The real challenge facing European cities is no longer whether autonomous vehicles (AVs) will reshape urban life, but rather how they will reshape it and in which areas they will do so.
Europe has long been a hub for high-end automobile manufacturing, with a well-established automotive supply chain and market demand. However, this industrial advantage has not directly translated into the rapid deployment of autonomous driving technology. Instead, it has highlighted clear shortcomings in terms of regulatory coordination and urban governance. To turn technological potential into city-level applications, Europe urgently needs to break free from the constraints of fragmented policies and promote cross-level collaboration and unified deployment.
With billions of dollars flowing into autonomous driving technology, the real issue for European cities is no longer whether AVs will reshape urban life, but how and in which areas this reshaping will occur.
At the “Mobility of Tomorrow” panel discussion at the Smart City Expo World Congress (SCEWC) in Barcelona, Spain, a striking contrast emerged: while the United States and China are accelerating the deployment of autonomous driving technology, Europe is taking a more cautious approach. Currently, European countries are working to address institutional barriers and the challenge of integrating innovative technology into historical urban landscapes.
Experts unanimously agree that the main obstacle to the large-scale deployment of autonomous vehicles in Europe lies in the institutional level rather than the technological level. Adopting a more unified strategy is expected to accelerate progress.
Challenges and Breakthroughs in Smart Urban Transport in Europe
European cities face a series of unique challenges stemming from history, geography, and multi-level governance. Agne Vaitekenaite, Head of Partnerships and Advocacy at the European Intelligent Transport Systems Association (ERTICO), directly points to this complexity. She states, ‘One of the biggest obstacles Europe faces is the dispersion of responsibilities.’ This multi-level governance model—where cities handle transport planning, national agencies set vehicle standards, and the EU defines overall policy goals—often ‘leads to inconsistent objectives and decision-making delays.’
In addition, the ancient geographical layouts of many European capitals create physical barriers. For example, Rome must contend with high population density, historical monuments, and ‘extremely narrow streets.’
Daria Giura, a representative of the City of Rome, emphasizes that the city must prioritize cultural heritage protection while seeking technological solutions. Beyond infrastructure, there is also a behavioral barrier, especially in Rome, where people need to embrace the idea of ‘respecting public space more than ever before.’
According to Clément Lemardelé, Project Manager at autonomous vehicle developer Carnet-UPC, Barcelona encountered unexpected obstacles while piloting autonomous delivery robots in its historic center. Due to the difficulty of obtaining reliable GPS signals in dense areas, developers had to rely more on the vehicles’ own sensors rather than external connectivity.
Moreover, city management requirements can be quite stringent. Angel López from the Barcelona City Council points out that operators face the challenge of strict regulations requiring most vehicles to be parked in underground garages, where signal loss is common. These challenges are exactly what the city of Barcelona hopes autonomous vehicle developers will address.
Connectivity: The Decisive Pillar for Autonomous Vehicle Deployment
Maxime Flament, CTO of the 5G Automotive Association (5GAA) and connectivity technology expert, says the industry needs to abandon the term ‘autonomous driving,’ which he considers ‘outdated.’ He advocates adopting the concept of ‘Connected Automated Mobility or Connected Automated Driving’ (CAM). Flament emphasizes, ‘It is the ‘C’ (for connected) that truly plays a key role as the core technology.’
He explained that the role of interconnectivity features is to “simplify automation processes,” making these processes easier to implement by allowing vehicles to connect with external systems. This capability is crucial for handling “long-tail scenarios”—edge cases that occur infrequently but carry significant safety risks.
From a technical perspective, Flament compared the implementation approaches in different parts of the world: “Companies like Waymo aim for their vehicle sensors and computing systems to cover 99.999% of scenarios… whereas in China, companies like Baidu tend to have sensors cover 99% of scenarios and rely on vehicle-to-network connectivity to handle the critical remaining 1%.”
Although initial deployment can use basic 4G networks, Flament warned that large-scale operations would be impossible without strong network support. Using autonomous valet parking as an example, he explained that while small-scale deployment is feasible, moving 50 vehicles simultaneously could overwhelm network bandwidth.
This is exactly “where 5G technology plays a role, and where the value of high-quality service (QoS) lies.” He emphasized that the key breakthrough is that even when remote human intervention is needed, it often operates as “indirect intervention”—meaning that the remote operator assesses the situation on-site and issues commands to the vehicle, rather than directly taking the wheel for high-latency control.
European Championship Battle: Logistics Lead the Way, Innovation Awaits a Breakthrough
Despite many challenges, deployment work is accelerating. Pilot projects in London, UK, and Hamburg, Germany have already been launched. Additionally, the logistics sector may become one of the first large-scale application scenarios. Lemardelé emphasized that logistical transportation (including last-mile delivery and long-distance transit) faces “fewer obstacles” because vehicles “do not carry passengers for safety reasons.”
Ahmed Hashish, director of Dutch Automated Mobility, pointed out that successful integration requires continuous effort. The company’s deployment of shuttle services between Rotterdam and the airport took ten years of preparation to ensure alignment with market demand and public expectations. Hashish emphasized, “The real service is now within reach.”
However, Europe’s appetite for innovation is considered to lag behind its global competitors. Lemardelé issued a stern warning about the massive capital flowing into autonomous driving companies in China and the U.S.: “The total investment in leading companies like Waymo, Pony.ai, or China’s Baidu ranges between 10 to 15 billion euros.” He advocates that Europe must gain a head start before these well-funded companies enter and dominate the market, to avoid missing opportunities due to Europe’s slow decision-making driven by governance considerations.
The Urban Mission of Autonomous Driving: From Data to Co-Governance
To ensure that autonomous vehicles play a positive role, policymakers are focusing on “intentional integration.” Agne Vaitekenaite notes that the deployment of autonomous driving must align with broader urban goals, such as “climate neutrality, social accessibility, and urban resilience.” This means proactively leveraging autonomous driving technology to preserve public spaces and improve accessibility in underserved areas. Projects coordinated by ERTICO, such as “Inclusive Spaces,” delve into obstacles by establishing dedicated focus groups including the elderly and vulnerable populations, ensuring developers create socially conscious systems.
The massive data generated by autonomous vehicles presents significant opportunities for urban development and is expected to fundamentally transform traffic planning. Flament points out that this data collection “is already underway,” even for vehicles that are not fully autonomous. Manufacturers are gathering information about “road marking conditions,” road surface integrity, and new construction sites.
This data can be used for proactive intervention: by statistically analyzing the frequency of triggers of vehicles’ forward collision warning systems, autonomous vehicles can generate “heat maps.” Flament explains that these heat maps can reveal “design flow problems in cities that can be addressed faster through proactive rather than reactive approaches,” meaning cities can eliminate road safety hazards before accidents occur.
However, the key question is: “How do cities access and use this data?” Flament believes that “large manufacturers are more inclined to convert it into services that can be sold to cities, rather than simply saying ‘This is my data, feel free to use it.’ Cities that accept this approach and are willing to purchase related services are establishing a ‘highly productive partnership’ with the industry.”
Ultimately, the key to moving forward lies not in asking “who will lead,” but in “how to lead.” Experts conclude that even though technology is evolving rapidly and international competitors are making frequent moves, “for Europe, the real advantage and key lie in moving forward together.” Only through co-governance and mutual accountability can the future development of connected autonomous mobility technologies be promoted.
