Dr Hadi Moztarzadeh, Head of Technology Trends at the Advanced Propulsion Centre UK (APC) discusses the UK’s need for cross-sector integration in technology, infrastructure, and policy to achieve net zero emissions and enhance connected and automated mobility by 2040.
The UK’s mobility system is at a pivotal point of transformation, having established itself as a global leader in net zero automotive technology research and development, as well as Connected and Automated Mobility (CAM), with more than £400m invested in testbeds and pilot projects since 2015. Against this backdrop, the convergence of two missions – delivering Net Zero and scaling CAM – defines the future of mobility
The road to safer, smarter, and more sustainable automotive and mobility solutions requires more than just technological innovation; system integration is the decisive factor. Breakthroughs in areas such as battery technology, digital infrastructure, and autonomous driving only achieve their full value when aligned across sectors, including energy networks, safety assurance, user experience, and environmental performance.
The transformation of mobility in the UK is both urgent and far-reaching; sectors must align.
Transport continues to dominate national emissions, while dependency on fossil fuels, fragmented infrastructure, and uneven regional provision underline the scale of the challenge. At the same time, the UK has demonstrated its capacity for innovation.
Mapping out this cross-sector pathway, the APC and Zenzic have released a comprehensive ‘Future of Mobility’ report that outlines a cross-sector strategy aimed at decarbonising transport in accordance with Net Zero commitments. This initiative seeks to provide each sector with a robust framework for achieving sustainable transportation and to enhance the UK’s position as a frontrunner in connected and automated mobility.
The Future of Mobility: Vision 2040 outlines a UK-centric strategy to transform road-based transport into a seamless, integrated ecosystem that is safe, efficient, sustainable, and inclusive. This vision addresses the convergence of transport, energy, and digital systems, aiming to deliver economic growth, environmental regeneration, and universal access.
Current mobility landscape
The UK transport system today is still dominated by road traffic, with private cars and heavy-goods vehicles carrying the majority of passenger and freight journeys. Public transport usage is recovering after the pandemic but remains uneven, with regional gaps in bus and rail provision. At the same time, active travel modes such as cycling and walking are gaining attention in local policy but still account for a small share of overall journeys.
The adoption of electric vehicles (EVs) is on the rise, with the latest figures showing that they accounted for 20.6% of new registrations in 2026.¹ This growth is bolstered by decreasing battery costs, favourable policy incentives, and the increasing integration of EVs within corporate fleets. Government funding plays a pivotal role in this transition. Initiatives like DRIVE35² underscore the government’s commitment to advancing manufacturing capabilities in the UK.
The UK has positioned itself as one of the leading global testbeds for Connected and Automated Mobility (CAM). More than £400m of public and private investment has been committed since 2015, supporting over 90 collaborative projects across logistics, shuttles, and passenger services. Testbeds in Oxfordshire, Milton Keynes, and the Midlands have demonstrated that Level 4 autonomy is technically viable in defined zones, particularly for freight convoys, last-mile shuttles, and controlled campus environments.
Economically, the CAM sector represents a growth opportunity: forecasts suggest the UK market could reach £42bn by 2035, supporting ~38,000 jobs. However, global competitors – particularly in the US and Asia – are already scaling commercial fleets, putting pressure on the UK to accelerate deployment.
The country has proven the potential of automation through successful pilots, but achieving multi-city deployment will require harmonised national regulation, investment in resilient digital infrastructure, and business models that deliver value and win public trust.
The landscape highlights both strengths – world-class R&D, ambitious policy frameworks, and growing private investment – and opportunities in deployment, regional equity, and public confidence. This makes the case for a strategic focus on the pillars that have been identified in the report, ensuring that vehicle technology, digital infrastructure, charging, and connected services evolve together, supported by regulation, environmental priorities, and clear value.
This structure allows policymakers, industry leaders, and investors to see where innovations are emerging, how advanced they are, and where they depend on other areas for success. For example, a breakthrough in electric vehicle battery technology (within the Vehicle Technology & Manufacturing layer) will only deliver its full benefits if energy infrastructure (in the Energy & Charging layer) is in place to support it.
By mapping innovations to pillars, stakeholders can identify which areas are progressing quickly, which need more investment, and how developments in one layer can unlock opportunities in another. This makes the framework not only a tool for tracking progress but also a guide for aligning technical, commercial, and policy decisions.
This is an essential approach to shape how CAM and Net Zero technologies are developed, integrated, and scaled. They allow the mobility system to be viewed not as a collection of isolated projects, but as an interconnected network where progress in one area directly affects others.
By understanding the pillars, it becomes possible to:
- Identify critical dependencies and interoperability requirements – For example, large-scale deployment of autonomous buses requires not only advanced vehicle technology, but also connected and cyber secure digital infrastructure, high-capacity charging systems, and public trust built through strong safety and user experience design.
- Sequence innovation effectively – Developing energy networks ahead of mass electric vehicle rollout ensures that adoption is not slowed by infrastructure bottlenecks.
- Target investment for maximum impact – Funding enabling technologies like high-speed connectivity or energy storage benefits multiple layers, producing broader returns.
- Reduce risk through coordination – If stakeholders align development timelines across layers, they can avoid mismatches that delay deployment, such as having connected services ready before vehicles can fully integrate them.
Vision 2040
By 2040, mobility will no longer operate in silos. Instead, it will function as a unified, orchestrated system where journeys are predictable, affordable, and accessible. Achieving this requires three foundational shifts:
- Interoperability and open standards: Common frameworks for data, safety, and accessibility
- Integrated energy and transport systems: Bidirectional charging, depot energy management, and renewable-powered corridors
- User-centric design: Seamless planning and payment through single platforms, proactive disruption management, and inclusive access
These shifts are enabled by the four interconnected pillars, outlined in the report, that define the future ecosystem:
- Orchestrated intelligence;
- Regenerative mobility;
- Living infrastructure; and
- Inclusive and resilient mobility.
Delivering Vision 2040 demands collaboration across sectors. We are on the edge of a technology-enabled watershed, driven by the growth of AI and the future promises of quantum computing, both critical to solving complex societal challenges, including transport.
At its core, transport is a multi-layered optimisation problem, spanning macro and micro levels. The convergence of transport with sectors like energy is accelerating, creating an interconnected ecosystem where what happens on the road directly influences energy systems, and vice versa.
This growing exchange of data across sectors enables seamless integration, aligning requirements and dependencies for coherent operation. However, this integration introduces an energy paradox; while long-term solutions aim to reduce energy consumption, the short-term innovation journey powered by AI and automation may demand greater energy use. This paradox underscores the need for policy alignment and revision, ensuring innovation is not hampered by fragmented regulations.
The future of mobility is about more than vehicles and technologies, but entire systems. By 2040, transport will converge with energy and digital infrastructure, creating a predictable, sustainable, and inclusive network.
To download the report, visit Insight Reports – Advanced Propulsion Centre, or Insights – Zenzic.
References
- https://www.smmt.co.uk/vehicle-data/car-registrations/
- Delivered in partnership with the Department for Business & Trade, Innovate UK and the APC, the DRIVE35 programme has evolved from the UK Government’s Advanced Manufacturing Sector Plan, which outlines their commitment to a zero-emission future, with an unprecedented £4bn of grant funding available to 2035 for Automotive R&D, scale-up and transformation.
About the Advanced Propulsion Centre UK
The Advanced Propulsion Centre UK (APC) collaborates with the UK government, the automotive industry, and academia to facilitate driving research and investment in zero-emission vehicle manufacturing. Established in 2013 and jointly funded by the Department for Business and Trade (DBT and the automotive industry, the APC accelerates the technologies that support the transition to zero-emission vehicle manufacturing and towards a net-zero automotive supply chain in the UK.
With a proven track record, the APC has facilitated funding for 354 low-carbon and zero-emission projects involving 614 partners. Working with companies of all sizes, this funding, since 2013, is estimated to have helped create or safeguard over 59,000 jobs in the UK. The technologies and products are projected to save over 425 million tonnes of CO2.
The APC is committed to sustaining and enhancing the UK’s long-term automotive capabilities and investments through knowledge-sharing, collaboration, and innovation. Focus on the following three key areas – Innovation, Scale-up, and Transformation – is driving innovation and investment in a globally competitive zero-emission vehicle supply chain, and building a strong economy through the delivery of safer, smarter, more sustainable, and affordable mobility:
Innovation
Funding product and process innovation of strategic and disruptive technologies for zero-emission vehicles, including digital tools and AI-driven processes.
Scale-up
Accelerating manufacturing by catalysing investment in advanced technologies for zero-emission vehicles, scaling up sustainable production processes.
Transformation
Driving capital investment in an internationally competitive EV supply chain and upgrading or establishing new plants, securing future zero-emission vehicle assembly in the UK.
For more information, go to apcuk.co.uk or follow us @theapcuk on X and ‘Advanced Propulsion Centre UK’ on LinkedIn.
Please note, this article will also appear in the 26th edition of our quarterly publication.
