2019 ONTARIO CAV ECOSYSTEM ANALYSIS - Ontario Centres of ...
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CO N T E N T S Introduction & Methodology 2 Regulations & Background 4 Guidelines CAV Sector Analysis 14 Regulations & Guidelines 15 Investment 21 Investment Industry 25 Research & Development 28 Talent 33 Industry Summary of Key Findings 35 Summary of AVIN’s Role 36 Acronyms 38 End Notes 40 Research & Development Talent © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 1
I N T RO D U C T I O N & M E T H O D O LO G Y Introduction With the employment of 205,000+ technology WSP has been retained by the Ontario Centres for Excellence (OCE), and its Autonomous workers in the Toronto-Waterloo innovation Vehicle Innovation Network (AVIN) initiative, to provide an overview assessment of the CAV corridor alone, second only to Silicon Valley in ecosystem in Ontario. North America, Ontario has an outstanding history of success in both the automotive and The findings of the study, contained within this report, describe key industry trends in technology industries. 1 Ontario and globally, and show how Ontario can continue to enhance its strength in the CAV sector. Despite the downward trend in automotive manufacturing, Ontario has effectively The report comprises four main sections: leveraged its automotive history and strong position in technology development to • Background information on CAVs and the Ontario CAV sector; become a key player and leader in the development of cutting-edge connected and • A review of Ontario and global CAV activities and initiatives; autonomous vehicle (CAV) technologies. • A summary of key findings from the review; and With the advent of these technologies, Ontario • A summary of AVIN’s role in supporting the Ontario ecosystem. has a strategic opportunity to establish its leadership in this emerging field by combining The findings presented in this report are not intended to be exhaustive, but to provide a its existing automotive and technology strategic overview of key players, initiatives and programs, and high -level inventory of the industry expertise with the availability of local Ontario ecosystem. supply chains supported by continued research and innovation. This report reflects our analysis of primary and secondary research, which follows an evaluation framework that comprises five critical and interrelated elements of an attractive and competitive CAV ecosystem. 1. REGULATIONS & 2. INVESTMENT 3. INDUSTRY 4. RESEARCH & 5. TALENT GUIDELINES DEVELOPMENT © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 2
I N T RO D U C T I O N & M E T H O D O LO G Y Methodology Agencies and Organizations Interviewed Primary research was conducted through a series of industry stakeholder interviews and an online survey. Key players in the Ontario CAV sector provided first-hand and demonstrable insights including: Quotes and • Current and planned activities, as well observations as technologies and service offerings, from interviews that enable the sector. are highlighted throughout the • Motivations for pursuing CAV report. initiatives, specifically in Ontario. • Scope of resources dedicated to CAV activities and pursuits. • Strengths and challenges that the sector is currently facing. • Vision for the future, and Jurisdictions Reviewed opportunities to enable and expand the Ontario CAV ecosystem. Sweden Insight provided from the interviews has been augmented and reconciled with Norway information gathered through parallel Finland secondary research efforts, including a United States United literature review and jurisdictional scan. Kingdom Germany Netherlands Japan Note: Jurisdictions were chosen Singapore from the top 10 ranked countries in KPMG’s 2019 Autonomous Vehicle Readiness Index. 3 © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 3
B AC KG RO U N D What are Connected and Autonomous Vehicle Communication Types Vehicles? Vehicles can communicate with surrounding Connectivity and autonomy are two infrastructure such as traffic signal controllers and distinct but related main streams of traffic monitoring units. technology. Connected Vehicles VEHICLE-TO- VEHICLE-TO- Connected Vehicles (CVs) are able to VEHICLE EVERYTHING V2V V2X gather information from and communicate with other vehicles and their surroundings (e.g. infrastructure, pedestrians/cyclists), VEHICLE-TO- enhancing safety and mobility. CVs can INFRASTRUCTURE provide useful information to surrounding vehicles to help make safer and more informed decisions. 2 V2I Vehicles can communicate and Connectivity is achieved through share information with other established communications technologies, vehicles on the road. Examples including Dedicated Short-Range of such information include A catch-all term for communications Communications (DSRC) and cellular traffic conditions, speed, safety capability with other elements in the communications. Cellular connections, considerations, etc. road environment, such as commonly referred to as Cellular Vehicle- pedestrians or cyclists (V2P), and to-Everything (C-V2X) may use either 4G other central systems accessed LTE (Fourth-Generation Wireless Long- through Internet or cloud services Term Evolution) or next generation 5G (V2C). (Fifth-Generation Wireless) networks. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 4
B AC KG RO U N D SAE Levels of Vehicle Automation Autonomous Vehicles NO AUTOMATION Autonomous Vehicles (AVs) are A human driver is required for all aspects of the dynamic driving task. Vehicles may have equipped with onboard assistive technology providing warnings to the driver but cannot sustain vehicle control. equipment (e.g. cameras, LiDAR, radar) to sense the LEVEL DRIVER ASSISTANCE SYSTEMS A human driver performs most of the driving operation, with the automated surrounding environment without necessarily communicating with other 0 LEVEL system assisting with minor operations of the dynamic driving task. For example, with lane keeping assistance the driver controls the speed, while the automated system self-corrects steering toward the centre of the lane. vehicles or surrounding infrastructure. 4 1 Another example is Adaptive Cruise Control where the automated system controls the speed, while the driver controls steering. Level 1 automation is included in many vehicles available on the market. An AV combines data and PARTIAL AUTOMATION intelligence from its equipment LEVEL An automated driving system can be in control of the dynamic to automate various aspects of driving task including steering, acceleration, and braking. However, the dynamic driving task and navigate through the road network. 2 the driver must remain engaged in the driving task and monitor the environment at all times. Examples of Level 2 automation available to the public in Ontario include Tesla Autopilot, General Motors (GM) Super Cruise, Mercedes-Benz Distronic Pilot, and Nissan ProPilot. The Society of Automotive CONDITIONAL AUTOMATION Engineers (SAE) has LEVEL An automated driving system is in full control of the dynamic categorized AVs into six levels driving task including steering, acceleration, and braking. The of automation ranging from no automation (Level 0) to fully autonomous (Level 5). 5 3 vehicle is able to scan its environment, react accordingly, recognize its limitations, and request intervention by a human driver. The human driver does not need to consistently monitor the driving environment, but should be prepared to intervene if needed. There are currently no vehicles with Level 3 (or above) Note: The term ‘AV’ used LEVEL automation available for purchase in Ontario. throughout the report refers to Level 3 automation and above. LEVEL 4 HIGH AUTOMATION An automated driving system is able to perform the whole dynamic driving task including steering, acceleration, and braking within a defined environment, even if a human driver does not respond to a 5 request to intervene. The vehicle can come to a safe stop if it operates beyond the boundaries of its safe operating conditions. The human driver does not need to monitor the driving environment or be available to intervene with the driving task. FULL AUTOMATION An automated driving system performs the whole dynamic driving task independently and regardless of conditions, without the need for a human driver to be present. The vehicle is truly a self-driving entity and can decide to abort a trip and come to a full stop. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 5
B AC KG RO U N D Connected and Autonomous Vehicles As CV and AV technologies are complementary, it is most likely that combined CAVs will be much more prominent in the market i n the future than separate CV and AV offerings. For that reason, this report focuses on the combined CAV ecosystem, and its primary enabling t echnologies and critical considerations. CAVs Key Enabling Technologies and Considerations EMBEDDED SOFTWARE Embedded software is a critical CAV enabler, supporting V2V COMMUNICATIONS and V2I communications, Communications enable sensing, and advanced connectivity and are key to CAV analytics to drive CAVs. operations, providing the ability for a vehicle to communicate with SENSING TECHNOLOGIES other vehicles (V2V) and the surroundings (V2I/V2X). Sensing Technologies are key enablers to AV operations, ADVANCED ANALYTICS allowing the vehicles to Advanced analytics and artificial understand their surrounding intelligence (AI) are key enabling environment. technologies and techniques that are at the core of many parts of CAV systems. STANDARDS Compatibility and interoperability TALENT CYBERSECURITY across technologies, products, and Safe and secured transportation network for applications require the The evolving CAV sector demands CAVs and protection of personal establishment of and adherence to knowledge, expertise, and technical information rely on effective cybersecurity appropriate standards. skill development. practices. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 6
B AC KG RO U N D COMMUNICATIONS SENSING TECHNOLOGIES EMBEDDED SOFTWARE Communications enable connectivity and Sensing Technologies are key enablers to AV With innovations in V2V and V2I are key to CAV operations, providing the operations, allowing vehicles to understand communications and sensing ability for a vehicle to communicate with their surrounding environment. Relevant technologies, as well as AI and data other vehicles (V2V) and its surroundings technologies include: analytics, embedded software is a (V2I/V2X). Critical protocols and network critical enabler to the successful technologies include: • Cameras: passive sensors providing video development of CAVs. images (e.g. front view, rear view, and 360°). • DSRC (Dedicated Short-Range Because cameras represent light reflected by Embedded software is computer Communications): a technology for the surrounding environment, their software written to control machines vehicle-related wireless performance is impacted by environmental or devices that are not typically communication; industry-proven conditions including darkness, rain, etc. thought of as computers, commonly through a wide range of applications, Camera images generally need to be known as embedded systems. In including tolling and transit signal interpreted through AI to detect and classify vehicles, the embedded software is priority. objects. rugged in nature and written for the specific hardware of the vehicle, and • 4G LTE (Fourth-Generation Wireless • Radar (Radio Detection and Ranging): the can be used for a variety of purposes, Long-Term Evolution): the current detection and localization of objects using such as safety management, engine standard for wireless broadband radio waves. Although a radar has a limited control, networking, and infotainment. communication, with wide network ability to classify objects, it provides Modern vehicles rely on a steadily coverage in Ontario. accurate distance estimation to a detected increasing number of object, and its performance is not affected • 5G (Fifth-Generation Wireless): the microprocessors, and a corresponding by the environment. VORAD (Vehicle next generation of wireless broadband increase in embedded computing, to Onboard Radar) is the common term for communication, with promises of support features such as electronic radar used in the automotive industry. lower latency and increased stability control, anti-lock braking bandwidth and reliability over 4G LTE. • LiDAR (Light Detection and Ranging): a systems, collision avoidance, and laser-based sensing system that emits laser adaptive cruise control. In North America, standards and deployed beams at eye-safe levels, used to construct pilots have focused on DSRC, in part due precise and highly accurate 3-D maps of to its proven and demonstrable surrounding environments. LiDAR provides performance. More recently, an increasing accurate distance estimation, and through number of industry and transportation AI, can detect and classify objects. professionals are advocating that connectivity be achieved through 5G, in Passive sensors sense and measure naturally part due to benefits for wide area V2X and occurring energy (e.g. cameras sense reflective improved performance. light). Active sensors, such as radar and LiDAR, provide their own energy source (e.g. radio waves, laser light). © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 7
B AC KG RO U N D ADVANCED ANALYTICS / ARTIFICIAL INTELLIGENCE (AI) / MACHINE LEARNING (ML) Advanced analytics and artificial intelligence (AI), including machine learning (ML), are key enabling technologies and techniques at the core of many parts of CAV systems. They are responsible for analyzing sensor data, visualizing the surrounding environment, predicting behaviours, and guiding vehicle movements. Advanced analytics refer to a wide range of analytic tools and techniques, and cover a wide range of analytics, including descriptive, diagnostic, predictive, and prescriptive. AI is a subset of advanced analytics that simulates human intelligence, and aims to replicate the ability of humans to analyze data, draw conclusions, and interact with humans in a human-like way. ML is a category of AI, where the system is able to automatically learn, improve, and optimize through experience. By being able to learn and adapt on its own, ML allows predictions to be made at a scale and speed not possible for human analysts to achieve. CYBERSECURITY STANDARDS TALENT Cybersecurity is vital for the development Standards are critical building blocks in Knowledge, expertise, and technical skill of a safe and secured transportation the facilitation, development, and development is critical to the success of network for CAVs, and the protection of deployment of CAVs. They support the an evolving industry such as CAVs. personal information. compatibility and interoperability across technologies, products, and applications. The development of new innovative Cybersecurity protects connected technologies depends on ready access to systems, networks, data, and programs Standards are documented specifications talent with the necessary education, (including software and hardware) from and procedures that ensure reliability of training, and skillsets required by cyberattacks, and prevents sensitive materials, products, processes, and industry. Attracting international talent is information from being tampered with. services. also a key contributor to the industry. Priority areas of advanced expertise, With large quantities of data and A wide range of standards are pertinent knowledge, and skills include emerging information being created and stored by to CAVs, including communications areas such as embedded software CAVs, as well as increased connectivity protocols, data formats and definitions, development, AI/ML, and cybersecurity. between transportation infrastructure, security and safety, performance, testing cybersecurity is becoming ever more methodologies, and infrastructure and critical and important. Without robust geometric design. cybersecurity protections, systems and networks are vulnerable to the threat of disruption due to cyberattacks, data theft, and potentially the failure of autonomous driving systems and smart road infrastructure. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 8
B AC KG RO U N D Key Players Academia / Research Universities and colleges have developed research programs in collaboration with industry partners The key players in the Ontario CAV sector and government agencies, enhancing capacity to train the next generation of skilled workers. In can be aggregated into four categories (see addition to its academic institutions, Ontario is home to research centres, which run research pages 14 – 34 for a more detailed description programs and activities in affiliation with industry and universities. of specific activities and contributions). Economic Development / Entrepreneurial Accelerators Government Economic development and entrepreneurial accelerators support companies to advance in their field The Federal Government plays a large role in of specialization. Accelerators provide organizations with business advisory services, assist with the national vehicle safety standards, ensuring identification of funding opportunities, and connect them with talent to grow their employee base. the security of the transportation network and overseeing telecommunication infrastructure. The Provincial Government and Municipal Governments are responsible for the provincial highway network and their local transportation networks, respectively. They are also responsible for the safe and effective integration of CAVs with their infrastructure and with the management of their traffic and transit. The Provincial Government is also responsible for setting the rules of the road in Ontario, as well as, for supporting a strong, Ontario is innovative economy. poised for leadership. Industry Industry priorities are the development of supporting and enabling technologies and the expansion of CAV-related products and services. Players in this group range from Small-Medium Enterprises (SMEs) to large Multi-National Enterprises (MNEs). Note: the diagram above is not intended as a full representation of all key players in the Ontario CAV Ecosystem. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 9
B AC KG RO U N D Potential CAV Impacts A CBC study indicated that through reduced congestion and improved fuel efficiency, CAVs have the potential Globally, over the past number of years, it has become to reduce the fuel costs, in Canada, by accepted wisdom – within both the public and private sectors – that CAVs will be a major disruptor to the current $2.6 BILLION . 8 transportation network and the economy. What that future will look like, and how quickly it will happen, remains unclear and It is expected that there will be a delay a source of extensive discussion. between when CAVs are widely CAVs will available for purchase in the market CAVs have the opportunity to introduce many benefits, impact how and when consumers will actually trade including an increase in traffic capacity of existing roadway government in their conventional vehicles for CAVs. infrastructure, improved traffic flow, improved safety, improved services are There is limited consensus on the fuel efficiency and, ultimately, an overall reduction in delivered. adoption rate of CAV technology, with Greenhouse Gas (GHG) emissions. 6 estimated penetration rates typically ranging between 10% and 50% by In Canada, CAVs could 2035. Generally, industry estimates of reduce collisions by more than 90% and CAV adoption are more optimistic on save $37.4 BILLION in monetary costs the availability of the technology and the timing of adoption, compared to academic sources. Academic sources tend to be more conservative in their (does not include societal costs). 7 predictions which reflect statistical models, stated preference surveys, the current state of the technology, and the projected evolution of The impact of CAVs on traffic congestion is a known topic of transportation authorities’ infrastructure and policy. debate. CAVs could potentially increase demand and induce increased vehicle kilometres travelled (VKTs) on the road, which could result in increased congestion. Conversely, it is The impact of CAVs with respect to economics, safety, and the environment possible that the improved efficiency will likely be greatest with heavy vehicles and, as such, the adoption of CAVs of CAVs could support higher in the goods movement and transit agencies will likely progress differently throughputs on transportation than those for personal use. We need to networks, offsetting the effects prepare for a Moving forward, as wider CAV adoption is realized, and depending on the that increased demand could time when operational and technical needs as CAV technologies evolve, infrastructure otherwise have on vehicles can changes and modifications are likely to be needed, and may include: congestion. 7 operate without The fabric of urban environments a driver. • Changes to signing and lane markings to support autonomous driving. also stands to change as a result • Integration with traffic signals and other control devices to enhance of CAVs. Potential decreases in vehicle ownership are expected safety and better manage traffic. as a result of individuals using shared vehicles for trips through third party transportation network companies. This could result • Dedicated lanes and/or facilities for CAVs. in a reduced demand for parking and the subsequent repurposing of land in dense urban cores. 8 Note: all monetary values mentioned in this report are in Canadian Dollars (CAD) unless otherwise specified. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 10
B AC KG RO U N D Consumer Acceptance Canada’s AV consumer acceptance was ranked The successful development, deployment, and adoption of CAVs rely heavily on public acceptance of the use of the technology and willingness to change their travel behaviour. 7 OUT OF 20 In turn, consumer acceptance will reflect perceptions about CAV privacy, reliability, and safety, and cost. 11 OUT OF 25 countries, Key Research Studies in 2018 and 2019 respectively. To better understand the consumer acceptance of AVs in the Greater Toronto and Hamilton Area (GTHA), Transform Lab at Ryerson University carried out the study – KPMG, Autonomous Vehicle Readiness Index 2018 & 2019 9, 3 Autonomous Vehicles: Public Policy Considerations and Consumer Interest in the GTHA , funded by the City of Toronto and Metrolinx. Its findings reflected consumer surveys KPMG carries out an annual Autonomous Vehicles with over 3,200 participants, Readiness Index report, which includes an assessment of ranging in age from 18 consumer acceptance. 9, 3 In 2016, the Traffic Injury to 75, conducted in Research Foundation (TIRF) also conducted a national November 2016, and Focus group participants showed interest in, and survey on driver knowledge, attitudes, perceptions, and five focus group ARE WILLING TO USE, practices relating to AV. 10 studies held in driverless cars – Driverless Cars in the mid-2017 and Greater Toronto and early 2018. 11, 12 OCCASIONALLY Hamilton Area: Focus Group Findings from Canadians think but are also apprehensive of AVs and 2018 11 it is more NOT PREPARED TO STRESSFUL FULLY ADOPT to ride in an AV broader behavioural changes. Many Canadians than relaxing, and did not anticipate demonstrated a much learning LACK OF AV needed to operate an AV. KNOWLEDGE . HALF Most respondents are willing to Approximately, 1/3 of respondents – Traffic Injury Research Foundation, "Senior Drivers & Automated Vehicles:0 of survey indicate interest in Knowledge, Attitudes & Practices," 2018 10 adopt AVs, respondents are sharing an AV with depending on the Conclusions interested in using another passenger at AVs. PRICE. a REDUCED PRICE. Consumers are getting more comfortable and showing an increase in AV acceptance, but clearly there is still a lot of work to be done to educate consumers. – Automated Vehicles in the Greater Toronto and Hamilton Area: Overview from a 2016 Consumer Survey 12 © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 11
B AC KG RO U N D The Autonomous Vehicle Innovation Network (AVIN) AVIN is a key part of Ontario's auto plan, "Driving Prosperity - The Future of AV Research and Development (R&D) 6 AVIN Regional Technology Ontario's Automotive Sector". AVIN is the Partnership Fund (Stream 1 & 2) Development Sites (RTDSs) Government of Ontario's initiative, delivered through the OCE, to support Supports projects relating to the development and Support Ontario-based SMEs to develop SMEs, post-secondary institutions, and demonstration of technologies in the CAV sector, in and test CAV technologies. other industry stakeholders to the areas of mass light vehicles, heavy duty vehicles, (see next page for more details) commercialize new products and services transportation infrastructure, Intelligent Transportation PROGRAM AREAS in the automotive and transportation Systems (ITS), and transit-supportive systems and sector, and support Ontario's readiness for vehicles. Talent Development the adoption and deployment of these Provides Ontario college and university technologies. students and recent graduates AVIN Technology exposure to real world experience. AVIN's main objectives are: Demonstration Zone Participants get opportunities to apply Allows Ontario-based companies to test, validate, and their expertise and knowledge to solve • Commercialize CAV, transportation, showcase CAV technologies with live city infrastructure industry problems related to CAV and infrastructure system technologies. in Stratford, ON. technologies. • Build awareness, educate, and promote (see next page for more details) Ontario as a leader. • Encourage innovation and WinterTech AV Development Fund collaboration. Supports collaborative projects with resources to develop, test, validate, and • Leverage Ontario’s talent. commercialize products that will advance AV R&D concerned with severe winter weather • Support regional auto-brainbelt conditions. Collaborative projects must be within the development, prototyping, and clusters. validation stage at technology readiness levels 5-7. AVIN is ensuring Ontario's leadership in the automotive and transportation sector and the future of mobility through five AVIN Central Hub CENTRAL HUB program streams and a Central Hub. A dedicated team supporting the delivery and administration of AVIN programming through: • Connecting and coordination among key players, interested stakeholders, and the public. • Identification and support of opportunities. • Promotion of awareness and education of AVIN programs and initiatives, and promotion of Ontario's growing CAV community. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 12
B AC KG RO U N D AVIN Technology Demonstration Zone AVIN Regional Technology Development Sites (RTDSs) Located in Stratford, and operated by the Automotive Parts Led by local economic development and entrepreneurial support organizations, each Regional Manufacturer's Association (APMA), the AVIN Technology Technology Development Site (RTDS) has a specific focus area and provides access to Demonstration Zone (DZ) promotes a customer-centered and specialized equipment and facilities to encourage innovation and support development and demand-driven approach to the commercialization of innovation in testing of CAV technologies. Ontario, providing Ontario-based companies with a competitive Ottawa Region RTDS development option.13 Toronto Region RTDS Focuses on vehicular networks and Focuses on artificial intelligence (AI) and interoperability of communications, and The DZ allows Ontario-based companies to test, validate, and machine learning (ML) to improve CAV provides an end-to-end integrated AV perception. Led by MaRS Discovery District, test environment. Led by Invest Ottawa, showcase their innovative CAV technologies in a controlled in collaboration with University of Toronto, in collaboration with Carleton University, environment, in compliance with laws and regulations, and with a Ryerson University, and York University. University of Ottawa, Algonquin College, wide variety of everyday, real-life traffic scenarios.13 and the City of Ottawa. Ultimately, the DZ plans to feature a rolling fleet of 20 vehicles, including 10 passenger vehicles sourced from the five Original Equipment Manufacturers (OEMs) in Ontario, and 10 fleet vehicles from the City of Stratford, Waterloo Region RTDS including municipal buses and Focuses on developing high- Durham Region RTDS utility trucks.13 definition (HD) 3-D mapping and Focuses on investigating vehicle localization technology to Human-Machine Interface (HMI) Stratford will serve as a test city in support AV navigation and control, and User Experience for CAV. partnership with AVIN and the and safe and efficient CAV Includes the Automotive Centre Stratford operations. Led by Communitech, of Excellence (ACE), and a state APMA, allowing CAV vehicles to provides a in collaboration with University of of the art controlled- operate within the city boundaries, living lab for when they are ready. Waterloo, Waterloo Region EDC environment testing facility to and Canada's Open Data Exchange. develop and test AV real-world technologies. Led by Spark testing. Stratford also has a four-acre test Centre, in collaboration with Ontario Tech University (OTU), demonstration track. For three OTU’s ACE, Durham College, weeks in October 2018, this facility and the Region of Durham. was home to the first live 5G pilot project with OEMs and AVIN and the telecommunication companies as RTDSs provide a partners.14 Windsor-Essex Region RTDS point of contact Focuses on technologies and commercial Hamilton Region RTDS for other SMEs AV solutions for border crossings. Focuses on multimodal and integrated mobility and MNEs in the Testing is supported through a virtual using CAV technology such as V2I and integrated industry. border crossing. Led by Windsor-Essex mobility applications. Initiatives underway include EDC, in collaboration with University of testing of AV on public roads and the construction Windsor, St. Clair College, the City of of a smart city laboratory. Led by Innovation Windsor, and WETech Alliance. Factory, in collaboration with McMaster University, Mohawk College, and the City of Hamilton. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 13
C AV S E C TO R A N A LYS I S Analysis Framework Approach Our assessment of the Ontario CAV sector is divided into separate This ecosystem analysis of the Ontario CAV sector considered the sections focusing on each of the key factors. Each section includes activities and initiatives of government agencies, academic and an overview of relevant activities and initiatives in Ontario, research institutions, private sector companies (from MNEs followed by a high-level summary of examples of comparable through SMEs), and support organizations, including economic global activities. The countries included for the global perspective development organizations and entrepreneurial incubators and differ between sections, but all sections do include reference to accelerators. U.S. activities and initiatives. The framework for the analysis has been developed and organized Each section concludes with a summary of Ontario’s strengths, around the following five key factors that together shape an challenges, gaps, and opportunities as they relate to the key attractive and competitive CAV ecosystem (see descriptions factor, as well as an overall qualitative assessment of the position below): of the Ontario CAV sector. • Regulations and guidelines Because of the interrelationships and interdependence among the • Investment key factors, many of the ongoing and planned activities and • Industry initiatives in Ontario are mentioned in multiple sections, highlighting how they relate to the relevant key factor. • Research and development • Talent 1. REGULATIONS & 2. INVESTMENT 3. INDUSTRY 4. RESEARCH & 5. TALENT GUIDELINES DEVELOPMENT Enable and support Strategically seed and Develop innovative Encourage innovation Foster the development CAV operations and support areas of and marketable in technology of talent through testing, and maintain growth opportunities technologies and development and enhanced academic regulations that with respect to support their full innovation to remain and professional promote safety and technologies and lifecycle. at the forefront of the training. innovation. expertise. industry. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 14
C AV S E C TO R A N A LYS I S Ontario Regulations and Permitting CAV Testing Guidelines In January 2016, Ontario Regulation 306/15: Pilot Project - Automated Vehicles, Provincial Vision took effect, making Ontario the first Canadian jurisdiction to regulate the testing of The Government of Ontario has announced a commitment “to growing the economy and creating good jobs for Ontarians through developed resources to “We are committed to supporting Ontario's auto automated vehicles on public roads.17 Updated in January 2019, the regulation now allows for driverless AV testing under specific safety conditions. The Province has also established a Cooperative Truck Platooning Pilot Program, and released conditions for permitting vehicles with V2V communications to travel close together as a pilot to “demonstrate their potential, compatibility assist companies with doing business in the REGULATIONS & GUIDELINES province”.15 manufacturing with existing road users and infrastructure, confirm their overall safety, while sector and the operating on Ontario’s roadways”. 18 Beyond the requirements for safe operation, In February 2019, Ontario released its these guidelines also define an approved network for permitted testing operation. hundreds of newest automotive plan Driving Prosperity thousands of – The Future of Ontario’s Automotive Frameworks and Guidelines for Safe Testing CAVs Sector, with three pillars for action to families across the INVESTMENT strengthen and build on Ontario’s province that rely To support the growing CAV industry and ensure that technologies are developed presence as a North American leader in on it. and implemented safely, the Government of Canada, with input from Ontario, has automotive manufacturing and position established the following frameworks and guidelines for CAV testing: ” the province as a leader in the development, commercialization, and • Canadian Jurisdictional Guidelines for Safe Testing and Deployment of Highly adoption of advanced mobility and Todd Smith, Minister of Economic Automated Vehicles 19 INDUSTRY manufacturing technologies.16 Development, Job Creation and Trade 23 • Testing Highly Automated Vehicles (HAV) in Canada – Guidance for Trial Organizations 20 Pillars for Action for Ontario's Automotive Sector • Canada’s Safety Framework for Automated and Connected Vehicles 21 • Safety Assessment for Automated Driving Systems in Canada 22 COMPETITIVE INNOVATION TALENT BUSINESS CLIMATE Support from All Levels of Government & RESEARCH & DEVELOPMENT SUPPORT TECHNOLOGY PROMOTE CAREER AND INNOVATION IN OPPORTUNITIES IN COSTS & NEW MOBILITY ADVANCED Non-Profit Organizations TAXES TO ENHANCE THE ECOSYSTEM MANUFACTURING FOR BUSINESSES Both the Federal and Provincial Governments have demonstrated motivation to PROMOTE LEVERAGE INPUT FOSTER encourage the growth and strengthening of the CAV ecosystem, and have TALENT TECHNOLOGY FROM INVESTMENT & established an environment that supports lower levels of government, academic ADOPTION INDUSTRY PARTNERSHIPS and research institutions, and industry players, including OEMs, MNEs, and SMEs. FOR SMEs ENHANCE & PROMOTE MODERNIZE REGULATIONS AND SUPPORT R&D EMPLOYMENT & TRAINING The Ontario Good Roads Association (OGRA), a registered non-profit lobby group that represents the transportation and public work interests of municipalities, has AND TECHNOLOGY organized the Municipal Alliance for Connected and Autonomous Vehicles in RED TAPE DEVELOPMENT PROGRAMS Ontario (MACAVO), to focus on facilitating municipal CAV efforts. MACAVO has STRENGTHEN STRENGTHENONTARIO’S ONTARIO’S worked with over 60 forward-thinking municipalities to develop a Preferred AV Test SUPPORT TECHNICAL TECHNICAL Corridor between Windsor and Ottawa, which identifies preferred local roads for DIVERSIFICATION COMMERCIALIZATION EDUCATION EDUCATION IN MARKET OF TECHNOLOGY CAV testing activities in over 30 Ontario municipalities. OPPORTUNITIES OPPORTUNITIES © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 15
C AV S E C TO R A N A LYS I S Planning for CAVs GTHA and Kitchener-Waterloo Corridor CAV Readiness Plan The potential posed by CAVs is understood by the Ministry of Transportation of Ontario (MTO) and Ontario municipalities, with MTO, Metrolinx, the City of Toronto, and the Region of Peel are working together to complete many of the larger jurisdictions proactively developing the CAV Readiness project to enhance planning and capacity building for CAVs. The ACATS- dedicated planning documents for CAVs in their region, or funded project (see page 19), aims to establish a common / consistent planning horizon and incorporating considerations for planning for CAVs into recent framework in the GTHA and Kitchener-Waterloo corridor through the development of master plans. alternative CAV scenarios, readiness guidelines, and potential projects. In collaboration with Transport Canada, Ontario co-chairs a Over the course of this project’s development, over 60 stakeholders from different levels of REGULATIONS & GUIDELINES national working group called the Federal/Provincial/Territorial government have been actively engaged, providing input to the project and engaging in (FPT) Governing Council on Automated and Connected Vehicles. education and capacity building of public sector planners and practitioners. Established by the Council of Ministers Responsible for Transportation and Highway Safety, this group is mandated to focus on alignment of efforts and an integrated approach on GTHA and K-W Corridor CAV Readiness Plan Participating Stakeholders AVs/CVs among the group members from federal and provincial INVESTMENT governments across Canada. This working group's report The Future of Automated Vehicles in Canada 24 provides transportation authorities with an overview of short, medium, and long-term policy implications resulting from the presence of CAVs on public roads. The group has also published a National Automated and Connected Policy Framework for Canada that INDUSTRY provides policy principles for safe testing and guidance on issues to help jurisdictions across Canada properly prepare for CAV deployment. MTO is examining how CAV technology can be adapted to help RESEARCH & meet the Province's broader transportation goals in a number of DEVELOPMENT key areas such as infrastructure and operations (e.g. highways, transit, data), as well as, the policy and regulatory framework. The City of Toronto has documented a draft Automated Vehicle Tactical Plan listing priority issues, tactics, and actions needed to TALENT plan for AVs over the short-term between 2019 to 2021. Both the Regional Municipality of York and the City of Hamilton have included considerations and action plans for CAVs in their recent Transportation Master Plans. 25, 26 © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 16
C AV S E C TO R A N A LYS I S Global Perspective States with AV related Enacted Legislation and Executive Orders – Regulations and Guidelines Enacted Legislations Executive Orders United States Both None The United States has been active in developing and enacting NH legislation and policy frameworks in support of CAVs. Nevada was the first state to initially authorize the operation of autonomous vehicles in 2011. Since then, 26 other states have MA REGULATIONS & GUIDELINES passed legislation, seven have had Governor’s issue executive RI orders, and four others have both that are related to AVs. These NJ legislations and executive orders relate to encouraging the safe DE DC development, testing, and operation of vehicles with AV MD technology on public roads.27 In 2018, 17 AV-related bills were enacted in 15 states, including the State of Alabama, California, INVESTMENT Kentucky, and Oregon, and eight executive orders were issued in six states, including the State of Florida, Arizona, and Idaho. In October 2018, Illinois’ Governor issued an executive order to HI direct the Illinois Department of Transportation to lead an Autonomous Illinois initiative and establish a testing program to INDUSTRY facilitate legal testing and programs on public roads or highways. The Ohio’s Governor also signed an executive order in January 2018 to establish DriveOhio, an initiative to organize and accelerate smart and connected vehicle projects. Another order in May 2018 allowed AV testing and pilot programs in the state, In early 2015, the CCMTA AV Working Group co-chairs participated in the American provided that the companies register with DriveOhio. 27 Association of Motor Vehicles Administrators (AAMVA) Autonomous Vehicle Best RESEARCH & DEVELOPMENT Practices Working Group to support the development of the U.S. Department of New legislation released in California in 2018 allows for fully Transportation (USDOT)’s National Highway Transportation Safety Administration’s autonomous vehicles to operate on public roads without the (NHTSA) Federal Policy for Safe Testing and Deployment of Automated Vehicles. presence of an engineer and test driver. This has attracted large- scale firms such as Tesla and Waymo to commercialize their AV In October 2018, the USDOT released the Preparing for the Transportation Future: programs in California.28 The State of Washington also enacted Automated Vehicles 3.0 (formerly known as Automated Driving System 2.0: A Vision for TALENT legislation in 2018 to convene an executive and legislative working Safety), to expand the scope to include all surface on-road transportation systems group to develop policy recommendations for AV operations. 27 including advancing multimodal safety, reducing policy uncertainties, and outlining a process to work with the USDOT. Other topics covered include preparing for automation In the U.S., individual States are responsible for determining through guidance and pilot programs and enhancing and protecting freedoms enjoyed liability rules for CAVs and allocation of liability among owners, by citizens.25 It also encourages a consistent regulatory operating environment across operators, and manufacturers. The investigation of the 2016 fatal the U.S. crash involving Tesla Autopilot determined that Level 3 autonomy is limited, and human drivers are expected to maintain awareness Other guidelines include the Automated Vehicle Testing Guidance released by and control if needed. A number of states, including Michigan, Pennsylvania in July 2018, which attracted Aurora as the first company to be authorized Nevada, and Washington, have legislation specific to CAVs. to test AVs on state roads in October 2018. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 17
C AV S E C TO R A N A LYS I S Germany Singapore Germany is one of the first European Union members to pass Singapore is a leader in policy and legislation when it comes to AVs. The government has regulations regarding CAVs.29 In 2017, an Autonomous Vehicle taken steps to proactively investigate the possibilities of the future of mobility and Bill was enacted to modify the German Road Traffic Act, allowing prepare for the regulatory environment required to facilitate an autonomous future. drivers to pass off control to a vehicle, and addressing the requirements and rights of the driver. Germany currently allows A test centre led by the Centre of Excellence for Testing and Research of AVs (CETRAN), for technology and auto-manufacturer firms, with special was opened in November 2017 to develop standards and ensure the safe deployment of permits, to test vehicles on roads where the drivers can release AVs on public roads. Operators are required to have a qualified safety driver who will be REGULATIONS control of the steering wheel.29 able to take control of the vehicle in an emergency and hold third-party liability insurance, & GUIDELINES or place a security deposit with the Land Transport Authority. In 2018, the Ethics Commission of the Federal Ministry of Transport and Digital Infrastructure released the world’s first In 2019, Singapore released the Technical Reference 68 (TR 68) outlining a set of national guidelines addressing ethical questions for self-driving vehicles, standards for the safe deployment of fully driverless vehicles.3 The guidelines cover topics however questions remain relating to liability.29 It is expected including vehicle behaviour, functional safety, cybersecurity, and data formats. TR 68 is INVESTMENT that this law will be updated and revised to adapt to growing provisional in nature and will continue to be refined as AV technology matures and with technological changes and data protection considerations.30 feedback from the industry. United Kingdom INDUSTRY Netherlands The United Kingdom (UK) has been active in initiating steps to develop supportive legislation and national strategies to address CAVs. In 2017, the UK passed the Vehicle Technology and Aviation Bill that sets out how the liability for accidents involving AVs The Netherlands are implementing a legal framework to facilitate should be apportioned.33 The Law Commissions of England, Wales, and Scotland are the testing and operations of AVs. In September 2018, the currently in the three-year process of reviewing the UK’s legal framework for AVs with government approved the Experimenteerwet zelfrijdende auto implementation expected in March 2021.34 There has also been a coordinated effort RESEARCH & DEVELOPMENT (law governing the experimental use of self-driving vehicles) to across the country to develop CAV strategies, business plans, and policy road maps.3 allow testing of AVs on public roads without drivers, provided the vehicles are monitored remotely.31 A Driving License for a Vehicle is also being prepared in cooperation between the Dutch Vehicle Authority, the main road TALENT authority and the central office for driving exams, assessing the extent to which a vehicle can make safe and predictable autonomous driving behaviour that aligns with human performance.32 © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 18
C AV S E C TO R A N A LYS I S Assessment of Regulations Approved Participants for Testing and Guidelines in Ontario AV Technologies in Ontario Ontario Strengths Ontario was the first Canadian jurisdiction to regulate testing of automated vehicles on public roads, and through Ontario REGULATIONS Regulation 306/15: Pilot Project – Automated Vehicles, Ontario has & GUIDELINES established an environment of regulatory openness that is globally competitive. The regulation supports private sector AV driving pilots and testing, and provides an attractive region for industry and academia CAV-related pursuits by facilitating operational testing of new technologies and solutions. INVESTMENT Ontario has contributed to the development of federal frameworks and guidelines that provide direction for safe testing and deployment of CAVs. The Cooperative Truck Platooning Pilot Program leverages INDUSTRY Ontario’s openness for AV testing and provides direction for V2V communication testing for truck platoon pilots on specific stretches of provincial highways. Similar testing is ongoing in other countries, such as the U.S., the Netherlands, Singapore, and MTO Cooperative Truck Platooning Authorized Network (June 2019) Sweden. “ MTO and a number of the larger RESEARCH & municipalities have begun DEVELOPMENT Highway 11 Highway 417 developing strategies and plans Going forward, to prepare for greater adoption Highway 124 – Burks Falls Greenfield Rd – Prescott Rd we will continue of CAVs. working with the TALENT sector, as well as OGRA has also established Highway 400 MACAVO, which focuses on Rankin Lake Rd – MacTier municipalities facilitating municipal CAV Highway 401 and the federal activities that could support Carman Rd – Upper Canada Rd government, on smaller forward-thinking Highway 402 longer-term municipalities that do not have Sarnia – Strathroy dedicated resources for CAV priorities. planning. Job Creation and Trade ” Todd Smith, Minister of Economic Development, 23 © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Highway 401 Windsor – Tilbury Highway 403 Brantford – Woodstock Ontario CAV Ecosystem Analysis | 19
C AV S E C TO R A N A LYS I S Challenges and Gaps in Ontario • Potential privacy issues and the protection of personal information are being considered with respect to cybersecurity needs for CAV operations and data sharing. The Ontario and Federal Governments have established • Data dictionary standards are being developed by Standards Developing regulations and guidelines for safe testing of CAVs in Ontario. Organizations (SDOs) with input from industry, government, and academia. This facilitates R&D necessary to develop the technology and to enable an understanding of how to prepare for a wider adoption • Data ownership and rights to use of data, of CAVs. Ontario is in a similar position to other jurisdictions, generated by CAVs, is being considered by where pilot testing of CAVs is vital, as input, to other regulatory government agencies, particularly as it and guideline planning efforts relating to CAVs. relates to data traditionally collected With AV REGULATIONS & GUIDELINES by transportation agencies, such as traffic testing on public The following provides a summary of a number of the ongoing speeds and travel times. regulatory and guideline related efforts. These will be revised and roadways, there is updated as new information is learned. The approach that is To date, in Ontario, the public is aware a need for public being undertaken in Ontario is also being applied by other of CAVs primarily through the media reporting education. jurisdictions. on investment initiatives and ongoing INVESTMENT testing activities, both good and bad, rather than • Legal frameworks relating to insurance and liability are being through concerted public education efforts. studied and considered by the insurance industry and the government, with considerations of moving from driver liability to product liability. To date Canadian AV pilots have Opportunities for Ontario INDUSTRY been undertaken with global liability insurance or as self-insured by the vehicle manufacturer. As a frontrunner with CAVs in Canada, Ontario has the opportunity to set the standard and lead other provinces towards a national framework that aligns with the directions • Regulations and guidelines for supporting infrastructure, being taken in Ontario. including signage and road markings, are being studied by transportation associations, standards groups, and Continued active involvement and input from the CAV sector, including government, RESEARCH & government agencies. industry, and academia is necessary for ongoing policy and planning activities. DEVELOPMENT A public outreach and engagement program would meet the need to educate the public of testing activities in the province, and ensure that the material is curated and relevant. Municipalities TALENT are looking to Infrastructure Transport Assessment – Regulations is not ready Canada and MTO and Guidelines for CAVs, and to understand public-sector legal framework. Ontario is currently a global leader with respect to providing role is not clear. an open and welcoming environment for CAV R&D and testing. Similar to other jurisdictions, there are a number of ongoing policy and planning efforts to prepare for public adoption of CAVs. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 20
C AV S E C TO R A N A LYS I S Investment in Ontario Provincial Vision Advance Connectivity and Automation in the Transportation System (ACATS) Ontario has announced its ongoing commitment to supporting investment in the automotive sector, as outlined in its new automotive plan Driving Prosperity – The Future Transport Canada’s Advance Connectivity and Automation in the of Ontario’s Automotive Sector. The province has established funding programs targeting Transportation System (ACATS) program was created to help technology development and talent development, such as its investment in the Vector Canadian jurisdictions get ready for the technical, regulatory, and Institute for AI, and increased funding for AVIN.16 REGULATIONS policy issues emerging as Canada introduces these technologies, & GUIDELINES and has committed up to $2.9 million in grant and contribution funding over four years across Canada. Of that, nearly $1.5 million AVIN Funding in program grants have been awarded to Ontario-based applicants, including MTO, the City of Toronto, Carleton University, University AVIN is a key action to support the innovation pillar of the Driving Prosperity plan. of Ottawa, and the CSA Group. INVESTMENT Funding provided through the AVIN initiative ensures that SMEs have the support and tools needed to develop products and services, to meet global demand, and to ensure that Ontario is at the forefront of adoption and deployment. AVIN-funded projects require that industry contributes to total project costs, as shown below. Examples of AVIN Funding It is important that INDUSTRY public investments are AV R&D Partnership Fund WinterTech AV Development in partnership with Fund industry. If the AVIN contributes one-third of eligible project costs for approved projects up to a maximum of AVIN contributes one-third of industry is not RESEARCH & $100,000 for projects up to 12 months in eligible cost, up to $500,000, for interested in investing, DEVELOPMENT duration under Stream 1, and a maximum of approved projects related to think twice. $1,000,000 for projects up to 24 months in severe winter weather conditions duration under Stream 2. up to 24 months in duration. TALENT Technology Demonstration Zone & Talent Development Pooled and Matched Funds Regional Technology Development Sites AVIN provides $10,000 in funding The CAV-focused funding available in Ontario through the AVIN and For the DZ and each of the 6 RTDSs, AVIN is towards four-month Internships the ACATS programs require some form of matching funding from contributing up to $5,000,000 in funding, with a valued at $20,000, and $35,000 in the recipients and/or industry partners. With capital and time minimum 1-1 match from industry and other funding towards 12-month investments from the recipients, greater resources and equity may partners. Fellowships valued at $85,000. be available to pursue innovation and R&D efforts, while also ensuring commitment to the research efforts. © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 21
C AV S E C TO R A N A LYS I S Examples of Technology Investment in Ontario related to CAV Industry Industry Investment With established automotive and $337.9M Investing on building technology sectors and an environment the Ottawa R&D Hub and other open to CAV testing, there are many satellite engineering centres across $40M Create examples of self-funded CAV-based Ontario industry investments. funding from 800 Committed over Ontario and federal Since the beginning of 2018, GM has announced more than $345 million in the Strategic Innovation Fund new jobs $345M governments will contribute $102.4M and REGULATIONS investments for its Canadian Technical in its Canadian Technical & GUIDELINES Pledged over maintain Centre in Markham. GM also recently Centre in Markham, announced repurposing of its Oshawa manufacturing plant into a supplier of $300M 300 Ontario since 2018. each to help finance the projects. after-market parts for existing vehicle investment and positions in models, as well as dedicating 55 acres of addition $5M the next 10 INVESTMENT the property to create a test track for years on cybersecurity AVs and advanced technologies.35 Investing Creating In May 2018, Magna announced that it was committing $300 million in research $200M 300 Investment in Canadian AI in the Toronto and development, focusing on new Invested over start-ups is on the rise. 2017 Hub over the $10M INDUSTRY electrification and AVs. positions saw US$252M next 5 years OEMs, MNEs, and SMEs are also partners of venture capital flow into fundamental AI research in key programs developed through the Canadian AI companies, in the past year various AVIN Regional Technology representing a 460% RESEARCH & Development Sites throughout DEVELOPMENT Ontario.37 year-over-year increase. $400M public-private investment & partnership TALENT Makes Canada a global innovation Committed 4,000 leader and secures over middle class jobs, including 1,800 specialized 5G $300M jobs, over the next 5 years in R&D, focusing on electrification and AVs © 2019 WSP Canada Group Limited and Ontario Centres of Excellence Ontario CAV Ecosystem Analysis | 22
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