2019 ONTARIO CAV ECOSYSTEM ANALYSIS - Ontario Centres of ...

 
2019 ONTARIO CAV ECOSYSTEM ANALYSIS - Ontario Centres of ...
ONTARIO
CAV ECOSYSTEM ANALYSIS

           2019

                 0
                June 2019
2019 ONTARIO CAV ECOSYSTEM ANALYSIS - Ontario Centres of ...
CO N T E N T S

    Introduction & Methodology                                          2
                                                                            Regulations &
    Background                                                          4   Guidelines

    CAV Sector Analysis                                                14
               Regulations & Guidelines                                15
               Investment                                              21            Investment

               Industry                                                25
               Research & Development                                  28
               Talent                                                  33
                                                                                              Industry
    Summary of Key Findings                                            35
    Summary of AVIN’s Role                                             36
    Acronyms                                                           38
    End Notes                                                          40
                                                                                      Research &
                                                                                      Development

                                                                            Talent

   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                        Ontario CAV Ecosystem Analysis | 1
2019 ONTARIO CAV ECOSYSTEM ANALYSIS - Ontario Centres of ...
I N T RO D U C T I O N & M E T H O D O LO G Y
   Introduction
   With the employment of 205,000+ technology                           WSP has been retained by the Ontario Centres for Excellence (OCE), and its Autonomous
   workers in the Toronto-Waterloo innovation                           Vehicle Innovation Network (AVIN) initiative, to provide an overview assessment of the CAV
   corridor alone, second only to Silicon Valley in                     ecosystem in Ontario.
   North America, Ontario has an outstanding
   history of success in both the automotive and                        The findings of the study, contained within this report, describe key industry trends in
   technology industries. 1                                             Ontario and globally, and show how Ontario can continue to enhance its strength in the CAV
                                                                        sector.
   Despite the downward trend in automotive
   manufacturing, Ontario has effectively                               The report comprises four main sections:
   leveraged its automotive history and strong
   position in technology development to                                •   Background information on CAVs and the Ontario CAV sector;
   become a key player and leader in the
   development of cutting-edge connected and                            •   A review of Ontario and global CAV activities and initiatives;
   autonomous vehicle (CAV) technologies.
                                                                        •   A summary of key findings from the review; and

   With the advent of these technologies, Ontario                       •   A summary of AVIN’s role in supporting the Ontario ecosystem.
   has a strategic opportunity to establish its
   leadership in this emerging field by combining                       The findings presented in this report are not intended to be exhaustive, but to provide a
   its existing automotive and technology                               strategic overview of key players, initiatives and programs, and high -level inventory of the
   industry expertise with the availability of local                    Ontario ecosystem.
   supply chains supported by continued
   research and innovation.                                             This report reflects our analysis of primary and secondary research, which follows an
                                                                        evaluation framework that comprises five critical and interrelated elements of an attractive
                                                                        and competitive CAV ecosystem.

                 1. REGULATIONS &                    2. INVESTMENT               3. INDUSTRY                4. RESEARCH &                    5. TALENT
                     GUIDELINES                                                                             DEVELOPMENT

    © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                        Ontario CAV Ecosystem Analysis | 2
2019 ONTARIO CAV ECOSYSTEM ANALYSIS - Ontario Centres of ...
I N T RO D U C T I O N & M E T H O D O LO G Y
   Methodology                                                             Agencies and Organizations Interviewed

   Primary research was conducted through
   a series of industry stakeholder interviews
   and an online survey. Key players in the
   Ontario CAV sector provided first-hand
   and demonstrable insights including:
                                                                                                                                                 Quotes and
   •      Current and planned activities, as well                                                                                               observations
          as technologies and service offerings,                                                                                              from interviews
          that enable the sector.                                                                                                             are highlighted
                                                                                                                                              throughout the
   •      Motivations for pursuing CAV                                                                                                             report.
          initiatives, specifically in Ontario.

   •      Scope of resources dedicated to CAV
          activities and pursuits.

   •      Strengths and challenges that the
          sector is currently facing.

   •      Vision for the future, and                                       Jurisdictions Reviewed
          opportunities to enable and expand
          the Ontario CAV ecosystem.
                                                                                                                      Sweden
   Insight provided from the interviews has
   been augmented and reconciled with                                                                     Norway
   information gathered through parallel                                                                                       Finland
   secondary research efforts, including a
                                                                               United States           United
   literature review and jurisdictional scan.
                                                                                                       Kingdom
                                                                                                                               Germany
                                                                                                                 Netherlands                                  Japan

                                                                    Note: Jurisdictions were chosen
                                                                                                                                         Singapore
                                                                    from the top 10 ranked countries
                                                                    in KPMG’s 2019 Autonomous
                                                                    Vehicle Readiness Index. 3

       © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                      Ontario CAV Ecosystem Analysis | 3
2019 ONTARIO CAV ECOSYSTEM ANALYSIS - Ontario Centres of ...
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   What are Connected
   and Autonomous                                                      Vehicle Communication Types
   Vehicles?
                                                                                       Vehicles can communicate with surrounding
   Connectivity and autonomy are two                                                   infrastructure such as traffic signal controllers and
   distinct but related main streams of                                                traffic monitoring units.
   technology.

   Connected Vehicles
                                                                                     VEHICLE-TO-                                     VEHICLE-TO-
   Connected Vehicles (CVs) are able to                                                VEHICLE                                       EVERYTHING

                                                                                     V2V                                              V2X
   gather information from and communicate
   with other vehicles and their surroundings
   (e.g. infrastructure, pedestrians/cyclists),
                                                                                                             VEHICLE-TO-
   enhancing safety and mobility. CVs can
                                                                                                           INFRASTRUCTURE
   provide useful information to surrounding
   vehicles to help make safer and more
   informed decisions. 2                                                                                      V2I
                                                                   Vehicles can communicate and
   Connectivity is achieved through                                share information with other
   established communications technologies,                        vehicles on the road. Examples
   including Dedicated Short-Range                                 of such information include
                                                                                                                                  A catch-all term for communications
   Communications (DSRC) and cellular                              traffic conditions, speed, safety
                                                                                                                                  capability with other elements in the
   communications. Cellular connections,                           considerations, etc.
                                                                                                                                  road environment, such as
   commonly referred to as Cellular Vehicle-                                                                                      pedestrians or cyclists (V2P), and
   to-Everything (C-V2X) may use either 4G                                                                                        other central systems accessed
   LTE (Fourth-Generation Wireless Long-                                                                                          through Internet or cloud services
   Term Evolution) or next generation 5G                                                                                          (V2C).
   (Fifth-Generation Wireless) networks.

   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                           Ontario CAV Ecosystem Analysis | 4
2019 ONTARIO CAV ECOSYSTEM ANALYSIS - Ontario Centres of ...
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                                                                 SAE Levels of Vehicle Automation
   Autonomous Vehicles
                                                                                  NO AUTOMATION
   Autonomous Vehicles (AVs) are                                                  A human driver is required for all aspects of the dynamic driving task. Vehicles may have
   equipped with onboard                                                          assistive technology providing warnings to the driver but cannot sustain vehicle control.
   equipment (e.g. cameras,
   LiDAR, radar) to sense the
                                                         LEVEL                                        DRIVER ASSISTANCE SYSTEMS
                                                                                                      A human driver performs most of the driving operation, with the automated
   surrounding environment
   without necessarily
   communicating with other
                                                           0              LEVEL
                                                                                                      system assisting with minor operations of the dynamic driving task. For
                                                                                                      example, with lane keeping assistance the driver controls the speed, while the
                                                                                                      automated system self-corrects steering toward the centre of the lane.
   vehicles or surrounding
   infrastructure. 4
                                                                           1                          Another example is Adaptive Cruise Control where the automated system
                                                                                                      controls the speed, while the driver controls steering. Level 1 automation is
                                                                                                      included in many vehicles available on the market.
   An AV combines data and                                                                                      PARTIAL AUTOMATION
   intelligence from its equipment                                                LEVEL                         An automated driving system can be in control of the dynamic
   to automate various aspects of                                                                               driving task including steering, acceleration, and braking. However,
   the dynamic driving task and
   navigate through the road
   network.
                                                                                    2                           the driver must remain engaged in the driving task and monitor the
                                                                                                                environment at all times. Examples of Level 2 automation available
                                                                                                                to the public in Ontario include Tesla Autopilot, General Motors (GM)
                                                                                                                Super Cruise, Mercedes-Benz Distronic Pilot, and Nissan ProPilot.

   The Society of Automotive                                                                                    CONDITIONAL AUTOMATION
   Engineers (SAE) has                                                            LEVEL                         An automated driving system is in full control of the dynamic
   categorized AVs into six levels                                                                              driving task including steering, acceleration, and braking. The
   of automation ranging from no
   automation (Level 0) to fully
   autonomous (Level 5). 5
                                                                                    3                           vehicle is able to scan its environment, react accordingly,
                                                                                                                recognize its limitations, and request intervention by a human
                                                                                                                driver. The human driver does not need to consistently monitor
                                                                                                                the driving environment, but should be prepared to intervene if
                                                                                                                needed. There are currently no vehicles with Level 3 (or above)
   Note: The term ‘AV’ used                                              LEVEL                                  automation available for purchase in Ontario.
   throughout the report refers to
   Level 3 automation and above.
                                                         LEVEL             4                             HIGH AUTOMATION
                                                                                                         An automated driving system is able to perform the whole dynamic
                                                                                                         driving task including steering, acceleration, and braking within a
                                                                                                         defined environment, even if a human driver does not respond to a

                                                           5                                             request to intervene. The vehicle can come to a safe stop if it operates
                                                                                                         beyond the boundaries of its safe operating conditions. The human
                                                                                                         driver does not need to monitor the driving environment or be available
                                                                                                         to intervene with the driving task.
                                                                             FULL AUTOMATION
                                                                             An automated driving system performs the whole dynamic driving task independently and
                                                                             regardless of conditions, without the need for a human driver to be present. The vehicle is truly a
                                                                             self-driving entity and can decide to abort a trip and come to a full stop.

   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                               Ontario CAV Ecosystem Analysis | 5
2019 ONTARIO CAV ECOSYSTEM ANALYSIS - Ontario Centres of ...
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   Connected and Autonomous Vehicles
   As CV and AV technologies are complementary, it is most likely that combined CAVs will be much more prominent in the market i n the future than
   separate CV and AV offerings. For that reason, this report focuses on the combined CAV ecosystem, and its primary enabling t echnologies and critical
   considerations.

   CAVs Key Enabling Technologies and Considerations

                                                                                                               EMBEDDED SOFTWARE
                                                                                                               Embedded software is a critical
                                                                                                               CAV enabler, supporting V2V
                                                          COMMUNICATIONS                                       and V2I communications,
                                                          Communications enable                                sensing, and advanced
                                                          connectivity and are key to CAV                      analytics to drive CAVs.
                                                          operations, providing the ability
                                                          for a vehicle to communicate with
    SENSING TECHNOLOGIES                                  other vehicles (V2V) and the
                                                          surroundings (V2I/V2X).
    Sensing Technologies are key
    enablers to AV operations,                                                                                                           ADVANCED ANALYTICS
    allowing the vehicles to                                                                                                             Advanced analytics and artificial
    understand their surrounding                                                                                                         intelligence (AI) are key enabling
    environment.                                                                                                                         technologies and techniques that are at
                                                                                                                                         the core of many parts of CAV systems.

                                                                                                                                                 STANDARDS
                                                                                                                                                 Compatibility and interoperability
   TALENT                                                                       CYBERSECURITY                                                    across technologies, products, and
                                                                                Safe and secured transportation network for                      applications require the
   The evolving CAV sector demands                                              CAVs and protection of personal                                  establishment of and adherence to
   knowledge, expertise, and technical                                          information rely on effective cybersecurity                      appropriate standards.
   skill development.                                                           practices.

   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                                Ontario CAV Ecosystem Analysis | 6
2019 ONTARIO CAV ECOSYSTEM ANALYSIS - Ontario Centres of ...
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     COMMUNICATIONS                                                    SENSING TECHNOLOGIES                                 EMBEDDED SOFTWARE
     Communications enable connectivity and                            Sensing Technologies are key enablers to AV          With innovations in V2V and V2I
     are key to CAV operations, providing the                          operations, allowing vehicles to understand          communications and sensing
     ability for a vehicle to communicate with                         their surrounding environment. Relevant              technologies, as well as AI and data
     other vehicles (V2V) and its surroundings                         technologies include:                                analytics, embedded software is a
     (V2I/V2X). Critical protocols and network                                                                              critical enabler to the successful
     technologies include:                                             •   Cameras: passive sensors providing video
                                                                                                                            development of CAVs.
                                                                           images (e.g. front view, rear view, and 360°).
     •    DSRC (Dedicated Short-Range                                      Because cameras represent light reflected by     Embedded software is computer
          Communications): a technology for                                the surrounding environment, their               software written to control machines
          vehicle-related wireless                                         performance is impacted by environmental         or devices that are not typically
          communication; industry-proven                                   conditions including darkness, rain, etc.        thought of as computers, commonly
          through a wide range of applications,                            Camera images generally need to be               known as embedded systems. In
          including tolling and transit signal                             interpreted through AI to detect and classify    vehicles, the embedded software is
          priority.                                                        objects.                                         rugged in nature and written for the
                                                                                                                            specific hardware of the vehicle, and
     •    4G LTE (Fourth-Generation Wireless                           •   Radar (Radio Detection and Ranging): the
                                                                                                                            can be used for a variety of purposes,
          Long-Term Evolution): the current                                detection and localization of objects using
                                                                                                                            such as safety management, engine
          standard for wireless broadband                                  radio waves. Although a radar has a limited
                                                                                                                            control, networking, and infotainment.
          communication, with wide network                                 ability to classify objects, it provides
                                                                                                                            Modern vehicles rely on a steadily
          coverage in Ontario.                                             accurate distance estimation to a detected
                                                                                                                            increasing number of
                                                                           object, and its performance is not affected
     •    5G (Fifth-Generation Wireless): the                                                                               microprocessors, and a corresponding
                                                                           by the environment. VORAD (Vehicle
          next generation of wireless broadband                                                                             increase in embedded computing, to
                                                                           Onboard Radar) is the common term for
          communication, with promises of                                                                                   support features such as electronic
                                                                           radar used in the automotive industry.
          lower latency and increased                                                                                       stability control, anti-lock braking
          bandwidth and reliability over 4G LTE.                       •   LiDAR (Light Detection and Ranging): a           systems, collision avoidance, and
                                                                           laser-based sensing system that emits laser      adaptive cruise control.
     In North America, standards and deployed
                                                                           beams at eye-safe levels, used to construct
     pilots have focused on DSRC, in part due
                                                                           precise and highly accurate 3-D maps of
     to its proven and demonstrable
                                                                           surrounding environments. LiDAR provides
     performance. More recently, an increasing
                                                                           accurate distance estimation, and through
     number of industry and transportation
                                                                           AI, can detect and classify objects.
     professionals are advocating that
     connectivity be achieved through 5G, in                           Passive sensors sense and measure naturally
     part due to benefits for wide area V2X and                        occurring energy (e.g. cameras sense reflective
     improved performance.                                             light). Active sensors, such as radar and LiDAR,
                                                                       provide their own energy source (e.g. radio
                                                                       waves, laser light).

   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                      Ontario CAV Ecosystem Analysis | 7
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      ADVANCED ANALYTICS / ARTIFICIAL INTELLIGENCE (AI) / MACHINE LEARNING (ML)
      Advanced analytics and artificial intelligence (AI), including machine learning (ML), are key enabling technologies and techniques at the core of many
      parts of CAV systems. They are responsible for analyzing sensor data, visualizing the surrounding environment, predicting behaviours, and guiding
      vehicle movements.
      Advanced analytics refer to a wide range of analytic tools and techniques, and cover a wide range of analytics, including descriptive, diagnostic,
      predictive, and prescriptive.
      AI is a subset of advanced analytics that simulates human intelligence, and aims to replicate the ability of humans to analyze data, draw conclusions, and
      interact with humans in a human-like way.
      ML is a category of AI, where the system is able to automatically learn, improve, and optimize through experience. By being able to learn and adapt on its
      own, ML allows predictions to be made at a scale and speed not possible for human analysts to achieve.

      CYBERSECURITY                                                    STANDARDS                                               TALENT
      Cybersecurity is vital for the development                       Standards are critical building blocks in               Knowledge, expertise, and technical skill
      of a safe and secured transportation                             the facilitation, development, and                      development is critical to the success of
      network for CAVs, and the protection of                          deployment of CAVs. They support the                    an evolving industry such as CAVs.
      personal information.                                            compatibility and interoperability across
                                                                       technologies, products, and applications.               The development of new innovative
      Cybersecurity protects connected                                                                                         technologies depends on ready access to
      systems, networks, data, and programs                            Standards are documented specifications                 talent with the necessary education,
      (including software and hardware) from                           and procedures that ensure reliability of               training, and skillsets required by
      cyberattacks, and prevents sensitive                             materials, products, processes, and                     industry. Attracting international talent is
      information from being tampered with.                            services.                                               also a key contributor to the industry.
                                                                                                                               Priority areas of advanced expertise,
      With large quantities of data and                                A wide range of standards are pertinent                 knowledge, and skills include emerging
      information being created and stored by                          to CAVs, including communications                       areas such as embedded software
      CAVs, as well as increased connectivity                          protocols, data formats and definitions,                development, AI/ML, and cybersecurity.
      between transportation infrastructure,                           security and safety, performance, testing
      cybersecurity is becoming ever more                              methodologies, and infrastructure and
      critical and important. Without robust                           geometric design.
      cybersecurity protections, systems and
      networks are vulnerable to the threat of
      disruption due to cyberattacks, data theft,
      and potentially the failure of autonomous
      driving systems and smart road
      infrastructure.

   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                            Ontario CAV Ecosystem Analysis | 8
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   Key Players                                                         Academia / Research
                                                                       Universities and colleges have developed research programs in collaboration with industry partners
   The key players in the Ontario CAV sector
                                                                       and government agencies, enhancing capacity to train the next generation of skilled workers. In
   can be aggregated into four categories (see
                                                                       addition to its academic institutions, Ontario is home to research centres, which run research
   pages 14 – 34 for a more detailed description
                                                                       programs and activities in affiliation with industry and universities.
   of specific activities and contributions).

                                                                       Economic Development / Entrepreneurial Accelerators
   Government
                                                                       Economic development and entrepreneurial accelerators support companies to advance in their field
   The Federal Government plays a large role in
                                                                       of specialization. Accelerators provide organizations with business advisory services, assist with the
   national vehicle safety standards, ensuring
                                                                       identification of funding opportunities, and connect them with talent to grow their employee base.
   the security of the transportation network
   and overseeing telecommunication
   infrastructure.

   The Provincial Government and Municipal
   Governments are responsible for the
   provincial highway network and their local
   transportation networks, respectively. They
   are also responsible for the safe and
   effective integration of CAVs with their
   infrastructure and with the management of
   their traffic and transit.

   The Provincial Government is also
   responsible for setting the
   rules of the road in
   Ontario, as well as, for
   supporting a strong,          Ontario is
   innovative economy.           poised for
                                leadership.
   Industry

   Industry priorities are the development of
   supporting and enabling technologies and
   the expansion of CAV-related products and
   services. Players in this group range from
   Small-Medium Enterprises (SMEs) to large
   Multi-National Enterprises (MNEs).
                                                                   Note: the diagram above is not intended as a full representation of all key players in the Ontario CAV Ecosystem.
   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                                      Ontario CAV Ecosystem Analysis | 9
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   Potential CAV Impacts                                                    A CBC study indicated that through reduced congestion and
                                                                                improved fuel efficiency, CAVs have the potential
   Globally, over the past number of years, it has become                             to reduce the fuel costs, in Canada, by
   accepted wisdom – within both the public and private sectors –
   that CAVs will be a major disruptor to the current                                            $2.6 BILLION .                        8

   transportation network and the economy. What that future will
   look like, and how quickly it will happen, remains unclear and                                                It is expected that there will be a delay
   a source of extensive discussion.                                                                             between when CAVs are widely
                                                                                       CAVs will                 available for purchase in the market
   CAVs have the opportunity to introduce many benefits,                             impact how                  and when consumers will actually trade
   including an increase in traffic capacity of existing roadway                    government                   in their conventional vehicles for CAVs.
   infrastructure, improved traffic flow, improved safety, improved                  services are                There is limited consensus on the
   fuel efficiency and, ultimately, an overall reduction in                            delivered.                adoption rate of CAV technology, with
   Greenhouse Gas (GHG) emissions. 6                                                                             estimated penetration rates typically
                                                                                                                 ranging between 10% and 50% by
                                     In Canada, CAVs could                                                       2035. Generally, industry estimates of
                 reduce collisions by more than 90% and                                                          CAV adoption are more optimistic on
              save $37.4 BILLION in monetary costs                      the availability of the technology and the timing of adoption, compared to
                                                                        academic sources. Academic sources tend to be more conservative in their
                         (does not include societal costs). 7
                                                                        predictions which reflect statistical models, stated preference surveys, the
                                                                        current state of the technology, and the projected evolution of
   The impact of CAVs on traffic congestion is a known topic of
                                                                        transportation authorities’ infrastructure and policy.
   debate. CAVs could potentially increase demand and induce
   increased vehicle kilometres travelled (VKTs) on the road,
   which could result in increased congestion. Conversely, it is        The impact of CAVs with respect to economics, safety, and the environment
   possible that the improved efficiency                                will likely be greatest with heavy vehicles and, as such, the adoption of CAVs
   of CAVs could support higher                                         in the goods movement and transit agencies will likely progress differently
   throughputs on transportation                                        than those for personal use.
                                              We need to
   networks, offsetting the effects
                                             prepare for a              Moving forward, as wider CAV adoption is realized, and depending on the
   that increased demand could
                                              time when                 operational and technical needs as CAV technologies evolve, infrastructure
   otherwise have on
                                             vehicles can               changes and modifications are likely to be needed, and may include:
   congestion. 7
                                                   operate without
   The fabric of urban environments
                                                      a driver.         •   Changes to signing and lane markings to support autonomous driving.
   also stands to change as a result                                    •   Integration with traffic signals and other control devices to enhance
   of CAVs. Potential decreases in vehicle ownership are expected           safety and better manage traffic.
   as a result of individuals using shared vehicles for trips through
   third party transportation network companies. This could result      •   Dedicated lanes and/or facilities for CAVs.
   in a reduced demand for parking and the subsequent
   repurposing of land in dense urban cores. 8                          Note: all monetary values mentioned in this report are in Canadian Dollars (CAD) unless
                                                                        otherwise specified.
   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                              Ontario CAV Ecosystem Analysis | 10
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   Consumer Acceptance                                                                                                                Canada’s
                                                                                                                                   AV consumer
                                                                                                                               acceptance was ranked
   The successful development, deployment, and adoption of CAVs rely heavily on public
   acceptance of the use of the technology and willingness to change their travel behaviour.                                      7 OUT OF 20
   In turn, consumer acceptance will reflect perceptions about CAV privacy, reliability,                                                    and
   safety, and cost.                                                                                                            11 OUT OF 25
                                                                                                                                       countries,
   Key Research Studies                                                                                                            in 2018 and 2019
                                                                                                                                      respectively.
   To better understand the consumer acceptance of AVs in the Greater Toronto and
   Hamilton Area (GTHA), Transform Lab at Ryerson University carried out the study
                                                                                                                       – KPMG, Autonomous Vehicle Readiness Index 2018 & 2019      9, 3
   Autonomous Vehicles: Public Policy Considerations and Consumer Interest in the GTHA ,
   funded by the City of Toronto and Metrolinx. Its findings reflected consumer surveys
                                                                                                                   KPMG carries out an annual Autonomous Vehicles
   with over 3,200 participants,
                                                                                                                   Readiness Index report, which includes an assessment of
   ranging in age from 18
                                                                                                                   consumer acceptance. 9, 3 In 2016, the Traffic Injury
   to 75, conducted in
                                                                                                                   Research Foundation (TIRF) also conducted a national
   November 2016, and                  Focus group participants
                                        showed interest in, and                                                    survey on driver knowledge, attitudes, perceptions, and
   five focus group
                                   ARE WILLING TO USE,                                                             practices relating to AV. 10
   studies held in
                                            driverless cars             – Driverless Cars in the
   mid-2017 and                                                          Greater Toronto and
   early 2018. 11, 12                 OCCASIONALLY                       Hamilton Area: Focus
                                                                                         Group Findings from
                                                                                                                                                          Canadians think
                                         but are also apprehensive of AVs and            2018 11
                                                                                                                                                             it is more
                                             NOT PREPARED TO                                                                                            STRESSFUL
                                               FULLY ADOPT                                                                                                to ride in an AV
                                             broader behavioural changes.                                                 Many Canadians                 than relaxing, and
                                                                                                                         did not anticipate               demonstrated a
                                                                                                                           much learning
                                                                                                                                                           LACK OF AV
                                                                                                                         needed to operate
                                                                                                                              an AV.                      KNOWLEDGE .

                    HALF                        Most respondents
                                                  are willing to
                                                                                   Approximately,
                                                                                 1/3 of respondents                – Traffic Injury Research Foundation, "Senior Drivers & Automated Vehicles:0
                   of survey                                                     indicate interest in                Knowledge, Attitudes & Practices," 2018 10
                                                   adopt AVs,
                respondents are                                                  sharing an AV with
                                                depending on the                                                   Conclusions
              interested in using                                               another passenger at
                      AVs.                          PRICE.                       a REDUCED PRICE.                  Consumers are getting more comfortable and showing an
                                                                                                                   increase in AV acceptance, but clearly there is still a lot of
                                                                                                                   work to be done to educate consumers.
        – Automated Vehicles in the Greater Toronto and Hamilton Area: Overview from a 2016 Consumer Survey   12

   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                                   Ontario CAV Ecosystem Analysis | 11
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   The Autonomous Vehicle Innovation Network (AVIN)
   AVIN is a key part of Ontario's auto plan,
   "Driving Prosperity - The Future of                                                     AV Research and Development (R&D)                           6 AVIN Regional Technology
   Ontario's Automotive Sector". AVIN is the                                               Partnership Fund (Stream 1 & 2)                             Development Sites (RTDSs)
   Government of Ontario's initiative,
   delivered through the OCE, to support                                                   Supports projects relating to the development and           Support Ontario-based SMEs to develop
   SMEs, post-secondary institutions, and                                                  demonstration of technologies in the CAV sector, in         and test CAV technologies.
   other industry stakeholders to                                                          the areas of mass light vehicles, heavy duty vehicles,      (see next page for more details)
   commercialize new products and services                                                 transportation infrastructure, Intelligent Transportation

                                                                       PROGRAM AREAS
   in the automotive and transportation                                                    Systems (ITS), and transit-supportive systems and
   sector, and support Ontario's readiness for                                             vehicles.
                                                                                                                                                       Talent Development
   the adoption and deployment of these                                                                                                                Provides Ontario college and university
   technologies.
                                                                                                                                                       students and recent graduates
                                                                                           AVIN Technology                                             exposure to real world experience.
   AVIN's main objectives are:                                                             Demonstration Zone
                                                                                                                                                       Participants get opportunities to apply
                                                                                           Allows Ontario-based companies to test, validate, and       their expertise and knowledge to solve
   •   Commercialize CAV, transportation,
                                                                                           showcase CAV technologies with live city infrastructure     industry problems related to CAV
       and infrastructure system technologies.                                             in Stratford, ON.
                                                                                                                                                       technologies.
   •   Build awareness, educate, and promote                                               (see next page for more details)
       Ontario as a leader.

   •   Encourage innovation and                                                             WinterTech AV Development Fund
       collaboration.
                                                                                            Supports collaborative projects with resources to develop, test, validate, and
   •   Leverage Ontario’s talent.
                                                                                            commercialize products that will advance AV R&D concerned with severe winter weather
   •   Support regional auto-brainbelt                                                      conditions. Collaborative projects must be within the development, prototyping, and
       clusters.                                                                            validation stage at technology readiness levels 5-7.

   AVIN is ensuring Ontario's leadership in
   the automotive and transportation sector
   and the future of mobility through five                                             AVIN Central Hub
                                                                       CENTRAL HUB

   program streams and a Central Hub.                                                  A dedicated team supporting the delivery and administration of AVIN programming
                                                                                       through:
                                                                                       •     Connecting and coordination among key players, interested stakeholders, and the public.
                                                                                       •     Identification and support of opportunities.
                                                                                       •     Promotion of awareness and education of AVIN programs and initiatives, and promotion
                                                                                             of Ontario's growing CAV community.

   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                                              Ontario CAV Ecosystem Analysis | 12
B AC KG RO U N D
             AVIN Technology Demonstration Zone                                           AVIN Regional Technology Development Sites (RTDSs)

   Located in Stratford, and operated by the Automotive Parts                   Led by local economic development and entrepreneurial support organizations, each Regional
   Manufacturer's Association (APMA), the AVIN Technology                       Technology Development Site (RTDS) has a specific focus area and provides access to
   Demonstration Zone (DZ) promotes a customer-centered and                     specialized equipment and facilities to encourage innovation and support development and
   demand-driven approach to the commercialization of innovation in             testing of CAV technologies.
   Ontario, providing Ontario-based companies with a competitive                                                                           Ottawa Region RTDS
   development option.13                                                        Toronto Region RTDS                                        Focuses on vehicular networks and
                                                                                Focuses on artificial intelligence (AI) and                interoperability of communications, and
   The DZ allows Ontario-based companies to test, validate, and                 machine learning (ML) to improve CAV                       provides an end-to-end integrated AV
                                                                                perception. Led by MaRS Discovery District,                test environment. Led by Invest Ottawa,
   showcase their innovative CAV technologies in a controlled
                                                                                in collaboration with University of Toronto,               in collaboration with Carleton University,
   environment, in compliance with laws and regulations, and with a             Ryerson University, and York University.                   University of Ottawa, Algonquin College,
   wide variety of everyday, real-life traffic scenarios.13                                                                                and the City of Ottawa.

   Ultimately, the DZ plans to feature a rolling fleet of 20 vehicles,
   including 10 passenger vehicles sourced from the five Original
   Equipment Manufacturers (OEMs) in Ontario, and 10 fleet vehicles
                                    from the City of Stratford,
                                                                                Waterloo Region RTDS
                                    including municipal buses and
                                                                                Focuses on developing high-                                         Durham Region RTDS
                                    utility trucks.13                           definition (HD) 3-D mapping and                                     Focuses on investigating
                                                                                vehicle localization technology to                                  Human-Machine Interface (HMI)
                                       Stratford will serve as a test city in   support AV navigation and control,                                  and User Experience for CAV.
                                       partnership with AVIN and the            and safe and efficient CAV                                          Includes the Automotive Centre
             Stratford                                                          operations. Led by Communitech,                                     of Excellence (ACE), and a state
                                       APMA, allowing CAV vehicles to
            provides a                                                          in collaboration with University of                                 of the art controlled-
                                       operate within the city boundaries,
          living lab for               when they are ready.
                                                                                Waterloo, Waterloo Region EDC                                       environment testing facility to
                                                                                and Canada's Open Data Exchange.                                    develop and test AV
            real-world                                                                                                                              technologies. Led by Spark
              testing.                 Stratford also has a four-acre test                                                                          Centre, in collaboration with
                                                                                                                                                    Ontario Tech University (OTU),
                                       demonstration track. For three
                                                                                                                                                    OTU’s ACE, Durham College,
                                       weeks in October 2018, this facility                                                                         and the Region of Durham.
                                       was home to the first live 5G pilot
                                       project with OEMs and
           AVIN and the                telecommunication companies as
         RTDSs provide a               partners.14
                                                                                Windsor-Essex Region RTDS
         point of contact                                                       Focuses on technologies and commercial         Hamilton Region RTDS
          for other SMEs                                                        AV solutions for border crossings.             Focuses on multimodal and integrated mobility
         and MNEs in the                                                        Testing is supported through a virtual         using CAV technology such as V2I and integrated
             industry.                                                          border crossing. Led by Windsor-Essex          mobility applications. Initiatives underway include
                                                                                EDC, in collaboration with University of       testing of AV on public roads and the construction
                                                                                Windsor, St. Clair College, the City of        of a smart city laboratory. Led by Innovation
                                                                                Windsor, and WETech Alliance.                  Factory, in collaboration with McMaster University,
                                                                                                                               Mohawk College, and the City of Hamilton.

   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                        Ontario CAV Ecosystem Analysis | 13
C AV S E C TO R A N A LYS I S
   Analysis Framework                                                                 Approach
                                                                                      Our assessment of the Ontario CAV sector is divided into separate
   This ecosystem analysis of the Ontario CAV sector considered the
                                                                                      sections focusing on each of the key factors. Each section includes
   activities and initiatives of government agencies, academic and
                                                                                      an overview of relevant activities and initiatives in Ontario,
   research institutions, private sector companies (from MNEs
                                                                                      followed by a high-level summary of examples of comparable
   through SMEs), and support organizations, including economic
                                                                                      global activities. The countries included for the global perspective
   development organizations and entrepreneurial incubators and
                                                                                      differ between sections, but all sections do include reference to
   accelerators.
                                                                                      U.S. activities and initiatives.

   The framework for the analysis has been developed and organized
                                                                                      Each section concludes with a summary of Ontario’s strengths,
   around the following five key factors that together shape an
                                                                                      challenges, gaps, and opportunities as they relate to the key
   attractive and competitive CAV ecosystem (see descriptions
                                                                                      factor, as well as an overall qualitative assessment of the position
   below):
                                                                                      of the Ontario CAV sector.
   •   Regulations and guidelines
                                                                                      Because of the interrelationships and interdependence among the
   •   Investment
                                                                                      key factors, many of the ongoing and planned activities and
   •   Industry                                                                       initiatives in Ontario are mentioned in multiple sections,
                                                                                      highlighting how they relate to the relevant key factor.
   •   Research and development
   •   Talent

                1. REGULATIONS &                    2. INVESTMENT            3. INDUSTRY               4. RESEARCH &                  5. TALENT
                    GUIDELINES                                                                         DEVELOPMENT

              Enable and support                    Strategically seed and   Develop innovative        Encourage innovation           Foster the development
              CAV operations and                    support areas of         and marketable            in technology                  of talent through
              testing, and maintain                 growth opportunities     technologies and          development and                enhanced academic
              regulations that                      with respect to          support their full        innovation to remain           and professional
              promote safety and                    technologies and         lifecycle.                at the forefront of the        training.
              innovation.                           expertise.                                         industry.

   © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                  Ontario CAV Ecosystem Analysis | 14
C AV S E C TO R A N A LYS I S
                           Ontario Regulations and                                                    Permitting CAV Testing
                           Guidelines
                                                                                                      In January 2016, Ontario Regulation 306/15: Pilot Project - Automated Vehicles,
                Provincial Vision                                                                     took effect, making Ontario the first Canadian jurisdiction to regulate the testing of

                The Government of Ontario has
                announced a commitment “to growing the
                economy and creating good jobs for
                Ontarians through developed resources to
                                                                         “We are committed
                                                                               to supporting
                                                                              Ontario's auto
                                                                                                      automated vehicles on public roads.17 Updated in January 2019, the regulation
                                                                                                      now allows for driverless AV testing under specific safety conditions.

                                                                                                      The Province has also established a Cooperative Truck Platooning Pilot
                                                                                                      Program, and released conditions for permitting vehicles with V2V communications
                                                                                                      to travel close together as a pilot to “demonstrate their potential, compatibility
                assist companies with doing business in the
REGULATIONS
& GUIDELINES    province”.15                                                  manufacturing           with existing road users and infrastructure, confirm their overall safety, while
                                                                              sector and the          operating on Ontario’s roadways”. 18 Beyond the requirements for safe operation,
                In February 2019, Ontario released its                                                these guidelines also define an approved network for permitted testing operation.
                                                                                 hundreds of
                newest automotive plan Driving Prosperity
                                                                                thousands of
                – The Future of Ontario’s Automotive                                                  Frameworks and Guidelines for Safe Testing CAVs
                Sector, with three pillars for action to                  families across the
INVESTMENT      strengthen and build on Ontario’s                          province that rely         To support the growing CAV industry and ensure that technologies are developed
                presence as a North American leader in                                  on it.        and implemented safely, the Government of Canada, with input from Ontario, has
                automotive manufacturing and position                                                 established the following frameworks and guidelines for CAV testing:

                                                                                                ”
                the province as a leader in the
                development, commercialization, and                                                   •   Canadian Jurisdictional Guidelines for Safe Testing and Deployment of Highly
                adoption of advanced mobility and             Todd Smith, Minister of Economic            Automated Vehicles 19
INDUSTRY
                manufacturing technologies.16            Development, Job Creation and Trade 23       •   Testing Highly Automated Vehicles (HAV) in Canada – Guidance for Trial
                                                                                                          Organizations 20
               Pillars for Action for Ontario's Automotive Sector                                     •   Canada’s Safety Framework for Automated and Connected Vehicles        21

                                                                                                      •   Safety Assessment for Automated Driving Systems in Canada      22
                  COMPETITIVE                     INNOVATION                        TALENT
                BUSINESS CLIMATE
                                                                                                      Support from All Levels of Government &
RESEARCH &
DEVELOPMENT                                   SUPPORT TECHNOLOGY                PROMOTE CAREER
                                               AND INNOVATION IN                OPPORTUNITIES IN
                        COSTS &                 NEW MOBILITY                    ADVANCED              Non-Profit Organizations
                        TAXES                TO ENHANCE THE ECOSYSTEM         MANUFACTURING
                        FOR BUSINESSES
                                                                                                      Both the Federal and Provincial Governments have demonstrated motivation to
                                             PROMOTE                          LEVERAGE INPUT
                 FOSTER                                                                               encourage the growth and strengthening of the CAV ecosystem, and have
TALENT
                                             TECHNOLOGY                       FROM
                 INVESTMENT &                                                                         established an environment that supports lower levels of government, academic
                                             ADOPTION                         INDUSTRY
                 PARTNERSHIPS                                                                         and research institutions, and industry players, including OEMs, MNEs, and SMEs.
                                             FOR SMEs
                                                                              ENHANCE & PROMOTE
                       MODERNIZE
                  REGULATIONS AND
                                                 SUPPORT   R&D                    EMPLOYMENT &
                                                                                       TRAINING
                                                                                                      The Ontario Good Roads Association (OGRA), a registered non-profit lobby group
                                                                                                      that represents the transportation and public work interests of municipalities, has
                                                 AND TECHNOLOGY
                                                                                                      organized the Municipal Alliance for Connected and Autonomous Vehicles in
                     RED TAPE                    DEVELOPMENT
                                                                                      PROGRAMS
                                                                                                      Ontario (MACAVO), to focus on facilitating municipal CAV efforts. MACAVO has
                                                                              STRENGTHEN
                                                                               STRENGTHENONTARIO’S
                                                                                          ONTARIO’S   worked with over 60 forward-thinking municipalities to develop a Preferred AV Test
                      SUPPORT                                                 TECHNICAL
                                                                               TECHNICAL              Corridor between Windsor and Ottawa, which identifies preferred local roads for
                DIVERSIFICATION                  COMMERCIALIZATION
                                                                              EDUCATION
                                                                               EDUCATION
                      IN MARKET                  OF TECHNOLOGY                                        CAV testing activities in over 30 Ontario municipalities.
                                                                              OPPORTUNITIES
                                                                               OPPORTUNITIES

                © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                     Ontario CAV Ecosystem Analysis | 15
C AV S E C TO R A N A LYS I S
               Planning for CAVs                                                       GTHA and Kitchener-Waterloo Corridor CAV Readiness Plan
               The potential posed by CAVs is understood by the Ministry of
               Transportation of Ontario (MTO) and Ontario municipalities, with        MTO, Metrolinx, the City of Toronto, and the Region of Peel are working together to complete
               many of the larger jurisdictions proactively developing                 the CAV Readiness project to enhance planning and capacity building for CAVs. The ACATS-
               dedicated planning documents for CAVs in their region, or               funded project (see page 19), aims to establish a common / consistent planning horizon and
               incorporating considerations for planning for CAVs into recent          framework in the GTHA and Kitchener-Waterloo corridor through the development of
               master plans.                                                           alternative CAV scenarios, readiness guidelines, and potential projects.

               In collaboration with Transport Canada, Ontario co-chairs a             Over the course of this project’s development, over 60 stakeholders from different levels of
REGULATIONS
& GUIDELINES   national working group called the Federal/Provincial/Territorial        government have been actively engaged, providing input to the project and engaging in
               (FPT) Governing Council on Automated and Connected Vehicles.            education and capacity building of public sector planners and practitioners.
               Established by the Council of Ministers Responsible for
               Transportation and Highway Safety, this group is mandated to
               focus on alignment of efforts and an integrated approach on             GTHA and K-W Corridor CAV Readiness Plan Participating Stakeholders
               AVs/CVs among the group members from federal and provincial
INVESTMENT
               governments across Canada. This working group's report The
               Future of Automated Vehicles in Canada 24 provides
               transportation authorities with an overview of short, medium,
               and long-term policy implications resulting from the presence of
               CAVs on public roads. The group has also published a National
               Automated and Connected Policy Framework for Canada that
INDUSTRY
               provides policy principles for safe testing and guidance on
               issues to help jurisdictions across Canada properly prepare for
               CAV deployment.

               MTO is examining how CAV technology can be adapted to help
RESEARCH &
               meet the Province's broader transportation goals in a number of
DEVELOPMENT    key areas such as infrastructure and operations (e.g. highways,
               transit, data), as well as, the policy and regulatory framework.

               The City of Toronto has documented a draft Automated Vehicle
               Tactical Plan listing priority issues, tactics, and actions needed to
TALENT
               plan for AVs over the short-term between 2019 to 2021.

               Both the Regional Municipality of York and the City of Hamilton
               have included considerations and action plans for CAVs in their
               recent Transportation Master Plans. 25, 26

               © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                     Ontario CAV Ecosystem Analysis | 16
C AV S E C TO R A N A LYS I S
                           Global Perspective                                        States with AV related Enacted Legislation and Executive Orders

                           – Regulations and Guidelines                                                                                                          Enacted Legislations
                                                                                                                                                                 Executive Orders
                         United States                                                                                                                           Both
                                                                                                                                                                 None
               The United States has been active in developing and enacting                                                                                                        NH
               legislation and policy frameworks in support of CAVs.
               Nevada was the first state to initially authorize the operation of
               autonomous vehicles in 2011. Since then, 26 other states have                                                                                                                 MA
REGULATIONS
& GUIDELINES   passed legislation, seven have had Governor’s issue executive                                                                                                            RI

               orders, and four others have both that are related to AVs. These                                                                                                   NJ
               legislations and executive orders relate to encouraging the safe                                                                                              DE
                                                                                                                                                                      DC
               development, testing, and operation of vehicles with AV                                                                                                     MD
               technology on public roads.27 In 2018, 17 AV-related bills were
               enacted in 15 states, including the State of Alabama, California,
INVESTMENT
               Kentucky, and Oregon, and eight executive orders were issued in
               six states, including the State of Florida, Arizona, and Idaho.

               In October 2018, Illinois’ Governor issued an executive order to        HI
               direct the Illinois Department of Transportation to lead an
               Autonomous Illinois initiative and establish a testing program to
INDUSTRY
               facilitate legal testing and programs on public roads or highways.
               The Ohio’s Governor also signed an executive order in January
               2018 to establish DriveOhio, an initiative to organize and
               accelerate smart and connected vehicle projects. Another order in
               May 2018 allowed AV testing and pilot programs in the state,                 In early 2015, the CCMTA AV Working Group co-chairs participated in the American
               provided that the companies register with DriveOhio. 27                      Association of Motor Vehicles Administrators (AAMVA) Autonomous Vehicle Best
RESEARCH &
DEVELOPMENT                                                                                 Practices Working Group to support the development of the U.S. Department of
               New legislation released in California in 2018 allows for fully              Transportation (USDOT)’s National Highway Transportation Safety Administration’s
               autonomous vehicles to operate on public roads without the                   (NHTSA) Federal Policy for Safe Testing and Deployment of Automated Vehicles.
               presence of an engineer and test driver. This has attracted large-
               scale firms such as Tesla and Waymo to commercialize their AV                In October 2018, the USDOT released the Preparing for the Transportation Future:
               programs in California.28 The State of Washington also enacted               Automated Vehicles 3.0 (formerly known as Automated Driving System 2.0: A Vision for
TALENT
               legislation in 2018 to convene an executive and legislative working          Safety), to expand the scope to include all surface on-road transportation systems
               group to develop policy recommendations for AV operations. 27                including advancing multimodal safety, reducing policy uncertainties, and outlining a
                                                                                            process to work with the USDOT. Other topics covered include preparing for automation
               In the U.S., individual States are responsible for determining               through guidance and pilot programs and enhancing and protecting freedoms enjoyed
               liability rules for CAVs and allocation of liability among owners,           by citizens.25 It also encourages a consistent regulatory operating environment across
               operators, and manufacturers. The investigation of the 2016 fatal            the U.S.
               crash involving Tesla Autopilot determined that Level 3 autonomy
               is limited, and human drivers are expected to maintain awareness             Other guidelines include the Automated Vehicle Testing Guidance released by
               and control if needed. A number of states, including Michigan,               Pennsylvania in July 2018, which attracted Aurora as the first company to be authorized
               Nevada, and Washington, have legislation specific to CAVs.                   to test AVs on state roads in October 2018.

               © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                     Ontario CAV Ecosystem Analysis | 17
C AV S E C TO R A N A LYS I S
                         Germany                                                              Singapore

               Germany is one of the first European Union members to pass           Singapore is a leader in policy and legislation when it comes to AVs. The government has
               regulations regarding CAVs.29 In 2017, an Autonomous Vehicle         taken steps to proactively investigate the possibilities of the future of mobility and
               Bill was enacted to modify the German Road Traffic Act, allowing     prepare for the regulatory environment required to facilitate an autonomous future.
               drivers to pass off control to a vehicle, and addressing the
               requirements and rights of the driver. Germany currently allows      A test centre led by the Centre of Excellence for Testing and Research of AVs (CETRAN),
               for technology and auto-manufacturer firms, with special             was opened in November 2017 to develop standards and ensure the safe deployment of
               permits, to test vehicles on roads where the drivers can release     AVs on public roads. Operators are required to have a qualified safety driver who will be
REGULATIONS    control of the steering wheel.29                                     able to take control of the vehicle in an emergency and hold third-party liability insurance,
& GUIDELINES
                                                                                    or place a security deposit with the Land Transport Authority.
               In 2018, the Ethics Commission of the Federal Ministry of
               Transport and Digital Infrastructure released the world’s first      In 2019, Singapore released the Technical Reference 68 (TR 68) outlining a set of national
               guidelines addressing ethical questions for self-driving vehicles,   standards for the safe deployment of fully driverless vehicles.3 The guidelines cover topics
               however questions remain relating to liability.29 It is expected     including vehicle behaviour, functional safety, cybersecurity, and data formats. TR 68 is
INVESTMENT     that this law will be updated and revised to adapt to growing        provisional in nature and will continue to be refined as AV technology matures and with
               technological changes and data protection considerations.30          feedback from the industry.

                                                                                              United Kingdom
INDUSTRY
                         Netherlands                                                The United Kingdom (UK) has been active in initiating steps to develop supportive
                                                                                    legislation and national strategies to address CAVs. In 2017, the UK passed the Vehicle
                                                                                    Technology and Aviation Bill that sets out how the liability for accidents involving AVs
               The Netherlands are implementing a legal framework to facilitate     should be apportioned.33 The Law Commissions of England, Wales, and Scotland are
               the testing and operations of AVs. In September 2018, the            currently in the three-year process of reviewing the UK’s legal framework for AVs with
               government approved the Experimenteerwet zelfrijdende auto           implementation expected in March 2021.34 There has also been a coordinated effort
RESEARCH &
DEVELOPMENT
               (law governing the experimental use of self-driving vehicles) to     across the country to develop CAV strategies, business plans, and policy road maps.3
               allow testing of AVs on public roads without drivers, provided
               the vehicles are monitored remotely.31

               A Driving License for a Vehicle is also being prepared in
               cooperation between the Dutch Vehicle Authority, the main road
TALENT
               authority and the central office for driving exams, assessing the
               extent to which a vehicle can make safe and predictable
               autonomous driving behaviour that aligns with human
               performance.32

               © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                  Ontario CAV Ecosystem Analysis | 18
C AV S E C TO R A N A LYS I S
                          Assessment of Regulations                                     Approved Participants for Testing
                          and Guidelines in Ontario                                     AV Technologies in Ontario

               Ontario Strengths
               Ontario was the first Canadian jurisdiction to regulate testing of
               automated vehicles on public roads, and through Ontario
REGULATIONS    Regulation 306/15: Pilot Project – Automated Vehicles, Ontario has
& GUIDELINES   established an environment of regulatory openness that is globally
               competitive. The regulation supports private sector AV driving
               pilots and testing, and provides an attractive region for industry
               and academia CAV-related pursuits by facilitating operational
               testing of new technologies and solutions.
INVESTMENT
               Ontario has contributed to the development of federal frameworks
               and guidelines that provide direction for safe testing and
               deployment of CAVs.

               The Cooperative Truck Platooning Pilot Program leverages
INDUSTRY
               Ontario’s openness for AV testing and provides direction for V2V
               communication testing for truck platoon pilots on specific
               stretches of provincial highways. Similar testing is ongoing in
               other countries, such as the U.S., the Netherlands, Singapore, and
                                                                                        MTO Cooperative Truck Platooning Authorized Network (June 2019)
               Sweden.

               “
                                                    MTO and a number of the larger
RESEARCH &
                                                    municipalities have begun
DEVELOPMENT
                                                                                          Highway 11                                                    Highway 417
                                                    developing strategies and plans
                 Going forward,                     to prepare for greater adoption
                                                                                      Highway 124 – Burks Falls                                    Greenfield Rd – Prescott Rd

                 we will continue                   of CAVs.
                 working with the
TALENT           sector, as well as                 OGRA has also established            Highway 400
                                                    MACAVO, which focuses on          Rankin Lake Rd – MacTier
                 municipalities                     facilitating municipal CAV                                                                         Highway 401
                 and the federal                    activities that could support                                                               Carman Rd – Upper Canada Rd
                 government, on                     smaller forward-thinking           Highway 402
                 longer-term                        municipalities that do not have    Sarnia – Strathroy
                                                    dedicated resources for CAV
                 priorities.                        planning.

               Job Creation and Trade   ”
               Todd Smith, Minister of Economic Development,
                                        23

               © 2019 WSP Canada Group Limited and Ontario Centres of Excellence
                                                                                       Highway 401
                                                                                       Windsor – Tilbury
                                                                                                                                                          Highway 403
                                                                                                                                                       Brantford – Woodstock

                                                                                                                                       Ontario CAV Ecosystem Analysis | 19
C AV S E C TO R A N A LYS I S
               Challenges and Gaps in Ontario                                        •   Potential privacy issues and the protection of personal information are being
                                                                                         considered with respect to cybersecurity needs for CAV operations and data sharing.

               The Ontario and Federal Governments have established                  •   Data dictionary standards are being developed by Standards Developing
               regulations and guidelines for safe testing of CAVs in Ontario.           Organizations (SDOs) with input from industry, government, and academia.
               This facilitates R&D necessary to develop the technology and to
               enable an understanding of how to prepare for a wider adoption        •   Data ownership and rights to use of data,
               of CAVs. Ontario is in a similar position to other jurisdictions,         generated by CAVs, is being considered by
               where pilot testing of CAVs is vital, as input, to other regulatory       government agencies, particularly as it
               and guideline planning efforts relating to CAVs.                          relates to data traditionally collected                      With AV
REGULATIONS
& GUIDELINES                                                                             by transportation agencies, such as traffic             testing on public
               The following provides a summary of a number of the ongoing               speeds and travel times.
               regulatory and guideline related efforts. These will be revised and                                                              roadways, there is
               updated as new information is learned. The approach that is           To date, in Ontario, the public is aware                    a need for public
               being undertaken in Ontario is also being applied by other            of CAVs primarily through the media reporting                  education.
               jurisdictions.                                                        on investment initiatives and ongoing
INVESTMENT
                                                                                     testing activities, both good and bad, rather than
               •   Legal frameworks relating to insurance and liability are being    through concerted public education efforts.
                   studied and considered by the insurance industry and the
                   government, with considerations of moving from driver
                   liability to product liability. To date Canadian AV pilots have   Opportunities for Ontario
INDUSTRY
                   been undertaken with global liability insurance or as
                   self-insured by the vehicle manufacturer.
                                                                                     As a frontrunner with CAVs in Canada, Ontario has the opportunity to set the standard
                                                                                     and lead other provinces towards a national framework that aligns with the directions
               •   Regulations and guidelines for supporting infrastructure,         being taken in Ontario.
                   including signage and road markings, are being studied by
                   transportation associations, standards groups, and                Continued active involvement and input from the CAV sector, including government,
RESEARCH &         government agencies.                                              industry, and academia is necessary for ongoing policy and planning activities.
DEVELOPMENT

                                                                                     A public outreach and engagement program would meet the need to educate the public
                                                                                     of testing activities in the province, and ensure that the material is curated and relevant.
                                                       Municipalities
TALENT                                                 are looking to
                    Infrastructure                       Transport                                                              Assessment – Regulations
                      is not ready                   Canada and MTO                                                             and Guidelines
                    for CAVs, and                      to understand
                     public-sector                   legal framework.                                                 Ontario is currently a global leader with respect to providing
                   role is not clear.                                                                                 an open and welcoming environment for CAV R&D and
                                                                                                                      testing. Similar to other jurisdictions, there are a number of
                                                                                                                      ongoing policy and planning efforts to prepare for public
                                                                                                                      adoption of CAVs.

               © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                     Ontario CAV Ecosystem Analysis | 20
C AV S E C TO R A N A LYS I S
                        Investment in Ontario

               Provincial Vision                                                                                        Advance Connectivity and Automation in
                                                                                                                        the Transportation System (ACATS)
               Ontario has announced its ongoing commitment to supporting investment in the
               automotive sector, as outlined in its new automotive plan Driving Prosperity – The Future
                                                                                                                        Transport Canada’s Advance Connectivity and Automation in the
               of Ontario’s Automotive Sector. The province has established funding programs targeting
                                                                                                                        Transportation System (ACATS) program was created to help
               technology development and talent development, such as its investment in the Vector
                                                                                                                        Canadian jurisdictions get ready for the technical, regulatory, and
               Institute for AI, and increased funding for AVIN.16
REGULATIONS                                                                                                             policy issues emerging as Canada introduces these technologies,
& GUIDELINES
                                                                                                                        and has committed up to $2.9 million in grant and contribution
                                                                                                                        funding over four years across Canada. Of that, nearly $1.5 million
               AVIN Funding                                                                                             in program grants have been awarded to Ontario-based applicants,
                                                                                                                        including MTO, the City of Toronto, Carleton University, University
               AVIN is a key action to support the innovation pillar of the Driving Prosperity plan.                    of Ottawa, and the CSA Group.
INVESTMENT     Funding provided through the AVIN initiative ensures that SMEs have the support and
               tools needed to develop products and services, to meet global demand, and to ensure
               that Ontario is at the forefront of adoption and deployment. AVIN-funded projects
               require that industry contributes to total project costs, as shown below.

               Examples of AVIN Funding                                                                                                It is important that
INDUSTRY
                                                                                                                                     public investments are
               AV R&D Partnership Fund                                             WinterTech AV Development                           in partnership with
                                                                                   Fund                                                   industry. If the
               AVIN contributes one-third of eligible project
               costs for approved projects up to a maximum of                      AVIN contributes one-third of                           industry is not
RESEARCH &
               $100,000 for projects up to 12 months in                            eligible cost, up to $500,000, for                interested in investing,
DEVELOPMENT
               duration under Stream 1, and a maximum of                           approved projects related to                              think twice.
               $1,000,000 for projects up to 24 months in                          severe winter weather conditions
               duration under Stream 2.                                            up to 24 months in duration.

TALENT

               Technology Demonstration Zone &                               Talent Development                         Pooled and Matched Funds
               Regional Technology Development Sites
                                                                             AVIN provides $10,000 in funding
                                                                                                                        The CAV-focused funding available in Ontario through the AVIN and
               For the DZ and each of the 6 RTDSs, AVIN is                   towards four-month Internships
                                                                                                                        the ACATS programs require some form of matching funding from
               contributing up to $5,000,000 in funding, with a              valued at $20,000, and $35,000 in          the recipients and/or industry partners. With capital and time
               minimum 1-1 match from industry and other                     funding towards 12-month                   investments from the recipients, greater resources and equity may
               partners.                                                     Fellowships valued at $85,000.             be available to pursue innovation and R&D efforts, while also
                                                                                                                        ensuring commitment to the research efforts.

               © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                         Ontario CAV Ecosystem Analysis | 21
C AV S E C TO R A N A LYS I S
                                                                              Examples of Technology Investment in Ontario related to CAV Industry
               Industry Investment
               With established automotive and
                                                                                                                                                                    $337.9M                   Investing
                                                                                                                                                                                           on building
               technology sectors and an environment                                                                                                                  the Ottawa R&D Hub and other
               open to CAV testing, there are many                                                                                                                 satellite engineering centres across

                                                                                    $40M
                                                                                                        Create
               examples of self-funded CAV-based                                                                                                                                                Ontario
               industry investments.
                                                                                      funding from      800                      Committed over
                                                                                                                                                                                  Ontario and federal
               Since the beginning of 2018, GM has
               announced more than $345 million in
                                                                                       the Strategic
                                                                                   Innovation Fund
                                                                                                        new jobs                 $345M                                     governments will contribute

                                                                                                                                                                                $102.4M
                                                                                                        and
REGULATIONS
               investments for its Canadian Technical                                                                            in its Canadian Technical
& GUIDELINES
                                                                                      Pledged over      maintain
               Centre in Markham. GM also recently                                                                               Centre in Markham,
               announced repurposing of its Oshawa
               manufacturing plant into a supplier of                              $300M                300                      Ontario since 2018.                 each to help finance the projects.

               after-market parts for existing vehicle                              investment and      positions in
               models, as well as dedicating 55 acres of                            addition $5M        the next 10
INVESTMENT
               the property to create a test track for                                                  years
                                                                                   on cybersecurity
               AVs and advanced technologies.35
                                                                                                                                           Investing    Creating
               In May 2018, Magna announced that it
               was committing $300 million in research
                                                                                                                                     $200M 300
                                                                              Investment in Canadian AI                               in the Toronto
               and development, focusing on                                                                                                             new                        Invested over
                                                                            start-ups is on the rise. 2017                              Hub over the
                                                                                                                                                                                  $10M
INDUSTRY
               electrification and AVs.                                                                                                                 positions
                                                                                     saw US$252M                                         next 5 years
               OEMs, MNEs, and SMEs are also partners                         of venture capital flow into
                                                                                                                                                                             fundamental AI research
               in key programs developed through the                             Canadian AI companies,
                                                                                                                                                                                 in the past year
               various AVIN Regional Technology                                            representing a

                                                                                          460%
RESEARCH &
               Development Sites throughout
DEVELOPMENT    Ontario.37

                                                                                    year-over-year increase.
                                                                                                                             $400M
                                                                                                                                  public-private
                                                                                                                       investment & partnership
TALENT

                                                                                                                       Makes Canada a global innovation
                                                                                                                                                                                                Committed
                                                                                                                                              4,000
                                                                                                                       leader and secures over
                                                                                                                       middle class jobs,
                                                                                                                       including 1,800 specialized 5G                                   $300M
                                                                                                                       jobs, over the next 5 years                                   in R&D, focusing on
                                                                                                                                                                                   electrification and AVs

               © 2019 WSP Canada Group Limited and Ontario Centres of Excellence                                                                                     Ontario CAV Ecosystem Analysis | 22
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