1. Autonomous cars to spur new ‘passenger economy’

Autonomous cars to spur new ‘passenger economy’

Technology company Intel has revealed the findings from a new study that explores the yet-to-be-realised economic potential when today’s drivers become idle passengers.

By: | Published: June 5, 2017 3:53 AM
Autonomous cars, Autonomous cars news, all about Autonomous cars, what is Autonomous cars, passenger economy, what is passenger economy, all about passenger economy Intel study estimates the value of goods and services in the early years of the ‘passenger economy’ will be more than twice the size of the ‘sharing economy’

Technology company Intel has revealed the findings from a new study that explores the yet-to-be-realised economic potential when today’s drivers become idle passengers. Coined the ‘Passenger Economy’ by Intel and prepared by analyst firm Strategy Analytics, the study predicts an explosive economic trajectory growing from $800 billion in 2035 to $7 trillion by 2050. “Digital business models ushered in by personal computing, internet, ubiquitous connectivity and smartphones gave birth to whole new economies. Autonomous driving will do the same,” the report noted.

“Companies must start thinking about their autonomous strategy,” said Intel CEO Brian Krzanich. “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.”

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Key report highlights:

– Business use of Mobility-as-a-Service (MaaS) is expected to generate $3 trillion in revenues, or 43% of passenger economy.

– Consumer use of MaaS offerings is expected to account for $3.7 trillion in revenue, or 55% of total passenger economy.

– $200 billion of revenue is expected to be generated from rising consumer use of innovative applications and services that will emerge as pilotless vehicle services evolve.

– Conservatively, 585,000 lives can be saved due to self-driving vehicles in the era of 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 future scenarios explored in the study include:

Car-venience: From onboard salons to touchscreen tables for remote collaboration, fast-casual dining, remote vending, mobile health clinics and treatment pods, and platooning pod hotels, vehicles will become transportation experience pods.

Movable movies: Media and content producers will develop custom content formats to match short and long travel times.

Location-based advertising: It will become more keenly relevant, and advertisers will be presented with a new realm of possibilities for content brands & location.

Mobility-as-a-perk: Employers, offices, apartments, universities and housing estates will offer MaaS to add value to and distinguish their offer from competitors or as part of their compensation package.

The full report is available here: http://goo.gl/jqAdti

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