Impact of Autonomous Vehicles on society and other markets
AVs are still a relatively new technology and its adaptability to the public or its consequences on the correlating markets are still to be determined.
The complexity of its’ repercussions, both negative and positive, can be widely assumed into different categories.
Employment & Transport System
We have the main issue of employment involving general transport systems and their very operational design.
The transport sector, public or private generates a huge amount of employment incubating the full spectrum of jobs, from minor roles to major ones. However promising AVs are as an upcoming technology, one can dispute the effects it will have on the transport sector. As we are ever shifting to a more technological era, the adaptability of the older generations to such new technology is diminishing. As such if AVs are to be launched on a global scale, with the complexity of their operation both hardware and software, it is without doubt that those who can’t adapt to this change will find themselves expendable.
Another prime example, is private transport companies such as Uber that depend on the ability to drive people around to generate income. Should AVs be implemented on a huge scale, Uber as a company would be rendered irrelevant as there would be no need for drivers anymore. Even if the company does change of tactics and goes for autonomous cars, the losses incurred in such a colossal change might render the company insolvent.
Looking at another aspect of the transport system that will require tremendous investment and change, are the roads itself. Roads and highways will need to be re-designed entirely to accommodate AVs. Will there be a need of a separate road for Autonomous vehicles and one for regular human-piloted vehicles? The investment that needs to be done on a world-wide scale does not justify a global launch yet.
Automobile & Related Markets
How will the launch of this model of vehicle affect the sales of competing vehicles? Will it allow the other relative markets to survive?
As we move on to a society that is more concerned about its safety on the road rather than what was termed, ‘’sheer driving pleasure’’, AVs are looking more and more as the most logical alternative to provide humans with a safe, reliable, and effective means of transport. However, there are numerous unanswered questions regarding the launch of AVs.
- Individual Unit Cost
- Exclusive rights on production by a single brand or multiple brands?
- Is there an age limit to its usage? Since there is no pilot, can a child use the vehicle?
There are still plenty of other technologies concerning the automobile industry that are being actively researched. However, in recent times, AVs have taken over most of the different manufacturer’s R&D teams as they look to dive into this new era of transport. The development of AVs is a brilliant prospect for the future of the transport industry but it is coming at a cost such that it is stunting the development of the other technologies present in this market.