Scarinci Hollenbeck, LLC
The Firm
201-896-4100 info@sh-law.comAuthor: Scarinci Hollenbeck, LLC|December 19, 2018
The New Jersey Legislature is currently debating whether self-driving vehicles should be allowed on state roadways and, if so, what types of safeguards should be in place. While many other states have given autonomous vehicles the green light, New Jersey does not yet have any regulations in place.
The primary benefit touted by makers of autonomous vehicles is that they should ultimately result in greater roadway safety. There are 5.5 million traffic collisions in the United States every year, of which 81 percent are attributable to human error. Given the statistics, some proponents predict that crashes could decrease by as much as 90 percent.
Driverless cars are also big business. The global autonomous vehicle industry is expected to grow more than tenfold from 2019 to 2026, according to the latest market research. Allied Market Research predicts that the global market for self-driving vehicles will be worth $54.23 billion in 2019 and increase to $556.67 billion by 2026, with a compound annual growth rate of 39.47 percent during that time frame.
With the industry poised to take off, companies from General Motors to Google’s Waymo are seeking to capitalize on self-driving technology. In addition to automakers, the industry offers opportunities for companies providing ride-hailing freight transportation, and food delivery services (to name just a few).
Of course, self-driving cars may not be good news for all businesses. If autonomous vehicles do become the norm, they could have a significant impact on the traditional business models employed in a number of industries, including car manufacturing, transportation, and auto insurance. Like all new technology, businesses and consumers will adapt, and there are winners and losers in that process.
Some states have implemented regulations to address driverless cars, which are already on the road for testing. In California, operators of autonomous vehicles must undergo special training and be capable of taking over control in the case of an emergency. Manufacturers must report any type of accident or any situation where the autonomous technology disengages during operation to the state’s Department of Motor vehicles within 10 days. They must also maintain $5 million insurance or surety bond.
In New Jersey, lawmakers are currently whether to allow driverless cars to be tested on public roadways. On October 22, 2018, the Assembly Science, Innovation and Technology and the Transportation and Independent Authorities committees held a joint hearing to consider testimony from a wide range of experts. Below are several bills currently under consideration:
In addition to overcoming the regulatory hurdles, the autonomous vehicle industry must also convince consumers self-driving cars are safe. Consumers have yet to buy in on self-driving technology, particularly in light of several well-publicized crashes that resulted in fatalities. A recent study by the AAA revealed that 73 percent of survey respondents reported being too afraid to ride in a fully self-driving vehicle, compared to 63 percent in 2017. In addition, 63 percent of the U.S adults surveyed said “they would actually feel less safe sharing the road with a self-driving vehicle while walking or riding a bicycle.”
Importantly, for businesses and investors interested in autonomous vehicle technology and the resulting industry disruption, there is a wealth of opportunity potential and the question is whether New Jersey will get in on that action. Of course, legal uncertainties abound, as with any disruptive technology. At Scarinci Hollenbeck, our Business and Technology Law practice groups will be closely monitoring the technological and legal developments.
If you have any questions or if you would like to discuss the matter further, please contact me, Jeffrey K. Cassin, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
The Firm
201-896-4100 info@sh-law.comThe New Jersey Legislature is currently debating whether self-driving vehicles should be allowed on state roadways and, if so, what types of safeguards should be in place. While many other states have given autonomous vehicles the green light, New Jersey does not yet have any regulations in place.
The primary benefit touted by makers of autonomous vehicles is that they should ultimately result in greater roadway safety. There are 5.5 million traffic collisions in the United States every year, of which 81 percent are attributable to human error. Given the statistics, some proponents predict that crashes could decrease by as much as 90 percent.
Driverless cars are also big business. The global autonomous vehicle industry is expected to grow more than tenfold from 2019 to 2026, according to the latest market research. Allied Market Research predicts that the global market for self-driving vehicles will be worth $54.23 billion in 2019 and increase to $556.67 billion by 2026, with a compound annual growth rate of 39.47 percent during that time frame.
With the industry poised to take off, companies from General Motors to Google’s Waymo are seeking to capitalize on self-driving technology. In addition to automakers, the industry offers opportunities for companies providing ride-hailing freight transportation, and food delivery services (to name just a few).
Of course, self-driving cars may not be good news for all businesses. If autonomous vehicles do become the norm, they could have a significant impact on the traditional business models employed in a number of industries, including car manufacturing, transportation, and auto insurance. Like all new technology, businesses and consumers will adapt, and there are winners and losers in that process.
Some states have implemented regulations to address driverless cars, which are already on the road for testing. In California, operators of autonomous vehicles must undergo special training and be capable of taking over control in the case of an emergency. Manufacturers must report any type of accident or any situation where the autonomous technology disengages during operation to the state’s Department of Motor vehicles within 10 days. They must also maintain $5 million insurance or surety bond.
In New Jersey, lawmakers are currently whether to allow driverless cars to be tested on public roadways. On October 22, 2018, the Assembly Science, Innovation and Technology and the Transportation and Independent Authorities committees held a joint hearing to consider testimony from a wide range of experts. Below are several bills currently under consideration:
In addition to overcoming the regulatory hurdles, the autonomous vehicle industry must also convince consumers self-driving cars are safe. Consumers have yet to buy in on self-driving technology, particularly in light of several well-publicized crashes that resulted in fatalities. A recent study by the AAA revealed that 73 percent of survey respondents reported being too afraid to ride in a fully self-driving vehicle, compared to 63 percent in 2017. In addition, 63 percent of the U.S adults surveyed said “they would actually feel less safe sharing the road with a self-driving vehicle while walking or riding a bicycle.”
Importantly, for businesses and investors interested in autonomous vehicle technology and the resulting industry disruption, there is a wealth of opportunity potential and the question is whether New Jersey will get in on that action. Of course, legal uncertainties abound, as with any disruptive technology. At Scarinci Hollenbeck, our Business and Technology Law practice groups will be closely monitoring the technological and legal developments.
If you have any questions or if you would like to discuss the matter further, please contact me, Jeffrey K. Cassin, or the Scarinci Hollenbeck attorney with whom you work, at 201-806-3364.
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