Intel Predicts Autonomous Driving Will Spur New ‘Passenger Economy’ Worth US$7 Trillion
June 01 2017 - 1:00PM
Business Wire
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’
NEWS HIGHLIGHTS
- Intel predicts a new “Passenger
Economy” will emerge to support the idle time when drivers become
riders
- The economic opportunity will grow from
US$800 billion to US$7 trillion as autonomous vehicles become
mainstream
- Mobility-as-a-Service will disrupt
long-held patterns of car ownership, maintenance, operations and
usage
Today, Intel Corporation revealed the findings from a new study
that explores the yet-to-be-realized 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
US$800 billion in 2035 to US$7 trillion by 2050.
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A new study by Intel Corporation and
prepared by analyst firm Strategy Analytics explores the
yet-to-be-realized economic potential when today’s drivers become
idle passengers. Coined the “Passenger Economy," the study predicts
an explosive economic trajectory growing from US$800 billion in
2035 to US$7 trillion by 2050. (Graphic: Intel Corporation)
History has proven that technology is the catalyst for massive
societal transformation and that businesses need to adapt or risk
failure, or worse, extinction. New digital business models ushered
in by personal computing, the internet, ubiquitous connectivity and
smartphones gave birth to whole new economies. Autonomous driving
will do the same.
“Companies should start thinking about their autonomous strategy
now,” 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.”
Autonomous driving and smart city technologies will enable the
new Passenger Economy, gradually reconfiguring entire industries
and inventing new ones thanks to the time and cognitive surplus it
will unlock.
Read the Report: Accelerating the Future: The Economic
Impact of the Emerging Passenger Economy
“Not unlike the space race of the 1960s, today’s announcement is
a rallying cry to the world to put its best minds on this
challenge,” said Greg Lindsay, urbanist and mobility futurist. “The
future of mobility, economic advancement and the emergence of new
growth opportunities like the Passenger Economy demand ongoing
dialogue. I am excited to partner with Intel, take this discussion
on the road and look at solutions through the lens of the diverse
industries that will shape our future – from automakers to
investors and policy makers to startups.”
The new report frames the value of the economic opportunity
through both a consumer and business lens and begins to build use
cases designed to enable decision-makers to develop actionable
change strategies.
Press Kit: Autonomous Driving at Intel
“Autonomous technology will drive change across a range of
industries and define a new landscape, the first green shoots of
which will appear in the business-to-business sector,” said study
co-author Harvey Cohen, president, Strategy Analytics. “The
emergence of pilotless vehicle options will first appear in
developed markets and will reinvent the package delivery and
long-haul transportation sectors. This will relieve driver
shortages around the world and account for two-thirds of initial
projected revenues.”
The research firm further points out that autonomously operated
vehicles commercialization will gain steam by 2040 – generating an
increasingly large share of the projected value and heralding the
emergence of instantaneously personalized services.
Key report highlights include:
- Business use of Mobility-as-a-Service
(MaaS) is expected to generate US$3 trillion in revenues, or 43
percent of the total passenger economy.
- Consumer use of Mobility-as-a-Service
offerings is expected to account for US$3.7 trillion in
revenue or nearly 55 percent of the total passenger economy.
- US$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 US$234
billion over the Passenger Economy era from 2035-2045.
- Highlights of future scenarios explored
in the study include:
- Car-venience: From onboard
beauty salons to touch-screen tables for remote collaboration,
fast-casual dining, remote vending, mobile healthcare clinics and
treatment pods, and even 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:
Location-based advertising will become more keenly relevant, and
advertisers and agencies will be presented with a new realm of
possibilities for presenting content brands and location.
- Mobility-as-a-perk: Employers,
office buildings, apartment complexes, university campuses and
housing estates will offer MaaS to add value to and distinguish
their offer from competitors or as part of their compensation
package.
The Passenger Economy report was sponsored by Intel and
developed by Strategy Analytics. To read the full report and see
additional materials, visit newsroom.intel.com/autonomous.
About Strategy Analytics
Strategy Analytics, Inc. provides the competitive edge with
advisory services, consulting and actionable market intelligence
for emerging technology, mobile and wireless, digital consumer and
automotive electronics companies. With offices in North America,
Europe and Asia, Strategy Analytics delivers insights for
enterprise success. www.StrategyAnalytics.com.
About Greg Lindsay
Greg Lindsay is an urban mobility futurist and co-author
of Aerotropolis: The Way We’ll Live Next. He is senior fellow
of the New Cities Foundation, where he leads the Connected
Mobility Initiative, and a non-resident senior fellow of the
Atlantic Council’s Strategic Foresight Initiative. He is also
a visiting scholar at New York University’s Rudin Center for
Transportation Policy & Management.
About Intel
Intel (NASDAQ: INTC) expands the boundaries of technology to
make the most amazing experiences possible. Information about Intel
can be found at newsroom.intel.com and intel.com.
Intel and the Intel logo are trademarks of Intel Corporation in
the United States and other countries.*Other names and brands may
be claimed as the property of others.
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Intel CorporationRobin Holt,
503-616-1532robin.holt@intel.comDanielle Mann,
973-997-1154danielle.mann@intel.com
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