Global Robotaxi Market Forecast, Trend Analysis and Competition Tracking - Global Market insights 2015 to 2031

Robotaxi Market Overview:

The total spending for the automobile industry has increased and reached US$ 2,755 billion in 2020 and is further expected to grow more and reach US$ 3,027 billion in 2025. From 2021 to 2031, demand is likely to expand at a CAGR exceeding 3% as consistent growth in the adoption rate of various technologies coupled with vehicles by considering the safety and emission norms. 

Robotaxis are autonomous/self-driving vehicles or driverless taxis which are operated for ridesharing/e-hailing services.

These robotaxis result in fewer accidents and lesser operational costs as these don’t require drivers, have higher traffic efficiency, increased productivity, and lower pollution. A recent study shows that there is a 60% drop in the number of cars in cities, 80% fewer carbon emissions, and 90% lesser road accidents due to robotaxis.

The COVID-19 pandemic has promised new growth in expanding automotive sector.  From 2021 to 2031, demand is likely to expand at a CAGR exceeding 3% as consistent growth in the adoption rate of various technologies coupled with vehicles by considering the safety and emission norms.

Global Robotaxi Market Revenue Outlook:

The deployment of Self-Driving Vehicles (SDVs), commercialization of robotaxis, and promotional activities of ride-sharing services require collaboration, experimentation, and vast investments of multiple stakeholders.

A prerequisite of progress is that each participant in the urban transport ecosystem includes policymakers, private industry, and consumers willing to accept and try out innovative ideas for intense future scope. This will increase demand for robotaxis, thereby amplifying the projected revenue growth for this given market in the years to come.

 Major Concerns regarding Automated Vehicles (AVs)

By considering considerable investments in the latest technologies in automobiles and broader intelligent infrastructure, the overall pricing of AVs will be significantly higher than current CE or hybrid vehicles.

Further, the robotaxis and AVs market will be more saturated in developed countries at the beginning such as the US, China, UK, Germany, and other European countries, while considering the technology adoption, considerable investments, government support, and proactive regulations.

Additionally, these highly automated vehicles need to be monitored thoroughly by both humans and machines. These factors are expected to bolster the projected profit margin for this given market in the forecast period.

COVID-19 impact on the Robotaxi Market

The COVID-19 pandemic has resulted in the slowdown of critical trade activities across several countries. The primary factor behind this slowdown is various countermeasures adopted by respective governments to curb the trajectory of this virus.

As significant economies enforce precautionary lockdowns, a considerable gap between market supply and demand is being created, resulting in increased difficulties for both manufacturers and distributors to manage their respective operations effectively.

This is a primary factor that is anticipated to influence prospects for revenue growth. However, as these lockdowns are gradually lifted, and economies begin to recover, this market is expected to regress to its pre-COVID state.

Significant Drivers of Adoption of AVs

While considering AVs adoption, there are three major driving factors: public opinion, technology advancements, and regulatory framework.

The core benefits of AVs are seen to include reduced stress, the ability to rest on long journeys, more comfort, and greater flexibility.

Additionally, robotaxis are more reliable for the elderly population, physically disabled people, and children and youth crowd will be the potential users of these services.

Several companies such as Waymo, GM, Ford, Nissan, Volvo, Toyota, etc., are heavily investing in smart technologies in the auto sector. The technologies include;

• Sophisticated environment monitoring
• Traffic control, including advanced predictive modeling
• Remote support to guide the vehicle in tricky situations
• Verification and validation protocols
• Real-time road certification
• External signaling to other car drivers and pedestrians

Thus, the use of Robotaxi is playing a crucial role and is expected to increase in the near future.

Robotaxi Market Regional Analysis

Europe is expected to have a significant market share, among others

The European region is estimated to be dominated by Germany, France, Norway, and the Netherlands. Technological advancements and supportive infrastructure have helped auto manufacturers with testing and deployment. As per the European Commission, about 180 automobile facilities across the EU have the largest investors in R&D. Growing technological trends for autonomous vehicles will significantly impact the market. This will boost the overall demand for self-driving taxis in the region.

Competitive Landscape

The robotaxi market landscape appears highly consolidated, with a significant chunk of it being dominated by EU players.

• Daimler AG
• Ford Motor Company
• Baidu
• General Motors
• Tesla Inc.
• Waymo LLC
• NAVYA
• Fiat Chrysler Automobiles (FCA)
• BMW AG
• Nissan
• Volvo
• Other Players

Some notable developments in the market include:

• In the US, Ford is testing robot taxis in several cities and launching a limited ADS fleet in 2021 in Miami, Washington DC, and Austin
• Waymo has a fleet of around 600 AVs in operation, mainly in Phoenix, where it is also working with UPS on local package movement.
• Lyft has provided over 75,000 rides in Las Vegas in partnership with Aptiv as part of the most significant US trails to date.
• Walmart and Domino’s Pizza are testing autonomous grocery delivery in Houston in partnership with NURO.
• Peleton is soon launching Level 1 platooned trucks and investing heavily in its Auto-Follower Programme.
• In Sweden, Einride’s electric autonomous system is being used by Coca-Cola to transport goods to food retailer warehouses.

Report Scope

• Forecast Period: 2022-2031
• Actual Year: 2021
• Historical Data Available for: 2015-2020

Key Regions Covered

• North America
  • US
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Spain
  • Russia
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Israel
  • Rest of MEA

Key Segments Covered

Robotaxi Market, By Product Type

• Level 4 Robotaxi
• Level 5 Robotaxi

Robotaxi Market, By Vehicle Type

• Electric Vehicle
• Plug-in Hybrid Vehicle
• Hybrid Vehicle

Robotaxi Market, By Application

• Passenger
• Freight