Autonomous vehicles will reshape transportation. The question is when, and more importantly, how that timing actually affects decisions today.
However, the timeline is often overstated. Significant hurdles remain, including liability, insurance, infrastructure, ownership models, and asset deployment.
This raises a practical question for fleet operators:
Should the future of autonomous vehicles influence buying decisions today?
If autonomous vehicles do not materially impact your total cost of ownership in the near term, the answer should be no.
A simple framework: Focus on replacement cycle
The primary way autonomous vehicles could affect current decisions is through residual values.
To test this, consider a simplified scenario based on current U.S. vehicle data and one simplifying assumption.
- The average vehicle age in the U.S. is ~13 years
- Annual vehicle replacement is driven by a scrap rate of ~4.5%
- ~16 million new vehicles are sold annually compared to ~300 million vehicles on the road (~5%)
- Upfitting can occur, independently, at rates comparable to those of new vehicles sales (~5%)
(Zeti Assumption)
Even under highly optimistic assumptions—where both new vehicle replacement and large-scale upfitting occur simultaneously—the transition to a fully autonomous fleet would still take 10+ years.
In reality, adoption will be:
- Gradual
- Use-case specific
- Geographically concentrated
- Dependent on capital deployment
A more realistic timeline is likely closer to 20+ years for broad market penetration.
What this means for residual values
Given these timelines:
- Vehicles purchased today will largely complete their lifecycle before autonomous adoption reaches scale
- Residual values in the near term will continue to be driven by:
-
- Supply and demand
- Utilisation
- Total cost of ownership
Autonomous vehicles should have no material broad-market impact on residual values today, tomorrow, or in the near term.
However, there may be localised or segment-specific effects, particularly in:
- Urban fleets
- Ride-hailing
- Last-mile delivery
A useful comparison: The EV transition
A relevant precedent is the shift to electric vehicles.
Despite rapid EV growth:
- ICE vehicle residual values were not broadly disrupted
- Adoption remained gradual and segmented
- Infrastructure and economics dictated pace
Autonomous vehicles are likely to follow a similar pattern—incremental adoption rather than immediate displacement.
Early-stage uncertainty in autonomous models
In early deployments, key questions remain unresolved:
- Who owns the asset vs. the technology?
- How is residual value risk allocated between OEMs, operators, and AV providers?
- How are assets redeployed or remarketed?
These factors introduce uncertainty for autonomous vehicle financing structures, but do not yet impact traditional fleet residual values.
Where fleets should focus
While residual value impact is limited in the near term, fleets should begin planning for broader structural changes.
Autonomous vehicles may drive:
- Higher asset utilisation (potentially 24/7 operation)
- Reduced labour costs
- Improved routing and fuel efficiency
- More optimised maintenance cycles
These factors may ultimately have a greater impact on fleet economics than residual values alone.
The bottom line
Autonomous vehicles are coming—but not on a timeline that should change today’s fleet acquisition strategy.
For now:
- Focus on total cost of ownership
- Make decisions based on current economics
- Monitor how adoption develops over time
Over the next 2–5 years, the key variable is not whether autonomous vehicles exist—but how quickly they scale in real-world operations.