How About Investing in the Self Driving Industry?
In stock trading there are online brokers who offer lots of features to attract more people to trade stocks. Commission free trading is one such feature and there are also other tools on offer. But success in trading requires an in-depth understanding of the markets, which comes by experience, and observing analyst opinions, as well as by realizing which segments are really lucrative.
The future of transportation seems to be electric, but how strong is the autonomous driving trend? How hot is it as an investing opportunity? As much as electric mobility, autonomous vehicles or self-driving vehicles could also revolutionize transportation. And that’s a massive understatement. Since the start of automobile mass production, many innovations have made cars easier to drive.
An Innovation Like No Other in Transportation
The autonomous driving revolution totally alters the equation, taking the human element away and replacing it with artificial intelligence (AI) and software. The origins of autonomous tech can already be found in features such as collision detection, parking sensors, cruise control, etc. But autonomous tech enters the realm of AI to make the vehicle not just drive by itself but also make traffic decisions to avoid collisions and accidents. So what are the new opportunities automated driving systems (ADS) have in store for potential investors? Motley Fool analyst Keith Noonan quotes research to drive home the point.
Automated Vehicles Becoming More Intelligent
The systems developed for automated driving have improved significantly, a long way from the impractical initial prototypes. The innovations have increased to such an extent and become so intelligent that there could be around 10 million cars equipped with automated navigation tech by 2020, as per research by Business Insider Intelligence. According to McKinsey, around 15% of vehicles in 2030 could be totally autonomous. So investing companies developing this tech could prove to be a lucrative proposition for the immediate and not-so-distant future. And even in the long term this is a great opportunity since Intel ($INTC) reckons the global autonomous vehicle market could annually exceed $7 trillion by 2050.
Telecom Providers Would Be Part of the Equation Too
As per Morgan Stanley, telecom providers would also be caught up in the trend since they would be offering service to driverless vehicles and this service providing industry within the telecom industry would touch $200 billion per year. By that time, Morgan Stanley reckons there could be around 300 million self-driving vehicles on the road. Will the future generations never get the chance to actually drive a car? With technology advancing to such an extent, you should perhaps do as much driving as you can now. Who knows, these cars that you get to physically drive could soon be confined to museums! Jokes apart, these statistics are an indication of how much opportunity lies in this industry.
Software and Tech Providers Would Also Benefit
And there are many industries that could be influenced by this, particularly software and technology providers such as Apple ($AAPL) and Amazon ($AMZN). Both these companies offer services and products for developing autonomous vehicles. So you find tech companies getting benefited more than automobile companies. However, Ford ($F) could launch a Level 4 autonomous vehicle by 2021.
Level 4 Autonomy the Target
Level 4 autonomy refers to the category where the vehicle can take full control of driving and navigation except in certain conditions such as rough terrains where the driver would have to take control. Baidu ($BIDU) is teaming with Volvo to release Level 4 vehicles by 2021 as well. There have been autonomous vehicles already launched, but these belong to the category of Level 2 and Level 3 automation, whereby the driver must be ready to take control when required.
But Level 4 vehicles could be launched before 2021 since there are already such taxies by the Waymo ride-sharing service launched by Alphabet ($GOOG, $GOOGL). These taxies are used on a limited basis on public roads. Electric automobile manufacturer Tesla ($TSLA) already had a certain level of autonomy in its cars and Elon Musk has declared that Tesla will be ready with Level 5 autonomous vehicles - requiring no driver input – by 2020.
Autonomous Vehicles - Hubs for Computing
According to Morgan Stanley, autonomous vehicles will become computing hubs, giving greater opportunities for technology and software companies. That means chipmakers would get a big boost as well. The future is bright for autonomous tech and the opportunities are endless. Make use of advanced direct access trading platforms offered by TradeZero to start trading and begin your journey. Call us at 1 954-944-3885. You can also email us at firstname.lastname@example.org.
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