2019 Autonomous Vehicles Readiness Index - Assessing countries' preparedness for autonomous vehicles - KPMG
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2019 Autonomous Vehicles Readiness Index Assessing countries’ preparedness for autonomous vehicles KPMG International kpmg.com/avri
Quick reader guide The Autonomous Vehicles Readiness Index This report uses the term ‘autonomous Index results Rank (AVRI) is a tool to help measure 25 countries’ vehicles’, abbreviated to AVs, to refer to the level of preparedness for autonomous technology used both within vehicles and 2019 2018 Country 2019 score vehicles. It is a composite index that externally, such as digital networks and road combines 25 individual measures from a infrastructure. It also uses AVs to refer to 1 1 The Netherlands 25.05 range of sources into a single score. More vehicles that can do everything a traditional 2 2 Singapore 24.32 information on the results, methodology and vehicle does without human intervention, 3 n/a Norway 23.75 sources used is in the Appendix. sometimes described as ‘level 5 automation’, where vehicles are fully self-driving and 4 3 United States 22.58 The intended core audience for the AVRI is the human driver becomes a passenger. public sector organizations with responsibility 5 4 Sweden 22.48 The terms AV and driverless car are used for transport and infrastructure. It should interchangeably, although this report also 6 n/a Finland 22.28 also be of interest to other public and private covers autonomous buses and trucks. 7 5 United Kingdom 21.58 sector organizations that are involved with, or make use of, road transport. 8 6 Germany 21.15 9 8 United Arab Emirates 20.69 10 11 Japan 20.53 11 9 New Zealand 19.87 12 7 Canada 19.80 13 10 South Korea 19.79 14 n/a Israel 19.60 15 14 Australia 19.01 16 12 Austria 18.85 17 13 France 18.46 18 15 Spain 15.50 19 n/a Czech Republic 14.46 20 16 China 14.41 21 n/a Hungary 11.99 22 18 Russia 8.55 23 19 Mexico 7.73 24 20 India 6.87 25 17 Brazil 6.41 2 2019 Autonomous Vehicles Readiness Index 2019 Autonomous Vehicles Readiness Index 3
Contents Foreword A year ago, our first Autonomous Vehicles Readiness Index sought to raise awareness of the 05 06 transformational social and economic benefits that autonomous vehicle (AV) technology could offer society. It felt like a conversation in its infancy. Since then, through 2018, we have seen a huge Foreword Introduction acceleration in investment in AV technology, in policy adoption by governments to encourage AVs, and in media coverage of the topic.1 Countries and states including the Netherlands, the United Kingdom, Australia, France and California have passed or are passing legislation Richard Threlfall on how the How governments can harness AVRI has evolved and what AV AVs’ ability to increase road safety, opening AVs’ access to public roads. Trials are underway from Singapore to Madrid to adoption will mean for society. improve public transport and freight, Gothenburg. and even reshape cities. To help maintain the momentum, we published this second edition of the index. It adds five new countries (Czech Republic, Finland, Hungary, Israel, Norway); new measures including 08 10 consumer opinion on AVs; and provides greater insights into individual countries, drawing on the expertise of colleagues in KPMG’s national firms. 2018 Executive The Netherlands and Singapore again claim first and second place, respectively; the former benefiting from its European leadership in transport public policy, the latter from its brilliance milestones summary in attracting investment from global technology leaders. Last year’s key events in the Overview of the top 5 countries, But many of the overall scores are very close and there are numerous opportunities, identified development of AVs. methodology updates and key in this report, for countries to make significant progress. Those that did would rise quickly in actions countries can take. the rankings. The most successful countries have a policy framework that enables innovation, a strong track record in technology, high-quality road and digital infrastructure, and populations that are eager to adopt new technologies. 12 40 I continue to believe that the social benefits of AV adoption will be enormous in reducing road deaths, improving accessibility for the young, old, disabled and those in remote communities, and driving economic growth. By sharing the best national achievements, I hope the AVRI will National The road continue to accelerate the pace of this revolution. profiles ahead Policies, events and companies What governments can do next, in each of the 25 countries with and how KPMG’s member firms commentary from KPMG’s can help. national AV experts. 42 Appendix: Results and methodology Detail on the data and methodology used to build the AVRI. Richard Threlfall Global Head of Infrastructure KPMG International Bio @RThrelfall_KPMG 2019 Autonomous Vehicles Readiness Index 5
Introduction Governments around the world are working on how Freight is set to be another early adopter of AVs. they can deliver AVs’ anticipated societal benefits. The Netherlands, for example, is working with These include the prospect of much-improved road Germany and Belgium on establishing ‘truck safety, more efficient public transport and freight platooning’ — where one human-driven vehicle services, and cleaner cities with more room for leads a convoy of autonomous ones — on major people and green spaces. There are also potential roads. In the US, it is predicted that soaring challenges to mitigate, including big changes increases in delivery vehicle miles traveled (VMT) to labor markets and industries including motor could reach 78 billion VMT per year by 2040, to came into force in May 2018, personal data will need to be transport to deliver its goods and move its staff or clients. insurance, privacy and cybersecurity risks, and meet the consumer demand for same-day or separated from that needed to guide vehicles. The data- There are likely to be some surprising industry-specific greater suburban sprawl. same-hour delivery.6 There is also strong potential sharing environment is also important as it enables greater impacts (see box). for AVs in closed environments such as ports. collaboration between government and private industry on Safety Such use will help combat the increasing scarcity AV development, so this year’s AVRI adds a new measure Insurance may see particularly big changes. A 2014 and cost of drivers in some countries, with the assessing this. actuarial analysis by KPMG in the US suggested that the 1.35 million people were killed on the world’s roads median salary for an American driver on a national, personal automotive insurance sector could shrink by in 2016, up from 1.25 million in 2013, according irregular route having risen 15 percent since 2013.7 As well as making more efficient use of roads, AVs are likely 40 percent within 25 years, with the number of accidents to the World Health Organization,2 with studies to change city landscapes — although this might take different per vehicle dropping by 80 percent.11 In 2017, the Bank of suggesting that human error causes at least As a possible result, some fear a rapid disappearance directions depending on how usage develops. If AVs lead to England predicted a fall in motor insurance premiums of nine in 10 accidents.3 Removing human error risk of driving jobs, which are a major source of less car ownership, less urban space will be needed for roads, 21–41 percent by 2040.12 by moving to AVs should therefore deliver an employment with 4.8 million people in the 28 parking and garaging, potentially allowing higher population enormous reduction in vehicle-related deaths — European Union (EU) countries alone.8 However, There are many uncertainties over the effects of AVs, densities and more green space. If people prefer to own AVs something that is important to remember, in light of there are reasons to expect that the replacement of both in time-scale, degree and direction. What does then they may choose to live further from work, leading to the first death caused by the testing of AVs, as well professional drivers with technology will be gradual, seem certain is that a wide range of organizations, both more low-density suburbs, more road traffic and a need for as one from the use of a partially autonomous car, with software initially taking over some elements of government and private-sector, will be profoundly changed daytime parking for their AVs, although this could be on the in 2018.4 driving but with people still required for the likes of by their adoption. For the countries that can manage these edge of cities rather than next to offices.10 close maneuvering. changes, AVs offer benefits on safety, efficient road-use, Vehicle makers looking to reassure the public better public and freight transport, and the chance to about AVs could follow the aviation industry, The future of cities Insurance and other industries reshape cities around humans rather than vehicles. As where aircraft makers have embedded safety in AVs will have effects far beyond the road transport sector, the results of the second edition of the AVRI show, some their processes. Airlines share information and AVs should lead to much cleaner and efficient use not least because almost every organization makes use of countries are already well on their way. learn from accidents on a no-blame basis. Modern of roads, as well as making them safer. Much of passenger aircraft are regularly flown by autopilot this will result from the shift from fossil fuels to software, albeit with the supervision of human electric vehicles (EVs), with most AVs expected to pilots — and in 2017, there were no fatalities at all in run on electricity. In September 2018, the United commercial passenger jets.5 Kingdom joined Canada, China, Finland, France, Examples of how AVs may affect specific industries India, Japan, Mexico, the Netherlands, Norway —— Policing: fewer resources may be needed to police roads with AVs programmed to obey traffic laws. Public transport and freight and Sweden in pledging that at least 30 percent of new vehicles sold will be EVs by 2030.9 Norway Despite the focus on when driverless cars will —— Healthcare: fewer traffic accidents may mean less demand for emergency surgery and fewer organ donors. AVs has already exceeded this target, and enters the be available, autonomous minibuses are already may make it easier for older and infirm people to travel to appointments, allowing greater centralization of services. AVRI this year in third place, partly as a result of its providing passenger services in countries including advanced adoption of EVs. —— Air and rail: fewer passengers on some routes if AVs allow users to relax or sleep their way to long-distance Norway, Sweden and France, and AVs are likely to destinations. be as important in transforming public transport as One of the greatest benefits in efficient road use they will be for private cars. They will allow public will come from public authorities being able to track —— Media and advertising: AV users freed from driving could turn their attention from audio to video, written word and transport providers to move from fixed-route, and optimize the flow of vehicles. This will require social media; advertising could be targeted by location, potentially subsidizing the cost of travel. fixed-timetable bus services to on-demand standardized protocols to allow data to travel to and autonomous alternatives, which would efficiently from vehicles. To comply with privacy laws such as —— Power generation: EVs including AVs, will increase demand, but ability to choose when to charge at home could and effectively take people from door to door. the EU’s General Data Protection Regulation, which boost variable-output renewable power. —— Power grids: home charging will require strengthened local grids, but smart control of when to charge as well as use of plugged-in vehicles as batteries could smooth demand. 6 2019 Autonomous Vehicles Readiness Index 2019 Autonomous Vehicles Readiness Index 7
2018 milestones January: Norway legalizes testing of AVs on public roads, with February: driverless minibus services Chinese government allows first official starting in several locations tests of AVs on public roads.14 later in the year.13 German coalition government agreement includes plans to legislate for AVs by 2021. March: Dutch infrastructure minister announces legal framework for AVs, including equivalent of driving license for self-driving vehicles and work on truck platooning.15 Death of pedestrian in Arizona in the United States (US) during an AV trial.16 April: California Department of Motor Vehicles lifts requirement that AVs must have a human driver to take over in emergencies.17 May: European Commission transport commissioner announces plans for European rules governing AVs and investment in road and telecoms networks.18 June: Japanese government plans to start tests of AVs on public roads with goal of offering self-driving car service for 2020 Tokyo Olympics.19 July: Ford creates new AV division with plan to invest US$4 billion by 2023.20 Uber ends development of August: self-driving trucks to focus on cars.21 UK Parliament passes legislation meaning insurers will be liable for damage caused by AVs when in October: self-driving mode.22 Waymo starts charging passengers in Russian company Phoenix, Arizona, for rides in its AVs.24 Yandex launches what Australian government establishes an it claims is the first Office of Future Transport Technologies autonomous to prepare for AVs.25 ride-hailing service in Europe, in Innopolis, and later in Skolkovo.23 December: A Swedish start-up and German logistics company announce they November: expect regulatory Ford, Walmart and approval shortly to run delivery start-up driverless trucks on Postmates announce public roads.27 US trial using AVs to deliver groceries.26 8 2019 Autonomous Vehicles Readiness Index 2019 Autonomous Vehicles Readiness Index 9
Executive summary This edition of the AVRI assesses 25 countries on 25 different variables, organized into four pillars. Also noted Key insights for governments Four of the variables are scored for this index by KPMG International and ESI ThoughtLab; one uses Methodology a consumer survey conducted for this report; and the rest use existing research by KPMG and other organizations. Full details are in the Appendix. — A new measure on government data Advanced AV markets could invest more in sharing, reflecting the importance of this in technology and innovation: the development of AVs, is led by the UK (7th overall). Top ranked countries could far outpace others if they focused on Pillar 2 (technology and innovation); in particular, The Netherlands Page 14 Singapore Page 15 — Several countries enjoy a dynamic business investing in AV-related firms and R&D, industry — The AVRI’s leading country is working with neighbors — With a leading university, Singapore has created a test ecosystem with a focus on AVs, but Israel (14th overall) gains top scores in the AVRI’s partnerships, and an innovation-friendly business to adopt AV technology for freight, with a plan to town for driverless vehicles complete with traffic lights, launch platoons of more than 100 driverless trucks on bus stops, skyscrapers and a rain machine to recreate technology and innovation pillar through the environment. major routes from Amsterdam to Antwerp and its extremely wet tropical weather. outstanding performance of its sector. Rotterdam to the Ruhr valley. — Next year, it will introduce self-driving minibuses in — The AVRI’s newly introduced consumer — It is introducing new laws that will encourage AVs, several areas, including a university campus — an survey measuring enthusiasm for AVs is led something also pursued by the UK, Australia and approach already taken in Norway and France. by India (24th overall) and Mexico (23rd Countries leading in technology and innovation France among others. — Singapore, along with Hungary, leads a specific overall), suggesting that countries currently could work on achieving greater policy and — The Dutch government is taking an active role in AV measure on having a single government organization lacking good road transport may be institutional clarity: safety and legal issues, with the infrastructure that deals with AVs, which improves AV coordination particularly keen to adopt AVs. minister announcing a ‘driving license’ for self-driving and reduces confusion around who does what. Countries that lead in technology and innovation tend to cars in a March speech. have mid-level scores in their AV regulatory environment and institutions. Adapting and revisiting regulations and establishing an AV-focused institution could take these countries to the top of the rankings. Most countries that do well on infrastructure readiness could reform their policy and legislative environment: Six of the 10 countries that lead the world on infrastructure readiness — Australia, Austria, Japan, South Korea, Sweden, and the UAE — do not feature in the top 10 for 01 02 03 04 05 the policy/legislative environment. To improve their overall ranking they could work on establishing new AV regulations and institutions. Less-developed AV markets could take advantage of higher consumer interest in AVs if other areas, Norway Page 16 United States Page 17 Sweden Page 18 including policy and technology, are addressed: — The country legalized AV testing on public roads in — Individual states including Ohio, — The country’s cutting-edge work In general countries with the lowest overall scores have January 2018, giving clarity for providers and leading to Michigan and Massachusetts are on freight includes a road that the highest scores for positive consumer sentiment about trial bus services in several locations. working to encourage AV charges electric trucks as they development and adoption by drive over it and pilot use of an AVs. These countries would rise quickly in the rankings if — As a result of significant tax breaks, 40 percent of new cars sold in Norway are electric, many having some opening access to roads and AV truck to link two logistics governments actively developed other pillars. autonomous functionality. setting up a single coordinating centers. organization. 10 2019 Autonomous Vehicles Readiness Index 2019 Autonomous Vehicles Readiness Index 11
National profiles Policy and Technology and Infrastructure Consumer legislation innovation acceptance 12 2019 Autonomous Vehicles Readiness Index 2019 Autonomous Vehicles Readiness Index 13
1 The Netherlands 2 Singapore Policy and legislation 5 Technology and innovation 10 Infrastructure 1 Consumer acceptance 2 Policy and legislation 1 Technology and innovation 15 Infrastructure 2 Consumer acceptance 1 The Netherlands retains its of self-driving vehicles) was approved Electric vehicle charging stations — The government is “The government is very proactive in AV department within government — by the House of Representatives in score by country (top 5) thinking about the future of mobility. score by country (top 5) lead by doing many things April 2018 and the Dutch Senate in positioning the city-state as It is seriously investigating the The Netherlands Singapore consistently well, including September 2018. It allows experiments 1.00 a center for AV development possibilities as well as preparing for 1.00 investigating AVs’ use in with AVs on public roads without drivers Norway with the deployment of a a regulatory environment that will Hungary in vehicles, although they must be 0.52 facilitate a future that is autonomous,” 1.00 freight and logistics and monitored remotely.29 South Korea simulated urban test-bed says Satya Ramamurthy, Partner, Head Austria passing new legislation. 0.26 and plans for driverless of Infrastructure, Government and 0.93 The Netherlands are also preparing a Healthcare, KPMG in Singapore. The Netherlands, which again Driving License for a Vehicle. This is China buses. New Zealand 0.22 0.93 leads the AVRI, is an example of being developed in cooperation between Singapore ranks relatively low Germany Singapore leads the policy and United Arab Emirates how to ready a country for AVs by the Dutch Vehicle Authority (RDW), the on technology and innovation, 0.16 legislation and consumer acceptance 0.93 performing strongly in many areas. main road authority (Rijkswaterstaat) at 15th of 25. UK-founded home Source: International Energy Agency, 2017 pillars, and is second only to the Source: KPMG International, 2019 It leads the index’s infrastructure and the central office for driving exams appliances manufacturer Dyson Netherlands on infrastructure. Its pillar, is ranked second on consumer (CBR). The approach focuses on the recently announced it would open government is working hard to acceptance and is fifth on policy and extent to which a vehicle can produce Consumer adoption of latest a new factory in Singapore to build consolidate the city-state’s position as Availability of high-performance mobile legislation. The country also scores safe and predictable automated technology — score by country (top 5) electric cars in 2021, as well as internet — score by country (top 5) a center for AVs. It opened the Centre highly on many individual measures, driving behavior that aligns as closely moving its corporate office to the The Netherlands of Excellence for Testing and Research Singapore including supportive regulations, road as possible to human performance city-state, although much research 1.00 of Autonomous Vehicles at Nanyang 1.00 infrastructure quality, exposure to AV in an open traffic system. Finally, the and development work will stay Sweden Technological University (Cetran) in Norway testing and market share of EVs. Netherlands are working on a “Vehicle in Britain.33 Ramamurthy says 0.97 November 2017,31 which includes bus 0.89 Safety & Security Framework (VSSF)” Singapore’s lack of conventional This balanced approach is shown in United States stops, traffic lights, skyscrapers, hills Australia to be able to assess the robustness of automotive manufacturing may prove the way the Dutch government is 0.97 and a rain-making machine to allow 0.86 in-vehicle software. to be a strength in developing EVs considering the potential to use AVs in United Kingdom realistic testing. The government is New Zealand and AVs, as they use a substantially freight, while working to improve safety As well as freight and private cars, 0.96 drawing on this facility in setting new 0.82 Singapore different set of components. He adds and enhancing the legal framework. Dutch companies are working on road traffic rules, which are due to be Finland 0.92 that the relatively low number of the potential for AVs in private published by early 2019. 0.80 electric charging points is presently On freight, it plans to have dozens of industrial environments with foreign Source: World Economic Forum, Global Competitive Source: GSMA Global Connectivity Index, 2017 Index 2018 Singapore has also announced that a weakness, but that electricity driverless delivery trucks operating closely manufacturing and logistics firms.30 Such three areas, Punggol, Tengah and providers and others are planning to together on international highways. In a uses may precede AVs on urban Dutch the Jurong Innovation District, will install more of these. March 2018 speech, Dutch infrastructure roads, which are much busier than in the he Netherlands is T use driverless buses and shuttles for he government is very T minister Cora van Nieuwenhuizen said US and other countries: “We have a lot spreading its AV bets Singapore taxes private cars heavily, proactive in thinking about the country will work with Germany off-peak and on-demand commuting of bicycles,” points out Stijn de Groen, which provides a way to promote and Belgium to introduce ‘truck Manager Digital Advisory, Executive for across projects including from 2022, and it is working with AVs — at a cost. “Effectively the the future of mobility. It platooning’ along the ‘Tulip corridors’ from Automotive, KPMG in the Netherlands. truck platooning pilots, the Netherlands on an international pricing is done to discourage people is seriously investigating standard for AVs. In November 2018, a Amsterdam to Antwerp and Rotterdam to “In urban, crowded areas it will be very public transport in bus operator announced a year-long trial from driving,” says Ramamurthy. the possibilities as well as the Ruhr valley, with the aim of enabling convoys of at least 100 trucks and difficult to start autonomous driving.” airports and transporting of a self-driving shuttle service at the “That brings with it a whole set of preparing for a regulatory As a result, it may make more sense to opportunities.” At present, around eventually self-driving vehicles at night.28 keep transport modes separate rather containers in harbors. National University of Singapore’s Kent two-thirds of the price of a car is tax. environment that will Ridge campus, starting in March 2019 She also said that she would work to than integrating AVs to work there. “There is a lot of policy room for the facilitate a future that is connect vehicles using 5G technology — Loek Kramer and operating on actual roads, although Sector Lead for Automotive, it will only carry passengers after initial government to do things to promote autonomous. and install 1,200 smart traffic lights. “The Netherlands is spreading its AV adoption, should it wish,” he says. This would build on the Netherlands’ bets across projects including truck KPMG in the Netherlands tests are complete.32 — Satya Ramamurthy existing leading status on availability of platooning pilots, public transport in Bio Partner, Head of Infrastructure, EV charging stations, something also airports and transporting containers Government and Healthcare, recognized in this index. in harbors,” adds Loek Kramer, Sector KPMG in Singapore Lead for Automotive, KPMG in the The ministry also announced a legal Netherlands, summing up the Dutch Bio framework for autonomous driving. approach of looking for opportunities The Experimenteerwet zelfrijdende auto to use AVs across road transport, (law governing the experimental use rather than just for cars. 14 2019 Autonomous Vehicles Readiness Index 2019 Autonomous Vehicles Readiness Index 15
3 Norway 4 United States Policy and legislation 7 Technology and innovation 2 Infrastructure 7 Consumer acceptance 3 Policy and legislation 9 Technology and innovation 3 Infrastructure 8 Consumer acceptance 6 Following the legalization 2019. Norway has a specialist supplier Availability of the latest technologies — The US is home to advantage for suppliers according to Capacity for innovation — score by in this area, Applied Autonomy.38 Such score by country (top 5) Ted Hamer, Managing Director and country (top 5) of AV testing in January, work is reflected in Norway’s strong Finland the world’s leading AV Head of Mobility, KPMG in the US. “If United States several cities now have performances in both the technology 1.00 companies and a lot of one state is really tight in its restrictions 1.00 and innovation pillar, where it is Norway and another isn’t, you have the ability Israel driverless minibus services 0.97 testing work, but the lack of 0.97 second, and consumer acceptance, to adapt and to move around,” he says, and Norway is also working where it is third. Israel a strong national approach whether for testing, manufacturing Sweden on truck platooning. 0.95 means individual states or deployment. Arizona had broader 0.90 Ståle Hagen, Director, Head of Sweden rules on AVs, leading to it being used Germany On 1 January 2018, Norway legalized Transport and Mobility, KPMG in 0.94 have to work hard to attract for several pilot projects, although it 0.90 AV testing on public roads,34 and Norway, says the bus tests involve United States AV businesses. has tightened these since the Uber The Netherlands operators have started small-scale a variety of environments, including 0.93 accident in May. 0.86 autonomous bus services as a business parks, urban streets and Source: World Economic Forum Networked Readiness The United States (US) is home to Source: World Economic Forum Networked Readiness result. In May, a Stavanger transport even a service from a shopping center Index, 2018 companies that lead the world in AV Hamer adds that some states do Index, 2018 provider gained the right to run to a beach.39 “The feedback on AV development, while the country’s an excellent job of supporting AV driverless minibuses, and from June technology has been quite positive. Market share of electric cars — score by mainstream vehicle makers are development in a joined-up fashion, Efficiency of legal system in challenging to December 2018 it ran a free service Passengers are not afraid of using this country (top 5) working hard to establish AV fleet and in the way some countries do at regulations — score by country (top 5) in Forus.35 However, initial regulations kind of transport,” he says. Familiarity ride-hailing services. This contributes national level. In May 2018, Ohio’s Finland Norway meant there was always an employee is developing for another reason: “Fifty 1.00 to strong US performance in the outgoing governor John Kasich 1.00 on-board who could apply a brake, percent of all the cars sold in the Oslo technology and innovation pillar, where signed an executive order opening AV United States Sweden only six passengers were allowed region are now electric and these cars 0.16 it is third. It moves from third to fourth testing on the state’s roads, one of 0.99 and the maximum speed was 7.5mph are prepared for autonomous driving.” overall as a result of Norway joining a number of projects coordinated by New Zealand The Netherlands (12kph).36 0.07 the AVRI, and scores less well on DriveOhio, a one-stop shop launched 0.87 Norway has by far the highest market infrastructure, where it is eighth, and in March.41 The Michigan Economic Germany China Ruter, the mass transit provider for penetration of EVs in the index, 0.06 policy and legislation, where it is ninth. Development Corporation has taken 0.87 Oslo, announced in October 2018 contributing to its second place in United Kingdom advantage of the state being home to The Netherlands it is starting similar tests with a the technology and innovation pillar. The US Department of Transportation 0.04 the biggest vehicle manufacturers,42 0.84 Danish company, with the aim of Ketil Marcussen, Partner, Infrastructure published Automated vehicles 3.0 Source: International Energy Agency, Global EV while Massachusetts has successfully Source: World Economic Forum Networked Readiness having 50 such minibuses in use Sector, KPMG Norway, says this is due detailing its approach to AVs in October Index, 2018 outlook 2018. encouraged adoption of EVs through a by 2021.37 Elsewhere, the national to generous tax breaks, exemptions 2018.40 The report’s principles include 2017 law.43 road administration has been testing from road tolls and parking charges, prioritizing safety; remaining technology automated truck platooning in the access to bus lanes, free charging he feedback on AV T neutral; preparing for automation The Virginia Department of here is recognition T north of Norway, and pilots of stations and the country’s cheap technology has been through guidance and pilot programs; Transportation's (VDOT) also launched that states have to start autonomous taxis are set to start in home electricity. and protecting and enhancing freedoms program to help guide the department quite positive. Passengers enjoyed by Americans — such as in the deployment of AV related laying the groundwork are not afraid of using this driving their own vehicles, emphasizing technologies and initiatives.44 for connected vehicles kind of transport. Fifty that AVs will operate alongside human- and the infrastructure driven motorized vehicles and other He adds that a year ago, many states percent of all the cars road users. were focused on attracting AV testing that underlies them, and sold in the Oslo region are work, but this has developed: “There understand where AVs now electric and these The document also says the is recognition that states have to start are going to be deployed, department “will encourage a laying the groundwork for connected cars are prepared for consistent regulatory and operational whether it’s urban vehicles and the infrastructure that autonomous driving. environment” across the US. underlies them, and understand where environments or more in However, states and cities have AVs are going to be deployed, whether freight and logistics. — Ståle Hagen significant control of transport work, it’s urban environments or more in Director, and differences in approach can be an freight and logistics.” — Ted Hamer Head of Transport and Mobility, Managing Director and KPMG in Norway Head of Mobility, Bio KPMG in the US Bio 16 2019 Autonomous Vehicles Readiness Index 2019 Autonomous Vehicles Readiness Index 17
5 Sweden 6 Finland Policy and legislation 10 Technology and innovation 6 Infrastructure 6 Consumer acceptance 4 Policy and legislation 4 Technology and innovation 8 Infrastructure 11 Consumer acceptance 5 Sweden trials electric- gave Swedish vehicle maker Volvo People and civil society adoption of new Finland is focusing on driverless bus services in 2021.52 Efficiency of legal system in challenging permission to begin real-world tests of technologies — score by country (top 5) Meanwhile, local AV company Sensible 4 regulations — score by country (top 5) charging roads, AV trucks its self-driving cars in the Gothenburg getting AVs to work in is developing automated minibuses that Finland Sweden and driverless buses, while area.47 AV truck maker Einride and 1.00 winter conditions and work in harsh Finnish winters. It recently 1.00 working on revamped German logistics group DB Schenker The Netherlands automated bus services — partnered with Japanese designer Muji United States have been piloting use of a 7.5 tonne 0.99 to develop Gacha, an all-weather AV bus 0.99 legislation for 2019. electric AV truck between two logistics Norway and is repainting the yellow that also aims to look elegant.53 New Zealand In April 2018, Sweden opened what centers since November 2018, and 0.96 lines on its roads to an AV- 0.87 hope to gain regulatory approval for its Finland, a new entrant to the AVRI, Germany is believed to be the world’s first use on public roads in January.48 Germany friendly white. scores well on having supportive 0.87 electric-charging road, a 2km stretch 0.93 regulations, its judicial system, the The Netherlands near Arlanda airport. An electric truck United Kingdom Finland is exploiting its cold climate “There is a positive tone from law- number of AV companies and the 0.84 belonging to PostNord, the Swedish- 0.92 through research on how AVs can makers and policy-makers in Sweden.” availability of the latest technologies, Source: World Economic Forum Networked Readiness Danish postal company, uses it to Source: KPMG International, 2019 handle icy roads and tracks. In says Christoffer Sellberg, Head of although it is among the lowest for Index, 2018 recharge automatically while moving December 2017, government research Automotive, KPMG in Sweden “They investments. “Finland has a positive legal between the airport and a logistics organization VTT showed its robot believe that AVs will improve traffic Infrastructure quality for logistics and and regulatory environment. The traffic Availability of the latest technologies — center 12km away. The road joins car Martti driving autonomously on a safety, contribute to the efficiency of trucking — score by country (top 5) safety authority is quite permissive, score by country (top 5) another recharging pilot, which uses snow-covered road, and the project the transportation system and be a part granting permits for trials to anyone who Finland overhead cables on a motorway near Germany team has since added 5G technology of Sweden’s sustainable perspective. 1.00 is interested in experimenting with AVs,” 1.00 Gävle, both supported by the Swedish to the vehicle.49 Future work will However, the legislation needs to be says Henry Beniard, Global Strategy Norway Transport Agency.45 Japan include off-road driving on tracks and further adopted to facilitate a gradual 0.93 Group, KPMG in Finland. “The entire road 0.97 at night. Other research includes introduction of automated vehicles.” Sweden network is available for experimentation.” Israel Sweden is second only to Norway in Swedish truck maker Scania trialing 0.92 0.95 adopting EVs, which means developing He adds that Sweden’s reputation truck platooning in icy conditions, He adds that the government has The Netherlands Sweden infrastructure that will be used by AVs. for innovative technology is a major and a 5G network established in the recently passed two new laws that 0.90 0.94 But its government is also undertaking strength. Sweden’s road and mobile northern town of Oulo that allows enable AVs. The Transport Service Law Austria United States direct measures, proposing legislative infrastructure networks also add organizations including VTT to test opens taxis to competition, allowing 0.88 0.93 changes, likely in July 2019, that will to the country’s strength. These applications such as AVs.50 ride-hailing services to gain access Source: World Economic Forum Networked Readiness open up for driverless trials for certain factors contribute to Sweden’s high Source: World Bank Logistics Performance Index, 2018 from 2020, and permits someone Index, 2018 class of vehicles (Class II). Driverless minibuses are a priority placement in this year’s Autonomous to control a vehicle remotely.54 The in Finland, with Helsinki’s transport Vehicle Readiness Index (AVRI); with Road Traffic Act will integrate detailed The transport agency has already authority having run trials since 2015, permitted small-scale AV pilots. These Sweden among the highest-rated for here is a positive tone from T when it introduced a free, temporary location data on roads, signs, traffic inland has a positive F include a driverless bus service which government readiness for change, law-makers and policy-makers service from a train station.51 In May lights and other control mechanisms legal and regulatory AV company headquarters, capacity for AV operators to use, and is set to started running on 1.5 kilometer section for innovation, road infrastructure for in Sweden. They believe that 2018, the city introduced a regular repaint the continuous yellow lines on environment. The traffic of public road in northern Stockholm AVs will improve traffic safety, ‘Robobus’ service running on public safety authority is quite logistics, civil society technology use Finnish roads in white, partly as these in January 2018, which is free to use roads on a trial basis, with a non- and has an emergency human driver.46 and consumer adoption of technology. contribute to the efficiency driving human operator. It plans are easier for machines to detect.55 permissive, granting In September 2018, the agency of the transportation system to introduce commercially viable permits for trials to and be a part of Sweden’s anyone who is interested sustainable perspective. in experimenting with However, the legislation AVs. The entire road needs to be further adopted network is available for to facilitate a gradual experimentation. introduction of automated — Henry Beniard vehicles”. Global Strategy Group, KPMG in Finland — Christoffer Sellberg Head of Automotive, Bio KPMG in Sweden Bio 18 2019 Autonomous Vehicles Readiness Index 2019 Autonomous Vehicles Readiness Index 19
7 United Kingdom 8 Germany Policy and legislation 2 Technology and innovation 9 Infrastructure 12 Consumer acceptance 10 Policy and legislation 6 Technology and innovation 4 Infrastructure 13 Consumer acceptance 13 Supportive legislation and an and world-leading policy; it has seen Data sharing and open data Germany has a national Transport and Digital Infrastructure. AV-related industry partnerships — many positive announcements regarding environment — score by country (top 5) “This includes working closely with score by country (top 5) increasingly coordinated national both private sector initiatives and local strategy for AVs and plans automotive and IT sectors as well as United Kingdom Germany strategy address key barriers. and central government strategies,” says 1.00 for using them ethically but universities and research institutions. 1.00 Public trials are ramping up. Sarah Owen-Vandersluis, Partner, Head Canada its federated structure, which The legal requirements for the use of Israel of Public Mobility Strategy, KPMG in 0.87 the first highly automated and fully Infrastructure presents an the UK. “In both the public and private France can spur innovation in regions, automated driving functions for regular Canada 1.00 opportunity for improvement. sectors, the pace and scale of activity 0.81 may threaten consistency at operation in road transport have been 1.00 is rapidly increasing. New initiatives and in place since 2017. Germany is thus a The United Kingdom (UK) continues to collaborations are beginning to identify United States the country level. global pioneer.” South Korea 0.77 1.00 be a leader on policy and legislation and benefits like improved accessibility, South Korea Since 2015, the German government has United States performs well across a number of sub- Several of Germany’s powerful states productivity, safety and economic growth, 0.77 followed a national AV strategy and has 1.00 pillars. However, it needs to continue are also working on AVs. North Rhine- and prove the commerciality of new Source: Open Data Barometer, 2018 recently started working to ensure that Source: KPMG International, 2019 proactive efforts to address the critical Westphalia, which includes Cologne business models.” AVs are used ethically, including protecting factors of infrastructure and consumer and Düsseldorf, has established acceptance. The UK has moved down The UK faces challenges concerning people rather than property or animals.61 Consumer adoption of online ride-hailing a Zukunftsnetz Mobilität (future AV-related patents (per capita) — score two places in 2019, but only due to digital and physical infrastructure, “Last year, the Federal Government apps — score by country (top 5) of mobility) network to support by country (top 5) high-performers Norway and Finland especially since investments in this passed an action plan on the report by an municipalities,64 with the promotion joining the index. sector take time to bear fruit. It lags China Ethics Commission on Automated and Japan of AVs among its tasks. Berlin and behind other countries in 4G coverage, 1.00 Connected Driving,” says Moritz Püstow, 1.00 The UK government’s forward-thinking Brandenburg (the state surrounding the global connectivity, quality of roads United States Partner, KPMG Law in Germany. “The South Korea approach to deploying AVs places it second capital) are both analyzing the market (especially smaller roads) and logistics 0.83 government has developed measures to 0.86 on the policy and legislation pillar, and for research and development work on infrastructure. Promisingly, extensive United Kingdom implement these ethical rules. It is unique Germany first on the new data-sharing sub-pillar. In AVs. Public transport providers in Berlin, investments are being made in 5G to 0.65 worldwide.” 0.75 August 2018, the UK Parliament passed Hamburg and Frankfurt, as well as the connect 5G test beds and test tracks. Finland United States the Automated and Electric Vehicles Act, 0.61 More generally, based on the coalition national railway company Deutsche 0.34 which adapts the existing motor insurance Regarding physical infrastructure, the Norway agreement for Germany’s new federal Bahn, are testing autonomous buses in United Kingdom framework by extending compulsory UK’s island geography — and therefore 0.57 government from February 2018, a a range of settings, and there are more 0.25 insurance to AVs as well as the driver.56 In short freight journey distances, a larger legal framework is being developed to than 20 AV test sites nationwide. Source: Statista, 2018 Source: PatSeer, 2018 November, the government announced number of bends on motorways and allow autonomous driving in specific As with the UK, Germany moves down support for three public trials in 2021, frequent junction points — may inhibit the settings.62 two places as a result of new entrants including AV buses across the Forth development of truck platooning, which The coalition agreement also led to in the index. It records the best score for ast year, the Federal L Bridge in Scotland and self-driving taxis in is an early opportunity for AV technology. he UK continues to T the government agreeing to establish road logistics infrastructure, as well as Government passed an London.57 Additionally, in December 2018, However, physical infrastructure will the UK Parliament published an extensive improve as the UK government delivers make strong progress a National Platform Future of Mobility strong results on industry partnerships action plan on the report towards AV adoption, as task force,63 which will consider and AV-related patents. While Germany’s report outlining their proactive approach to increased investment across the road digitalization among other topics. powerful automotive industry gives by an Ethics Commission pursuing the benefits of MaaS.58 network and key infrastructure operators a center of innovation the country a strong base, with Bosch on Automated and collaborate with central government and and testing, which is Cross-government collaboration has also “The German federal government particularly active in filing patents on Connected Driving. It is industry to support the deployment of AVs. been effective. For instance, the Law supported by world class is systematically implementing its AV technology, Püstow says the highly unique worldwide. Commissions of England and Wales Improving consumer acceptance will strategy for automated and connected devolved nature of government — with policy and legislation. driving,” says Christine Greulich, and Scotland are currently reviewing the be critical for the deployment of AVs. more than 11,000 municipalities — Division Head, Automated Driving — Moritz Püstow UK’s legal framework for AVs, due to be To achieve this, government and industry — Sarah Owen-Vandersluis makes it difficult to set national standards Partner, completed in March 2021.59 Across the have a role to play in communicating the Partner, and Intelligent Transport Systems and strategy. KPMG Law in Germany UK, there has been a concerted effort to benefits of AVs and the efforts being Head of Public Mobility Strategy, at the German Federal Ministry of develop CAV strategies, business plans and taken to ensure their safety. In part, this Bio KPMG in the UK road maps, with recent initiatives spanning can be achieved through rigorous testing Bio Scotland, the West Midlands and the UK’s and the publication of safety standards — federal Department for Transport (DfT). such as the new cyber security standard for AVs, published in December 2018.60 “The UK has made a lot of inroads, with big investments, a committed government 20 2019 Autonomous Vehicles Readiness Index 2019 Autonomous Vehicles Readiness Index 21
9 United Arab Emirates 10 Japan Policy and legislation 11 Technology and innovation 14 Infrastructure 5 Consumer acceptance 7 Policy and legislation 15 Technology and innovation 5 Infrastructure 3 Consumer acceptance 18 The UAE is boosted by making its government paperless by Road infrastructure quality — score by Japan performs well on 2018 saw AV proofs of concept by public AV-related patents (per capita) — score 2021.67 Dubai aims to run “all applicable country (top 5) and private-sector organizations focused by country (top 5) good road quality and high government transactions” through innovation and infrastructure on taxis and buses within defined areas, United Arab Emirates Japan consumer opinion of AVs, but blockchain, a decentralized system 1.00 and sees a specific need for including airports. Iguchi says that the 1.00 does less well on data-sharing, that uses encryption to make data Singapore AVs for its aging population, development of AVs in Japan means South Korea entered permanent and unalterable, 0.99 dealing with strong regulations, pressure 0.86 AV businesses and patents. which can be used for ‘smart contracts’ The Netherlands but needs more deregulation groups and technical problems caused Germany The United Arab Emirates (UAE) that automate transactions between 0.93 and promotion. by snowfall and earthquakes. “The 0.75 multiple parties. Such contracts could Japan problems of aging public infrastructure, United States moves up one place relative to the Japan performs strongly on technology be used by AV operators to handle 0.88 in roads, tunnels and bridges, and their 0.34 other countries in the AVRI because and innovation, where it is fifth overall payments for charging or selling data France maintenance costs are also serious,” he United Kingdom it has outpaced other countries in the and has the most AV-related patents. It generated by vehicles. 0.86 adds. 0.25 consumer acceptance pillar, with the also does well on infrastructure, where third most-positive consumer opinions “With Dubai’s enthusiasm for Source: World Economic Forum, Global Competitive it is third overall and has the second- He believes that deregulation and Source: PatSeer, 2018 Index 2018 of AVs. It leads the measures on road technological innovations, in particular highest scores for both 4G coverage a campaign to promote AVs led quality and the change readiness of its forays into artificial intelligence and and road logistics infrastructure. These by leading companies would be of its technology infrastructure, and also Consumer opinion about AVs — score Extent of 4G coverage — score by blockchain, the UAE is well-positioned help improve its ranking, despite the benefit. “There are great opportunities scores highly for its government’s by country (top 5) country (top 5) to do even better in the future,” says entry of new countries above it. It is surrounding the 2020 Olympic overall change readiness. It scores Ravi Suri, Partner, Global Head of India mid-table on policy and legislation and Games in Tokyo. This means there is a South Korea less well on data-sharing, AV company Infrastructure Finance, KPMG in the 1.00 consumer acceptance, and currently possibility that the practical application 1.00 headquarters and AV-related patents. Lower Gulf. “These are technologies that Mexico has one of the lowest uses of online of automatic driving will be accelerated Japan should enable the introduction of AVs.” 0.99 in the next couple of years,” he says. 0.92 Dubai, the UAE’s largest city, aims to ride-hailing. United Arab Emirates There is already political will behind Norway make 25 percent of all transportation Newly built Masdar City, in Abu Dhabi 0.97 The use of AVs in Japan will be 0.85 this: in June, an economic review by autonomous by 2030, based on a in the UAE, has transported more than Russia influenced by its status as a rapidly United States the government included plans to start strategy launched in 2016 that focuses two million people on its Personal 0.87 aging society, where a quarter of the 0.78 testing AVs on public roads, followed on environmental and efficiency Rapid Transit driverless pods since Brazil population is older than 65, according The Netherlands by a public service for the 2020 Games, improvements and is expected to 2010, running on special guideways. 0.83 to Koichi Iguchi, Partner, Head of Global 0.76 then a commercial offering by 2022.69 generate AED22 billion ($US6 billion) In October 2018, the city launched a Source: KPMG International, 2019 Strategy Group, KPMG in Japan. This Source: Open Signal, 2018 annually.65 In September 2016, Dubai’s regular AV minibus service, with plans means a focus on reducing accidents Road and Transport Authority trialled an to launch seven more in 2019.68 and congestion, improving efficiency AV shuttle on a 700m route, offering ith Dubai’s enthusiasm W and — in particular — providing here are great T free rides to commuters.66 for technological mobility for older people, particularly opportunities surrounding Other technology initiatives by Dubai innovations, in particular in rural areas. Hundreds of towns and the 2020 Olympic Games villages have no doctors, millions of may contribute to these ambitions. its forays into artificial older people have difficulty shopping in Tokyo. This means there In October 2018, it announced the launch of a government-endorsed intelligence and and there has been a sharp increase is a possibility that the blockchain platform, using technology blockchain, the UAE is in those who have had to return their practical application of driving license over the last decade. from IBM, as part of a move towards well-positioned to do automatic driving will be even better in the future. accelerated in the next These are technologies couple of years. that should enable the — Koichi Iguchi introduction of AVs. Partner, Head of Global Strategy Group, — Ravi Suri KPMG in Japan Partner, Global Head of Infrastructure Finance, Bio KPMG in the Lower Gulf Bio 22 2019 Autonomous Vehicles Readiness Index 2019 Autonomous Vehicles Readiness Index 23
11 New Zealand 12 Canada Policy and legislation 3 Technology and innovation 16 Infrastructure 17 Consumer acceptance 8 Policy and legislation 8 Technology and innovation 11 Infrastructure 16 Consumer acceptance 11 New Zealand’s strong mainly quiet roads, mobile networks Effectiveness of the legislative process — Canada has a good quality Pilot Program, started in 2016 and Government-funded AV pilots — score are patchy and current vehicles are score by country (top 5) involving Uber — which is testing self- by country (top 5) government performance a mixture of new cars from Europe Singapore workforce and strong driving vehicles in Toronto — Canadian Canada partly counteracts lack and second-hand imports from Asia. 1.00 government leadership, with technology company BlackBerry 1.00 of scale and domestic Istvan Csorogi, Director, Advisory, New Zealand Ontario allowing tests of and the University of Waterloo.74 Czech Republic KPMG in New Zealand, says this will 0.88 The province has established an 1.00 manufacturing, and the make it harder to introduce infrastructure United Kingdom fully driverless vehicles, but Autonomous Vehicle Innovation Singapore country has opportunities in for AVs. 0.85 the country’s large size and Network and an Automotive Supplier 1.00 Norway Competitiveness Improvement software and agriculture. However, it does have excellent 0.79 remote locations may stretch Program, the latter providing matched South Korea 1.00 New Zealand has a strong governance, recognized by its third place Sweden AV infrastructure. funding for innovation by smaller China on policy and legislation and high scores 0.79 suppliers.75 reputation as a place to develop Canada’s main strengths on AVs 0.91 for AV-focused agencies, effectiveness of Source: World Economic Forum Networked Readiness new technologies, although further are the high quality of its existing Source: KPMG International, 2019 legislative process and quality of judicial Index, 2018 Earp says that specific challenges development often takes place workforce, its status as an attractive system. “New Zealand is well-placed in for AVs in Canada include designing elsewhere. Ohmio, a company that and open destination for skilled its readiness for AVs due to our robust systems that work in remote areas staged trials of its driverless minibuses Industry investment and partnerships in immigrants and strong leadership from Data sharing and open data regulatory and business environment,” AV-related firms (per capita) — score by and urban environments, and work at Christchurch airport, announced in different levels of government that environment — score by country (top 5) says Richard Cross, Manager, Strategic country (bottom 5) needed on exporting and international June 2018 a new joint venture with the see the potential benefits, according United Kingdom Policy and Innovation, Ministry of New Zealand partnerships. However, he adds that city of Heshan in China, which would to Colin Earp, National Transport Lead, 1.00 Transport. “Our legislative process and 0.00 there are likely to be opportunities see manufacturing and much research KPMG in Canada. Canada relatively small size compared to many Czech Republic from the Investing in Canada Plan, move to that city.70 0.87 other countries means that we can be 0.00 through which the federal government “There’s this real feeling that transport France The government is working to agile. New Zealand regulators have a Finland is spending more than 180 billion drives not just economic productivity, 0.81 encourage early-stage work. The can-do attitude and a focus on finding 0.00 Canadian dollars (US$137 billion) over it drives social equity and commercial United States New Zealand Transport Agency has solutions and removing barriers.” The Hungary 12 years on a range of infrastructure. activity. In that respect, you’re seeing 0.77 identified an area of Christchurch government has defined a specific 0.00 The plan covers transport in two of civic, provincial and national leaders South Korea that was ‘red-zoned’ (categorized for testing framework for AVs.73 Mexico its five main areas, and in 2018, ran really begin to create an inclusive and 0.77 redevelopment after damage in the 0.00 a specific Smart Cities Challenge Csorogi says there is potential for the collaborative culture to drive better Source: Open Data Barometer, 2018 city’s 2011 earthquake) as a location Source: CrunchBase, 2018 competition for localities. The federal country to specialize: “In New Zealand, transportation in the future, including for the Christchurch Mobility Lab, a government has also supported it’s about developing the intelligence AVs,” he says. trial area for AVs.71 research into how AVs will change The country is already used by within these vehicles. I don’t think In New Zealand, it’s Canada’s economy and job market.76 here’s this real feeling T An example is Ontario, which is home companies testing the Cora, an we’ll ever produce mainstream AVs, about developing the to more than a third of the population that transport drives not but there is an opportunity to develop While Canada does relatively well on autonomous flying taxi.72 artificial intelligence and AV controls intelligence within and many vehicle and technology government and industry involvement, just economic productivity, New Zealand does not manufacture here.” This could focus on specific these vehicles. I don’t companies. The province has lifted it ranks low on 4G coverage, the two it drives social equity and some regulations on AVs, meaning vehicles or carry out mainstream areas including agriculture, drones think we’ll ever produce that from January 2019 completely infrastructure scores and EV charging commercial activity. In research and development, its and controlled environments such mainstream AVs, but driverless vehicles can be tested on its stations, and drops five places in the that respect, you’re seeing domestic market is small and many as campuses and airports. He adds overall index, partly due to two new that autonomy should have particular there is an opportunity roads. The changes are a development entrants higher in the index. civic, provincial and national technology companies are foreign- owned. In the index, New Zealand benefits for New Zealanders, where to develop artificial of Ontario’s 10-year Automated Vehicle leaders really begin to scores low on the number of AV the lack of central barriers makes intelligence and AV create an inclusive and companies and industry investments, lane correction an important safety collaborative culture to drive measure, something which may controls here. despite both being calculated per capita. The country’s low population take advantage of work the country better transportation in the — Istvan Csorogi future, including AVs. density and location provide particular is undertaking with Australia to augment the accuracy of GPS satellite Director, Advisory, challenges for AV adoption: there technology. KPMG in New Zealand — Colin Earp is little current justification for management infrastructure on Bio National Transport Lead, KPMG in Canada Bio 24 2019 Autonomous Vehicles Readiness Index 2019 Autonomous Vehicles Readiness Index 25
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