The global robo-taxi market is anticipated to grow at a CAGR of around 60.2% during the forecast period 2021 to 2028 and to reach around US$ 35.6 Bn by 2028.
Robo-taxis are self-driving taxis operated by on-demand mobility services that are autonomous vehicles. They are autonomous vehicles for any human presence in the service of the vehicle. With smart vehicles the market has increased, complementing the rise of robo-taxis around the world for self-driving cars. Autonomous vehicles are also becoming more popular among customers who have produced cars for companies that do not require a person to drive the vehicle. The need for a personalized driver has been reduced with the introduction of automations in vehicles, reducing the chance that human faults will cause accidents. A robot taxi is also fitted with different sensors such as RADAR, LiDAR and others that allow the vehicle to function efficiently and eventually contribute to the growth of the robo-taxi market globally.
In the forecasted period there will be an increased concern about fuel, road safety issues and increased popularity for motorcycles. In addition, the cost of fleet operators for self-driven cars is projected to increase. This helps to boost the market momentum in the coming years. In addition, the proven profitability and sustainable revenue sources of the market will be new business models like "mobility as a service." In addition, it is anticipated that in future years the disturbing power of these autonomous taxis will bring a paradigm shift to the automotive sector. These modern self-driven vehicles would also improve mutual autonomy and access to the ride. Furthermore, these robotic taxis will include electric powertrains to reduce fleet authorities' operating costs.
Robo-taxis consist of over 50 sensors including LiDAR, RADAR, and camera installations that support a safety circumference throughout the vehicle. The sensors will automatically identify any obstruction to the car. These sensors, however, are not cost-effective. LiDAR can cost up to $75,000 for a quality long range. And the vehicle also requires software, besides hardware costs, to collect information from the sensors and to drive the engine. This will hamper the mass manufacturing of robo-taxi due to high production cost involved
Segment Analysis by Region
Europe, followed respectively by China and the US is predicted to lead the Robo-Taxi market. Europe is the leading region in providing the Robo-taxi industry with new transportation solutions and reliable infrastructure. Most of the fleet operators working on Robo-Taxi have found a positive business environment from all angles such as the regulatory structure that provides environmentally friendly vehicle technology in the area. China's Robo-Taxi concept is also fast in operation. For instance, Didi Chuxing, the leading Chinese taxi service provider, develops autonomous motor cars without driver. The technology partner of CHJ Auto is an electric car startup. Together, they are work to build an all-electric robo-taxi which can carry passengers without drivers through China's crowded megacities.
Pandemic situation across the globe has disrupted the business flow worldwide. In 2021 every industry vertical in its 2nd, 3rd, 4th quarter has witnessed substantial drop on production and revenue, this was majorly due to lockdown. The restriction on the operations is impacting the production side and also impacting the supply chain of products. The disrupted supply of raw materials and low operational factories efficiency has contributed in the slower growth of the global market. Moreover, there is an urgent need for a rapid acceleration in the manufacturing process at high operational efficiency, better supply chain models, and effective distribution network. These factors to some extent will help the industry vertical to flourish and aid market growth.
The global market is highly competitive due to presence of large number of players and innovative product offerings. In addition, business expansion activities through partnerships and agreements are factors expected to further increase the competition.
The global robo-taxi market is segmented into level of autonomy, vehicle, service, propulsion, and application. The application segment is bifurcated into goods and passenger. Among application the passenger segment is expected to account for significant revenue share in the global market. The players profiled in the report Cruise LLC, Waymo LLC, Tesla, Nissan Motor Corporation, Lyft, Inc., Daimler AG, Volvo Group, Ford Motor Company, Uber Technologies, Volkswagen AG, and others.
Robo-Taxi Market By Level of Autonomy
Robo-Taxi Market By Vehicle
Robo-Taxi Market By Service
Robo-Taxi Market By Propulsion
Bus Robo-Taxi Market By Application
Robo-Taxi Market By Geography
Eliminating drivers from taxis would reduce the overall operational cost, thereby making it cost-effective are expected to drive the growth of the robo-taxi market.
The market value of robo-taxi is anticipated to be around US$ 35,000 Mn in 2027.
It is anticipated to grow around 60% CAGR amid the forecast period.2020-2027
The key players operating in robo-taxi market such as Cruise LLC (subsidiary of General Motor Company), Waymo LLC (subsidiary of Alphabet Inc.), Tesla, Nissan Motor Corporation, Lyft, Inc., Daimler AG, Volvo Group, Ford Motor Company, Uber Technologies, Volkswagen AG, and others.
High research and development cost would be required for the development of robo-taxis is a major factor expected to restraint the growth of the market.
Asia Pacific is projected to grow at a fast pace during forecast period from 2020-2027.
Europe held maximum share in 2019.