Disclosures&DisclaimerThisreportmustbereadwiththedisclosuresandtheanalystcertificationsintheDisclosureappendix,andwiththeDisclaimer,whichformspartofit.Issuerofreport:HSBCBankplcViewHSBCGlobalResearchat:https://www.research.hsbc.comMiFIDII–ResearchIsyouraccessagreed?CONTACTustoday�����Autonomousvehicles(AVs)aresettomarkthebeginningoftheautonomousage�ThetransitiontoAVscouldbefasterthanmanyexpect;weexplorethelessonslearntsofarfromthemigrationtoelectric�WelookatthecoreAVecosystemandinfrastructure,andhighlightcompaniesexposedtothislikelynewmegatrendTheautonomousrevolutionWebelievethattodaysocietyisonthecuspoftheautonomousage–wheremachinesoperatephysicalworldobjectsthatpreviouslyrequiredhumanbrainpowerandmanualdexterity,allthroughthepowerofmodernArtificialIntelligence(AI),allbythemselvesandwithoutsupervision.ThefirstbigvisuallynoticeableapplicationofthistrendislikelytobeAVsbecauseofthevolumeofkeyindustrystakeholdersalreadyinvolved,readyingthetechnologyformassmarketcommercialisation–onaglobalscale(seeGlobalautos–Disruptivethreats:Carmakersversusnewentrants,19September2017).Inthisreportwebuildonourpreviousthematicwork(seeTransportshock:autonomoustoday,virtualtomorrow,19October2016)bylookingattheingredientsofautonomoustransportation,drawingparallelsandlessonsfromanotherdisruptiveforcewithintransport,theevolutionofelectricvehicles(EVs).AdoptionofAVscouldbefasterthanexpectedRapidmoderndayadvancesinAItechnologysuggestthatthisnewmethodoftransportationcouldbeadoptedfasterthanmanyexpect.UnliketheadoptionofEVs,whereprogresshasbeenlimited(upuntilveryrecently)bybatterycapacityandassociatedhighcosts,theadoptionofAVsisunlikelytofacethesamerestrictions.ThisisbecausethepaceofadvancementinAVsisgovernedbycomputertechnology(givenMoore’sLaw)andislikelytobemuchmorerapid.WheretolookforAIexposureWebelievethatnowisthetimeforinvestorstounderstandthewiderimplicationsfromAVrolloutandalsothenewecosystemrequiredtosupportitsgrowthoverthecomingyears.OurAsiatechnologyteamhaspublishedacomp...
