Inside the automated vehicle industry
The growth of the automated vehicle (AV) industry is driving a fundamental rethink of how we plan, design and operate transportation systems. In this three-part series, Paul Avery and Edward Stubbing explore the transformative impact of AVs and clarify complex technical, legal and societal questions surrounding their integration into our existing transportation networks.
In this first article, we consider AVs as a new type of vehicle operator that’s challenging long-standing assumptions, procedures and design standards.
Until now, our vehicles, roadways, regulations, and even parking lots were designed with the assumption that a human is behind the wheel. When that assumption is challenged by technology as the driver, a re-evaluation of the entire system is required.
Automated vehicles (AVs) have the potential to fundamentally transform how we travel and transport goods; however, a transformation of this magnitude requires a significant adjustment period where technical, legal and societal barriers must be identified and addressed before widespread adoption can occur. This shift to AVs is disrupting transportation planning and regulatory frameworks, prompting policymakers and industry leaders to rethink how we design, operate and manage our transportation systems.
Over the past several decades, rapid technological advancements have moved AVs from theoretical concepts to real-world applications.
AVs are already operating in cities and on highways, moving people and goods in various ways. But because our current transportation infrastructure was built for human drivers, AVs — with their distinct capabilities and limitations — are challenging existing planning norms and traffic operations. As AVs continue to evolve, they bring both promise and complexity, requiring proactive planning and collaboration to ensure that safety remains at the core of transportation.
Transportation systems encompass physical infrastructure like roads, bridges, traffic signals, signs and lane markings, as well as vehicles and their operators. These systems also include laws and regulations that govern vehicle safety and operation, which are then enforced by a separate segment of the transportation system. The components of the transportation system have all been developed based on a common set of design assumptions that include vehicles being operated by human drivers who share the road with other humans. The emergence of non-human vehicle operators is now challenging these foundational assumptions.
Who’s driving?
Despite their advanced sensors and computational power, AVs still struggle to understand the dynamic aspects of their surroundings, especially the behavior of other drivers and vulnerable road users like pedestrians. The emerging nature of AV technology means rapid changes that regulation and legislation are not built to handle, and in many cases, there is a desire by regulators to not stifle creativity. However, this leaves a gap between performance and safety verification, and regulation and enforcement. This creates fundamental issues, including:
- Standards do not exist to guide the development and testing of AVs, or to assess their behavioral competency.
- When an incident occurs, it can be difficult to determine the root cause, and even AV companies might struggle to determine root cause due to system complexity.
- AV companies may operate without any specific permission and may use vehicles that would not be legal for humans to drive.
Today’s AV industry has evolved into three distinct sub-industries: robotaxi, transit and goods movement ― each driven by different market dynamics, regulatory bodies and overall function.
While robotaxi developers typically operate in urban/suburban environments moving individuals from one point to another, AV transit developers seek to integrate into existing transit systems to move groups of people between points as either an on-demand service or along a fixed route. AV goods movement developers are moving material instead of people, often with much larger and heavier vehicles to achieve very different objectives like ‘just-in-time’ deliveries. Understanding these sub-industry distinctions enables more tailored insights and strategies that align with unique operational goals, challenges and market conditions.
External data
A continued area of debate and understanding is whether AVs “need” external data to function effectively. While most AVs are designed to operate independently, the integration of external data can significantly enhance their performance. For instance, communication methods using 5.9Ghz CV2X (Cellular Vehicle-to-Everything) and cellular networks enable AVs to share information with other vehicles and infrastructure.
With data sharing, however, comes opportunity and challenge. The opportunity lies in cooperative applications where AVs can harmonize or synchronize their movements and respond to events beyond their own sensors. The challenge lies in trusting the messages (cybersecurity) and a collaborative mindset among AV manufacturers.
Inconsistent regulatory frameworks
The rapid emergence of diverse AV sectors and varying developer approaches has left many regulatory bodies uncertain about how to effectively govern this technology. While regulations are evolving to balance innovation with safety, a standardized method for certifying the behavioral competency or capability maturity of AVs remains absent. This uncertainty is compounded by differing human factors and conflicting policy stances across agencies, resulting in a patchwork of responses. Some jurisdictions support pilot programs and testing, while others have enacted legislation that restricts or bans AV operations. These inconsistencies hinder scalable deployment and complicate cross-jurisdictional integration.
A primary challenge for the transition from human-centric regulatory frameworks to accommodate software-driven AVs is the existence of design requirements that don’t consider software-operated vehicles.
Despite significant technological progress, AVs still face challenges due to their fundamental differences from human drivers. The lack of standardized AV testing or certification for behavioral competency undermines public trust and complicates incident analysis. What’s more, segmenting into three distinct markets introduces multiple layers of regulatory requirements. Another critical consideration is the use of external data sources such as 5.9GHz CV2X and cellular V2X networks, which can enhance situational awareness and coordination but also introduce new regulatory complexities.
Given their potential to disrupt transportation systems and adjacent industries, those looking to integrate AV technology on their roads and highways must first address the very real technical, legal and societal barriers to ensure their safe and effective integration.
For additional information contact paul.avery@aecom.com or edward.stubbing@aecom.com.
In the second article, Navigating the promise and pitfalls of automated vehicles, authors examine how AVs are already disrupting traditional transportation norms, and in the third article, Automated vehicles: Getting ready for what’s next?, the focus shifts to the major AV sub-industries and their unique operational, regulatory and technical requirements.
Together, these articles serve as a foundation for navigating this evolving landscape and offer practical insights for their safe, effective and equitable integration into our existing transportation infrastructure.
Originally published Oct 3, 2025
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