Like many countries around the world, Australia is starting to reshape its transport infrastructure in hopes of accommodating population growth, urbanisation, and environmental sustainability. With the right combination of investment opportunities, technological advancements, and strong regulatory/policy leadership, Australia is gearing towards an AI-driven transport sector in the future.
History has shown that Australia is keen on developing new technologies. Couple that with the eagerness of its transport authorities to embrace change and you’re looking at an ideal market where innovation and refinement can thrive.
Currently, there are 15 automated and connected vehicle trials underway. These trials are backed by extensive research and development (R&D) infrastructure from well-renowned research centres like the Australian Integrated Multimodal Ecosystem (AIMES), the iMove Cooperative Research Centre, and the national science agency CSIRO’s Data6, a global leader in engineering and data science research.
Having strong government support at all levels makes a huge difference in terms of implementing intelligent transport systems (ITS) in automated vehicles. Australia has shown commitment to this by spending over AUD 200 million on GPS and satellite technology along with releasing bandwidth for dedicated Cooperative ITS (C-ITS).
Such developments are helping to stimulate activity and investment from automotive OEMs, transport companies, and local/international firms. Companies like Tesla, BMW, Mercedes-Benz, Volvo, and Hyundai are all active in Australia which cements the country’s position as a global player in transport technology.
The future transport and mobility industry in Australia is expected to grow significantly over the next few years, with potential revenue of up to AUD 16.08 billion in 2025. These potential earnings give greater insight into the capability and investment opportunities in Australia across its major sub-sectors: Intelligent Transport Systems, Connected and Automated Vehicles and Mobility as a Service.
Three main sectors of future transport and mobility
The future transport and mobility sector are seen as a transition from internal combustion engines to electric power trains, transportation to mobility, and ownership to usership. The three key sectors within the Australian future transport and mobility are:
Australia has shown their commitment to utilising these technologies to better improve the safety, efficiency and sustainability of its transport system. The country offers plenty of opportunities for domestic and international companies who want to research, develop, and trial innovative transport technologies.
Back in 2016, the Australian future transport market was valued at AUD 211.2 million and is expected to earn more than $16 billion in revenue by 2025. Meanwhile, the cellular connectivity market for passenger cars was valued at AUD 117.8 million in the same year. Regulatory reform balances safety with newer vehicle technologies to allow for easier development, adaptation, and implementation.
Why choose Australia to invest in developing modern transport solutions?
There are plenty of reasons why investors consider Australia as a major player in developing modern transport solutions: