A recent study from Strategy Analytics and Intel
Auto manufacturers are currently focused on building fully autonomous connected vehicles, with the ambition to serve in a network of cars that no longer require human input. Autonomous technology and connectivity are intertwined, as a result, this will create a new technological dynamic to vehicle transportation and potential new revenue streams.
If drivers are now deemed as customers, ancillary markets are likely to be created to exploit this potential. A recent study from Strategy Analytics and Intel, calls this market the ‘passenger economy’ that is estimated to be worth $7 trillion by 2050.
Intel estimates this new revenue will come from three primary areas. Mobility-as-a-service is the first, worth $3.7 billion, $2.9 trillion from business-to-business mobility-as-a-service, this includes freight transportation and autonomous delivery services. Finally, $203 billion from pilotless vehicle services, this area requires imagination, it could be anything from mobile restaurants and coffee houses to mobile entertainment services.
We know that autonomous technology is backed by industry to be the next breakthrough in the passenger vehicle market. The benefits of mass deployment are extremely attractive not only to the industry through new revenue streams, but also to consumers with safety, less time having to drive and policymakers meeting emission targets.
Electrification is driving the commercial viability of AVs, powering the connective and autonomous technology, but also provides a pathway towards a sustainable, low/zero emission transport network. Tesla recently announced that they are 2 years away from a fully autonomous vehicle without any human assistance, as testing boundaries expand and technology continues to rapidly develop, the age of autonomy in transport may be closer than currently anticipated.