Self-driving cars are expected to have a big effect on many parts of everyday life. These cars, also called autonomous vehicles (AVs), have been studied a lot for their effects on the environment, how they work in real life, and how they might change people's lifestyles. However, these effects are still being discussed.

Some experts believe that self-driving cars could greatly reduce traffic crashes and the serious injuries or deaths that often result. The United States government says that 94% of traffic crashes involve human mistakes as the main cause. One study suggests that if 90% of cars on U.S. roads became AVs, about 25,000 lives could be saved each year. Other experts say that the number of crashes caused by human mistakes might be higher than what some studies suggest, and that self-driving cars could actually lead to more crashes.

Self-driving cars may make air pollution, noise pollution, and less physical activity worse. However, they might also increase productivity, make housing more affordable, free up space currently used for parking, and lead to more energy use, traffic jams, and spread-out city areas. It is not yet clear whether self-driving cars will change how much people use individual cars. Other types of self-driving vehicles, like buses, might reduce car use and traffic congestion.

AVs are expected to change areas like healthcare, insurance, travel, and shipping. Auto insurance costs may decrease, and the pressure on healthcare systems from car crashes may be reduced. Self-driving cars may also lead to job losses in the transportation industry.

Automobile industry

A report from McKinsey predicts that self-driving vehicles could earn between $300 and $400 billion by 2035. Many car companies are working on this technology, including General Motors' company Cruise and Tesla. Ford and Volkswagen invested a lot of money in Argo AI but left the market by 2022, choosing instead to focus on vehicles that can drive themselves to some degree (L2+, L3 under SAE classification). Other companies not traditionally involved in making cars, like Google's Waymo, have also studied self-driving cars.

To help improve safety, some companies are sharing parts of their self-driving technology. For example, Udacity is creating an open-source software system, and other companies are using similar methods.

Public health

Estimates of how many crashes autonomous vehicles (AVs) might prevent differ a lot. A 2018 report from the National Highway Traffic Safety Administration (NHSTA) found that 94% of crashes had humans as the final cause in a series of events. One study suggested that if 90% of cars in the United States became self-driving, about 25,000 lives could be saved each year. The value of lives saved by preventing car crashes in the United States is more than $200 billion annually. Other studies suggest that self-driving cars could save up to 10 million lives worldwide every 10 years. Opponents argue that the number of crashes caused by human drivers is not considered properly, and estimates of lives saved may not be accurate.

Driving safety experts predict that once driverless technology is fully developed, crashes caused by human mistakes, such as slow reactions, following too closely, looking at accidents, or distracted and aggressive driving, would decrease greatly. Some experts support the idea of a "smart city," where AVs share data with city systems to help reduce crashes further.

A lack of data makes it hard to compare how many crashes happen per million miles between AVs and human drivers. One early study found that AVs had 9.1 crashes per million miles driven, nearly double the rate for human drivers, though these crashes were less serious. Arstechnica reported 102 crashes over 6 million miles driven by AVs, but said these crashes were minor and still safer than human driving. Waymo claimed only 3 crashes with injuries occurred over 7.1 million miles driven by AVs, which is nearly twice as safe as human drivers. As more cities allow AVs to operate, more incidents and complaints have been reported.

Opponents of AVs argue that current self-driving technology does not handle "edge cases" well, which are unusual situations that could make AVs more dangerous than human drivers. In 2017, experts were asked to rank autopilot systems, but none were considered safer than human driving. Factors that may reduce safety include unexpected interactions between humans and vehicle systems, technical limits of the technology, software errors, sensor or data problems, and attacks by malicious people. Security concerns include what an AV might do if someone tries to enter the car without permission, if someone breaks into the car, or if someone attacks the occupants, such as by using weapons.

An ethicist argued that requiring any human supervision for AVs could lead to complacency and would be unethical to use. They said humans are unlikely to react quickly enough during sudden software failures if a quick decision is needed. Research shows that drivers in automated cars may take longer to respond in emergencies compared to when they are driving manually.

According to a 2020 review of studies, self-driving cars might increase some health risks, such as air pollution, noise, and sedentary lifestyles. However, if properly regulated, AVs could likely reduce injuries and deaths from car crashes and help shape cities to support healthier environments.

An unexpected downside of widespread AV use could be a decrease in the supply of donated organs. In the United States, for example, 13% of donated organs come from people who were in car crashes.

Welfare

A 2020 study found that self-driving cars could help increase productivity, make housing more affordable, and free up land that was used for parking. However, these vehicles might also lead to higher energy use, more traffic jams, and the spread of urban areas. Autonomous cars could lower costs for people who drive for work, allow travelers to avoid driving and navigating, and replace time spent driving with time for work or leisure. These vehicles could also help people who are unable to drive safely, such as those who are distracted, tired, or have health conditions that make driving difficult.

For young people, older adults, individuals with disabilities, and those with limited income, self-driving cars could improve access to transportation. Removing the steering wheel and other driver controls would allow car interiors to be designed in more flexible and comfortable ways. Large vehicles, like motorhomes, would be easier to use with this technology.

Older adults and people with disabilities, including those who are hearing-impaired, vision-impaired, mobility-impaired, or have cognitive challenges, could benefit from self-driving cars. However, how much these groups gain from this technology depends on how the vehicles are designed and the rules that govern their use.

Children and teens, who cannot drive themselves for school transportation, would also benefit from self-driving cars. Schools and daycares could use these vehicles for pick-up and drop-off, reducing the need for parents or caregivers to drive. This would add to other transportation options like walking, biking, or taking the bus.

As self-driving cars become more common, the need for people to drive will decrease. Driving schools may not be affected immediately because most vehicles still require human control today. In the future, driving might become a special activity for wealthy people, which could create a new industry with new companies and markets. However, self-driving cars might also worsen existing problems with unequal access to transportation, as car and technology companies may prioritize their own interests over fairer and more sustainable options like public transit.

Urban planning

A reporter from Wonkblog says that if fully automated cars become available for sale, they could cause major changes that greatly affect society. It is not yet clear how many people will use them, but if they are widely used, leaders will need to answer many questions about their effects.

One important question is how they might change how people travel. Some people think automated cars could increase the number of cars owned and used because they would be easier and more helpful. This could lead to more people living far from cities and more cars on the road overall. Others believe that automated cars might make it easier to share vehicles, which could reduce the number of cars people own and use, making transportation more efficient.

Leaders will need to rethink how roads and other transportation systems are built and how money is spent on these changes. Smart highways, which use technology to manage traffic, might reduce the need for traffic signals. These highways and other technology could also lower the need for oil because cars might spend less time on the road. However, if too many cars are on the road and smart systems are not enough to manage them, the need for oil might increase. Because the future of automated cars is uncertain, leaders should plan carefully by creating infrastructure that works for both human drivers and automated vehicles. Care must also be taken to avoid harming public transportation, as changes in policy might reduce its use, leading to job loss and more unemployment.

Automated vehicles could also change how goods are delivered. Self-driving vans might make home deliveries much cheaper, which could change how stores operate and possibly make large stores unnecessary. As of 2019, the US Department of Transportation divides automation into six levels. Level zero means the human driver does all the work, while level five means the car does all the driving tasks. Currently, manufacturers are responsible for ensuring their vehicles meet safety and legal standards before selling them. This means there are no federal laws in the US that stop highly automated vehicles from being sold, as long as they follow rules. Iyad Rahwan, a professor at MIT, said, "Most people want cars to help reduce accidents, but many also want their own cars to keep them safe." Before automated vehicles can be considered safe in real-world conditions, industry standards and best practices must be developed.

Traffic

Additional benefits may include faster speeds, smoother rides, and more vehicles that can use the road at the same time, which can help reduce traffic jams. Right now, highways can handle about 2,200 cars per hour per lane, and cars take up about 5% of the road space. A study found that automated cars could increase this number by 273%, allowing about 8,200 cars per hour per lane. If all vehicles are connected and can communicate with each other, the number could rise to 12,000 cars per hour per lane. These vehicles could travel safely at 120 km/h (75 mph) while keeping only about 6 meters (20 feet) between each other. Human drivers usually keep 40 to 50 meters (130 to 160 feet) between cars at highway speeds. These improvements could greatly reduce traffic congestion, especially in cities, and even eliminate highway jams in some areas. With automated vehicles, officials could manage traffic more easily because they would have more data and better predictions about how vehicles will behave. This could also reduce the need for traffic police and road signs.

Insurance

Safer driving can lower the cost of car insurance. The insurance industry may face challenges as new technology makes some jobs unnecessary. Fewer car accidents mean less money is needed for repairs, which could change the role of insurance companies. The improved safety from self-driving cars may lead to lower payments by insurers, which is good for the industry. However, lower payments might also mean people need less insurance overall.

To help manage these changes, the Automated and Electric Vehicles Act 2018 was created. Part 1 of the law includes rules about insurance for self-driving cars, while Part 2 focuses on electric vehicles.

Labor market

The use of many self-driving cars could lead to fewer jobs for people who drive vehicles, such as truck and taxi drivers. Drivers and their groups may not like this change because it could cause them to lose their jobs. Also, jobs in public transportation, like buses, and repair shops that fix cars after accidents might decrease. A well-known study by Michael Osborne and Carl Benedikt Frey said that self-driving cars could cause many jobs to no longer be needed. However, the industry has created thousands of jobs in countries where many people earn low wages, as these workers help train the systems that control self-driving cars.

Because people are unsure if they want to own self-driving cars, companies that provide transportation services, like Uber and Lyft, may continue to grow in popularity. These well-known companies are already active in the industry, and other companies might join when there are chances to make money.

Energy and environmental impacts

A study showed that private self-driving cars might increase the total amount of travel, while self-driving buses could lead to fewer people using cars.

Self-driving cars can improve fuel efficiency by making driving smoother and increasing traffic speeds by about 8% to 13%. This could lead to a 23% to 39% improvement in fuel efficiency, which might even get better over time. Additionally, self-driving cars can accelerate and brake more smoothly, which helps save fuel by reducing energy loss from sudden speed changes. However, better energy efficiency in vehicles doesn't always mean less total energy is used or better environmental results.

In addition, the convenience of self-driving cars might encourage more travel, which could reduce the use of public transport or walking. This increase in travel might partly or completely cancel out the fuel efficiency benefits from automation.

Automated cars could also reduce the number of cars people own, as more people might use taxis or car-sharing services instead. This could lead to a smaller automotive manufacturing industry, affecting both the environment and the economy.

The comfort of self-driving cars, along with time saved during travel, might encourage people to live farther from cities where housing is cheaper and work in city centers. This could lead to longer travel distances, more urban sprawl, and higher energy use and carbon emissions. There's also a risk that traffic might get worse instead of better. Good public policies, like zoning laws, pricing strategies, and urban planning, are needed to prevent negative effects from more suburban living and longer commutes.

Many self-driving cars will use electricity, so there will be more demand for lithium batteries. Components like radar, sensors, lidar, and high-speed internet also need more power from the car's battery, which means larger batteries are needed. This will increase the need for battery production in the chemical industry. At the same time, the petroleum industry might see less demand as more vehicles switch to electricity. However, the exact impact depends on how quickly self-driving cars are adopted.

A 2020 study by researchers at Carnegie Mellon University found that automation technology, including sensors and internet access, can increase electricity use by up to 15%, which might reduce the range of electric vehicles. This suggests that the need for larger batteries might not be as high as previously thought.

Self-parking and parking space

A study by the AAA Foundation for Traffic Safety discovered that drivers do not trust self-parking technology, even though the systems performed better than drivers using backup cameras. The study tested self-parking systems in several vehicles, including the Lincoln MKC, Mercedes-Benz ML400 4Matic, Cadillac CTS-V Sport, BMW i3, and Jeep Cherokee Limited. It found that self-parking cars hit the curb 81% fewer times, used 47% fewer moves, and parked 10% faster than drivers. However, only 25% of people surveyed said they would trust this technology.

Manually driven vehicles are used only 4–5% of the time and are parked and unused for the remaining 95–96% of the time. Autonomous taxis, on the other hand, could be used continuously after reaching their destination. This might greatly reduce the need for parking space. For example, a 2015 study in Los Angeles found that 14% of land is used for parking, equal to about 1,702 hectares (4,210 acres). Combined with the potential reduction in road space due to better traffic flow, this could free up large areas in cities for parks, buildings, and other uses, making cities more livable. Additionally, privately owned self-driving cars, which can also self-park, would allow passengers to be dropped off and picked up in places where parking is not allowed. This would help improve park and ride facilities.

Cybersecurity

The vehicles' ability to notice more things could help police by informing them about passengers doing something wrong, but it might also allow others to commit crimes, like intentionally crashing into another car or a person. However, this could also lead to more widespread watching of people if many companies have access to the large amounts of information these vehicles collect.

Privacy might be a problem if the vehicle's location and movement are shared with others through a system that many people can use. These vehicles also need systems that use sensors, which could create a way to watch people everywhere. This would allow car makers and other companies to learn about a person's habits and what they like.

There is a danger that terrorists could use hacking to control cars by sharing information through V2V (Vehicle to Vehicle) and V2I (Vehicle to Infrastructure) systems. Self-driving cars might be used to carry dangerous materials and act as bombs. According to laws made by U.S. lawmakers, cars that drive themselves must have protection against being hacked.

Car repair

As car accidents become less common and the chance of mistakes by people decreases, the repair industry will have much less work repairing car frames. At the same time, information collected from self-driving cars may help predict when parts need to be replaced. This allows car owners and repair workers to replace parts before they break. This "Asset Efficiency Service" would mean increased productivity for the automotive repair industry.

Rescue, emergency response, and military

The technology used in self-driving cars also helps save lives in other areas. These vehicles are already being used in rescue, emergency, and military work, which has helped reduce deaths. In the military, self-driving vehicles carry supplies like fuel and food to dangerous and hard-to-reach areas, and they can also help rescue people. In the future, using more self-driving vehicles might mean fewer people need to be sent into risky situations, which could lower the number of injuries. This is because these vehicles are becoming more independent with new technology. Another future benefit is that self-driving fire trucks and ambulances could reduce the need for human drivers in emergencies. These vehicles can use up-to-date traffic information and other data to find the fastest routes, which can save valuable time during critical situations.

Interior design and entertainment

As drivers become less focused on operating vehicles, the design of vehicles and the media-entertainment industry must consider what passengers in self-driving cars will do during travel. Vehicles may need to be redesigned and used for different purposes. In practice, passengers will have more time for work or leisure activities. This creates more chances for the media-entertainment industry to get attention. Also, the advertising industry can offer ads based on the vehicle's location without risking driver safety.

Connected vehicle

All cars can use information and connections, but autonomous cars will be able to work without needing C-V2X. The entertainment industry also relies on this network to be active in this area. This means the telecommunication industry could earn more money.

Hospitality industry and airlines

In the near future, drivers will interact with vehicles less often. In the distant future, vehicles will be fully responsible for driving. This change will affect the entertainment and interior design industries. For roadside restaurants, fewer customers will need to stop driving to enter, as autonomous vehicles may serve two purposes: transportation and dining. Alongside new companies like Airbnb, which changed the hotel industry, the growth of autonomous vehicles may also impact their customer groups. In the distant future, motels may see fewer guests, as autonomous vehicles could be redesigned as fully equipped bedrooms. Improvements in vehicle interiors might also affect the airline industry. For short flights, waiting times at customs or gates cause delays and inconvenience. If future car travel becomes more convenient, some customers may choose this option instead of flying, leading to fewer customers for airlines.