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Autonomously driven ‘passenger economy’ could reach $7 trillion, Intel says

June 05, 2017

Human cloud firm Uber has already experimented with autonomous vehicles, and more automation will likely play increasing roles in the workforce solutions ecosystem. However, tech firm Intel Crop predicted last week that autonomous vehicles will result in a new “passenger economy” that could grow to $800 billion in 2035 and $7 trillion by 2050.

“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.”

The evolution and mass adoption of “mobility-as-a-service” by consumers is central to the emergence of the Passenger Economy, according to the report.

Business use of Mobility-as-a-Service will generate $3 trillion in revenues by 2050, roughly 43% of total revenues. Industries like transportation and freight delivery and sales and service fleets will use pilotless vehicle technology to reshape their fundamental businesses and to leverage new opportunities.

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.

The Passenger Economy report was sponsored by Intel and developed by Strategy Analytics.