Investors can Benefit from Autonomous Vehicle Technology
There are a number of technology companies, as well as auto manufacturers, who are planning their future around autonomous vehicles. These businesses believe this evolving technology will transform each of their industries. The challenge for investors is to determine which companies have positioned themselves to obtain the most benefit from autonomous vehicles.
Driverless Car Market Value
The Boston Consulting Group predicts that by the year 2025, the autonomous vehicle market will be valued at over $41 billion. They also estimated that by the year 2035, the market value could have more than 75 million driverless vehicles in operation around the world. It is anticipated that driverless vehicles will transform ride sharing services. It will enable car owners to provide their vehicle's for rent. Federal regulations for the industry must be created, safety concern as well as the development of effective auto insurance and more need to be established.
Automotive Markets
The two largest markets for vehicles is China and the United States. Both of them have embraced the creation of this new technology and encouraged its development. The federal government has provided guidelines concerning autonomous vehicles. This was done to help companies develop the necessary technological innovations and not be held back by the rules in different states.
Auto Industry Stocks
Many investors believe autonomous vehicles will change the course of investments in the automotive market. The technology being developed for driverless vehicles is anticipated to change the same old approach to automotive stocks that has plagued the industry for years. It is believed this technology will provide ways for investors, as well as carmakers, to experience significant profits. Most believe it is too early to determine exactly who will win the autonomous vehicle investment races. Since auto stocks are currently experiencing a downward trend, it enables investors time to carefully choose their investments while they are at reasonable prices.
Choosing Stocks
Some investors believe self-driving cars could fail to obtain necessary regulatory approval. This would limit them to being a novelty only seen on special occasions and not made available to the general public. Other investors believe the pace of this technology’s development makes it a serious investment consideration. It won't just be auto manufacturers who will benefit if autonomous vehicles become part of daily life. Many technology companies will also experience serious profits.
The technology Google is developing for autonomous vehicles is extremely successful. Their former Google self-driving car project has been set up as a separate entity. It is now known as Waymo. Investment analysts have looked closely at Waymo and stated its value is at more than $69 billion. In 2016, its technology enabled autonomous vehicles to drive over 600,000 text miles in California. Its technology has been able to significantly decrease the number of times a human has had to intervene when an autonomous vehicle is in operation.
Tesla
This is a company known in the industry for pushing the limits when it comes to autonomous vehicle technology. It uses a platform known as Autopilot. In the past, some drivers have overestimated the abilities of this technology. It has caused crashes resulting in bad press coverage. What makes Tesla a valuable investment is that not all its vehicles are autonomous, but most of its vehicles can be converted into being an autonomous vehicle. This is how all of its cars will continue to be manufactured.
BlackBerry
This company is now working on developing the type of technology it knows best: security and software. It has not made an effort to get into the middle of the autonomous vehicle race. BlackBerry is now focused on developing technology that provides important security to self-driving vehicles. The technology being developed by BlackBerry will prevent any type of hacking of the self-driving vehicle technology.
It may require an investor to make investments in a variety of stocks to benefit from the autonomous vehicle technology. Succeeding at making investments in this technology will require an investor to know what players are involved. Their goal must be to have their investments in a good position to benefit when this market matures.