Electric and driverless cars could add up to $92 billion to Australia’s economy by 2050, according to a study by L.E.K. Consulting.
New technologies and mobility options such as car sharing and ride sharing/pooling are already changing the way we travel and use traditional transport modes such as taxis and private cars. Innovations such as autonomous vehicles (AVs), electric vehicles (EVs) and on-demand transport are likely to bring even more dramatic shifts.
L.E.K. Consulting has estimated the impact that EVs and AVs will have on the Australian economy by 2050 and found:
- The introduction and adoption of new mobility options could increase Australia’s gross domestic product (GDP) by between $62 billion and $92 billion by 2050, a rise of 2%-3% over projected GDP without new mobility.
- Forecasts suggest new mobility could boost employment in Australia by 200,000-274,000 full-time equivalents, or about 1%-2%.
- About half of the increase in GDP is likely to come from improved labour force participation, the report says, as daily commutes are simplified for many workers.
- Lower vehicle accident rates will also be a key economic benefit, improving GDP by between $30 billion and $46 billion by 2050. Improved labour productivity and lower insurance costs will account for 87%-89% of this GDP increase.
Other findings in the L.E.K. analysis include:
- The growth of EVs could see the internal combustion engine fall to as little as 17% of Australia’s car market by 2050, compared with 99% in 2017.
- Robot taxis could account for 25%-45% of AVs by 2050, the largest part of the AV sector.
“New mobility innovations promise a range of social and environmental advantages, making travel simpler and cheaper, reducing pollution and cutting road accidents,” says L.E.K. partner and report author Mark Streeting. “The analysis suggests there could be measurable economic benefits for Australia from consumers adopting new mobility trends and technologies.”