Driverless cars to create 320,000 automotive jobs

'First' comprehensive forecast from KPMG and auto-industry group gives UK head-start

The latest research on the potential of the driverless vehicle market in the UK from the SMMT has predicted developments in the technology will create 320,000 jobs in the UK by 2030.

The report “Connected and Autonomous Vehicles: The UK Economic Opportunity”, has been produced by consultancy KPMG for the Society of Motor Manufacturers and Traders (SMMT) and uses a combination of qualitative research and economic modelling to forecast different scenarios of autonomous vehicle adoption. The value gained to industry is based on the level of connectivity and autonomy achieved.

In the best case scenario, where adoption is high, the development of connected and autonomous vehicles adds 320,000 jobs to the UK's automotive sector, which currently employs 770,000 people.

The report also predicts the vehicles will be worth £51 billion a year to the UK economy and reduce serious road traffic accidents by more than 25,000 a year by 2030.

The SMMT said the UK also has a two year head-start on the development of driverless vehicles compared to other European countries, because it did not ratify the Vienna Convention on Road Traffic in 1977. This means legislation is not required for autonomous vehicles to be used on the UK's roads.

Three trials for driverless cars were announced around the UK earlier this year, in London, Bristol, Coventry and Milton Keynes. In addition, last week £200 million of joint government and industry funding was announced for R&D into the

John Leech, head of automotive at KPMG's UK office, said: “The UK is well-positioned to capitalise on the development and production of connected and autonomous cars. Not only will these developments help vehicle manufacturers and their suppliers, but they will bolster jobs, trade and productivity across the economy. Connected and autonomous vehicles will promote social inclusion, reduce pollution and save lives. This represents an important opportunity for the economy but one that requires continued focus and commitment from government and business.”

However, several large barriers to autonomous vehicle adoption remain, including reluctance by drivers to use the technology. An IMechE survey last year of more than 2,000 drivers revealed that just 20% would be willing to relinquish controls of their cars on the road to an autonomous system.