As the connected car matures technologically, it will influence market trends and automakers’ relationships. Innovations such as safety sensors and smart phone integration were once seen as new features, but now have adapted in the mainstream market. Companies, especially conventional original equipment manufacturers are going to be forced to change their production methods and will be required to make decisions relating to their cultures, merger and acquisition approaches, and recruitment of talent.
Companies are now introducing radically new technology integrated in their products at low prices. Companies such as BMW and Tesla are pushing technology to its limits and changing the market. Cars can now stream data from the cloud in near real-time, and the cost involved in manufacturing the sensors that allow a car to be aware of its surroundings is decreasing as well.
As the industry grows, companies that do not produce driverless cars will feel pressured as technology grows rapidly around them.
The effect of driverless cars extends outside of the automotive industry. Technology firms can expand their market by collaborating with the automotive industry on these vehicles. For example, General Motors recent investment in Lyft will allow GM to provide Lyft with cars for car sharing and in exchange, Lyft will help GM create autonomous driving. Manufacturing and delivery industries can significantly reduce labour costs; as they will no longer have to hire employees to drive their trucks. Overall, businesses will see a decrease in costs and an increase in potential innovation.
Autonomous Vehicles 