The Direction of Autonomous Transportation By Investing.com Studios

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It’s not easy to conjure up all the reasons why driverless are so necessary, or to readjust one’s perspective on just how much of our modern world is designed to support human drivers. However, a world with driverless will mean drastically different looking cities and towns with more room for pedestrians, a cleaner , better business productivity, and a more dispersed population, among other revolutionary notions. For investors, the number of positive changes that autonomous will bring to civilization is matched by the opportunities in this budding space.

Reducing Humans’ Role in The Transportation Paradigm

Nearly 1.25 million people die from vehicular crashes each year, with another 20 to 50 million disabled. Moreover, vehicles emit 20% of the world’s total output. These statistics may not seem related but have much in common; they’re blamed on the notion of automobiles, full stop, yet result specifically from humans behind the wheel. Autonomous driving would decimate vehicular accidents (90% are human error) and is considered an excellent way to reduce CO2 , as self-driving vehicles will be able to regulate and optimize their .

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As a solution to the problem of road fatalities and pollution, autonomous cars are relevant, but they’ll also open up countless business opportunities. Regulators haven’t allowed fully autonomous cars on the road yet but have signaled their willingness, should these vehicles be able to demonstrate near-infallible safety. Accordingly, the biggest names in tech and the automotive sector are feverishly pouring money into R&D. All are hoping to be the first to take a piece of the autonomous car market, which is estimated to reach $65.3 billion by 2027. Consider its size even without a passable prototype, and it’s easy to imagine the market’s potential once momentum builds.

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A Rapidly Accelerating Pace of Driverless

There are many recognizable companies racing to conquer the autonomous driving space, which means investing in the trend involves commonly known stocks such as Google (NASDAQ:GOOGL), Volkswagen (DE:VOWG_p) (VOW), Toyota (TYO), and of course Tesla (NASDAQ:TSLA). Though few will argue that these aren’t the natural incubators of driverless technology, they’re also multinational multi-sector behemoths compared to others in the space. Progress advanced within smaller and more specialized autonomous driving innovators presents more focused growth opportunities.

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Investments can focus on the tech that is able to deliver autonomy, the cars as a final product, and also on the companies profiting from these cars (once they exist). For an example of the latter, ride-sharing companies Uber (NYSE:UBER) and Lyft (NASDAQ:LYFT) stand to benefit enormously when autonomous cars are launched, as they won’t be paying drivers yet still supplying millions of rides all the same. As for companies helping to realize the dream, Skyworks Solutions (NASDAQ:SWKS) and MaxLinear Inc. (MXL) are both on the forefront of this young sector and may thrive as their specialized radio frequency semiconductors find homes in cars applying this tech to “see”.

Navigating the Evolving Driverless Ecosystem

Investors researching the young industry will be befuddled by the ocean of companies with their fingers in this pie. Vehicles are intrinsically related to many other industries that will also feel the impact of driverless models, and in many around the world. This means that broad, balanced financial instruments such as the eToro DriverlessVehicle CopyPortfolio are ideal. With a basket of over 35 companies hand-picked by experts for their relevance to the technology, the industry, and the future, investors can allocate their capital towards this thematic portfolio to broaden their exposure to the impending driverless revolution.

For an industry that’s still so young and encompasses new promising entrants with each passing year, investors will appreciate that eToro’s CopyPortfolio is periodically rebalanced and audited by those familiar with the sector. This is vital in a burgeoning sector comprised of large and small players with regional and international presences. While these players certainly compete for dominance, many companies stand to reap the rewards should any of these nascent ideas succeed. For an investor with a broad perspective (and portfolio), this blossoming trend is full of potential.

Piloting a Driverless Investment Approach

Car makers, technology providers, software developers, and sensor manufacturers, alongside dozens of others, have a stake in the single idea that cars can drive themselves. Investors, for their part, must take an equally wide-ranging tack for their own capital or risk missing out on the biggest results of this upheaval.

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Source: Investing.com

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