Autonomous Vehicles Readiness Index - Assessing countries' openness and preparedness for autonomous vehicles
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Autonomous Vehicles Readiness Index Assessing countries’ openness and preparedness for autonomous vehicles KPMG International kpmg.com/avri
Foreword The world is on the cusp of a transport revolution. Technology is transforming the industry, and the pace of innovation is accelerating. It will affect us all. It will not only change the way we travel, but the way we live. It will change the way we spend our time at leisure, and at work. It will change the way businesses import materials, distribute their products, and employ staff. Electric vehicles, mobility on demand, digital railways, drone deliveries and ultra-high speed trains are just some of the components of that revolution. But it is autonomous technology that will really transform our lives, because it will mean for the first time in history, mobility freedom will be available for everyone, everywhere. Over the last couple of years, I have traveled extensively talking to governments, city authorities and businesses about the opportunity created by autonomous vehicles (AVs). While most believe it will be many years before fully autonomous travel is available to all, nearly everyone I have spoken with recognizes that the potential benefits of the autonomous revolution are enormous. There will be economic benefits, because the time we currently spend driving a car becomes productive time in an AV that can be spent working, relaxing or sleeping. But moreover, there will be social benefit, including a vast reduction in the 1.3 million people killed each year in car accidents,1 and accessibility for those who currently cannot drive, because of age or disability. But there are challenges too. Will AVs increase congestion? How can we limit the risks of criminal use? What public transport systems will we need in the future? The size of the global opportunity, and the realization that all over the world authorities were grappling with the same questions, became the inspiration for this Autonomous Vehicles Readiness Index (AVRI). If we could start to show what different countries were doing to prepare for the future, we could spread best practice and open up dialogue. I hope in a small way this index may serve to accelerate the pace of change for the benefit of society everywhere. Richard Threlfall Global Head of Infrastructure KPMG International @RThrelfall_KPMG 1. http://asirt.org/initiatives/informing-road-users/road-safety-facts/road-crash-statistic
Index results
Overall rank Country Total score
Policy and Technology &
Infrastructure
Consumer
legislation innovation acceptance
Rank Score Rank Score Rank Score Rank Score
1 The Netherlands 27.73 3 7.89 4 5.46 1 7.89 2 6.49
2 Singapore 26.08 1 8.49 8 4.26 2 6.72 1 6.63
3 United States 24.75 10 6.38 1 6.97 7 5.84 4 5.56
4 Sweden 24.73 8 6.83 2 6.44 6 6.04 6 5.41
5 United Kingdom 23.99 4 7.55 5 5.28 10 5.31 3 5.84
6 Germany 22.74 5 7.33 3 6.15 12 5.17 12 4.09
7 Canada 22.61 7 7.12 6 4.97 11 5.22 7 5.30
8 United Arab Emirates 20.89 6 7.26 14 2.71 5 6.12 8 4.79
9 New Zealand 20.75 2 7.92 12 3.26 16 4.14 5 5.43
10 South Korea 20.71 14 5.78 9 4.24 4 6.32 11 4.38
11 Japan 20.28 12 5.93 7 4.79 3 6.55 16 3.01
12 Austria 20.00 9 6.73 11 3.69 8 5.66 13 3.91
13 France 19.44 13 5.92 10 4.03 13 4.94 10 4.55
14 Australia 19.40 11 6.01 13 3.18 9 5.43 9 4.78
15 Spain 14.58 15 4.95 16 2.21 14 4.69 17 2.72
16 China 13.94 16 4.38 15 2.25 15 4.18 15 3.13
17 Brazil 7.17 20 0.93 18 0.86 19 1.89 14 3.49
18 Russia 7.09 17 2.58 20 0.52 20 1.64 18 2.35
19 Mexico 6.51 19 1.16 17 1.01 17 2.34 19 2.00
20 India 6.14 18 1.41 19 0.54 18 2.28 20 1.91
Autonomous Vehicles Readiness Index 3
Foreword 2
Index results 3
Introduction 6
Executive summary 8
Country analysis 10
The Netherlands 12
Singapore 14
United States 16
Sweden 18
United Kingdom 20
Germany 22
Canada 23
United Arab Emirates 24
New Zealand 25
South Korea 26
Japan 27
Austria 28
France 29
Australia 30
Spain 31
China 32
Brazil 33
Russia 34
Mexico 35
India 36
Conclusion 38
Appendices 40
Appendix 1: Pillar analysis 42
Policy and legislation 42
Technology and innovation 44
Infrastructure 46
Consumer acceptance 49
Appendix 2: Methodology 51
Policy and legislation 51
Technology and innovation 52
Infrastructure 52
Consumer acceptance 52
Appendix 3: Additional scoring tables 53
Authors and partners 57
About KPMG 57
Further reading 58
4 Autonomous Vehicles Readiness Index
Contents
Autonomous Vehicles Readiness Index 5
Introduction:
Why policymakers
need to focus today on
autonomous vehicles
The pace of development of AVs is percent of road accidents caused by human
breathtaking. A year ago, some would have error,3 saving as many as a million lives every
argued that they would never become a year. Assuming they are electric, they should
reality. But now, AVs are being piloted in also reduce road pollution, improving citizens’
a number of countries and are running on health.4 AVs offer mobility benefits to people
public roads, albeit only in a handful of who are unable to drive at present, including
locations such as Phoenix in the US State of the elderly, those who do not own a car and
Arizona and in Singapore. The question is no those who live in rural areas that do not have
longer whether but when all road vehicles adequate public transport. And the hours
become fully autonomous. And whether spent driving which now become productive
you believe that will take 10 years or 30, creates a potentially gigantic economic
the implications are so far-reaching that boost, with one study estimating that the
policymakers need to start planning now for US economy could see an uplift of US$1.3
our AV future. trillion a year.5
For these reasons and others, many
Economic and social governments are keen to move towards an AV
future as soon as possible.
benefits
We believe there will be rapid development Planning now for the
and adoption of AVs, because of the alignment
of interest of private developers and public long term
authorities.
But why act now rather than wait to see
Companies including the dominant vehicle how quickly AVs are adopted? A key reason
makers, technology giants and specialist for policymakers to consider AVs now is
startups have invested US$50 billion over the because the spatial planning and infrastructure
last 5 years to develop AV technology, with 70 investment decisions that we make today will
percent of the spending coming from outside determine the development of our countries and
the automotive sector.2 cities for decades. If we anticipate an AV future
today, we can avoid wasting taxpayers’ money
At the same time, public authorities can see on investments that may soon prove obsolete,
that AVs offer huge potential economic and or worse frustrate the realization of AV benefits.
social benefits. AVs could eliminate the 90–95
2. https://www.channelnewsasia.com/news/business/self-driving-startups-race-down-a-narrowing-road-9349722
3. http://channel.staging.alertdriving.com/home/fleet-alert-magazine/international/human-error-accounts-90-road-accidents
4. Driverless cars needed to reduce greenhouse gas emissions
5. http://www.businessinsider.com/morgan-stanley-autonomous-cars-trillion-dollars-2014-9
6 Autonomous Vehicles Readiness IndexAVs imply changes to road infrastructure, including on-road
telematics, signage, crash barriers, lane widths and curbs. Enabling AVs
They may also affect business cases for public transport Supporting an AV future implies myriad other public policy
schemes, which will need to integrate with AVs, as well as enablers too. Authorities will want to ensure that AVs are
parking schemes and multimodal transport ticketing. safe, both mechanically and in terms of their security from
AVs will also affect the placement and development of cyber-attack, so vehicle licensing could change, with new
homes and businesses. They could make ride-sharing and controls on data security.8 Regulations on vehicle insurance
mobility as a service schemes more attractive, meaning will need to adapt, including who is responsible for a
space currently used for parking can give way to more driverless vehicle’s actions. Driving licenses could become
housing and public spaces in urban areas. But by making redundant, although many countries use them as an identity
longer commutes more attractive, they could also encourage card. Road traffic regulations, designed for use by humans,
more suburban and rural development.6 will ultimately be replaced by protocols, determining priority
at junctions and giving way to emergency vehicles.
Plugging the job and The data generated by AVs will present particular policy
challenges. Questions include the ownership of this data,
revenue gaps whether the security of information is a public or private
responsibility and what the data can be exploited for,
AVs will also have major impacts on public policy outside whether that be advertising, road condition monitoring or
of transport. For example, many professional drivers are at passenger health.9
risk of being replaced by technology. KPMG is supporting a
Different countries may come to different conclusions across
study by a student at Harvard’s Kennedy School on potential
these issues. Indeed the optimal AV future of one city may
job losses, for example in the trucking and taxi markets and
differ from another nearby, depending on patterns of travel
opportunities for new employment in the automotive and
and availability of public transport alternatives. But basic
supply chain industries.
standards of interoperability will need to be put in place
There are also implications for government revenues. At across countries and potentially entire continents.
present, taxes on fossil fuels generate billions of dollars,7
The reality is, AVs will have far-reaching implications across
while electric vehicles receive subsidies in many countries.
numerous areas of policy-making for countries around the
This means a shift to electric AVs would create a hole in tax
world. So now is the time to plan.
revenues. Authorities need to think through urgently how to
recover that lost revenue. For example, through road pricing,
which might also help tackle congestion.
6. http://www.wsp-pb.com/Globaln/UK/WSPPB-Farrells-AV-whitepaper.pdf
7. http://www.taxpolicycenter.org/statistics/motor-fuel-tax-revenue
8. https://home.kpmg.com/xx/en/home/insights/2016/06/autonomous-vehicles-the-public-policy-imperatives.html
9. Ibid.
Autonomous Vehicles Readiness Index 7Executive summary
The AVRI is intended to provide an understanding of various countries’ preparedness and openness to AV technology. We hope
it will assist public authorities, whether at federal, regional or city level, to learn from others and speed up adoption, which has
the potential to offer many benefits to society.
The AVRI consists of 4 pil ars
Policy & Technology Infrastructure Consumer
legislation & innovation acceptance
20 countries
were included based on
economic size and
progress in adopting AVs.
Top ranked country
The Netherlands:
Ranked within the top 4
of each of the four pillars and
#1 on infrastructure
1
8 Autonomous Vehicles Readiness IndexFollowed closely by
2 3 4 5
Singapore: US: Sweden: UK:
Ranked #1 in policy & Ranked #1 in technology Ranked #2 in technology Ranked in the top five
legislation and consumer & innovation with strong & innovation with the for three pillars with
acceptance industry partnerships highest number of AV strong performance in
company headquarters consumer acceptance
by population and policy & legislation
The bottom 4 countries
India (20th) Mexico (19th) Russia (18th) Brazil (17th)
... are some distance behind the others, indicating they may be slower to adopt AVs and reap the
economic and societal benefits.
Conditions for success
Although there is a high correlation between the index rankings and overall economic development, the most
prepared countries for AVs all have:
Governments Excellent road Private-sector
willing to and mobile investment
regulate and network and innovation
support AV infrastructure
development
Large-scale testing powered by a A proactive government that
strong automotive industry attracts partnerships with
presence manufacturers
Autonomous Vehicles Readiness Index 9Country
analysis
Policy & Technology & Infrastructure Consumer
legislation innovation acceptance
10 Autonomous Vehicles Readiness IndexAutonomous Vehicles Readiness Index 11
1The Netherlands 3rd 4th 1st 2nd Key takeaways: The Netherlands provides an AV readiness model for other countries to follow, with excellent road infrastructure, a highly supportive government and enthusiastic adoption of electric vehicles. 12 Autonomous Vehicles Readiness Index
The Netherlands is the clear leader score for regulations and government The Dutch ecosystem
in this first Autonomous Vehicles investment in AV infrastructure. Its
Readiness Index. It is within the top four Council of Ministers approved testing in for AVs is ready. The
of each of the four pillars and ranked 2015, and it took the lead in establishing intensively-used Dutch
number one on infrastructure, most likely the Declaration of Amsterdam through
due to its heavily-used, well-maintained which EU countries agreed to speed the
roads are very well
road network, rated as being among development of self-driving vehicles. developed and maintained
the world’s best by the World Economic Additionally, in February 2017 the and other indicators like
Forum and the World Bank. It also has government approved a bill to allow
by far the highest density of electrical AV trials without a driver.10 The Dutch telecoms infrastructure
vehicle charging points, with 26,789 government is investing EUR90 million are also very strong.
publicly-available points in 2016 according in adjusting more than 1,000 traffic lights
to the International Energy Agency’s across the country to communicate
In addition, the Dutch
Global EV Outlook — more than Japan with vehicles,11 and is backing a plan to government Ministry of
has for a road network more than eight establish automated trucks running from Infrastructure has opened
times the length. The Netherlands also Rotterdam to other cities.12
has high-quality wireless networks too. the public roads to large-
On technology and innovation,
As well as having great infrastructure, the country has by far the highest
scale tests with self-
the country comes second only to percentage usage of electric vehicles driving passenger cars
Singapore in the consumer acceptance of the 20 countries in this index at and lorries.
pillar of this research. The Netherlands present — 6.39 percent in 2016
is the highest of the 20 in the World according to the International Energy — Stijn de Groen,
Economic Forum’s technology readiness Agency, nearly double second-placed
rating, among the highest in KPMG’s Sweden — and has a high number of Manager, Digital Advisory
assessment of societal change AV companies based in the country on KPMG in the Netherlands
readiness, and three-quarters of the a population-adjusted basis. Startups
population live in areas that are testing such as Amber Mobility are challenging
AV technology. incumbents and are broadening
existing beliefs and behaviors. Though
However, consumer survey data finds scoring relatively poorly on AV-related
the Dutch are less accepting of AV patents and investments, there has
technology than most other countries. been a recent uptick in public-private
It should be noted that this is also, partnerships, which are further
true of several of the best-developed accelerating the development of
countries and may reflect citizens relative automotive expertise and innovation
satisfaction at the existing state of capacity. Strong examples include the
transport. Automotive High Tech Campus in the
Eindhoven area and the connected
On policy and legislation, the
TU Eindhoven University, which has a
Netherlands received the maximum
specific smart mobility faculty.
10. https://www.government.nl/latest/news/2017/02/24/driverless-cars-on-the-roads
11. https://reports.autovistagroup.com/blogs/news/dutch-prepare-for-autonomous-driving
12. https://www.anwb.nl/binaries/content/assets/anwb/pdf/over-anwb/persdienst/rapport_inventarisatie_zelfrijdende_auto.pdf
Autonomous Vehicles Readiness Index 132 Singapore 1st 8th 2nd 1st Key takeaways: Singapore’s 2017 amendment to its Road Traffic Act allowing self-driving vehicles to be tested on public roads has helped the city state gain its high level of readiness for AVs. 14 Autonomous Vehicles Readiness Index
Singapore tops two pillars of this index, test area for AVs, meaning all residents The Land Transport
policy and legislation and consumer may see the technology in development.
acceptance, and is second only to Consumer research suggests they Authority introduced a
the Netherlands on infrastructure. On are more open to the technology than regulatory framework that
policy and legislation, it receives the many other countries, including the
maximum score on regulation, with Netherlands. The country’s strong scores
minimizes the occurrence
a 2017 amendment to its Road Traffic for infrastructure, including very high of accidents. Operators are
Act allowing self-driving vehicles to be road and mobile network quality, are only required to have a qualified
tested on public roads,13 and a single undermined by a low density of charging
entity to coordinate AV work, the stations for electric vehicles. safety driver who will be
Singapore Autonomous Vehicle Initiative
Singapore fails to attain the top spot
able to take control of the
announced in 2014.
because of its average performance vehicle in an emergency,
Singapore’s Land Transport Authority on technology and innovation. It lacks hold third-party liability
(LTA) takes a safety-first approach with technology company headquarters,
AV trials starting on lightly used roads patents or investment and has a low insurance and share
and graduating to more congested use of electric cars. This is compensated data from the trials with
environments only after they have for by a significant number of industry
demonstrated readiness. All test AVs partnerships, including MIT spin-out
the LTA.
will be required to log travel data to nuTonomy testing driverless taxis there
enable accident investigations and since 2016,14 the fact that Uber is widely
— Satya Ramamurthy
liability claims. available and a good rating from the Partner, Head of Government &
World Economic Forum on availability of Infrastructure
On consumer acceptance, the entire the latest technology.
city-state of Singapore is effectively a KPMG in Singapore
13. https://e27.co/singapores-latest-regulatory-sandbox-concentrate-transportation-20170208/
14. https://www.enterpriseinnovation.net/article/singapore-gears-autonomous-vehicle-technology-1826417780
Autonomous Vehicles Readiness Index 153United States 10th 1st 7th 4th Key takeaways: The US leads the world on AV innovation readiness, including 163 company headquarters. The adoption of national standards would allow this to be better exploited. 16 Autonomous Vehicles Readiness Index
The US leads in AV innovation, and is The country has a generally good score The US has a highly
ranked at the top of the technology and on consumer acceptance, boosted by
innovation pillar of this index. It scores strong ratings from KPMG’s Change innovative but largely
maximum or near-maximum ratings Readiness Index and the World disparate environment with
on industry partnerships, research and Economic Forum, but is undermined
development hubs, AV technology by low levels of acceptance of AV
little predictability regarding
company headquarters, investment, technology by consumers and the fact the uniform adoption
and World Economic Forum ratings for that, despite its 23 test locations being of national standards
technology availability and capacity for the largest number of any country, only a
innovation. relatively small proportion of Americans for AVs. Therefore the
The country has by far the greatest
live in them. prospect of widespread
number of AV companies, with 163 On infrastructure, the US has relatively driverless vehicles is
headquarters, with second-placed few electric vehicle charging stations unlikely in the near future.
Germany having just 22, although this is given the large size of its road
adjusted by population for the index. network, and a poorer road quality and However, federal policy
infrastructure than either the Netherlands and regulatory guidance
Companies including the Detroit-based or Singapore, although it does well on
‘Big 3’ auto-makers, other automotive 4G network coverage. On policy and
could certainly accelerate
companies, ridesharing companies legislation, the US gains average scores early adoption, particularly
such as Uber and Lyft and intermodal
innovators like Hyperloop are all involved
for specific regulations and government concerning limited freight
investment in AV, and a low rating
in research. So are companies from from the World Economic Forum for applications such as truck
other countries, with Japan’s Toyota effectiveness of its law-making. platooning.
basing a US$1 billion research hub in
Michigan15 and using a testing proving
— Timothy D. Wilschetz
ground in California.16 Despite poor
scores on patents and low usage of Principal, Infrastructure Advisory,
electric cars, currently 0.92 percent, the KPMG in the US
US is the clear leader in this area.
While the prospect of AV adoption is
generating a great deal of enthusiasm, it
is also creating a good deal of confusion.
The driving public is generally aware that
AVs are being tested at numerous sites
across the country, but little is clearly
understood with regard to the actual
capabilities of early vehicles or the timing
for adoption.
15. http://www.xconomy.com/detroit-ann-arbor/2016/05/02/toyota-opens-new-1b-autonomous-vehicle-research-hub-in-ann-arbor/
16. http://design.automotive-business-review.com/news/toyota-research-institute-forms-partnership-with-gomentum-to-test-self-driving-technology-5961070
Autonomous Vehicles Readiness Index 174 Sweden 8th 2nd 6th 6th Key takeaways: Several initiatives by Volvo support Sweden’s strength in AV innovation. Further development of its electric vehicle charging network and more testing would build on this work. 18 Autonomous Vehicles Readiness Index
Sweden, which has almost the same On policy and legislation, Sweden has The Swedish market is
overall score as the US, ranks between one of the highest government capability
second and eighth across the pillars scores from KPMG’s Change Readiness more mature than most
in this index. It is strongest in the Index research, but lower ratings on in terms of AV. Swedish
technology and innovation pillar, where it AV-specific areas. However, in 2015, the
has the highest number of AV company Swedish government initiated a proposal
industry has a tradition of
headquarters by head of population, to regulate trials of self-driving vehicles, striving for innovative and
a strong showing on AV investments concluding that it’s possible to carry highly technical solutions,
(again, adjusted for population) and out trials at all levels of automation on
one of the highest ratings from the Swedish roads. As a result, the Road closely linked to both
World Economic Forum for availability Transportation Authority can, as of July research and development
of the latest technology. Swedish-based 2017, authorize permits and supervise
(although Chinese-owned) vehicle trials in accordance with the new law.
and governmental bodies.
maker Volvo has undertaken several AV In addition, it is willing to
The country is well-rated by the World
initiatives, including a US$300 million
Bank for road infrastructure but has a adopt more sustainable
joint-venture with Uber; a safety initiative
also involving Autoliv and Ericsson; tenth of the electric vehicle charging solutions, which may
stations of the Netherlands for three
and research giving self-driving cars
times its road network. It is strongly
enable flexible and
to real users on a pre-selected route
in Gothenburg.17,18 Sweden also has rated by both KPMG’s Change Readiness innovative thinking around
the second-highest electric car share Index and the World Economic Forum in transportation.
of the 20 countries, at 3.41 percent. consumer acceptance, but only a tenth
Lower scores on industry partnerships, of Swedes live in an AV test area. — Christoffer Sellberg
research and development hubs and
patents prevent a higher rank.
Sector Lead, Automotive and
Industrial Manufacturing,
KPMG in Sweden
17. h
ttps://www.thelocal.se/20160818/look-no-hands-volvo-teams-up-with-uber-in-self-driving-car-race, http://www.telecomtv.
com/articles/automotive/ericsson-volvo-and-autoliv-form-swedish-venture-for-autonomous-vehicles-15929/
18. https://www.volvocars.com/intl/about/our-innovation-brands/intellisafe/autonomous-driving/drive-me
Autonomous Vehicles Readiness Index 195 United Kingdom 4th 5th 10th 3rd Key takeaways: The UK has begun changing regulations and offering financial support in order to introduce driverless cars by 2021. Improved road and mobile infrastructure would help its readiness. 20 Autonomous Vehicles Readiness Index
The UK rates in the top five for three efficiency in challenging regulations, but The UK should be well
pillars, but only tenth on infrastructure. its rating across this pillar is lowered by
On technology and innovation, the fewer government-funded AV pilots and placed for AV adoption, in
country has good scores on industry a lower rating on government capability light of its high population
partnerships and research and in KPMG’s Change Readiness Index
development hubs, as well as high research.
densities; particular
ratings from the World Economic Forum issues around congestion,
Its mid-table performance on
on both technology availability and
infrastructure is due to one of the lowest pollution and safety
capacity for innovation, although it has
fewer AV patents than other leading scores for 4G coverage, along with concerns; and its expected
nations. On consumer acceptance, it has significant improvements which may shift from personal vehicle
among the highest ratings from KPMG’s be required to the road network. It is
Change Readiness Index and the World third on charging station density, but ownership to mobility
Economic Forum, although lower ratings the Netherlands is so far ahead that this services, where fleets are
adds little to the UK score.
for the proportion of people living in test more likely to adopt AV due
areas and on consumer acceptance.
The UK has carved out a niche as an to the cost of drivers.
On policy and legislation, the UK is attractive testing and proving ground for
near the top in AV regulation, with AV technology in Europe. This is shown
— Christoph Domke
the Department for Transport having by the range of AV-centered consortia
determined that it is legal for driverless that are benefiting from private and Director, Mobility 2030,
cars to operate on any public roads government funding to develop, test Global Strategy Group,
without permits or extra insurance19 and refine AV technology. It has also
announced various rounds of funding, KPMG in the UK
and the establishment of a Centre for
Connected and Autonomous Vehicles. including in 2016 GBP390 million for low
The government wants to have emission and AVs.22 By not ratifying the
driverless cars on British roads by 2021 Vienna Convention on Road Traffic and
and plans to make further changes allowing the piloting of fully autonomous
to regulations to support this. In his vehicles on public roads without need
keynote budget speech on 22 November for primary legislation, the UK has
2017,20 the finance minister, announced created a supportive environment for
more support for electric vehicles as the development of connected and AV
the precursors to AVs, including a new technologies.
GBP400m charging infrastructure fund.21
The UK has strong scores from the
World Economic Forum for effectiveness
of law-making and legal system
19. https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/401565/pathway-driverless-cars-main.pdf
20. https://www.gov.uk/government/publications/autumn-budget-2017-documents/autumn-budget-2017, section 5.4
21. https://www.gov.uk/government/speeches/autumn-budget-2017-philip-hammonds-speech
22. http://uk.reuters.com/article/uk-britain-eu-budget-autos/uk-government-announces-funding-for-autonomous-vehicles-electric-cars-idUKKBN13I1D3
Autonomous Vehicles Readiness Index 216 Germany
5th 3rd 12th 12th
Germany believes it has Key takeaways: Germany performs strongly on industry partnerships, research
the most innovative road and development and road infrastructure quality, although consumers are yet to
traffic law in the world, be persuaded of the benefits of AVs.
governing interaction
between drivers and Germany is in the top five in the policy the government include the Digital
and legislation and the technology and Motorway Test Bed established on the
vehicles with conditional or innovation pillars, but is let down by A9 motorway by the transport ministry,
highly automated driving mid-table rankings for infrastructure the state of Bavaria and automotive and
and consumer acceptance. On technology industry bodies. Germany
functions. However, there policy and legislation, it receives high is second only to Japan on AV patents
is a risk that the legislation scores on government investment in issued per capita.
could discourage AV use AV infrastructure and pilots, with its
But while the country has the highest
government legislating in 2017 to allow
since the driver may be tests of self-driving cars on public possible score for road infrastructure
liable for damages, even if roads,23 and it rates consistently well on and rates well on both road and mobile
other variables. network quality, it has poor 4G coverage
an accident is caused by and a middling rating for technology
the vehicle. In 2013, the Ministry of Transport infrastructure from KPMG’s Change
established the Automated Driving Readiness Index. It has no ongoing
— Moritz Püstow Round Table, an advisory body linking AV tests and a low acceptance of the
industry, academia, associations and technology by consumers, explaining
Partner, public administration. its relatively low rank on consumer
KPMG in Germany acceptance.
On technology and innovation, it
scores the highest marks on industry
partnerships and on research and
development hubs. Digital test beds
financed with EUR100 million from
23. http://www.thedrive.com/tech/10215/germany-green-lights-self-driving-cars-with-new-law
22 Autonomous Vehicles Readiness Index7 Canada
7th 6th 11th 7th
Southern Ontario has Key takeaways: Southern Ontario acts as a hub for Canada’s industry, and the
a perfect ecosystem province has taken a lead by allowing companies including Uber and Continental
to support AV research to test AVs on public roads.
and testing. It is the
fourth largest exporter of Canada rates well on technology and On infrastructure, Canada is well-rated
innovation, with the highest possible for roads and mobile networks, with its
vehicles in the world, with score for industry partnerships and major telecoms providers successfully
manufacturing facilities for high scores on both research and testing 5G network technology —
development hubs and AV technology although other variables lead to a
GM, Fiat-Chrysler, Ford, company headquarters. However, it has middling rank overall. On consumer
Toyota, Honda and their very few patents in this area. acceptance it is one of the leaders in
supply chains. Its Waterloo- It gains maximum marks on government-
terms of people living in an AV test
area and is well-rated by both KPMG’s
Toronto Innovation funded AV pilots, with the province of Change Readiness Index and the World
Corridor includes research Ontario having taken a particular lead Economic Forum.
as the only jurisdiction to have issued
universities and technology permits for AV testing on public roads.24
companies, convincing In the last year, the province has issued
seven permits to companies including
Uber and General Motors Uber, tire-maker Continental, automotive
to move jobs there. supplier Magna and QNX, a Blackberry
subsidiary.25
— Gary Webster
National Leader, Infrastructure
KPMG in Canada
24. http://www.mto.gov.on.ca/english/vehicles/automated-vehicles.shtml
25. https://www.itworldcanada.com/article/ottawa-blackberry-partner-to-test-canadas-first-self-driving-vehicle-on-a-public-road/397647
Autonomous Vehicles Readiness Index 23United Arab
8 Emirates
6th 1st 5th 8th
Dubai’s desire to excel Key takeaways: The UAE has the highest rating of the 20 countries for road
in the field of artificial quality, an important factor in infrastructure readiness. It could build on this
intelligence, big data and through encouraging private-sector innovation.
data analytics, which it
will overlay on its existing The UAE scores well on both policy However, the research suggests that
and legislation and on infrastructure. the UAE lacks AV technology company
‘hard’ infrastructure, will On the former, it is credited for having a headquarters, patents or investments,
ensure that the UAE specific AV function within its transport largely explaining its lower rating on
department, for quality of regulation technology and innovation. Consumer
will be at the vanguard and for government capability in survey data shows a high level of
of the AV revolution. KPMG’s Change Readiness Index. On acceptance of AV technology, but
The learnings from its infrastructure, it has the highest ratings KPMG’s Change Readiness Index rates
of all 20 countries in this research for the country lower than others for people
successful implementation road quality from the World Economic and civil society’s use of technology.
of driverless trains and its Forum and for technology infrastructure
from the Change Readiness Index.
initiative on flying taxis
will ensure its leadership
position in this field is
maintained.
— Ravi Suri
Partner, Advisory,
KPMG in the United Arab Emirates
24 Autonomous Vehicles Readiness Index9 New Zealand
2nd 12th 16th 5th
New Zealand is affluent and Key takeaways: The NZ Transport Agency supports companies testing
large enough to support AVs, building on the country’s reputation as a technology test-bed. Better
meaningful product trials, infrastructure would help the country become more AV ready.
but small enough to
prevent teething troubles New Zealand is second only to New Zealand scores less well on
Singapore on policy and legislation, with technology and innovation, with no
damaging the reputation of high scores for its AV regulation and AV company headquarters, patents
a technology or company. having a specific department to deal with or investment found in the research,
this. The country has no specific legal although it has the third-highest market
Microsoft, Facebook and requirements for cars to contain drivers, share of electric cars. New Zealand’s
drone delivery company the NZ Transport Agency can provide future performance on innovation could
Flirtey have used it as support to those undertaking testing, be boosted by a trial of satellite-based
and it is collaborating with Australia augmentation system technology, which
a development lab. to minimize duplication and share its government is carrying out with
Christchurch has hosted the knowledge.26,27 It is also highly rated Australia to improve the accuracy of
by the World Economic Forum for law- positioning systems such as GPS.28 It
world’s first fully AV trial at making and legal system efficiency. The is in the bottom five of our sample on
an international airport. country is perceived as having a clear, infrastructure due to low levels of 4G
straightforward regulatory framework, coverage outside of heavily populated
— Jesse Phillips with government agencies accepting areas, few electric charging stations and
Director, Deal Advisory the need to adapt legislation to new middling ratings for road quality and road
technology. infrastructure.
KPMG in New Zealand
The country is fifth on consumer
acceptance due to good ratings from
KPMG’s Change Readiness Index and
the World Economic Forum, as well
as having AV tests in areas covering a
significant proportion of the population.
It also offers a wide range of climatic
conditions within a relatively small area.
26. http://www.transport.govt.nz/ourwork/technology/specific-transport-technologies/road-vehicle/autonomous-vehicles/testing-
autonomous-vehicles-in-nz/
27. http://wardsauto.com/technology/oz-new-zealand-follow-singapore-s-autonomous-lead
28. https://www.linz.govt.nz/data/geodetic-services/australasian-sbas-trial
Autonomous Vehicles Readiness Index 2510 South Korea
14th 9th 4th 11th
To enhance public Key takeaways: South Korea’s 2018 Winter Olympics will showcase AVs, and
acceptance, by the end the country is a leader on piloting and testing. More locally-based companies
of 2017 the South Korean would allow it to take commercial advantage of this.
government is planning
to launch an unmanned South Korea is fourth on infrastructure, The country scores well on AV-specific
with the best 4G coverage of the policy and legislation variables, with
autonomous shuttle 20 countries in this research; such maximum points for government
service as a demonstration networks are available to users 96 investment in pilots and AV
percent of the time.29 In general, it has infrastructure. The government claims
project. During its Winter excellent mobile networks as well as that its K-City facility, opened in October
Olympics in February 2018, good quality roads. It is mid-table on 2017, with a target of completion by next
the country will carry out technology and innovation, scoring top year, is the world’s largest test bed for
marks on industry partnerships and self-driving cars.31 It has also authorized
AV demonstrations from research and development hub presence AVs to operate temporarily on public
Seoul to PyeongChang and well on patents. However, it has few roads, with research licenses issued
AV technology company headquarters, to Naver Labs, Hyundai Motor, Seoul
and provide autonomous low usage of electric cars and Uber National University, Hanyang University,
shuttle services near the has little presence in the country, with Hyundai Mobis, Traffic Safety Corporation
stadium. its UberX service unavailable following and KAIST. Its weaker overall rating in
regulatory action30 in 2014. However, this pillar is due to low scores from both
— Hyo-Jin Kim Kakao Taxi, a local alternative, has KPMG’s Change Readiness Index and
several million users. the World Economic Forum.
Head of Infrastructure,
KPMG in Korea
29. https://opensignal.com/reports/2017/06/state-of-lte
30. https://www.cnbc.com/2017/04/26/uber-south-korea-law-court.html
31. http://www.businesskorea.co.kr/english/news/sciencetech/18018-k-city-world%E2%80%99s-largest-test-bed-self-driving-cars-be-opened-korea
26 Autonomous Vehicles Readiness Index11 Japan
12th 7th 3rd 16th
Much of the expectation for Key takeaways: The government has big ambitions for AVs and Japan has the
AVs in Japan is based on most patents per capita of the 20 countries. More local testing could help lift
how such technology can consumer cynicism about the technology.
help its aging population.
There has been an increase As with South Korea, Japan does become a global hub of innovation. The
very well on infrastructure but less 2020 Tokyo Olympics and Paralympics
in the number of car so elsewhere. Its third place on have been set as a landmark to
accidents involving older infrastructure is due to 4G network demonstrate Japan’s capabilities.
availability second only to South Korea
drivers and AVs would allow and high ratings for its roads, road On technology and innovation, Japan has
them to drive with comfort infrastructure and mobile network the highest number of AV-related patents
of any country in this research, adjusted
and safety. quality.
for population, and receives high marks
The country wants to build the world’s for industry partnerships. However, it has
— Mina Sekiguchi best intelligent transport system to relatively few AV technology company
Managing Director, support AVs,32 but it receives middling headquarters and Uber has a low market
scores on AV-specific policy and presence in the country. Its consumers
Advisory Planning,
legislation variables, although it does well are among the most cynical about AV
KPMG in Japan on government funding of pilots. A May technology and very few live in test site
2017 road map states the government’s cities, contributing to its bottom-five
aim to have the world’s safest road ranking for consumer acceptance.
transport by 2020 and to build and
maintain “a society with the world’s
safest and smoothest road transport” by
2030. It also wants to expand the export
of intelligent vehicles and infrastructure
via public-private collaboration and to
32. http://japan.kantei.go.jp/policy/it/2016/itsinitiative_roadmaps2016.pdf
Autonomous Vehicles Readiness Index 2712 Austria
9th 11th 8th 13th
Autonomous driving has Key takeaways: Government and industry have jointly funded a EUR280m
become a very significant research center, part of a range of research and testing plans that may accelerate
issue for Austrian Austria’s use of AVs in future.
authorities, and offers
great opportunities for the Austria is middle-rated on all four pillars. environment. In addition to this, the city
On policy and legislation, it scores of Salzburg plans to integrate a fully
public and for the country’s well on government investment on autonomous bus in its public transport
economy. A multi-year AV infrastructure, for having a specific system and the Austrian Armed Forces
department and for the number of aim to introduce AVs on military training
funding plan has been set government funded pilots, including areas in the near future. However, the
up to support technology- half of the EUR280 million funding for country has few company headquarters
based research and Austria a research center with the rest coming of patents and the research found no
from industry,33 but has a relatively low investments.
has legislated to facilitate rating from the World Economic Forum
the testing of AVs on for the effectiveness of its law-making. The high quality of Austria’s mobile
networks, roads and road infrastructure
specific public roads. In terms of technology and innovation, are recognized in the infrastructure pillar,
Austria is credited with the presence although it has few electric charging
— Werner Girth of research and development hubs for stations. Its middling showing on
Partner, Advisory, AVs and, to lesser extent, for industry consumer acceptance is partly due to
partnerships. The Austrian Light Vehicle no ongoing AV tests, balanced by good
KPMG in Austria Proving Region for Automated Driving ratings from KPMG’s Change Readiness
(ALP.Lab), an association of automotive Index and the World Economic Forum.
and industry research organizations,
aims to provide test tracks, technology to
record data and an exhaustive simulation
33. http://www.ctr.at/en/news/news-press/details/news/ctr-bringt-sensorik-mikrosystemtechnik-kompetenz-in-silicon-austria-ein/
28 Autonomous Vehicles Readiness Index13 France
13th 10th 13th 10th
France has large companies Key takeaways: Renault and PSA are working with startups and local
including Renault, PSA- authorities on AV pilots, and the French government is working with Germany
Opel, Transdev, Valeo on cross-border tests.
and Safran as well as
startups such as Navya and France does reasonably well on AV- Institute to deliver an affordable
specific scores on its lowest-rated pillars, autonomy by 2020. Among its leading
Easymile investing heavily policy and legislation and infrastructure. companies in the automotive sector,
in AV. Although it has been with a legal framework adopted to allow Renault is working with the local
the testing of driverless cars on public authority in Rouen and public transport
slow to develop awareness, roads in 2015, which was broadened operator Transdev aims to establish
the French government is the following year.34 With Germany, the an on-demand mobility service on
now proactively working French government has announced pre-set routes from spring 2018, while
plans to test self-driving vehicles on a PSA Group36 is working with start-ups
to regulate and promote cross-border road from Metz in France AIMotive37 and nuTonomy38 — the latter
development, with an to Merzig in Germany.35 However, the to deploy customized Peugeot 3008s
country is rated poorly for government on public roads in Singapore. Part-maker
ambitious strategic plan capabilities by KPMG’s Change Faurecia has announced a partnership
expected soon. Readiness Index and by the World with its German rival ZF Friedrichshafen
Economic Forum on law-making and to swap technological expertise.39
— Bertrand Vigner legal system efficiency.
France is also well rated on research
Partner, Strategy Group, On infrastructure, France is credited with and development hubs and in the
KPMG in France having excellent roads and good road World Economic Forum ratings. French
infrastructure, but poor 4G coverage consumers are fairly enthusiastic about
and a low density of electric charging AV technology, but the country has a
stations. middling score on people’s technology
use in KPMG’s Change Readiness Index
It does better on technology and research.
innovation, including its establishment
of the public-private VeDeCom
34. https://readwrite.com/2016/08/06/france-autonomous-car-trials-tl4/
35. http://www.industryweek.com/emerging-technologies/germany-france-plan-cross-border-self-driving-test-zone
36. https://techcrunch.com/2017/09/06/psa-group-and-aimotive-team-up-for-french-self-driving-pilot/, Renault one https://insideevs.com/renault-to-ready-4-
zoes-for-autonomous-on-demand-mobility-service/
37. https://techcrunch.com/2017/09/06/psa-group-and-aimotive-team-up-for-french-self-driving-pilot/
38. https://techcrunch.com/2017/05/03/nutonomy-peugeot-citroen-groupe-psa/
39. https://global.handelsblatt.com/companies-markets/part-exchange-844806
Autonomous Vehicles Readiness Index 2914 Australia
11th 13th 9th 9th
AV are one of the major Key takeaways: Several Australian cities are hosting trials and the country
disrupters hitting the has excellent mobile networks. Improvements to roads and electric charging
transport system in the infrastructure would help with its AV readiness.
next 10 years in Australia.
Others include road pricing, Australia scores reasonably well on found no relevant investments and few
AV-related policy and legislation, slightly Australians drive electric cars, although
mobility as a service and less so in general ratings from KPMG’s it receives credit for a strong Uber
increasing contestability Change Readiness Index and the World presence and for general availability of
Economic Forum. In May 2017 the technology. AV trials are taking place or
in public transport country issued national guidelines for are planned in several cities, including
operations. These will trials of AVs on its roads, with these Sydney, Melbourne, Perth and Adelaide.
drive different institutional requiring specific exemptions from state
On infrastructure, Australia receives
and territory governments.40 At present,
and regulatory structures the law says that an automated driving the maximum score for the quality of
that will challenge the system cannot be the driver of an AV, its mobile networks but only middling
meaning that although a vehicle may be ratings for the quality of its roads and
historical model of partially automated, the human occupant availability of 4G and it has very few
transport agencies with will need to be the legal ‘driver’, be held electric charging stations. The country
is very highly rated for people’s use
their focus on infrastructure responsible for any incident that may
of technology by KPMG’s Change
occur while in control of the vehicle and
development and system must exercise proper control over the Readiness Index, but few people live
regulation. vehicle at all times. in test areas and consumer research
suggests Australians are fairly cynical
On technology and innovation, Australia about the technology.
— Paul Low
has few AV technology company
Partner Management Consulting, headquarters and patents, the research
KPMG in Australia
40. https://www.itnews.com.au/news/guidelines-for-australian-driverless-vehicle-trials-released-462904
30 Autonomous Vehicles Readiness Index15 Spain
15th 16th 14th 17th
AV technology has Key takeaways: A November 2017 government innovation plan, which aims to
to address some develop AVs in Spain over the next few years, may help tackle low acceptance
challenges to reach of the technology by consumers.
mass implementation,
like perceptions about Spain ranks between 14th and 17th on The research found no AV technology
each of the four pillars of this research. companies based in the country and very
customer safety, economic It receives fairly strong scores for its few relevant patents, although it gains
accessibility, and finding AV-specific regulation and government middling scores for industry partnerships
work, having published a legal and research and development hubs.
significant investment to framework allowing testing on public
adapt infrastructure. The roads as early as 2015, but has weaker On infrastructure, the relatively high
quality of Spain’s roads and mobile
implementation of pilot ones from KPMG’s Change Readiness
networks is undermined by a very low
Index and the World Economic Forum.
projects by public bodies A government innovation plan published density of electric charging stations
and institutions will help in November 2017 includes some and middling levels of 4G coverage. It
important steps to develop the required does not have any ongoing AV tests and
to increase consumer ecosystem and to promote AVs in Spain. Spaniards are the least likely to accept
acceptance. It includes strategic planning for the AV technology according to consumer
implementation of 5G networks among survey data, leading to its low ranking on
— Ovidio Turrado Sevilla roads and railways, a plan for electric and consumer acceptance.
Head of Infrastructure, hybrid vehicle promotion to be launched
in 2019, and technical standardization,
KPMG in Spain legal framework development and
development of a white paper on the
ethics of AVs, all planned for 2020.
Autonomous Vehicles Readiness Index 3116 China
16th 15th 15th 15th
China can position itself Key takeaways: China, which already has a high density of electric vehicle
as a world leader, with chargers, has strong hopes for AV technology. More accurate public mapping
expectations that AVs would help it achieve AV readiness.
will be capable of being
deployed by 2025-2030. China receives average scores across the areas and automated trucks on selected
researched pillars, but is clearly ahead of high-speed roads. However, the country
Key drivers include the the bottom four countries in our sample. has a very low number of AV technology
scale of China’s auto On policy and legislation it receives company headquarters, patents and
middling scores for AV-specific regulation investments and poor scores from the
industry as the largest and work, although there are specific World Economic Forum in this pillar.
market in the world by problems from some government As Uber is no longer active in China,
production and sales and regulations, for example, requiring public the research uses customer numbers
maps to be no more than 50 meters for Didi Chuxing, China’s ride-sharing
its focus on technology and accurate41 and stating that drivers must company.
innovation, supported by keep both hands on steering wheels.
On infrastructure, China has the second-
the ‘made in China 2025 The country scores well for industry highest density of electric charging
plan’. partnerships and research and stations — although this is less than a
development. Recent work has fifth of the Netherlands figure — and an
— Philip Ng included a rapid development of above-average rating for its 4G coverage,
sensor technology, optimized chips for but is undermined by poor ratings for
Partner, KPMG in China AV, artificial intelligence in computer roads and a very low score
vision, voice recognition and routes for technology infrastructure. China
planning and vehicle-to-everything (V2X) has one of the highest consumer
communications. AV is being piloted and acceptance scores, but very few people
deployed in areas such as self-service live in test areas.
delivery cars in enclosed residential
41. https://www.brookings.edu/wp-content/uploads/2016/09/driverless-cars-3-ed.pdf
32 Autonomous Vehicles Readiness Index17 Brazil
20th 18th 19th 14th
In terms of specific Key takeaways: Brazilians tend to be early technology adopters and the
regulation, we haven’t seen country has good mobile networks, but it will need to improve on regulations,
discussions on AV but there local innovation and road quality to take advantage of AV.
is a new automotive sector
regulation called ‘Rota Brazil is the first of four bottom four On infrastructure it has a good coverage
countries in our study, all of which are of 4G (more than 90 percent of cities
2030’ being discussed by some way behind the other 16. It has the are covered), but very few electric
government, which may weakest scores of the 20 countries for charging stations and only Russia has
policy and legislation, with low scores for worse roads. Consumer data suggests
include some initial related AV-specific regulations and government Brazilians are the keenest of all those
topics. AV discussions work and even lower ones from KPMG’s in the 20 countries on AV technology,
are starting in forums Change Readiness Index and the World mobile phone penetration is more
Economic Forum for general government than 100 percent of the population and
and events related to the and legal system capability. However, Brazilians are known for being early
automotive and telecom Uber operation has been authorized in adopters of new technologies. Despite
large cities in the country since 2016 and this, the country gets the lowest
industries, but we still Brazil is considered one of the largest rating for people’s use of technology in
haven’t seen city authorities operations of Uber globally. KPMG’s Change Readiness Index, which
or governments planning On technology and innovation, Brazil
measures specific factors including
internet access in schools and the use of
around it. shares the bottom spot with Russia on mobile phones to pay utility bills.
market share of electric cars which are
— Mauricio Endo not generally available, although hybrid
cars are starting to be imported. It
Head of Government &
received the lowest scores on research
Infrastructure, Advisory, and development hubs, AV technology
KPMG in Brazil company headquarters, patents and
investments.
Autonomous Vehicles Readiness Index 3318 Russia
17th 20th 20th 18th
Until now, the government Key takeaways: Russia’s government is offering US$10 million in subsidies
has not granted to local companies to create its own AV industry. Infrastructure and legislative
significant priority to changes would also be required to be AV ready.
AV implementation
issues. However, after Russia receives the lowest rating of the driverless vehicles in large cities and
20 countries in both the technology and on major roads, with US$10 million of
the president’s recent innovation and infrastructure pillars. On subsidies available and an ambition to
announcement of a technology and innovation, it is at the build a Russian electric and driverless
bottom of the table for AV company vehicle industry from scratch.42 Russian
transition to digital headquarters, patents, investments companies including internet firm Yandex
economy, we are observing and percentage of electric cars as well and truck-maker Kamaz are working on
an increase in regulatory as overall capacity for innovation. On tests.43
infrastructure, Russia has the lowest
activity, which may end up possible scores on road quality and However, advances in technology and
with the development of infrastructure, very poor 4G coverage innovation by Russian companies are not
and a very low density of electric supported. The absence of legislation
relevant regulations within charging stations. allowing usage of AV on public roads
the next 2–3 years. and lack of infrastructure are cited by
Russia’s government wants to do AV technology companies as the main
— Vadim Toporov better, although it is looking to local obstacles.
companies to achieve this. August 2017
Senior Manager, Advisory, saw prime minister Dmitry Medvedev
KPMG in Russia announcing the government’s intention
to create suitable infrastructure for
42. http://www.ewdn.com/2017/08/16/russia-prepares-plans-to-develop-high-tech-infrastructure-for-driverless-transport/
43. https://www.rbth.com/business/2017/07/03/russia-takes-the-fast-lane-into-the-world-of-driverless-vehicles_794665
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