8 Ways Autonomous vehicle technology can help shape the automotive industry

3 August 2018

It is a common secret in the industry, that when fully in practice, autonomous vehicles will not just cause a stir but redefine the automotive industry as we know it for years to come. The development of self-driving, or autonomous, vehicles is accelerating. Here’s a brief little article of how we believe they could affect consumers and companies.

In the early adoption years of AV’s which are not that far away there will be some significant changes in the way things work. Have a look at some of the benefits below. The broad penetration of AVs will likely accelerate the development of robotics for consumer

  1. 1. The car-service landscape changes.

    The proliferation of AVs could represent an opportunity for car OEMs.It was estimated in 2014 that approximately 80 percent of the car-service shops in Germany were “independent” from OEMs. Given the safety-critical nature of AV technologies, customers might strongly prefer strict adherence to OEM service processes and the use of original service equipment when it comes to maintaining and repairing AV systems. This could however present a disadvantage for independent service providers unable to afford AV-maintenance systems. In addition, it is very likely that OEM’s will be “forced” to service these vehicles, as they will most probably be expected by regulators to take on the greatest portion of the responsibility and risk associated with crashes caused by AV technical failures.

    2. Car insurers might shift their business model.

    Car insurers have always provided consumer coverage in the event of accidents caused by human error and are quick to point out such events in accidents. With driverless vehicles, automotive insurers will have to shift the core of their business model, focusing mainly on insuring car manufacturers from liabilities from technical failure of their AVs, as opposed to protecting private customers from risks associated with human error in accidents.

    3. Companies reshaping their supply chains.

    AV technologies would help to rapidly optimize the industry supply chains and logistics operations of the future, as players employ automation to increase efficiency and flexibility. AVs in combination with smart technologies could reduce labor costs while boosting equipment and facility productivity. What’s more, a fully automated and lean supply chain can help reduce load sizes and stocks by leveraging smart distribution technologies and smaller AVs.

    And then comes the time when AV’s will be mainstream and the benefits we will reap will literally be enormous and life changing. Some of which are.

    4. Drivers have more time for everything.

    AVs could free as much as 50 minutes a day for drivers and members of the public, who will be able to spend travelling time working, relaxing, or accessing entertainment. The time saved every day might add up globally to a mind-blowing one billion hours which in turn would help create a large pool of value, potentially generating global digital-media revenues of €5 billion per year for every additional minute people spend on the mobile Internet while in a car.

    5. Parking becomes easier.

    AVs could change the mobility behavior of consumers, potentially reducing the need for parking space. Multiple factors would contribute to the reduction in parking infrastructure as for example self-parking AVs do not require open-door space for dropping off passengers when parked, allowing them to occupy parking spaces that are 15 percent tighter.

    6. Accident rates drop.

    By midcentury, the penetration of AVs and other ADAS could ultimately cause vehicle crashes globally to fall from second to ninth place in terms of their lethality ranking among accident types. Today, car crashes have an enormous impact on the US economy. For every person killed in a motor-vehicle accident, 8 are hospitalized, and 100 are treated and released from emergency rooms.

    7. AVs accelerate robotics development for consumer applications.

    The broad penetration of AVs will likely accelerate the development of robotics for consumer applications (including humanoid robots), since the two share many technologies. These include remote advanced sensing, hyperprecise positioning/GPS, image recognition, and advanced artificial intelligence. In addition to sharing technology, AVs and robots could benefit from using the same infrastructure, including recharging stations, service centers, and machine-to-machine communication networks. These commonalities might push multiple players to invest in both applications, as already shown by the significant investments in robotics made by selected automakers and high-tech players.

    8. New ear for marketing

    A new ear for marketing and marketeers will arise with a tremendously exciting new set of tools and availability of advertising opportunities. Feel free to click here and have a look at just some of the opportunities covered in an older blog post.


    Further to transforming the automotive industry, the rise of autonomous vehicles will most definitely also have a profound impact on society itself. The above 7 developments and benefits described here provide just a mere snapshot over the wide spectrum of possible outcomes linked to the increasing penetration of AVs in our lives and societies offering industry leaders a look forward at this evolving landscape as it unfolds daily. Defining how to shape this landscape in an effective manner undoubtedly represents a significant strategic challenge for the authorities in the coming years.

What is your view on the above? Any benefit (or negatives) you think we forgot or is important we add? Tell us by commenting below, messaging or emailing us and don;t forget to follow us on our social profiles below.

Article by Nicholas Kalavas for Y-Mobility

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