New transport technology worth $2b
Driverless car and drone technology could average a $2 billion annual turnover in the New Zealand market between now and 2050, a report has found.
The Deloitte Access Economics report, commissioned by the Intelligent Transport Systems (ITS) Advisory Group, arrived at the figures after looking at autonomous self-driving vehicles, drones and smart logistics for land freight. These were chosen because the sectors were relatively mature, meaning better data was available.
It is the first time work has been done to define the possible commercial benefits New Zealand could reap from the emerging industry.
ITS refers to the use of new technology in intelligent vehicles, including the supporting infrastructure and operating systems. It includes passenger and freight vehicles and unmanned vehicles such as drones.
The Government has signalled an interest in the industry, with autonomous electric air taxi trials under way in Canterbury after American company Kitty Hawk, reportedly backed by Google cofounder Larry Page, was attracted to the country under the Government’s Innovative Partnership programme.
Testing of autonomous electric vehicles is also under way at Christchurch Airport, and autonomous shuttles from Ohmio Automation are to be made in New Zealand.
The report said New Zealand had a ‘‘multibillion-dollar opportunity to develop new, hightechnology businesses’’ in ITS, but found three key barriers in growing the industry: slow speed of regulatory change, a lack of visions and goals relating to ITS in New Zealand, and cultural inertia and risk aversion.
It called for an all-of- Government strategy to encourage research, testing and development of ITS technologies, which would include a view of how the technology would be used in New Zealand transport systems, and for New Zealand to be promoted as a market for ITS.
A need to invest in education and training in ITS was identified, calling for a relationship between academic institutions and businesses.
Key attractions of New Zealand were the ease of conducting business here, the innovative culture, and existing policies and regulations which were encouraging to ITS businesses.
ITS Advisory Group chair David Prentice said while there was an element of subjectivity involved in the possible economic benefits, Deloitte believed its numbers were conservative.
He said there was ‘‘an awful lot of work’’ in ITS in New Zealand, but ‘‘there isn’t a common rhetoric around it’’, which the report was trying to address.