Intel (www.intel.com) has 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 (www.strategyanalytics.com), the study predicts an explosive economic trajectory growing from US$800 billion in 2035 to US$7 trillion by 2050.
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.
“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.
“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.”