Building automobiles requires factories, equipment and an army of people to design and assemble. All this makes it a challenge to make a profit in the end. The world’s top 10 carmakers had an operating margin of just 5.2% in 2020. Compare that to the 34% enjoyed by the tech industry’s leaders. So what can they learn from this? This interesting topic came to us from Digital Insurance in their article, “Big tech: Pushing self-driving cars to get eyes off the road?“
Big tech is looking at the automobile industry as an opportunity. For Apple and other tech giants that are diving into self-driving tech or are in the process of designing their own technologically-driven vehicles, that push isn’t just about breaking into a new market — it’s about defending their valuable turf.
A market projected to top $2 trillion by 2030 is a big deal. More than 58 million vehicles globally are expected to be driving themselves in less than decade. Big tech has utilized emerging technologies like artificial intelligence to disrupt the norm.
Melody K. Smith
Sponsored by Access Innovations, the world leader in thesaurus, ontology, and taxonomy creation and metadata application.