ICAV Cluster

UK Government announced funding for Connected and Automated Mobility (CAM) Sector to Drive Economic Growth

In a significant move to bolster British manufacturing and drive economic growth, the UK government is committing £150 million (US$189 million) to the Connected and Automated Mobility (CAM) sector until 2030, as part of a broader £4.5 billion (US$5.7 million) investment initiative. This funding, a component of the Advanced Manufacturing Plan, reflects the government’s strategic focus on fostering innovation, opening up markets, and eliminating barriers for businesses.

The investment in CAM, to be matched by industry contributions, is poised to position the UK’s Centre for Connected and Autonomous Vehicles (CCAV) as a global leader in designing, developing, deploying, and manufacturing self-driving technologies, products, and services. CCAV, which has already invested around £600 million in over 100 joint projects with industry partners since 2015, aims to establish an early commercial market and secure a first-mover advantage in the deployment of autonomous vehicles and services.

Projections indicate that the economic benefits of CAM for the UK could reach £66 billion per year with an additional 342,000 jobs by 2040, provided the government appropriately addresses policy, regulation, funding, skills, and public communication.

The UK government anticipates that this funding will play a pivotal role in advancing CAM, revolutionizing transportation for citizens, enhancing safety, convenience, and accessibility, all while fostering the creation of highly skilled jobs and contributing to economic growth.

Aligned with this initiative, the newly announced Automated Vehicles (AV) Bill, highlighted in the King’s Speech on Tuesday, aims to establish one of the most comprehensive legal frameworks globally for self-driving vehicles, prioritizing safety and innovation.

Recognizing that the CAM sector extends beyond private vehicles and robotaxis to include logistics, mass transit, mining, agriculture, and defense, the government emphasizes the importance of both funding and enabling legislation. The focus will be on seizing early commercialization opportunities with high economic and societal impact, ensuring safety and security across various segments where the UK holds a comparative or competitive advantage or aims to achieve one in the global value chain.

The government’s commitment extends to exploring the potential establishment of a Centre of Excellence for UK Connected and Automated Mobility. This center would collaborate with various departments and organizations, addressing coordination challenges and strengthening capabilities, skills, and public engagement. It will also work closely with the government to support small and medium-sized enterprises (SMEs) in gaining access to finance, facilitate international engagement, and boost exports.


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