Question

Conduct some research into the size of the driverless market and discuss whether this technological advancement creates value for the economy. Discuss the biggest players in the industry.

Answer 1

Introduction

The automobile industry is a key contributor in the economic growth of a country and serves as an important investment and purchase decision since a lot of money is involved in buying a car at the micro levels.

A recent development which has caused major changes in the demand pattern of consumers is the concept of driver less cars which is increasingly gaining popularity across the United States and beyond.

Such cars usually require little to no attention from the users and are powered usually by electricity. This makes them higher in demand considering how people would additionally save money from such a purchase decision over the life of the product as the cost of traditional fuel is increasing each year respectively.

Case Specifics:-

Conduct some research into the size of the driverless market and discuss whether this technological advancement creates value for the economy. Discuss the biggest players in the industry.

The biggest company which deals with driverless cars is Tesla which has created an industry standard of being one of the most technologically advanced company to be producing driverless cars in the United States. Others such as Google and Apple are still researching cars that can be self driven. That said the industry has huge economic implications which are explained as follows:-

Each country today finds itself with an increasing challenge to manage its operations with rising costs of fuel which serves as one of the biggest imports in countries where oil reserves are relatively lower. The costs of traditional fuel go on increasing since the supply can be regulated by the handful of countries who possess an advantage in production of fuel. As a result, driverless cars were introduced which primarily run on electric engines that help reduce both emissions and green house effect while at the same time would help the government in reducing its fiscal deficit because of rising imports and costs of traditional fuel.

Because all development in the driverless segment today, has revolved around development of electric engines, that run on non traditional fuel, new companies that start operating would also be expected to follow the same strategy. As a result of this, value can be created in the economy.

Further, the introduction of driverless cars would prove to be a boon not only for the automobile industry itself, but for other connected ones also, such as home delivery, cab services etc. Driverless cars on a smaller scale have started becoming a trend in the home delivery sector in the United States and more people are expected to take driverless cabs which can help them in reducing their cost of travel, thus creating overall value in the economy respectively.

Conclusion:-

Thus, we can say that driverless cars create value for the economy by the reduction of traditional fuel dependancy which brands like Tesla have done with the electronic engines. Further they create value by their effect on other connected industries such as home delivery, cabs etc.

Please feel free to ask your doubts in the comments section if any.