Autonomous Vehicles: Driving the Next Wave of Economic Growth

This blog is excerpted from a keynote presentation AVIA CEO Jeff Farrah provided at the ITS World Congress on August 27, 2025.

The rise of autonomous vehicles (AVs) marks one of the most transformative shifts in transportation history. With the power to reshape entire industries and redefine how people and goods move, AVs promise not only a safer and more accessible mobility system—but also one that drives significant economic opportunity.

From reducing transportation costs to creating new jobs, AVs are poised to boost productivity, cut household expenses, and improve sustainability. The potential gains are enormous—and they’re accelerating quickly.

Over the past fifteen years, more than $100 billion has been invested in AV development. By 2040, AVs are projected to account for 25%–51% of shared mobility revenues, representing as much as $2.3 trillion, according to the McKinsey Global Institute. This isn't just about reshaping the auto sector—it’s about unlocking growth across logistics, retail, technology, and beyond.

Importantly, AVs stand to create hundreds of thousands of new jobs. McKinsey estimates that widespread AV adoption could generate up to 455,000 positions and $93 billion in additional federal tax revenue. Many of these roles—like vehicle technicians, remote support staff, and data analysts—don’t require college degrees. In fact, 59% of non-degree AV jobs are expected to pay above the U.S. median wage, opening new career paths in communities across the country.

AVs will also help businesses and consumers save more. Robotaxis could reduce rider costs by 30%–80%, while fully autonomous trucks could cut freight operating costs by up to 45%—translating to $85–$125 billion in annual savings across the industry. Those savings don’t stay in boardrooms—they flow through supply chains and into consumer prices.

For American households, AVs could mean thousands of dollars back in their pockets. Studies estimate that self-driving technology could reduce car ownership, fuel, and insurance costs by $5,600 per year per family. That’s not just a personal benefit—it’s a macroeconomic catalyst, unlocking new consumer spending and boosting local economies.

And the economic upside is deeply connected to improved public safety. Human error is the overwhelming cause of motor vehicle crashes, which killed over 40,000 people in the U.S. last year. AVs—designed to never drive distracted, impaired, or fatigued—could reduce crashes by 34% to 90%, potentially saving 25,000 lives and avoiding $200 billion in accident-related costs annually.

Add to that the environmental benefits: AVs can improve fuel efficiency and reduce emissions, particularly in congested urban areas, contributing to public health and sustainability goals.

With so much at stake, now is the time to act. AVs are already operating in states like Texas, Arizona, and New Mexico—and they’re proving the technology can deliver both safety and economic results. But realizing the full benefits of AVs will require forward-looking leadership.

To secure U.S. competitiveness in this global race, policymakers must establish a consistent national framework for AV deployment. AVIA has released strong, forward leaning ideas in its proposal Securing American Leadership in Autonomous Vehicles. That includes modernizing safety regulations, setting strong standards, and preparing the workforce for an autonomous future.

The road ahead is clear. Autonomous vehicles are not a distant promise—they’re a present-day opportunity to strengthen our economy, improve safety, and lead the world in the next generation of transportation.