Robotaxis are self-driving taxis or vehicles that can be summoned, driven, and paid for via a smartphone application. They utilize cutting-edge sensors and technologies like radars, lidars, cameras, GPS, and artificial intelligence which allow them to navigate roads and transport passengers without the need for a human driver. Robotaxis are seeing increased adoption as autonomous vehicles that can be hired on-demand and provide efficient door-to-door transportation service in urban areas. Companies are conducting pilot programs for robotaxis in several cities to demonstrate their potential for commercialization. The global Robotaxi Market is estimated to be valued at US$ 2198.45 Mn in 2023 and is expected to exhibit a CAGR of 10% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The rising demand for autonomous vehicles as a service and on-demand mobility are expected to drive the growth of the robotaxi market over the forecast period. As highlighted in the heading, the increasing adoption of robotaxis as an alternative to conventional taxis due to advantages like driverless operation, 24/7 availability and affordable pricing will boost the robotaxi market. Further, the growing technology and investments in autonomous driving by major players are also fueling the development of robotaxis. However, persistent technological challenges associated with autonomous driving capabilities ininclement weather and unfamiliar environments continue to restrain the robotaxi market.
Segment Analysis
The global robotaxi market is dominated by the passenger transportation sub-segment, which is expected to continue dominating the market during the forecast period. This is because of the growing investments by OEMs like GM, Ford, and Tesla in development of self-driving technologies which can provide autonomous rides to passengers. The passenger transportation sub-segment accounted for nearly 70% share of the global robotaxi market in 2023.
PEST Analysis
Political: Laws and regulations regarding autonomous vehicles are still evolving in most countries. However, countries like US, China, Singapore are formulating favorable policies to promote development and testing of self-driving cars.
Economic: Falling costs of sensors and connectivity technologies are helping automakers to introduce autonomous driving features at affordable prices. This is expected to boost adoption of robotaxis for commercial purposes. Moreover, self-driving taxis can reduce costs for taxi operators by eliminating the need for human drivers.
Social: Growing preference for on-demand mobility services among people is driving interest in robotaxis. Younger consumers are more comfortable with new technologies and see potential benefits of self-driving vehicles like convenience, safety and sustainability.
Technological: Advancements in AI, ML and computer vision are enabling automakers to develop self-driving systems capable of handling complex traffic scenarios. Hardware improvements along with high-definition 3D mapping are also allowing robotaxis to navigate effectively without human control.
Key Takeaways
The Global Robotaxi Market Size is expected to witness high growth at a CAGR of around 10% during the forecast period of 2023 to 2030.
Regional analysis: Asia Pacific is also projected to exhibit rapid growth during the forecast period. Countries like China, Japan and South Korea are aggressively funding R&D activities and projects to deploy autonomous vehicles. Growing partnership between automakers and technology firms from the region is helping in innovations.
Key players operating in the robotaxi market are Pfizer Inc., Novartis AG, Merck & Co. Inc., GSK PLC, and AstraZeneca. Pfizer, GM and Aptiv are focusing on collaborations with regulators and municipalities for launching commercial robotaxi services in different cities. Novartis is working on developing self-driving shuttle vehicles for campus mobility.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
