Electric and Autonomous vehicles expected to bring economic boom to Australia

A new report released by L.E.K. Consulting shows that the Australian economy could be in for a $92bn boost thanks to the shift to autonomous and electric vehicles.

With the assumed uptake of EVs and autonomous vehicles set to increase dramatically between now and the year 2050, innovative technology such as “robo-taxis” and driverless cars is expected to improve drive productivity while diminishing the costs of pollution and road accidents.

According to the report, the Australian GDP will rise by an estimated $62-$92 billion due to autonomous and electric vehicles, with roughly half of this increase coming from improved work-force participation as it becomes quicker to get to and from work.

The figures are based on estimates that as of 2050, 17% of vehicles on the market will have an internal combustion engine, with the remaining 83% being electric, autonomous, or personalised transport.

Robo-taxis, which are autonomous vehicles that can be requested on demand using a smart phone app, are believed to be the most popular form of autonomous vehicle of the future, with an estimated 25-45 percent share of the autonomous fleet.

An economic boost is also expected to come from the lower accident rates expected from autonomous vehicles which should lead to lower insurance costs.

It is estimated that a GDP increase of between$30-$46 billion could occur by 2050 due to this.

“New mobility innovations promise a range of social and environmental advantages making travel simpler and cheaper, reducing pollution, and cutting road accidents,” said Mark Streeting, lead author of the L.E.K. report.

“The analysis suggests there could be measurable economic benefits for Australia from consumers adopting new mobility trends and technologies.”

The figures released by LEK are in-line with a number of other recent forecasts on EVs in Australia.

A report released by the Federal Government in 2018 estimated 90% of all cars on the road being electric by 2050, with major disruptions beginning due to changes to the transport sector from 2021.

Tech companies and Silicon Valley start-ups are already all over the autonomous vehicle infiltration onto public roads with companies including Tesla, Uber, Google and Baidu all investing heavily into AV related technology already.

Original source: Renew Economy | Electric vehicles and “robo-taxis” could deliver $92bn boost to Australia economy.

13 Aug 2019