Elderly could be key market for driverless vehicles, as Japan starts trials

Elderly could be key market for driverless vehicles, as Japan starts trials

There’s a school of thought that the market for driverless vehicles will be boosted by the needs of an elderly population who may have mobility issues. Well that seems to be more likely with a recent report from Reuters suggesting Japan is is starting to experiment with self-driving buses in rural communities such as Nishikata, 115 km (71 miles) north of the capital, Tokyo, where elderly residents struggle with fewer bus and taxi services as the population ages and shrinks.

The swift advance of autonomous driving technology is prompting cities such as Paris and Singapore to experiment with such services, which could prove crucial in Japan, where populations are not only greying, but declining, in rural areas. Japan could launch self-driving services for remote communities by 2020, if the trials begun this month prove successful.

The government plans to turn highway rest stops into hubs from which to ferry the elderly to medical, retail and banking services.

“Smaller towns in Japan are greying even faster than cities, and there are just not enough workers to operate buses and taxis,” said Hiroshi Nakajima of mobile gaming software maker DeNA Co (2432.T), which has branched into automotive software. “But there are a lot of service areas around the country, and they could serve as a hub for mobility services,” added Nakajima, the firm’s automotive director.

In the initial trials of the firm’s driverless six-seater Robot Shuttle, elderly residents of Nishikata, in Japan’s Tochigi prefecture, were transferred between a service area and a municipal complex delivering healthcare services.

The town mirrors Japan’s population profile, with roughly a third of its 6,300 residents aged 65 or more, up from about a quarter four years ago, while the population overall has shrunk 4.5 percent. Daily bus services are limited to just a handful.

The test also checked the vehicle’s operational safety in road conditions ranging from puddles to fallen debris, and if those crossing its path would react to the warning it emits. The ride, at a speed of about 10 kph (6 mph), felt comfortable and safe, said test participant Mieko Shimazaki, 71, but her 72-year-old husband, Susumu, wanted more speed. “Self-driving cars could be useful in the future, but I’d like to see them go faster, at least at 40 kph (25 mph).”

In the US alone, the market could be huge – according to the U.S. Administration on Aging, in 2014, there were 46.2 million men and women 65 years old and older, and they represented 14.5 percent of the U.S. population. It suggests that y 2030, 70 million Americans will be over the age of 65, and 85 to 90 percent of them will be licensed to drive.

[Image: Reuters]

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