As autonomous vehicles (AVs) edge closer to mainstream adoption, they promise to be more than just a new way of getting from A to B. Like most new tech, they’re going to disrupt pretty much everything around them. This is concerning in some ways, and exciting in others. A great deal has been written about the potential of lost jobs as AVs become more commonplace, and this is certainly a valid issue that needs addressing, particularly in terms of up-skilling those whose work is likely to be disrupted. Current research predicts a significant mismatch between the current required employee skillset and the one needed in an AI-defined era. This is not an issue to be taken lightly.
In this article, I’m going to focus on opportunities, and highlight the companies and sectors (and indeed roles) that will be most in-demand as we start to drive less and be driven more. A research paper from 2021 suggested that the AV revolution would mean ‘future job openings will favour statisticians, software developers, engineers, and other data-centric roles.’ This is true, but I believe the opportunities go far wider than that – because from ride hailing to tourism to entertainment to urban planning, there are opportunities in the unlikeliest of places.
So, in this article I’ll break down what I see as the key areas of opportunity and argue that while AVs will certainly affect us all, it can equally be said that with some transformative thinking, there’s the potential for almost any business to benefit from this ongoing revolution.
New ways of getting around: ride hailing and TaaS
The advent of AVs will reshape ride-hailing and transportation services entirely. In terms of ride hailing, companies like Uber and Lyft are working on AV fleets to offer self-driving, on-demand transport services. By removing drivers from the equation, ride-hailing companies can reduce operational costs and potentially lower prices for passengers.
This new model makes it easier for users to share rides, which could reduce traffic congestion and pollution in urban areas. This is already being implemented here in the UAE, with a fleet of driverless taxis on Yas Island run by a company called TXAI. In addition, back in 2022 a driverless bus service was used during the Abu Dhabi Grand Prix. In some American cities, so-called robotaxis are in operation thanks to the Alphabet-owned company Waymo. In the UAE, a Chinese firm has been granted a license to test and operate robotaxis. Clearly, new companies will continually spring up as different angles of this ride hailing disruption are explored.
But if we look beyond ride hailing as we currently know it, AVs could also pave the way for a subscription-based Transportation-as-a-Service (TaaS) model, where users pay for access to a fleet of autonomous vehicles rather than owning an actual car. This shift could benefit not only the ride-hailing industry but also automobile manufacturers and insurers as they adapt to new business models focused on shared, rather than individual, ownership.
Keeping vehicles on the road: maintenance and charging
No matter how advanced the tech, stuff still breaks. While autonomous vehicles may reduce some of the wear and tear associated with human driving, they still require maintenance, especially given their reliance on sophisticated electronics and sensors. Companies that provide specialised AV maintenance services will be in demand and as AVs become more common, new repair shops with a focus on high-tech components and diagnostics will emerge.
In addition, electric AVs will need extensive charging infrastructure. Businesses that invest in EV charging stations, particularly in key locations such as car parks, shopping centres, and highways, are likely to benefit from the increased demand.
Where there are cars, there is insurance
While it is expected (or hoped) that the frequency of accidents will decrease as AVs take to the roads, liability may shift from drivers to manufacturers, creating a new type of insurance product. Companies that can adapt quickly and develop policies tailored to AV technology, such as product liability insurance, will have a head start.
Data analytics and risk assessment – increasingly prevalent in insurance – will become critical. Insurers who can leverage vehicle data to assess risk more accurately will be better positioned to offer competitive rates, and some insurers may even partner with AV manufacturers to develop integrated insurance solutions, a model that could drive down costs for both parties.
Fewer car parks – new real estate opportunities
The AV revolution is likely to have a major impact on urban design and the real estate sector. As AVs increase, the need for large car parks in city centres may decrease, freeing up valuable land for other developments. This shift could lead to more pedestrian-friendly urban centres, higher property values, and new opportunities for real estate developers. Companies involved in urban planning and development could see significant gains as they redesign cities to accommodate autonomous transportation systems.
In suburban and rural areas, the increased availability of autonomous ride-sharing options could make it easier for people to live farther from their workplace without having to worry about a daily driving commute. This trend may spur demand for residential real estate in these areas, creating opportunities for developers who recognise this shift early.
The brains behind AV – tech and cybersecurity
Behind every AV is a sophisticated web of hardware and software, from sensors and cameras to artificial intelligence algorithms. Tech companies that specialise in these areas are set to benefit. Semiconductors, machine learning models, and 5G connectivity are just a few of the technologies essential for AV functionality. Companies providing these services and products will experience growing demand as the AV industry scales.
Meanwhile, protecting all this is paramount. Cybersecurity firms, in particular, will play an indispensable role. Autonomous vehicles rely on constant connectivity, making them potential targets for cyber-attacks. Businesses capable of securing AV software, networks, and data transmission from potential threats will thrive in this new environment. As consumers and manufacturers place a premium on data protection, demand for cybersecurity solutions will only increase.
Entertainment on-the-go
With the advent of autonomous driving, passengers will have more time to spend on other activities while in transit. This shift creates a lucrative opportunity for media and entertainment companies. Imagine a world where people watch films, play games, or browse the internet during their commute. Companies that can provide in-vehicle entertainment, infotainment, and personalised content will benefit as AVs transform journeys into leisure time.
In this new scenario, streaming services, gaming companies, and advertisers are well-positioned to cater to this new audience. Partnerships between AV manufacturers and media firms could become common, with vehicles equipped with screens and high-quality audio systems to enhance the passenger experience.
Hospitality and tourism
As travel becomes more convenient and accessible through AVs, the hospitality and tourism industries could experience a surge in demand. The UAE already boasts a thriving hospitality sector, but autonomous technology can make long-distance travel more enjoyable and less tiring, encouraging more people to take road trips and visit new destinations. Hotels, restaurants, and travel companies can capitalise on this trend by tailoring services to AV travellers, such as autonomous vehicle-friendly accommodations and attractions.
AV technology could also encourage new forms of mobile tourism. Imagine an autonomous tour bus that provides a guided experience without needing a driver, or a self-driving camper van that allows travellers to comfortably sleep as they travel to their next destination. Such developments could become popular and open up new revenue streams within the tourism sector.
A huge investment
One recent study asked whether AVs were ‘an urban futures revolution or catastrophe?’ My view is that this future must be planned carefully to ensure that when jobs are lost, new ones are created and the necessary training is provided for people to up-skill. None of this will be cheap, and the transition to AVs will require huge investment. But from insurance to entertainment to urban planning, the ripple effects of self-driving vehicles will be felt far and wide, shaping the future of business and society in profound ways. Those companies that are prepared to innovate and seize the opportunities presented by AV technology will be best positioned to succeed in this new age.