A McKinsey analysis says Autonomous Vehicles have the potential to generate billions of dollars in value for the automotive sector by the end of the decade.
In order to capitalize on autonomous driving’s potential, original equipment manufacturers and their suppliers may need to rethink their approaches to sales and business, invest in cutting-edge technology, and handle customer safety concerns.
Autonomous Driving has the potential to radically alter the way in which customers experience mobility.
AD systems may make driving safer, more convenient, and more pleasant. The time spent driving could instead be used to video call, watch a movie, or get work done. AD may also boost mobility for elderly drivers, giving them options that go beyond public transit or car-sharing services. This may be a result of providing them with more mobility options.
In addition to these advantages for customers, AD may also create new opportunities for the automotive industry to gain value.
Most vehicles on the road now are equipped with only the most fundamental ADAS characteristics. However, significant developments in AD capabilities are on the horizon. The Society of Automotive Engineers, sometimes known as “driverless control,” will eventually be possible by motor vehicles under specific circumstances. According to a consumer survey by McKinsey in 2021, customers desire access to AD features and are willing to pay for them. The ever increasing demand for AD systems has the potential to generate income in the billions of dollars. Component costs range from around $1,500 to $2,000 for automobiles that have lidar-based Level 2+ (L2+) capabilities. The component costs are much higher for automobiles that have Level 3 (L3) and L4 choices. According to research conducted by McKinsey, ADAS and AD might produce between $300 billion and $400 billion in the passenger automobile market by the year 2035. This estimate is due to customer interest in AD features and commercial solutions that are now available on the market.
Third, there may be far-reaching repercussions for other sectors as a result of the advent of autonomous vehicles.
The number of people needing emergency roadside service and maintenance could decrease if more people used AD technology to make roadways safer. As more people start using AD, this could be a problem for companies of that nature. Also, because drivers may not be accountable for accidents if they turn over control of their vehicles to AD systems, consumers who purchase self-driving cars may not have to pay as much for insurance. This may lead to the development of novel forms of B2B insurance for self-driving vehicles.
