Intel released a study that explores the economic potential of autonomous vehicles. Expecting drivers to become passengers, the study looks at how self-driving vehicles and the newly-created passenger economy it could create would unfold. Intel says that this sector will explode from $800 billion in 2035 to $7 trillion in 2050.
Digital business models brought on by a combination of personal computing, high connectivity, and the extra idle time created by autonomous vehicles will mean fast growth in this “passenger economy.” Intel predicts it will closely model the current digital business happenings through smartphones and mass Internet connectivity.
“Companies should start thinking about their autonomous strategy now,” said Brian Krzanich, Intel CEO. “Less than a decade ago, no one was talking about the potential of a soon-to-emerge app or sharing economy because no one saw it coming. This is why we started the conversation around the Passenger Economy early, to wake people up to the opportunity streams that will emerge when cars become the most powerful mobile data generating devices we use and people swap driving for riding.”
Key report highlights include:
- Business use of Mobility-as-a-Service (MaaS) is expected to generate $3 trillion in revenues, or 43% of the total passenger economy.
- Consumer use of Mobility-as-a-Service offerings is expected to account for $3.7 trillion in revenue, or nearly 55% of the total passenger economy.
- $200 billion of revenue is expected to be generated from rising consumer use of new innovative applications and services that will emerge as pilotless vehicle services expand and evolve.
- Conservatively, 585,000 lives can be saved due to self-driving vehicles in the era of the Passenger Economy from 2035 to 2045.
- Self-driving vehicles are expected to free more than 250 million hours of consumers’ commuting time per year in the most congested cities in the world.
- Reductions in public safety costs related to traffic accidents could amount to more than $234 billion over the Passenger Economy era from 2035-2045.
The Passenger Economy report was sponsored by Intel and developed by Strategy Analytics.