Economic Impact of Automated Driving
Over the last few years, we have seen automobile manufacturers spending billions on automated driving technology and electric vehicles. This blog will focus on automated driving or self-driving technology. It will provide a brief overview of automated driving and where the industry stands today. Finally, it will focus on the economic impact.
Automated Driving - Overview
SAE International has categorized automated driving into six levels:
⦁ Level 0: No Automation
⦁ Level 1: Hands-On
⦁ Level 2: Hands Off
⦁ Level 3: Eyes Off
⦁ Level 4: Mind Off
⦁ Level 5: Steering Wheel Optional
So far, we are yet to see Level 6, i.e. fully self-driving cars. Only a handful of companies have only begun to offer Level 4 automation. Most of it is in limited areas and is yet to be available for wider public use. Toyota, Honda, Tesla, and Mercedes-Benz are the most notable names when talking about automated driving.
Economic Impact of Automated Driving
When we mention the word impact, most relate it to drawbacks or disadvantages. However, it is not the case with automated driving. Research shows that the economic impact will be positive for most stakeholders if not all. It is believed that the economic impact is worth billions of dollars. Let's see how.
⦁ Accidents
You might not realize it, but the annual costs of accidents in the U.A.E. are worth several billion dollars. When we look at it from a global perspective, it is safe to conclude that car accidents account for trillions of dollars worth of losses. How? Most people only take into account the vehicle repair costs and fail to consider hospital bills, loss of earnings due to the injuries, or the insurance payments. Automated driving will reduce accidents to a great extent and help save the world trillions of dollars each year.
⦁ Traffic Congestion
The second most notable impact will be related to congestion. Numerous studies have reported on the economic and health impacts of traffic congestion. These studies find that traffic congestion wipes off billions of dollars from the world economy each year. How? First, people lose considerable time in the traffic. It leads to a loss of productivity. Second, congestion means extra fuel consumption which leads to harmful emissions. It affects air quality and can lead to numerous diseases, including lung cancer. Automated driving will help reduce congestion as there will be no human errors and everything will run based on technology.
⦁ Cost Per Mile
When you travel alone in a car, the cost per mile is significantly higher. If you carpool, the cost will be much lower. Automated driving means you can share rides with others in a robotaxi or a similar concept and pay significantly less than you normally would. Several automobile companies are testing robotaxies, and we might see a commercial launch soon.
⦁ Property
Automated cars can park more efficiently than humans, i.e. not waste too much space. Also, one can drop off at the desired location while the vehicle can park itself. It would undoubtedly reduce the need for large parking spaces. It means that extra property space is available, which can be used for other purposes. Property or construction itself is a multi-billion-dollar industry in the U.A.E. Therefore, automated cars will give this sector a boost.
⦁ Related Businesses
What makes automated cars automated? Besides the software, these vehicles are equipped with countless sensors, multiple cameras, transmitters, and other hardware. It helps the self-driving vehicle function as intended. Therefore, when automated vehicles become the norm, we will see a boom in related businesses. It will increase employment opportunities for the people.
Over to You
This blog post aimed to familiarise our readers with the benefits of automated driving. If you still have any questions related to this or anything automobile-related, please contact us. Our representative will get back to you with a detailed answer. Thank You.
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