You may have seen a few nuggets about automated driving and how the implementation of such technology will help reduce accidents, reduce stress and reduce emissions. Continental is leading the charge into the future for all the reasons listed above but additionally, automated driving will have a financial impact that looks to be positive. What could it mean for your wallet? Billions! That’s right, billions with a B. Here are a few notes:
1. Accidents – Annual costs for accidents in the US total $836 billion annually. If automated driving can reduce accidents by up to 90%, this would amount to a potential savings of $752 billion.
2. Congestion – Right now, congestion in the US amounts to 4.8 billion hours and 1.9 billion gallons of fuel equaling 101 billion combined delay and fuel costs. We’d all like to see some relief here!
3. Cost/Mile – Traveling in a personal car costs approximately $0.76 per mile today. In 2025, a consumer could potentially use a self-driving, pooled taxi for as little as $0.17 – 0.29 per mile.
4. Big Business – The market for producing the hardware components that make autonomous cars autonomous (e.g. sensors, cameras, transmitters) is estimated to be worth around $30-40 billion by the year 2030.
5. Parking – Cars that park themselves are more efficient than a human, reducing the need for parking lots. Thus, if the amount of parking in the US decreases by just 1% each year, that would free up $45 billion in property value annually.