A study by L.E.K. Consulting has found that new mobility innovations could benefit GDP and employment, with electric and driverless cars estimated to add up to $92 billion to Australia’s economy by 2050.
New technologies and mobility options, such as car sharing and ride sharing/pooling services, 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.
Key findings indicated that the introduction and adoption of new mobility options could increase Australia’s GDP by $62-$92 billion by 2050, a rise of 2-3 per cent over projected GDP without new mobility.
Additionally, forecasts suggest new mobility could boost employment in Australia by 200,000-274,000 full-time equivalents, or about 1-2 per cent.
About half of the increase in GDP – $32-$44 billion – is likely to come from improved labour force participation. As it becomes easier to get to work, the labour force participation rate could increase by about one percentage point by 2050, over and above a scenario without new mobility options.
Lower vehicle accident rates will also be a key economic benefit, improving GDP by between $30-$46 billion by 2050.
Improved labour productivity and lower insurance costs will account for 87-89 per cent of this GDP increase.
Other findings included:
The growth of EVs could see the internal combustion engine fall to as little as 17 per cent of Australia’s car market by 2050, compared with 99 per cent in 2017
Robot taxis could account for 25-45 per cent 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 Mark Streeting, Partner at L.E.K. and report author.
“The analysis suggests there could be measurable economic benefits for Australia from consumers adopting new mobility trends and technologies.”