The full economic value of self-driving vehicles in the UK has been revealed, as Transport Minister Rachel Maclean sets out that the connected and autonomous vehicle (CAV) market could be worth £41.7 billion by 2035.

Addressing the CES technology conference today, Minister Maclean is set to unveil a report, conducted by researchers at the Connected Places Catapult, Element Energy and Cambridge Econometrics. The report forecasts that in 2035, 40% of new UK car sales could have self-driving capabilities, with a total market value of £41.7 billion – setting the future of self-driving vehicles further within Great Britain’s grasp.

This could in turn create nearly 40,000 skilled jobs in the CAV technology area, strengthening the UK economy and reinforcing this government’s commitment to building back greener and stronger.

Transport Minister Rachel Maclean said:

The investment in and development of CAVs could truly transform the way people and goods are transported, with innovation like this at the heart of our ambition to build back better.

We’re on the cusp of a driving revolution. Not only could this tech unlock vast opportunities for the UK economy and jobs market, it could significantly improve the safety and efficiency of how we travel over the coming decades.

Since 2015, government has worked to make the UK one of the best places in the world to develop and deploy CAV technology.

Government has already invested £200 million into CAV research and development (R&D), helping British start-ups develop their tech for use both in the UK and internationally.

Together with industry, this investment has led to many successes.

UK start-ups that have received government R&D support, including Five and Oxbotica, have gone on to successfully raise tens of millions of dollars in private investment, competing internationally with some of the world’s largest self-driving vehicle companies.

In 2020, Oxbotica launched Project Endeavour, which will be running highly automated trials in Oxford, London and Birmingham. The project will demonstrate automated driving in a variety of urban and city environments and will develop models with local authorities and communities to help them prepare for the future launch of automated vehicle services.

Several government-backed CAV trials have also successfully demonstrated world-leading capabilities in recent years, such as the Streetwise project in London in 2019, which saw self-driving vehicles carrying commuters to and from work.

The ambition to make the UK the best place in the world to deploy CAVs is also being realised through work to update UK law and regulations to make sure that the technology can be safely used on UK roads. In August 2020, government announced a consultation to enable the use of Automated Lane Keeping Systems – an early form of automation in vehicles – on UK roads as early as this year. The response to this consultation is set to be published in early 2021.

Lord Grimstone, Minister for Investment at the Department for Business, Energy & Industrial Strategy, said:

Self-driving vehicles represent a huge economic opportunity for the UK, unlocking much-needed jobs and economic growth.

Government is backing business to realise this – driving forward the future of the UK’s automotive and technology sectors and helping us build back better.

Nicola Yates, CEO of Connected Places Catapult, said:

CAV technologies have the potential to revolutionise transport. Designed in the right way, a system of connected autonomous vehicles could make our transport network more accessible, safer, more efficient and better for the environment. Connected Places Catapult has been pleased to partner with stakeholders across government, industry and academia over several years to make sure that the UK is one of the best places in the world for CAV development. This new report, developed in partnership with Element Energy and Cambridge Econometrics, shines a light on the economic opportunities for a UK CAV industry.

Five of this year’s Young Innovator Award winners, announced today by Innovate UK and The Prince’s Trust, are from Scotland. The winners will receive a £5,000 grant, one-on-one business coaching and an allowance to cover living costs.

The Scottish innovators looking to make the world a better place are:

• Nina Birchard, 24, Glasgow, who has designed the Newborn Rescue Towel, a low cost emergency medical device which provides thermal support and the correct positioning to aid resuscitation in newborns.
• Lucy Fisher, 25, Aberdeen, who has taken a childhood passion for knitting and turned it into a business. Knit It aims to bring knitting into the 21st century via a new digital platform which enables knitters to have a choice in how they follow a pattern and guides them through creating their new designs.
• Elena Höge, 28, Edinburgh, who is creating educational games like Wholesome, a mobile forest school experience that teaches children and adults about nature, including how to forage and cook with wild food.
• Iona Mackenzie, 26, Edinburgh, whose Talk and Grow business aims to take the stress out of finding a therapist for those in need of support in Edinburgh with an online matching and booking platform to pair clients with a number of local counsellors.
• Petra Baiba Olehno, 30, a Glasgow-based Latvian who wants to create REPAIREL, a one-stop-shop for buying ethical footwear online which allows people to compare information about shoes and brands.

The Young Innovators Awards recognise young people from across the UK with great business ideas who have the potential to become successful entrepreneurs and future leaders in innovation.

Following an unprecedented level of entries, with an 87% increase in applications year-on-year, 64 young people have started the New Year with a boost after getting the coveted award, double the number of award winners/recipients of previous years.

With recent research showing over a third of 18 to 34 year olds want to launch an independent enterprise in 2021, compared to 28% of 35 to 54 year olds, it’s even more important the support is available to those who want to venture into starting a business.

The winners from Scotland, are five of 64 inspiring young people who will receive Young Innovators Awards this year, each benefitting from a £5,000 grant, one-on-one business coaching and an allowance to cover living costs. The programme is set to continue awarding young people from diverse backgrounds until at least 2023. This year, 49% of the winners are female; nearly a third are Black, Asian or from an ethnic minority background; 17% have a disability and the projects cover all regions across the UK.

From a way to help stroke survivors on the road to rehabilitation to support for parents to protect their children online, all of this year’s Young Innovators have ideas that promise to address current challenges. Ideas this year span everything from technology to physical and mental health and from sustainability to fashion.

Commenting on her award and project, Nina Birchard said:

It is a simple, non-invasive positioning aid which ensures open airways while providing thermal support and an aide-mémoire to guide the user through the procedure. It is a novel, game-changing product which is simple to use and easy to produce.

The Young Innovators Award seems like an amazing, supportive platform to learn, build and launch your business idea. I am so excited to get stuck in!

Emily Nott, Head of Equality, Diversity and Inclusion at Innovate UK says:

With 2020 proving to be an incredibly difficult year, maintaining our focus on Young Innovators was a priority for Innovate UK since finding the great entrepreneurial minds of the future is more important than ever. Working alongside this year’s winners, Innovate UK will help them grow and develop their business idea to make the world a better, and more innovative place. We can’t wait to see what they achieve this year.

UK Government Minister for Scotland Iain Stewart said:

It’s fantastic to see young people so passionate about starting a business. The UK Government is committed to encouraging entrepreneurship and rewarding innovation and hard work.

Investing in young people has never been more important as we bounce back from the coronavirus pandemic. We have seen truly exceptional ideas from some very worthy Scottish winners. I’m delighted to see their hard work pay off and I congratulate everyone involved.

Details on all 64 Young Innovators can found here. If you’re an inspiring young innovator, check out how Innovate UK could support you here