle manufacturer’s
behalf
Only parties authorised to process
data by law, contract and consent
(e.g. insurers, app developers)
IP relevance None None Vehicle manufacturer Vehicle manufacturer and
its supplier(s)
Some accruing to vehicle
manufacturer but mostly none
Anonymity Anonymised Anonymised Anonymised Anonymised User identified
Personal data
protection
relevance
None None None None Medium to high
Data provision There must be no discrimination with regard to pricing, amount and type of data made available, timeliness of data transfer and other relevant quality
criteria
Data-sharing
agreement
Individual reciprocal
agreements with vehicle
manufacturers
Individual agreements with customers and third-party market participants
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New opportunities upstream and downstream
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Vehicle-as-a-Platform and the Internet of Things
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Car and ride sharing on the rise
Global ride sharing
membership
Chart courtesy of Frost & SullivanSource: SMMT/Frost & Sullivan, The Importance of the UK Aftermarket to the UK Economy 2017
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Beyond the traditional: towards mobility and
services
Illustration courtesy of
PTOLEMUS
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