The Future of Driving is Non-Driving

Autonomous driving is a hot topic and will re-define our Automotive industry. The industry projections in regards to numbers are still early, though.

 

The Boston Consulting Group estimates driverless cars could make up 10% of global vehicle sales by 2035, worth about 12 million cars per year, while the market for driver-assistance systems could be $42 billion by 2025.
Get Your Portfolio Ready For The Future Of Nondriving – Forbes.com

 

And of course we shouldn’t forget the massive effect more autonomous driving could have on accident rates and the subsequent economic impact.

 

While these remain, a more compelling factor is driving innovation. Road accidents are the eighth leading cause of death globally, with 95% of road accidents caused by human error. Xavier Mosquet, who leads BCG’s Global Automotive Practice, puts the total cost to society of road incidents in the U.S. at $948 billion per year, or 6% of GDP. That includes the direct cost of damage to vehicles and acute health treatment as well as the lingering cost of disabilities. Environmentalists are excited about the impact driverless taxis could have on air quality and congestion in cities.
Get Your Portfolio Ready For The Future Of Nondriving – Forbes.com

 

In addition we are looking at potential new entrants of tech companies into the automotive space. It is not just about the market for components. Companies like Apple or Google might eventually try to build their own car, if they can find an profitable angle to that industry.

 

The market is gigantic: According to Morgan Stanley, annual new-vehicle sales total $1.6 trillion, versus $400 billion for smartphones and $266 billion for PCs.
Get Your Portfolio Ready For The Future Of Nondriving – Forbes.com

 

Everything combined we might look at the most fundamental shift in the Automotive industry ever. New technologies, skill sets, and an open mind for innovation will be necessary and crucial.

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