The aim of this study is to identify current research gaps, challenges, and opportunities in the field of vehicle automation. The study is based on a literature review. The review shows that the current research focuses mainly on improvements in sensing, actuation, and navigation systems. However, this study acknowledges a range of challenges in other areas that need to be addressed to facilitate possible benefits that vehicle automation may bring. In particular, the following challenges are highlighted: 1) understanding the transfer of control between the vehicle and the driver, and vice versa, 2) defining behavior of automated vehicles in relation to other road users (e.g., pedestrians), 3) identifying how to communicate the system reliability information to the drivers, and 4) clarifying the impact on societal values, i.e. what driver behaviors that will be considered as appropriate, or even acceptable. The work presented here is a part of the ongoing project Boundary Conditions for Vehicle Automation, co-financed by the Swedish Governmental Agency for Innovation Systems (VINNOVA) and carried out by SAFER-Vehicle and Traffic Safety Centre at Chalmers.