According to ARK Investment Management LLC, driverless cars are expected to revolutionize the global economy in the next 10 years and could affect GDP by up to 20%. This big change is anticipated as a result of the transformational potential of autonomous vehicles to reduce accident rates and transportation expenses.

The net GDP benefits of introducing autonomous taxis could be staggering, amounting to $26 trillion by 2030, or around 26% the size of the US economy today. This economic shift is not just about numbers; it’s about lives saved. Between 30,000 and 35,000 lives could be saved by autonomous vehicles in the US and between 1.2 and 1.5 million lives worldwide.

While fewer accidents could lead to a reduction in GDP of around $1 trillion per year due to decreased repairs, hospital stays, and insurance rates, the overall economic impact remains positive. Preserving lives and reducing injuries, along with the continued economic activity of otherwise disabled employees, could contribute an additional $3 trillion to global GDP annually.

The passenger experience in autonomous vehicles will change dramatically, with increased safety and new free time. This change could result in an increase in global productivity of approximately $17 trillion.

Due to their running costs and low prices, EVs are projected to take over the autonomous transportation market, potentially resulting in a $1.2 trillion annual drop in fuel and maintenance revenue for gasoline-powered vehicles.

The rise of driverless taxis may cause a decline in the sale of personal vehicles in metropolitan areas, which would reduce GDP by almost $1.8 trillion annually. However, the estimated $1 trillion in driverless vehicle sales to fleet operators may offset this somewhat.

The transformation of unpaid driver activity into measured economic activity by self-driving cars could potentially generate around $9 trillion in service revenue annually. By 2030, personal autonomous travel could add a net $26 trillion to global GDP per year. This includes a potential increase of $30 billion due to autonomous transportation service revenue and increased productivity, and a decrease of $4 billion due to fewer accidents, lower sales of gasoline-powered vehicles, and lower fuel and maintenance costs.

ARK projects that autonomous transportation could add around 2-3 percentage points to global GDP per year by 2030. This economic impact is projected to be greater than the combined boosts provided by the steam engine, robots, and IT.

With global growth potentially nearly doubling from 3.3% a year to around 6% thanks to autonomous taxis, consumers are likely to be the biggest beneficiaries. Consumer purchasing power could increase as transportation costs fall, and time off from unpaid driving could increase by about 10 weeks.

The autonomous vehicle revolution is not just about technology; it’s about reshaping the global economy and improving lives. As we move into 2030, the impact of this transformative technology will become increasingly apparent.

Image Source: Shutterstock