“The change we’re going to see right now is almost as big as the change we saw when we went from horses to cars”
According to Forbes Jack Nerad, aside from just changing the way we don’t drive, self driven electric cars will change our society as a whole. The two most crucial aspects to examine are vehicle autonomy and electrification. The two trends are associated with the idea to have all vehicles connected and a switch to car and ride sharing. According to a study by McKinsey & Company, auto manufacturers, original equipment suppliers, tech giants, and startups combined, there has been more than $325 billion invested between the four connected industries since 2017.
The most popular of the four technologies is electric cars. Today about 10 to 30 percent of the US population prefers cleaner, more eco-friendly cars. Connected cars is also a project gaining popularity. It is believed that by 2030, 45 percent of cars on the street will be connected.
Given all the technologies studied, self driving cars projects to have the largest payoff. The McKinsey report estimates revenues may soar as high as $1.6 trillion a year in 2030. To put that number in relation to current numbers, it is “two times the combines 2017 revenues of Ford, General Motors, Toyota, and Volkswagen.” Autonomous operation is the largest opportunity given it can free up so much time. If people can free up the time they spend driving, they will be able to engage in learning, working, and be more productive. A McKinsey and Company partner, Inga Mauer, believes there is an $800 billion impact if people do not have to drive cars anymore.
There is uncertainty on how the car industry will pan out in the near future due to safety concerns, regulations, and potential technological issues, but what we do know is the future of cars is en route to a major change.
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