Foreward
Autonomous vehicle technologies, and in particular, fully autonomous vehicles have the potential to be among the most disruptive technologies since the advent of the automobile itself. Some of the largest and most influential companies in the world have made billion-dollar investments in "driverless transport" – and these are not speculative bets.
It is anticipated that multiple industry sectors will face substantial issues – more significant than many might think. Industries such as manufacturing, technology, transport, logistics, insurance, health, municipal planning, infrastructure, and hospitality will all be impacted, economically and operationally. So too, the legal and regulatory frameworks on which business and our society are based will have to anticipate the magnitude of change, prepare for, and adjust accordingly.
Marshaling studies and opinions from a variety of third-party sources, this report delves into the impact of autonomous vehicles. It discusses the technology, identifies the issues, defines the sectors of the economy most likely to be affected, and explores possible implications.
It is our hope that this report will enhance your understanding of how autonomous vehicles promise to revolutionize transport, and with it, alter our industries, economy and society. Specifically, we trust it will enable you to proactively approach the issues affecting your industry sector in a more knowledgeable way.
Autonomous Vehicles | Revolutionizing our World
If they fulfill their advocates' expectations, automated and autonomous vehicles will fundamentally change the way we and our goods travel. But that is just the beginning.
Mobility will exponentially increase. The need (but perhaps not the desire) for one's own car will give way, in large part, to the sharing economy and all that entails. For example, vehicles called to one destination will coordinate with other requests, serving multiple riders along the way. Vehicle autonomy and coordination will allow us to meet transport demands while utilizing fewer vehicles, on a round-the-clock basis, and with greater efficiency.
There are other, broader impacts as well. Making more efficient use of fewer cars will lower the demand for parking spaces, garages, automobile repair services and road infrastructure, while simultaneously decreasing negative impacts to the environment. Faster vehicular travel times will have implications for short-haul air flights and the hotel and car rental industries as well. Automated, round-the-clock commercial vehicles will redefine supply chain logistics and give new meaning to just-in-time inventory systems. Automated municipal transport will reduce costs and change the dynamics of urban planning.
Morgan Stanley believes that these changes have the potential to save the American economy $1.3 trillion annually, with global savings estimated at more than $5.6 trillion.1 The Conference Board of Canada predicts up to $65 billion in potential savings to Canadians, including $37.4 billion in collision costs, $20 billion in time, $2.6 billion in fuel, and $5 billion in congestion avoidance. Over a five-year period, fully autonomous vehicles could save Canadians approximately 5 billion hours of their time.2 Autonomous vehicles will impact a variety of sectors of the economy, ranging from automobile manufacturing to technology to insurance to logistics, to name a few – effectively revolutionizing many aspects of business and society.
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Footnotes
1. "Autonomous cars: Self-driving the new auto industry paradigm", Morgan Stanley Blue Paper, November 6, 2013, http://orfe.princeton.edu/~alaink/SmartDrivingCars/PDFs/Nov2013MORGAN-STANLEY-BLUE-PAPER-AUTONOMOUS-CARS%EF%BC%9A-SELF-DRIVING-THE-NEW-AUTO-INDUSTRY-PARADIGM.pdf (accessed December 21, 2015).
2. "Automated vehicles: The coming of the next disruptive technology", The Conference Board of Canada, http://www.conferenceboard.ca/infographics/automated-vehicles.aspx (accessed December 23, 2015).
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
