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Study shows autonomous vehicles could create $7 trillion 'Passenger Economy'

Posted at 11:32 AM, Jun 05, 2017
and last updated 2017-06-05 13:36:12-04

When autonomous vehicles really take off, the global economy can expect to get a giant boost, according to a new study funded by Intel.

The study found the industry could create what the company refers to as a $7 trillion "Passenger Economy" as drivers become obsolete.  

The timing is not as far off as you think.This study anticipates the economic opportunity will skyrocket from $800 billion in 2035 to $7 trillion by the year 2050 thanks to self driving technology. 

Much of that money, according to the report, will come from businesses and consumers using mobility as a service offerings. 

Intel points to universities or even apartment buildings possibly providing autonomous vehicles as a perk to entice students or residents.

The Intel study, prepared by Strategy Analytics, also looked at innovative applications and services, citing things like onboard beauty salons, and dining on-the-go.

Another aspect of the industry: safety.

According to the study, autonomous vehicles could save more than $230 billion in public safety costs from accidents in the "Passenger Economy" years from 2035 to 2045.

The number of lives estimated to be saved is just over half a million within those 10 years.

Intel says just as the internet and smartphones ushered in new economies, self driving will do the same.

“Companies should start thinking about their autonomous strategy now,” stated Intel CEO Brian Krzanich in a news release. “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.”

Check out the full study here and the highlights of the report here.