Public support measures for connected and automated driving PUBLIC SUPPORT MEASURES FOR CONNECTED AND AUTOMATED DRIVING Final Report Tender No. GROW-SME-15-C-N102 within the Framework contract No. ENTR/300/PP/2013/FC Written by SPI, VTT and ECORYS May - 2017 Page | i Public support measures for connected and automated driving Europe Direct is a service to help you find answers to your questions about the European Union. Freephone number (*): 00 800 6 7 8 9 10 11 (*) The information given is free, as are most calls (though some operators, phone boxes or hotels may charge you). Reference No. GROW-SME-15-C-N102 Framework contract No. ENTR/300/PP/2013/FC 300/PP/2013/FC The information and views set out in this study are those of the authors and do not necessarily reflect the official opinion of the European Commission. The European Commission does not guarantee the accuracy of the data included in this study. Neither the European Commission nor any person acting on the European Commission’s behalf may be held responsible for the use which may be made of the information contained herein. More information on the European Union is available on the Internet (http://www.europa.eu). ISBN 978-92-9202-254-9 doi: 10.2826/083361 AUTHORS OF THE STUDY Sociedade Portuguesa de Inovação (SPI – Coordinator): Augusto Medina, Audry Maulana, Douglas Thompson, Nishant Shandilya and Samuel Almeida. VTT Technical Research Centre of Finland (VTT): Aki Aapaoja and Matti Kutila. ECORYS: Erik Merkus and Koen Vervoort Page | ii Public support measures for connected and automated driving Contents Acronym Glossary ................................................................................................. vii Executive Summary ............................................................................................. viii 1 Introduction...................................................................................................... 2 1.1 Introduction to the Report .......................................................................... 2 1.2 Background ................................................................................................. 5 1.2.1 Definition and Classification of C&AD ........................................................... 5 1.2.2 Important Historical Steps ......................................................................... 7 1.2.3 Potential Market Development .................................................................... 9 1.2.4 Challenges for the traditional automotive value chain .................................. 10 1.2.5 Changes to city dynamics ........................................................................ 10 1.3 Objective of the Study ............................................................................... 12 1.4 Methodology of the Study .......................................................................... 14 1.4.1 Desk Research Approach ......................................................................... 14 1.4.2 Questionnaire and Interview Approach ...................................................... 14 1.4.3 Identifying the recommendations and their validation .................................. 15 2 Operational Approach – Task 1: Comparative analysis of public support measures, programmes and regulations put in place in USA, Japan, South Korea, China and the EU .................................................................................................. 18 2.1 Subtask 1 – In-depth analysis of general strategies for promoting C&AD . 19 2.1.1 Review of existing strategies that can influence competitiveness ................... 19 2.1.2 Comparative analysis of general C&AD strategies ........................................ 26 2.1.3 SWOT analysis of general C&AD strategies ................................................. 30 2.2 Subtask 2 – Major research and large scale industrial programmes/ projects co-financed with public funds from 2011-2016 .................................... 36 2.2.1 Review of programmes/projects co-financed with public funds ...................... 36 2.2.2 Comparative analysis of major research and industrial projects/programmes for C&AD ............................................................................................................ 43 2.2.3 SWOT analysis of major research and industrial projects/ programmes ......... 47 2.3 Subtask 3 – New regulations or standards ................................................ 52 2.3.1 Review of the legislative framework and differences between standards and status of the regulatory environment of EU compared to third-countries ................... 52 2.3.2 Comparative analysis of European and third-country standards and legislations 65 2.3.3 SWOT – Analysis for Europe on standards and legislations ........................... 68 2.4 Subtask 4 – Legislative and infrastructure barriers to the deployment of C&AD ................................................................................................................. 73 2.4.1 Review of legislative and infrastructure barriers to the deployment of C&AD ... 73 2.4.2 Comparative analysis of legislative and infrastructure barriers ...................... 77 2.4.3 SWOT analysis for EU on legislative and infrastructure barriers/ challenges for C&AD deployment .............................................................................................. 79 Page | iii Public support measures for connected and automated driving 3 Operational Approach – Task 2: Comparative assessment of technological and commercialisation readiness level of automated and connected driving in US, Japan, South Korea, China and the EU .................................................................. 84 3.1 Subtask 1 – Review of the existing technologies in the market ................. 88 3.1.1 Review of existing technologies ................................................................ 88 3.1.2 Comparative analysis of technologies ....................................................... 103 3.1.3 SWOT analysis of existing technologies in the market ................................. 106 3.2 Subtask 2 – Automated and connected cars/ road vehicles technology analysis ........................................................................................................... 109 3.2.1 Review of current automated and connected cars/ road vehicles technology .. 109 3.2.2 Comparative analysis of automated and connected cars/ road vehicles technologies ..................................................................................................... 119 3.2.3 SWOT analysis for EU on C&AD technologies ............................................. 122 3.3 Subtask 3 – Technical and non-technical barriers in the development of C&AD ............................................................................................................... 125 3.3.1 Review of C&AD barriers ......................................................................... 125 3.3.2 Comparative analysis of technical and non-technical barriers ....................... 133 3.3.3 SWOT – Analysis for EU on technical and non-technical barriers .................. 135 4 Operational Approach – Task 3: Assessment of the existence of a global level playing field and of the effectiveness of instruments available for supporting the development of C&AD ......................................................................................... 141 4.1 Subtask 1 – Assessment of the existence of a global level playing field .. 142 4.1.1 Impact of the fragmented regulations in the EU on the existence of a global level playing field .............................................................................................. 142 4.1.2 Impact of the different level of public support received by the main players in the C&AD market on the existence of a global level playing field ............................. 146 4.2 Subtask 2 – Analysis of the effectiveness of EU support measures ......... 148 4.2.1 Measuring the contribution to increasing public awareness /acceptance ........ 150 4.2.2 Measuring the contribution to reducing market barriers .............................. 151 4.2.3 Measuring the contribution to technology development ............................... 152 4.2.4 Measuring the European effort in C&AD development ................................. 153 4.3 Subtask 3 – Proposals to reinforce existing support actions and instruments in the EU ...................................................................................... 157 4.3.1 Potential role for an IPCEI for the deployment of C&AD in the Union............. 158 4.3.2 Opportunities and Threats of IPCEI for C&AD development ......................... 160 4.3.3 Possible use of other existing financial instruments .................................... 162 4.3.4 Alignment of C&AD IPCEI with the IPCEI Criteria ....................................... 164 4.3.5 Proposal for a Connected and Automated Driving (C&AD) City Challenge ...... 170 5 Key findings and policy implications ............................................................. 172 5.1 Key findings from the study .................................................................... 173 5.2 Policy recommendations ......................................................................... 180 References ......................................................................................................... 194 Page | iv Public support measures for connected and automated driving List of Tables Table 1: