How Autonomous Vehicles Are Poised to Change the Future
The world is changing and the revolution in the automotive industry is happening. We are expected to have 10 million self-driving cars on the roads by 2020. In fact, large automotive firms such as Volvo, Ford, and Tesla have already launched their first wave of autonomous vehicles.
But what are the anticipated implications of the self-driving technology on the industry?
A study carried out by Intel showed that, thanks to this exceptional transformation of the global industry, autonomous cars are projected to displace human drivers and generate around $7 Trillion per annum by 2050.
The study predicted autonomous cars will result in a massive economic trajectory that will grow from $800 billion per year in 2035 to $7 trillion per year in 2050, taking into account the cost of all products and services resulting from fully autonomous cars, including indirect savings, like time.
That said, before we can close in on the 2035 to 2050 economic trajectory, the US Department of Transportation stated that firms in the United States alone are expected to spend approximately $61 billion in Capital investments and Research and Development (R&D) on autonomous vehicles by 2023.
According to stratistics MRC, the Global Automotive Safety System market was valued at $82.8 billion in 2017, but thanks to the expected R&D and Capital Investments spending, the market is anticipated to reach almost $200 billion by 2026 growing at a Compound Annual Growth Rate (CAGR) of 10%.
The federal budget also contained a significant resource. A spending bill that was unveiled ten months ago included $100 million for a highly automated “vehicle R&D” program, and includes funding for evaluating the employment impact of self-driving vehicles.
The funding also included $60 million for grants that’ll fund demo projects that test safety and feasibility of self-driving cars.
In fact, other than the Return on Investment in real dollars, all companies investing in autonomous vehicles are in it for another reason; safety. The WHO estimated that 1.35 individuals die each year due to road traffic related crashes around the world.
Add that number to the 20 – 50 million others who suffer non-fatal harms that leave them disabled for life.
Intel forecasted that autonomous cars will save more than 580,000 lives between 2035 and 2045.
It’s no wonder nearly 55% of the 175 Merger and Acquisition deals done over the last two years were related to electric and automated vehicles.