KEY ASSUMPTIONS

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Box 1.2

The Millennial generation

It is evident that a new generation of young educated people, often with different consump-
tion and living patterns, distinct vehicle ownership preferences, as well as an environmen-
tal friendly attitude, compared to previous generations, is taking shape globally. They are
the so-called ‘Millennials’. The birth years defining this generation corresponds to the be-
ginning of the 1980s through to the end of 1990s and according to the Pew Research Cen-
tre, this generation accounts for around 27% of the global population or about two billion
people.
During their formative years, the vast majority of Millennials, particularly in devel-
oped countries, have had access to the Internet. The connectivity of older generations is
1
much lower and Millennials are also usually more connected to technology than previous
generations. They feel comfortable with technology, given that they have largely grown-
up with it and social media, using new tools as a natural and integral part of life and work.
Another interesting characteristic of Millennials is that they have grown-up marked
by the global financial crisis of 2008. It is said that the event has influenced the behaviour
of this generation. For example, the event may have caused this generation to postpone
some important milestones like purchasing a home or car and delaying marriage, as
well as more of a focus on the need to study and obtain training to have access to better
job prospects.

Shifting views on transportation

Millennials are more likely to live in urban and walkable neighbourhoods and they seem
to be more open to non-driving forms of transportation. They tend to be less car-focused
than previous generations, and their transportation behaviour continues to change in
ways that reduce the desire to drive, but increase transportation demand. This suggests
that this generation tends to drive less than previous generations, but is likely to use
more public transportation, as well as multiple modes of travel like carpooling and ride-
sharing platforms. It could be said that Millennials view cars as more perfunctory – they
are a form of transportation, rather than a status symbol.
Millennials are also the first generation to fully embrace mobile Internet-connected
technologies, which are rapidly spawning new transportation options. A variety of new
technologies have recently appeared that allow other transportation services, from car
sharing to traffic tracking applications in real time. New forms of transport have also
emerged, such as Zipcar, RelayRides, Car2Go, Lyft and Uber. These are examples of how
technology has been able to shift perceptions in this generation. The ‘shared mobility’
concept has Millennials at the front of the adoption curve.
These trends and their evolution will need to be monitored closely and will no doubt
have an impact on the thinking of car manufacturers, transportation businesses and oil
companies in the years and decades ahead.

World Oil Outlook 2017

Organization of the Petroleum Exporting Countries 39