April 21, 2024
Robotaxi Market

Robotaxi Market Is Estimated to Witness High Growth Owing to Rising Demand for Self-Driving Vehicles

The robotaxi market involves passenger vehicles capable of sensing its environment and navigating without human input. Robotaxis have the potential to reduce traffic congestion and accidents by taking human error out of the driving process. They are being developed with hardware such as advanced camera, radar, and lidar systems to allow autonomous navigation of roads. Advantages of robotaxis over traditional taxis include lower operating costs due to the absence of a human driver, improved mobility for disabled or senior citizens, and flexible operations without fixed routes. The development of 5G networks will further enable robotaxis to transport passengers on-demand through ride-hailing apps.

The Global Robotaxi Market Share is estimated to be valued at US$ 2532.62 Bn in 2024 and is expected to exhibit a CAGR of 10% over the forecast period from 2024 to 2030.

Key Takeaways

Key players operating in the robotaxi market are Pfizer Inc., Novartis AG, Merck & Co. Inc., GSK PLC, AstraZeneca, Eli Lilly and Company, and Bristol-Myers Squibb Company (Celgene Corporation), among others. These players are investing heavily in developing advanced self-driving technologies, computer vision, high-definitionmapping for autonomous navigation.

The robotaxi market provides significant opportunities for commercial applications of self-driving vehicles. Rising demand for autonomous mobility-as-a-service will encourage fleet operators to deploy robotaxis in several cities. Further, collaborations between OEMs, technology companies and municipalities help expand autonomous vehicle trials and projects.

Global expansion of the robotaxi market will be led by the US and China. While the US is home to leading robotaxi developers such as Waymo, Cruise and Motional, China has emerged as a major testing ground for autonomous vehicles due to government initiatives. Several European countries are also actively supporting pilot projects for robotaxis to introduce autonomous transport networks.

Market Drivers

Rising demand for self-driving vehicles is a major market driver for robotaxis. Advanced capabilities of robotaxis related to safety, mobility and optimization of transport networks are prompting their adoption globally. Further, deployment of 5G networks provides the low latency connectivity required for widespread operations of autonomous vehicles. Ongoing technology improvements in AI, mapping, computing power and sensory perception are bringing robotaxis closer to commercial reality leading to higher investments in this industry.

PEST Analysis
Political: The market is regulated by various transport authorities who establish safety regulations for autonomous vehicles. Any changes in regulations can impact the adoption of robotaxis.
Economic: The rising disposable incomes have increased demand for mobility services. However, an economic slowdown can reduce spending on these services.
Social: Younger consumers are more accepting of new technologies. High adoption of smartphones enables using mobility apps. Concerns around safety need to be addressed.
Technological: Advancements in AI, 5G, and sensors are improving driverless capabilities. However, developing robust technologies for all road conditions remains a challenge. Integration of different technologies from platform providers is also important.

The major region in terms of value is North America where high technology adoption is driving investments in autonomous driving technologies from automakers and tech companies. The US accounts for over 30% share due to presence of leading players and conducive regulatory environment for testing.

The Asia Pacific region is expected to emerge as the fastest growing market driven by rising middle class population, increasing urbanization, and government initiatives for smart cities in countries like China and India. China, in particular, is aggressively supporting autonomous driving projects to reduce traffic congestion in cities and position itself as a leader in future mobility technologies.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it