Self-driving vehicles are set to significantly change urban mobility and have a momentous impact on economies around the world. The shift from human-driven vehicles to autonomous vehicles will not only offer convenience and safety incentives to drivers and commuters but also create benefits for the environment and society. With tech companies and automakers racing to develop and bring the safest and reliable self-driving technologies to the market, this shift is fast becoming a reality. In fact, Google, Uber, Tesla, GM, and Waymo are some of the companies taking the lead in developing and advancing this highly anticipated innovation.
It’s worth mentioning that cars and automobiles are a huge part of people’s daily lives, society, and the economy in general. And as self-driving technology advances, there’s no doubt it will impact industries and businesses around the world. Among the industries that are most likely to be impacted are the auto insurance industry, the manufacturing industry, and the hospitality industry. Here’s how self-driving technology will change these three industries.
Auto Insurance
One of the biggest debates and questions surrounding self-driving vehicles is how they’ll impact the auto insurance sector. The National Highway Traffic Safety Administration reports that 94 percent of motor vehicle accidents are caused by human error. And since self-driving cars are designed to eliminate human error and make driving safer, it’s likely there will be major changes in the auto insurance industry. There are two primary ways self-driving technology will change auto insurance.
One way is that automakers will assume liability. Mercedes-Benz, Volvo, and Google have already set the precedent by accepting liability in cases where an accident is a result of a car’s self-driving system. Tesla, on the other hand, extends an insurance program to its customers in Hong Kong and Australia. These are just some of the companies that are assuming liability in the event a self-driving car is involved in an accident. It’s, therefore, likely that, since autonomous vehicles are designed to eliminate human error, automakers will have to assume full liability for accidents.
Another change to the auto industry is that insurance premiums will drop. As mentioned, self-driving technology will make driving safer, which means there will be a sharp decline in accidents. Advanced driver assistance systems (ADAS) are already showing significant potential to reduce the number of motor vehicle crashes on the road.
That said, a downward trend in car accidents is expected as autonomous vehicles become the new normal. Many insurance companies are already offering premium discounts for vehicle safety features, but as self-driving technology advances and accidents become rare, insurers will have to adjust their business model in order to survive. And this means offering lower premiums. Fewer accidents also mean fewer claims and less fraud.
Manufacturing
Self-driving technology isn’t just about autonomous cars. The technology is also driving trends in the manufacturing industry through automation. Some of the trends that are taking shape include the use of cobots to optimize quality and output, deploying 3D printing to speed up operations in manufacturing plants, and using vision guided and self-driving vehicles to streamline warehouse operations.
Nissan, BMW, and Ford are some of the companies which have deployed robotics to work alongside their human counterparts. Audi, on the other hand, has already incorporated additive manufacturing techniques (3D printing) into their regular manufacturing processes.
The entire manufacturing industry is set to experience a revolution as self-driving technology advances.
Automation is becoming more of a focus and it could be particularly useful in increasing throughput productivity, cutting down labor and operation costs, improving the safety of workers, and driving continuous improvement in the manufacturing industry. Self-driving technology is already helping create human-machine partnerships and advancing innovation in manufacturing companies. These changes are just getting started and it won’t be long before the entire manufacturing industry adopts self-driving technology.
Hospitality
As self-driving technology advances, it’s expected that traveling will become cheaper, faster, and less stressful. First, travelers taking longer trips won’t have to worry about paying attention to the road or stopping at a motel to rest for a few hours before they can proceed with their journey. Vehicles at full automation (level 5) will allow travelers to travel through the night and arrive at their destination without having to pay for a bed. They can sleep, work, eat, and relax in the vehicles while traveling.
Self-driving vehicles will most certainly become a convenient and reliable substitute for weekend getaways and staycations. And because of this, more people will take weekend trips and effortlessly travel to nearby destinations. While roadside motels are likely to be negatively affected, hotels at favorite destinations like ski resorts, beaches, and cities will benefit from this travel trend. Restaurants will also benefit from increased tourism and more frequent travel.
