As new technology transforms our environment, first movers positioned to exploit new business models are expected to be the next to benefit. For example, 5G will help make fully autonomous vehicles a reality.
Just as 5G marks a revolution after successive evolutions, we believe we are about to see a second transformational shift in mobility. Yes, operational capabilities have improved significantly but 5G will also allow the industry to transform how vehicles are powered, who’s driving, and improve safety systems exponentially. In my opinion, we haven’t seen this level of change since the shift from the horse and cart to the automobile.
As the 5G rollout brings fully autonomous vehicles one step closer to reality, companies are already investing in ways to monetise the new driverless ‘driving’ experience.
These new data and earnings models are rooted in what people do with their vehicles, but the information flow 5G will enable also has important applications in manual vehicles too. One of the most appealing of these is allowing electric vehicles to constantly communicate with engineers. In the future, I think you will go to bed, charge your vehicle and wake up to find its system has been optimised in the same way that you receive iPhone updates.
George Saffaye, global investment strategist, Mellon.