Silicon Valley and Detroit in the Race for Autonomous Vehicles
In the race for connected and autonomous vehicles, a recent study shows an obvious winner.
Last week, the 2017 Connected Cars and Autonomous Vehicles Survey was released by Foley & Lardner LLP, a law firm based out of the Milwaukee area. The survey took a poll of the top 80 leaders in several facets of the industry—including automotive, technology, start-ups, and investment sectors.
The results were impressive.
According to the study, 70% of the responses acknowledged that Silicon Valley was the clear leader in mobility technology. Detroit, long known as the Motor City, came in with 46% while Germany took third place with 38%.
Also revealed in the recent survey was the future expectations of the industry. According to the findings, 77% of industry leaders expect to adjust their sales approach to encompass the alarming growth rate of these new technologies. In addition to this conclusion, one in four automakers conceded that they believe approximately 20% of their sales will be comprised of connected software and autonomous products by the year 2025.
Another facet to the study was to determine if start-ups and tech firms had altered or disrupted the current automotive supply chains in any way. According to the group’s findings, only 15% feel they have not disrupted the industry, leaving a staggering 85% saying they had indeed altered the current structure of the business.
“The competition could yield collaboration with Detroit, which has its finger on the pulse of the industry with the ability to mass produce vehicles,” stated the report.
This belief comes from the sheer fact that several companies, such as Arada Systems Inc., have already left Silicon Valley, moving to the Southeast Michigan area in an effort to work more closely with Detroit’s automotive industry.
This possible collaboration between industries could be quite beneficial for Detroit—bringing new jobs, sparking the economic structure of the area, and increasing property values in the real estate market.
News & Image Source: http://www.crainsdetroit.com/article/20171024/news/642971/report-silicon-valley-leads-detroit-in-mobility-innovation