Driving investment in AV manufacturing
In this article Scott Henderson, CEO of innovation funding advisers ABGI UK discusses the future and potential benefits of the autonomous/electric vehicle market for UK manufacturing.
07 October 2020
With international competition on the rise, the UK is maintaining its course to become a world leader in the burgeoning electric and autonomous vehicle (AV) sector.
According to Allied Market Research, the electric vehicle market alone is expected to be worth an estimated $802bn (USD) by 2027, a compounded annual growth rate of more than 22%.
Last month the UK Government allocated an additional £65m to accelerate development of future industries, including those focused on battery technologies for electric vehicles, through its Industrial Strategy Challenge Fund.
In June a further £12m was committed towards ground-breaking research into zero emissions transport. The funding, part of the UK Government’s efforts to deliver a post-pandemic green recovery, includes £10m for a new Zero Emission Vehicle Innovation Competition. This will invite project funding bids from companies to support advancements in both battery electric and hydrogen vehicles, as well as charging infrastructure.
Meanwhile, this year’s Autonomous Vehicle Readiness Index (AVRI) published by KPMG ranked the UK as ninth in the world in the global AV sector. Singapore topped the list. This report takes into account four key factors determining which country will most likely have AVs on the road first: forward-thinking in policy and legislation; technology and innovation; infrastructure; and consumer acceptance.
While the UK fell two places from the 2019 Index, it did maintain its place as the second ranked nation in terms of policy and legislation. This was further bolstered by the UK Government’s review of its regulatory framework for AVs which explores regulations for public service vehicles, including those which uphold public safety.
Other reasons for British industry to remain optimistic include the combined investment of around £200m by the UK Government and industry into establishing six test facilities for AVs in south-east and central England. The UK has also established itself as the world leader in cyber security within the AV sector, a critical requirement which will undoubtedly support its further development.
Article originally published on PES Media