Market Insights
The robotaxi market was estimated at USD 0.97 billion in 2022 and is likely to grow at a CAGR of 66.3% during 2023-2029 to reach USD 34.10 billion in 2029.
Want to know more about the market scope? Register Here
What is a robotaxi?
Robotaxi is a new form of ride-hailing service where autonomous vehicles serve as taxis. Robotaxis provides an affordable, efficient, and convenient transportation option, with no need for human drivers. Passengers use a smartphone app to request a ride, and the robotaxi picks them up and takes them to their destination. The car's onboard sensors and artificial intelligence systems enable it to navigate through traffic, avoid obstacles, and make decisions in real-time to ensure passenger safety.
Robotaxis has the potential to transform the transportation industry by reducing traffic congestion, improving air quality, and reducing the number of vehicles on the road. They are also expected to be cheaper than traditional taxis or ride-sharing services, making transportation more accessible to low-income individuals.
Robotaxis is still in the development phase, and several companies are currently testing them on public roads to ensure their safety and reliability. Once fully deployed, they could revolutionize the way we travel, making transportation more sustainable, efficient, and accessible for everyone.
Robotaxi Market Highlights
|
Market Size in 2022
|
USD 0.97 billion
|
Market Size in 2029
|
USD 34.10 billion
|
Market Growth (2023-2029)
|
66.3% CAGR
|
Base Year of Study
|
2022
|
Trend Period
|
2017-2021
|
Forecast Period
|
2023-2029
|
Key Players
The major players operating in the global market are:
- Waymo
- Cruise Automation
- Autox
- Tesla
- Baidu
- Argo AI
- Pony.Ai
- Easymile
- Didi Chuxing
- Navya
- 2getthere (ZF)
- Local Motors
- Mobileye (Intel)
- Drive.AI (Apple)
- Nissan
- NVIDIA
- Woven Planet (Lyft)
- Aptiv
- Zf Friedrichshafen
- May Mobility
- Optimus Ride
- Yandex
Market Dynamics
The market has experienced growth due to various factors, including the growing concerns regarding road safety and emissions, as well as the rising demand for ride-hailing services. Autonomous vehicles have the added benefit of optimizing costs for fleet operators. Furthermore, innovative business models like mobility as a service could offer a sustainable and profitable revenue stream in the future.
Driver: Need for road safety
The NHTSA has reported that human error is responsible for approximately 94% of car accidents globally on a daily basis. Waymo stated in 2020 that around 1.4 million individuals die each year in road accidents worldwide. Additionally, the MIT Energy Initiative's Mobility of the Future study in 2020 revealed that about 40,000 lives were lost in the US due to road accidents in 2019.
Adopting technology to take over human activities like driving could decrease these behavioral errors, leading to a reduction in the number of owned vehicles on the road and easing traffic congestion. This would result in increased efficiency in traffic control and fewer cars on the streets in cities worldwide.
Restraint: High cost of R&D for robotaxis
Implementing a complete robotaxi service involves significant investments due to the high cost of components such as LiDAR, ultrasonic sensors, and cameras. The deployment and adoption of robotaxi fleets is a complicated and time-consuming process. Currently, only a few level 4 and level 5 autonomous vehicles are available for testing as of June 2021, making it challenging to deploy robotaxi services comprehensively.
Additionally, the development of robotaxi software is complex, and widespread application of level 5 autonomous vehicles is capital-intensive and subject to regulatory compliance. Robotaxis must process vast amounts of sensor data, which is almost 100 times greater than that of today's most advanced vehicles. The software's complexity is also increasing exponentially, with multiple Diverse Deep Neural Networks (DNNs) operating simultaneously as part of the software stack.
To operate robotaxis in various conditions globally, extensive DNN training using significant amounts of data is required, and this data is expected to grow exponentially with the increasing number of robotaxis on the road. For example, a fleet of 50 robotaxis driving for six hours a day may produce approximately 1.6 petabytes of data daily, which is difficult to store and process for vehicles to perform various functions in different conditions.
While leading companies such as Google, Volkswagen, Volvo Cars, Nissan, Toyota, and General Motors have enough resources to enter the robotaxi market, companies with limited resources may not be able to afford expensive R&D processes.
Opportunity: Government programs to drive the market
The race to deploy autonomous vehicles, particularly in developed nations, has become a point of interest for public policymakers focused on autonomous transportation and its potential impact. Governments worldwide have already relaxed legal barriers to test self-driving vehicles. The Ministry of Transport and Communications in Finland has taken things further by establishing a legal structure for testing autonomous vehicles.
Similarly, other jurisdictions in countries such as Austria, France, the Netherlands, the UK, and the US are also implementing similar legal frameworks. In 2020, the California Public Utilities Commission (CPUC) introduced two new commercial programs that enable companies to test their robotaxis for commercial ride-hailing services.
Want to have a closer look at this market report? Click Here
Segment Analysis
By Propulsion Type
Electric propulsion is to account for the largest market size during the forecast period. The growing concern over emissions has created a demand for fuel-efficient vehicles. Robotaxis not only offers robotic assistance but also introduces an era of fuel efficiency and carbon-free emissions.
The collaboration between Volvo and Uber introduced self-driving cars in the mid-size luxury segment in 2021, with 50% of these vehicles being fully electric cars. By 2030, it is projected that two-thirds of the global population will reside in urban areas. Daimler and Bosch are working together to develop self-driving electric cars in Germany that may be on the road by the early 2020s.
There is already a demand for fully electric robotaxis due to the strict government regulations around the world for an emission-free environment. The joint venture between Volvo and Baidu for electric self-driving taxis in China is an example of an environmentally friendly and advanced technical approach. Similarly, the partnership between BMW and Daimler has secured investments worth USD 1.13 billion in autonomous electric cars.
Regional Insights
Europe is to witness significant growth during the forecast period. Countries like Germany, France, Norway, and the Netherlands are expected to dominate the autonomous taxi market in Europe. The region benefits from advanced technology and supportive infrastructure, making it easier for fleet operators to test and deploy autonomous vehicles.
According to the European Commission, the automotive industry is the largest investor in research and development, with about 180 automobile facilities in the EU. As the demand for self-driving taxis increases with growing technological trends, the market is expected to expand further. Leading manufacturers like NAVYA, Aptiv, EasyMile, Moia, and Daimler also have a significant presence in the region.
Know the high-growth countries in this report. Register Here.
Market Segmentation
This report studies the market covering a period of 12 years of trend and forecast. The report provides detailed insights into the market dynamics to enable informed business decision-making and growth strategy formulation based on the opportunities present in the market.
The robotaxi market is segmented into the following categories:
By Vehicle Type
By Application Type
- Goods Transportation
- Passenger Transportation
By Level of Autonomy Type
By Propulsion Type
By Service Type
By Component Type
- Camera
- Lidar
- Radar
- Ultrasonic Sensors
By Region
- North America (Country Analysis: The USA, Canada, and Mexico)
- Europe (Country Analysis: Germany, France, The UK, Russia, and The Rest of Europe)
- Asia-Pacific (Country Analysis: Japan, China, India, and the Rest of Asia-Pacific)
- Rest of the World (Country Analysis: Brazil, Argentina, and Others)
Click Here, to learn the market segmentation details.
Research Methodology
This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.
Report Features
This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.
What Deliverables Will You Get in this Report?
Key questions this report answers
|
Relevant contents in the report
|
How big is the sales opportunity?
|
In-depth Analysis of the Robotaxi Market
|
How lucrative is the future?
|
Market forecast and trend data and emerging trends
|
Which regions offer the best sales opportunities?
|
Global, regional, and country-level historical data and forecasts
|
Which are the most attractive market segments?
|
Market Segment Analysis and Forecast
|
Which are the top players and their market positioning?
|
Competitive landscape analysis, Market share analysis
|
How complex is the business environment?
|
Porter’s five forces analysis, PEST analysis, Life cycle analysis
|
What are the factors affecting the market?
|
Drivers & challenges
|
Will I get the information on my specific requirements?
|
10% free customization
|
Report Customization Options
With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:
Company Profiling
- Detailed profiling of additional market players (up to three players)
- SWOT analysis of key players (up to three players)
Competitive Benchmarking
- Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances.
Custom Research: Stratview Research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@Stratviewresearch.com.
Recent Developments
- In February 2023, Google announced that its Waymo is ready to trial robotaxi services with its employees in Los Angeles, US.
- In November 2022, Cruise launched robotaxi services in Austin, Phoenix.
- In July 2022, Baidu unveiled next-gen robotaxi services throughout China.
- In May 2022, SiLC Technologies, Inc., silicon photonics innovator announced that AutoX Inc., a RoboTaxi company in China, selected SiLC’s Eyeonic Vision Sensor for its robotic taxi fleet.