Autonomous vehicles will save 250 million hours of commuting time and 585,000 lives by 2045
Posted: 6 June 2017 | By Darcie Thompson-Fields
Leading technology firm Intel claims the use of driverless vehicles by 2050, will provide a $7 trillion boost to the global economy, by freeing up time during commutes and reducing accidents on the road.
The Passenger Economy report, which was commissioned and developed in partnership with Strategy Analytics, explores the ‘yet-to-be-realized’ economic potential when today’s drivers become idle passengers. It predicts predicts an “explosive economic trajectory” growing from $800 billion in 2035 to $7 trillion by 2050.
In addition, the use of AI technology will boost safety levels and potentially fatal incidents on the roads, forecasting 585,000 lives will be saved between 2035 and 2045. Statistics show on average more than 1.3 million people die a year from car crashes (on average 3,287 deaths a day), with additional 20-50 million injured or disabled.
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.
Adapt or face extinction
The report said that that 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.”
Strategy Analytics co-author Harvey Cohen, president, added: “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. 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.”
Key report highlights include:
- Business use of Mobility-as-a-Service (MaaS) is expected to generate $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 $3.7 trillion in revenue, or nearly 55 percent 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.
- 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 health care 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.
. To read the full report visit the Intel newsroom’s Autonomous Driving Press Kit.