Out-Law News 1 min. read

Premium car manufacturers likely to lead on 'connectivity and autonomous technologies' in UK, study finds


Premium car manufacturers are likely to "lead the way in introducing connectivity and autonomous technologies", a UK study has found.

Research conducted by KPMG on behalf of the Society of Motor Manufacturers and Traders (SMMT) found that there are "major economic benefits" to be gained from "higher levels of connectivity and autonomy" in the car industry. Technological developments in the market are likely to be led by "premium brands" followed by the manufacturers of "mass-market and commercial vehicles" as the cost of the technologies reduces, it said.

The UK stands to gain economically and socially from developments with connected and autonomous vehicles, the KPMG and SMMT report (24-page / 9.21MB PDF) said.

"Our forecast is that the annual economic benefit of connected and autonomous vehicles will grow to £51 billion by 2030," the report said. "Most of the benefits accrue to consumers who experience a transformation in the ease at which they can travel, which in turn generates wider economic benefits, such as fewer accidents, improved productivity and increased trade. These benefits are unlocked both by connectivity and increasingly autonomous vehicles."

An additional 320,000 jobs could be created in the UK as a result of the growth of connected and autonomous vehicles, including 25,000 additional employees in car manufacturing, it said. The vehicles also have the potential to "save over 2,500 lives and prevent more than 25,000 serious accidents in the UK".

The growth in the market of connected and autonomous vehicles will emerge as a part of a wider integrated transport system, and see vehicles act more as "a service", according to the report. Developments in the market will also impact on the telecoms and insurance markets, it said.

The report said: "Connected vehicles will increasingly communicate over mobile networks, and will generate substantial growth in data transmissions that will benefit the telecommunications industry. We forecast growth of approximately 12% annually to 2030."

"The motor insurance industry will be disrupted as safety improves and driver behaviour and accident event data become more widely available. Premiums will fall, monoline motor insurers will consolidate and liability will shift from drivers to manufacturers," it said.

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