The Smart Transportation Revolution
Smart transportation, which encompasses a wide range of transportation solutions, from electric vehicles to autonomous driving, is set to revolutionize the transportation landscape. Smart transportation is based largely on the advent of electric vehicles, autonomous driving, and application-based transportation services. This article by SmartETFs evaluates the oncoming transportation revolution.
Two Steps to the Smart Transportation Revolution
Step 1: Electric Vehicle (EV) Affordability
Lifetime ownership costs of EVs are already lower than those of traditional cars, but experts anticipate that the upfront cost of an EV could fall below that of a traditional vehicle by the end of the decade. EVs also present an affordable option for certain ridesharing businesses (e.g. Uber).
Step 2: The Advent of Autonomous Vehicles
The transportation revolution also depends upon the continued rise of autonomous vehicles. Though we have not yet achieved full autonomy, technological advances led by Waymo and Tesla continue to create ever-more independent vehicles.
Transportation as a Service
Electric vehicles and autonomous driving technology should work with application-based ride sharing to create transportation as a service (TaaS),by which riders request autonomous transportation via an app. TaaS could become commonplace by 2030.
Flying cars may soon be a reality, and play an important role in TaaS. More than 70 companies are working on or testing the concept, with Uber and Boeing, planning to offer flying car transportation as a service as early as 2023. The flying taxi market could exceed $615 billion by 2040.
TaaS has promising applications in the realm of public transportation. Autonomous electric vehicles can replace slow and inefficient public transportation systems with more efficient and cost-effective options.
Test drives by Waymo and Tesla show that these vehicles could reduce serious accidents by 70 to 90 percent.
Reduced Traffic Congestion
Autonomous vehicles may reduce traffic congestion on the roadways. Factors that could lessen traffic jams after the transportation revolution include the following:
● Vehicle connectivity that allows them to communicate efficiently with each other and other elements of the roadway.
● The use of parking space to create more traffic lanes
● Increased ridesharing
● Smaller, faster public transportation vehicles
● Flying taxis
Transportation Revolution Implications
The transportation revolution has certain implications for the future of vehicles and roadways.
Autonomous electric vehicles will likely take a form that allows for rapid entrances and exits.
The transportation revolution should free up significant portions of land currently being used for parking spaces and gas stations.
Electric autonomous vehicles should also have a positive environmental impact. For example, they may create zero emissions, save lives, reduce time spent in traffic, and improve transportation for disabled riders and those who are on a budget.
The transportation revolution should save consumers a collective $700 billion a year. This money could then be funneled into areas such as the following:
● Electric Utility Companies
Businesses that may suffer from the changes in the transportation revolution include the following:
● Automobile Manufacturing
● Automobile Insurance
● Automobile Financing
The transportation revolution is already underway and should continue to develop and change. Investors can take advantage of these developments with smart transportation funds.