Revitalizing Rural Areas with Autonomous Driving
Rural depopulation, driven by limited job prospects and better opportunities in urban areas, leads to aging populations and economic challenges. It strains local services and cultural vitality, and combating it requires strategies such as improved connectivity, investment in local businesses, and supportive policies to rejuvenate and sustain rural communities. This issue hits Japan particularly hard. According to Bloomberg, which quotes figures released by the Japan Policy Council[1] in 2019, if current depopulation trends continue, by 2040, 869 municipalities—nearly half of Japan’s total—will be at risk of vanishing. As many as 80% of municipalities in some prefectures may disappear over the next 40 years, their populations too small to remain viable.
NTT is taking steps to help Japan’s rural areas remain alive and thriving.
The NTT Group recently made a substantial investment in May Mobility, a United States-based autonomous vehicle startup. The move aims to address societal challenges such as driver shortages and rural depopulation through the innovation of autonomous driving technology.
NTT's investment in May Mobility offers the potential of a significant leap towards integrating autonomous vehicles into daily life and is set to catalyze the development of driverless buses and taxis from 2025, as Nikkei Asia[2] reported in November 2023. Japan, like many developed nations, faces a critical shortage of drivers, a shortage made even worse by an aging population and declining birthrates. The investment in autonomous technology through May Mobility presents a viable solution to these pressing issues: by replacing human drivers with autonomous vehicles, Japan can sustain its transport network, ensuring connectivity and accessibility, especially in underserved rural regions.
May Mobility's technology aligns with “Level 4” automation, according to Nikkei Asia, a classification which allows vehicles to operate autonomously in specific conditions without human intervention, representing high automation within a designated operational domain and capable of handling most tasks, including safety protocols, within that domain. The Japanese government recently lifted the ban on Level 4 autonomous driving, thereby paving the way for public road trials.
Once road trials are completed, NTT, which has exclusive rights to sell May Mobility's self-driving system in Japan, plans to equip clients such as local government authorities in Japan with the technology from 2025. Initially focusing on community buses for clients such as local municipalities, the plan is to expand progressively to taxis and other services. The technology has already been field-tested, with a shuttle bus vehicle provided for a demonstration experiment in Hiroshima in 2021.
While NTT's venture predominantly targets the Japanese market, there is also a global perspective to the collaboration and the expansion of autonomous driving services will not be limited to Japan. Other countries, particularly those facing similar challenges of driver shortages, can benefit.
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The move towards autonomous vehicles is not just a technological leap; it's a journey towards a sustainable and accessible future. Autonomous vehicles promise to alleviate the strain on public transport systems in rural areas, potentially reviving and reconnecting their communities. The technological advancement also aligns with environmental goals, offering a greener alternative to traditional transport methods.
By harnessing autonomous driving technology, NTT aims to address critical societal challenges, from rejuvenating rural transport networks to tackling driver shortages. Its investment demonstrates the power of technology in resolving pressing societal issues, paving the way for a more connected and sustainable future.
NTT—Innovating the Future of Transport