Since the advent of autonomous vehicles, numerous companies (manufacturers and tech) have come up to invest in driverless cars. Since most of the states have approved the driving, and testing of autonomous vehicles on their roads, multiple investors have emerged.
Each state would like to be in the lead in autonomous technology. To ensure that this occurs, manufacturers have to focus on safety- an aspect that is maximized by technological advancements. This implies that autonomous vehicles are soon expected to take over the state roads, and investing in autonomous technology will prove lucrative.
Reasons to Invest in Autonomous vehicles
The world’s first moving towards a future characterized by driverless vehicles and other futuristic auto technologies. Partnerships have come up among different partners, automotive manufacturers, tech companies, and some startups interested in autonomous driving.
Market data shows that by the year 2025, the driverless cars’ market will be worth close to $42 billion. After another ten years, the market size is expected to grow to about $77 billion. Likewise, millions of fully functional driverless vehicles will have taken over the roads.
Where, in Automotive Technology should you invest?
Despite the fact that the autonomous vehicle industry is just coming into existence, it has shown its potential. Some companies are already getting good money from the driverless cars that are already on the roads. Companies like those in the semiconductor industry who service the technology.
Technology companies have continued to be more innovative. Chips can now be installed in vehicles to assist in driving. This implies that you need to invest in tech companies now because, in about ten years; the projected growth of the driverless vehicle industry is likely to cause economic ripples in the next decade.
Currently, the growth of autonomous driving technologies relies on the advancements in advanced driver-assistance systems applications. It is estimated that the market for the semiconductors used in autonomous vehicles will reach $7.3 billion in about eight years from now. Moreover, there is an expected annual growth rate of 62.5 % as of this year (2017).
This data reveals that investing in firms operating autonomous vehicles is one of the best moves an entrepreneur can make this year. You could also buy stocks from a couple of companies that are already involved in autonomous vehicle technology. Among the most notable companies are Tesla and Google.
The firms that have already taken up self-driving vehicles are quite optimistic, with most of them developing custom autonomous driving systems for the future. Tesla is one example. You may consider investing in Tesla’s NASDAQ: TSLA driverless car stock which is currently quoted at $256.34. Tesla expects to have delivered their Model 3 by 2018.
Driverless vehicles Legislation
Autonomous vehicles are poised to become a significant part of the automotive industry in the future. As a potential investor in the industry, however, you should be aware of the various rules that bind you. The rules depend on your state. It is important for state and municipal governments to consider the potential impact that autonomous vehicles will have on the roads.
As the technology advances, new legislations are introduced. The manufacturer holds some liability for their vehicle. In case the car gets into an accident, the passenger can seek the counsel of a personal injury lawyer who will offer legal representation to help the passenger get compensation for the damages caused.
In addition to the legislations, autonomous vehicles need to have specific insurance requirements. These also vary from state to state. Among the states that have already enacted legislations on autonomous vehicles are Nevada, North Dakota, Florida, and Arizona.
Driverless cars are the vehicles of the future. It is advisable to invest in the autonomous industry because by 2025; the autonomous cars’ market is projected to reach about $42 billion. Tech companies, manufacturers, and startups are investing in driverless technology. Their market looks promising and is expected to be lucrative.
By: Vincent Stokes