Theres long been a myth that millennials dont buy carsa theory that has been slowly losing credibility over the past few years, as more young people begin to lease and purchase vehicles. In fact, automakers saw record sales in 2015, following several sluggish years of decline. The myth of the absent millennial car buyer was largely based on speculative theories, which just havent held up under scrutiny. However, there are differences in what millennials prioritize when it comes to transportationand these attitudes will ultimately lead to increased demand for data-driven transportation, both in private vehicles and public transit. Heres why:
Young Adults are Interested in Electric Cars
More automobile manufacturers are getting into the electric car business, and young adults are eager to get these new vehicles on the road. According to The Consumer Federation of Americas polls, 50% of participants 18-34 years old would consider buying an electric vehicle, and this age group showed the most interest in these vehicles of all participants. Aside from the obvious environmental angle and the cars lower maintenance costs, many electric cars are among the new wave of vehicles that integrate GPS, traffic tracking and analysis, and other technology that can sync with users other devices. These devices will eventually be part of the Internet of Things, a concept of interconnectivity among any device with an on-off switch to optimize efficiency and convenience. Millennials respond well to interconnectivity, and electric cars provide many opportunities for integrating devices.
Aside from data collected by the car during normal use, electric car charging can also provide data that helps utility companies balance power grid frequency. Using the data collected from charging stations, a strategy can be devised to balance power and minimize energy costs while maximizing efficiency and improve service revenue. As more electric cars hit the road, this data will become even more important.
Real-Time Transit Information
Millennials still enjoy owning and driving cars, but its not as much of a priority for them as it was for previous generations. Young adults are perfectly willing to walk, bike, or rideshare to get around if these options are available, and in the next ten years, 61% of millennials would like to see more reliable transit options, 55% would like real-time updates from transit agencies, and 55% would like Wi-Fi or 3G/4G wherever they go. The shifts are already beginningmany transit agencies offer real-time updates and tracking on their vehicles, and longer haul bus rides often offer free Wi-Fi. As we move closer to the IoT vision of interconnected devices, reliable public transit will become even more valuable to the young people heading into urban areas.
Ride Sharing and Driverless Cars
Especially in urban areas, ride sharing services like Uber, Lyft, and Bla Bla Car (not yet available in the United States) are extremely popular, both in the U.S. and overseas. Cheaper, available with the touch of a button, and more convenient than taxis, these services solve all the common pain points of young adults. While driving for a ride-sharing company is currently an opportunity for self-employment, that may not always be the case. Autonomous cars are becoming safer and more reliable, and Uber is already experimenting with the idea of offering self-driving vehicles as a ride-sharing option. This summer, they announced their first fleet of autonomous cars in Pittsburgh (with a supervising driver, for now), a signal that these data-driven vehicles may be a large part of the future of transportation.
Connectivity, Cost, and Convenience
From these trends in millennial behavior, its not surprising that this generation is fueling demand for data-driven transit options. In transit, connectivity, cost, and convenience are the most important factors in which transit options millennials are choosingand those options rely heavily on data and technology integration. Were likely to see big changes in coming years in how and where we drive, in large part due to the influence of the Millennial Generation.
