The robotaxi market is projected to grow from 617 units in 2021 to reach 1445,822 units by 2030, at a CAGR of 136.8%.
Passenger transport Segment is expected to be the largest market in the application segment in the forecast.
The passenger segment for robotaxis is larger because of global efforts to reduce car ownership, traffic congestion, and accidents with the help of technology. By introducing robotaxis as a transportation service, newer revenue pools for various automotive and mobility business models are expected to open up in the future. The US and China already have few ride-hailing companies offering autonomous vehicle services/rides for public transportation. The demand for emission-free vehicles, rise in ride-hailing services, and reduction in the cost of transportation are the key factors expected to drive the passenger transportation segment for robotaxis. AutoX and Baidu are the first companies in China to offer commercial robotaxi services on public roads. The significant demand for ridesharing/ride-hailing services is expected to primarily drive the robotaxi market for passenger transport.
Van/shuttle segment is expected to witness significant growth during the forecast period.
The shuttle/van segment is expected to grow at significant rate, as these are already commercialized in various parts across the world. Companies such as Navya, EasyMile, and Local Motors have developed self-driving shuttles. Successful pilot programs for autonomous shuttles across the world are indicating that shuttles could be a practical solution to fill in the gaps in traditional public transport. For instance, EasyMile, a French autonomous shuttle provider, has deployed the highest number of such shuttles globally than any other company (180+ till 2020) and is competing with another European shuttle makers. Navya has also deployed a significant number of autonomous shuttles across the globe (approximately 180 till 2020). 2getthere, and Sensible4 are also some of the companies that have developed and tested autonomous shuttles in the region.
North America to be the 2nd fastest-growing region during the forecast period
The large customer base and high disposable income levels in the country have fueled the demand for autonomous vehicles, resulting in increased manufacturing and testing activities by players such as Waymo, Cruise, Lyft, Optimus Ride, and others. The increased testing activity indicates promising growth in the next five years. The US has allowed many OEMs to test robotaxis in California and Boston. Favorable regulations combined with solid EV infrastructure would drive the North American market. The US has been a pioneer in the development of autonomous driving technology, and OEMs and start-ups are now looking to offer robotaxis and shuttles. Robust infrastructure, improved power grid, and encouragement and support from the government have enabled OEMs to test autonomous vehicles. For instance, Local Motors is offering an autonomous shuttle, Olli. Also, Optimus Ride has deployed some autonomous shuttles in the project in New York.
Market Dynamics
Drivers
- Robotaxis to Reduce Overall Operating Costs and Increase Profit Margins for Ride-Sharing Companies
- Need for Enhanced Road Safety and Traffic Control
Restraints
- Human Jobs Being Jeopardized by Machines Expected to Reduce Wide Acceptance
- High R&D Expenditure and Complexity in the Adoption of Robotaxis
- Cybersecurity Threats Might Slow Down Market Growth
Opportunities
- Government Support to Drive the Market
- Robotic Assistance in the Delivery of Goods Offer New Opportunities for Market Growth
- Rapid Urbanization Requiring the Development of Infrastructure in Emerging Countries
- Increasing Investments in Lidar Startups by Automotive Giants
Challenges
- Navigation in Crowded Spaces Expected to be Challenging for Robotaxis
- Gaining Public and Individual Trust
- Lack of Required Infrastructure in Emerging Countries
