Home Technology Robo Taxi Market Size Worth $107,682.14 million by 2031

Robo Taxi Market

Robo Taxi Market Size, Share & Trends Analysis Report By Service (Station-Based, Car Rental), By Propulsion Type (Hybrid, Electric, Fuel Cell), By Vehicle Type (Shuttle/Van, Car), By Component (Camera, LIDAR, Radar, Ultrasonic Sensors), By Level of Autonomy (Level 4 (L4), Level 5 (L5)), By Application (Passenger Transport, Goods Transport) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRTE55562DR
Study Period 2019-2031 CAGR 67.60%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 1,032.27 Million
Forecast Year 2031 Forecast Year Market Size USD 107682.14 Million
Largest Market North America Fastest Growing Market Europe
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Market Overview

The global robo-taxi market size be valued at USD 1,032.27 million in 2022. It is projected to reach USD 107,682.14 million by 2031, registering a CAGR of 67.6% during the projected period (2023–2031). The global expansion of the robot taxi market is driven by the increasing demand for fuel-efficient and emission-free vehicles. However, according to the Self-Drive Act, the current cap is anticipated to be raised to 25,000 vehicles per year initially, with a subsequent expansion to 100,000 vehicles annually within a three-year timeframe.

An e-hailing service utilizes an autonomous vehicle known as a Robo Taxi. A driverless or self-driving taxi is commonly referred to as a "robot taxi" or, alternatively, as a "robot cab." The primary goal of this initiative is to eliminate the need for a human driver, which constitutes a significant portion of the operational expenses associated with such services. The optimal amount of fuel efficiency is achieved while utilizing a robotic taxi. It also reduces the probability of accidents arising.

Market Dynamics

Robo Taxi Market Drivers

Demand for Fuel-Efficient and Emission-Free Vehicles

The introduction of automation in vehicles has led to a demand for better and more efficient vehicles that are fuel-efficient and, at the same time, emission-free. Robo-taxis are intended to be fully autonomous and, thus, require a better and more efficient fuel system to operate the vehicle. Moreover, the use of electric and fuel cell-powered vehicles significantly diminishes reliance on fossil fuels to a greater degree. This leads to a reduction in pollution, as they do not emit air pollutants.

Furthermore, the increasing recognition of the detrimental impacts of air pollution and the escalation of traffic congestion and greenhouse gas emissions serve as key motivators for the widespread adoption of fuel-efficient and emission-free vehicles. These vehicles are deemed more ecologically sound compared to their traditional counterparts. Hence, the demand for fuel-efficient and emission-free vehicles supplements the growth of the robot taxi market globally.

The rising need for Better Road Safety and Traffic Control

Robo taxis have several advantages over traditional vehicles, from improved safety to reduced fuel and traffic congestion and emissions. An autonomous vehicle is installed with several sensors, including LiDAR, radar, camera, and GPS. These sensors are short-range (providing details of moving objects near the vehicle) and long-range (providing details of high-speed oncoming vehicles) to help the vehicle sense any object or obstacle in its way, thus eliminating the chances of accidents.

Robo-taxis can also help reduce traffic congestion. According to a study by the University of Illinois, it was proven that one autonomous car stuck in traffic congestion with 20 other human-driven cars could ease the congestion by controlling its speed and guiding other cars in a jam. Fuel consumption will also be reduced with autonomous vehicles as the sensors such as LiDAR, RADAR, and others used in vehicles operate as per the traffic congestion, thereby switching off the vehicles in extreme traffic congestion. However, autonomous vehicles moving at a controlled pace can reduce fuel use. Thus, the need for better road safety and traffic control leads to the growth of the robot taxi market globally.

Robo Taxi Market Restraint

High R&D Costs for Implementation

Robo-taxis is equipped with a comprehensive array of over 50 sensors, including LiDAR, RADAR, and cameras, strategically positioned throughout the vehicle to establish a robust safety perimeter. These sensors are capable of promptly detecting any obstruction that comes in close proximity to the vehicle. However, the cost of these sensors is not commercially viable. A long-range LiDAR system of superior quality may command a price as high as USD 75,000.

In addition to the expenditure on hardware, the vehicle necessitates software capable of extracting data from the sensors and managing the vehicle's operations. Hence, the manufacturers are anticipated to face significant obstacles in vehicle manufacturing and the widespread implementation of cost-effective technology, which is likely to impede the growth of the robot taxi market over the forecast period.

Robo Taxi Market Opportunities

Government Regulations

The governments of several countries implement regulations in support of autonomous vehicles. For instance, in September 2017, the U.S. House of Representatives passed a bill for the Safely Ensuring Lives Future Deployment and Research in Vehicle Evolution Act, or Self Drive Act, waiting to be cleared by the Senate. The role of this act is to establish a federal framework for regulating self-driving cars. Previously, the entities involved in the autonomous car business exhibited a keen interest in conducting trials and assessments of driverless technology.

In order to seek exemptions from the federal motor vehicle safety criteria set by the National Highway and Traffic Safety Administration (NHTSA), individuals or organizations are required to apply. It is important to note that the NHTSA has a limited capacity to award exemptions, with an annual quota of 2,500 exemptions. Government restrictions of this nature contribute to the expansion of the global robo-taxi market.

Regional Analysis

North America Dominates the Global Market

Region-wise, the global robot-taxi market is segmented into North America, Europe, Asia-Pacific, and LAMEA. 

North America is the most significant global robo-taxi market shareholder and is estimated to exhibit a CAGR of 73.2% during the forecast period. North America includes the U.S., Canada, and Mexico, where the robo-taxi market report has been studied. Numerous developments by companies such as Google, General Motors, Tesla, and others supplement the growth of the robo-taxi market within the region. For instance, Tesla launched its first robot-taxi model related to an autonomous ride-sharing network in 2020, providing better and more efficient customer service. Such developments by different companies led to the growth of the robot taxi market within the region.

Europe is predicted to exhibit a CAGR of 75.4% during the forecast period. Daimler AG, Volkswagen, and other enterprises operating in the region have undertaken diverse initiatives and established many agreements with other entities, thereby augmenting the expansion of the robot taxi sector. For instance, Daimler AG is testing autonomous taxis for application in the commercial and freight transportation industries, which supplements the growth of the robot taxi market.

Asia-Pacific includes Japan, China, Australia, South Korea, and the rest of Asia-Pacific. Various developments have been carried out by companies such as Nissan and others, which supplement the growth of the robot taxi market in the region. Companies such as Nissan Motor Corporation, along with DeNA, have started the testing of a robot-vehicle mobility service called EasyRide. Similar developments in the region led to the growth of the robo-taxi market in Japan.

Report Scope

Report Metric Details
Segmentations
By Service
  1. Station-Based
  2. Car Rental
By Propulsion Type
  1. Hybrid
  2. Electric
  3. Fuel Cell
By Vehicle Type
  1. Shuttle/Van
  2. Car
By Component
  1. Camera
  2. LIDAR
  3. Radar
  4. Ultrasonic Sensors
By Level of Autonomy
  1. Level 4 (L4)
  2. Level 5 (L5)
By Application
  1. Passenger Transport
  2. Goods Transport
Company Profiles Waymo LLC Daimler AG Tesla Uber Technologies Inc. GM Cruise LLC Aptiv AB Volvo Ridecell, Inc Baidu Zoox, Inc Volkswagen AG Lyft, Inc. Continental AG DENSO CORPORATION Mobileye Others
Geographies Covered
North America U.S. Canada
Europe U.K. Germany France Spain Italy Russia Nordic Benelux Rest of Europe
APAC China Korea Japan India Australia Singapore Taiwan South East Asia Rest of Asia-Pacific
Middle East and Africa UAE Turkey Saudi Arabia South Africa Egypt Nigeria Rest of MEA
LATAM Brazil Mexico Argentina Chile Colombia Rest of LATAM
Report Coverage Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends
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Segmental Analysis

The global robot-taxi market is segmented by application, propulsion, component used, and level of automation.

Based on application, the global robot taxi market is categorized into goods transportation and passenger transportation. 

The goods transportation segment is the highest contributor to the market and is predicted to exhibit a CAGR of 70.31% during the forecast period. Goods transportation is transporting goods or logistics from one place to another through a big truck or similar type of vehicle. The increased trend toward the transportation of goods by road has led to an increased demand for autonomous vehicles such as trucks. Robotic vehicle operation can lessen the need for human drivers for longer trips, thus increasing transportation efficiency and cutting down on delivery times.

Passenger transportation includes transporting passengers from one place to another through a vehicle as the transportation medium. The introduction of automation in vehicles globally has fueled the growth of robot taxis. Moreover, the reduced level of human intervention in the operation of vehicles provides substantial backing for the widespread adoption of autonomous taxis, commonly known as robo-taxis, on a global scale.

Based on the component, the global robot-taxi market is segmented into camera, RADAR, LiDAR, and ultrasonic sensors. 

The camera segment is the highest contributor to the market and is predicted to exhibit a CAGR of 74.39% during the forecast period. A camera is an optical device utilized for the purpose of capturing static images in the form of photographs and recording dynamic images in the form of movies. These captured images or videos are stored in digital media or photographic film, which is a crucial part of the decision-making process. In autonomous trains, high-resolution cameras are installed for better traveling. These cameras are placed on the trains and tracks to send live data to the control room. The camera also serves as a key component used in monitoring systems for the safety of passengers and cargo trains.

Light Detection and Ranging (LiDAR) is the second-largest region. Light detection and ranging (LiDAR) sensors are used to measure the distance with the help of lasers. It uses ultraviolet, visible, or infrared light to produce an image of an object(s). The utilization of these sensors in driver assistance systems is extensive due to their exceptional performance. Using laser technology, LiDAR sensors can detect and analyze objects' visual characteristics, velocity, and spatial proximity. LiDAR sensors have a smaller market share than ultrasonic and image sensors, mostly attributed to their constrained range capabilities. LiDAR technology shares similarities with radar sensors. LiDAR employs light waves, whereas radar relies on radio waves.

Based on the application, the global robot taxi market has been categorized into Level 4 (L4) and Level 5 (L5).

The Level 4 (L4) segment dominates the global market and is expected to exhibit a CAGR of 69.17% during the forecast period. Vehicles with level 4 automation can intervene if things go wrong in a vehicle or can operate effectively in case of system failure. This does not require human interaction in most cases. However, human interaction in the system is still optional to avoid system failures and take control of the vehicle in adverse cases. Vehicles with level 4 automation can operate automatically, a trending technology among vehicles. Companies that supplement level 4 automation in vehicles have carried out numerous developments. For example, WAYMO introduced a Level 4 autonomous taxi service in Arizona. Prior to this launch, WAYMO conducted extensive testing of its driverless vehicles in the region for over a year, during which they achieved a significant milestone of surpassing 10 million miles without a safety driver present in the vehicle.

Similarly, Volvo and Baidu have declared a strategic alliance aimed at collaboratively advancing the development of Level 4 electric vehicles, specifically intended for deployment within the robot taxi sector in China. The market experienced growth during the projection period due to parallel advancements observed worldwide.

Level 5 automation, also known as full driving automation, does not require human attention while the vehicle is being operated. Vehicles under this level of automation do not include a steering wheel or an accelerating and braking pedal to drive the vehicle. The demand for self-driving vehicles has increased with the increased demand for better and more efficient transport systems, such as autonomous vehicles. Moreover, the augmented demand has been complemented by the implementation of sophisticated driving technologies, such as adaptive cruise control. These advancements on a global scale have contributed to the expansion of level 5 automation.

Based on propulsion, the global robot-taxi market has been categorized into electric, fuel cell, and hybrid. 

The electric segment owns the highest market share and is predicted to exhibit a CAGR of 70.61% during the forecast period. Electric propulsion systems are responsible for propelling the vehicle through electric energy obtained through batteries installed in the vehicle. These batteries are stronger, more powerful, and more durable, making them efficient for the electric-based propulsion of vehicles. The increased demand for better and more efficient fuel for vehicles has supplemented the growth of electric-operated vehicles across the globe. Moreover, various firms have undertaken advancements and breakthroughs to integrate electric propulsion into cars, hence bolstering the expansion of the robot taxi industry.

Electrochemical fuel cells undergo a redox process within the cell, transforming the chemical energy of the fuel (hydrogen) and an oxidizing agent (oxygen) of the fuel into electric energy. Hydrogen-based fuel cells are widely used in vehicles for their longer life and are less environmentally harmful. Increased demand for better and more efficient fuel systems in vehicles and numerous developments by different companies for emission-free vehicles supplement fuel cells' adoption in vehicles. Moreover, the emergence of hydrogen cells as a viable fuel source for automotive applications, coupled with the advancements in autonomous vehicle technology, has led to a heightened demand for fuel cells in the automotive sector. This increased autonomous vehicle trend leads to the growth of fuel cells across the globe.

Market Size By Service

Market Size By Service
  • Station-Based
  • Car Rental
  • Recent Developments

    • May 2023: Nissan Motor Co., Ltd. (Nissan), Mitsubishi Motors Corporation (Mitsubishi Motors), and NMKV Co., Ltd. (NMKV) announced that cumulative production of the Nissan Sakura and Mitsubishi Motors eK X EV mini electric vehicles reached 50,000 units since production started approximately one year ago. Both vehicles are produced at Mitsubishi Motors' Mizushima Plant in Okayama Prefecture, Japan.
    • April 2023: Nissan highlighted a wide range of electrified and seamlessly connected vehicles that aim to exceed consumer expectations at Auto Shanghai 2023. Premieres include two EV concepts: the Max-Out convertible sports car, which made its China debut, and the Arizona SUV, which made its global debut. Arizona is designed to meet China's diverse mobility needs.

    Key Players

    Robo Taxi Market Share of Key Players

    Robo Taxi Market Share of Key Players
    Waymo LLC Daimler AG Tesla Uber Technologies Inc. GM Cruise LLC Aptiv AB Volvo Ridecell, Inc Baidu Zoox, Inc Volkswagen AG Lyft, Inc. Continental AG DENSO CORPORATION Mobileye Others Others

    Frequently Asked Questions (FAQs)

    What is the estimated growth rate (CAGR) of the robo taxi market?
    The market size is growing at a CAGR of 67.60% from 2023 to 2031.
    North America has the largest share of this market.
    The key players in this market are Waymo LLC (a subsidiary of Alphabet Inc.), Cruise LLC (a subsidiary of General Motor Company), Tesla,Nissan Motor Corporation, Lyft, Inc., Uber Technologies Daimler AG.
    Demand for fuel-efficient and emission-free vehicles is the key driver for the growth of this market.
    The market size are projected to reach USD 107,682.14 million by 2031.


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