Robotaxi Market Growth Is Driven by the adoption of autonomous transportation
The robotaxi market mainly constitutes self-driving taxis or vehicles that operate on public roads without the need for a human driver and can be accessed through a mobile app. Robotaxis utilize various technologies like LiDAR, radar, computer vision, GPS, and navigation systems to autonomously drive on roads. These vehicles eliminate the need for a professional driver and thereby reduce the operational costs involved with hiring human drivers.
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. The growing demand for autonomous transportation solutions from mobility as a service platforms owing to the rising traffic congestion levels and pollution is a key factor driving the robotaxi market. Several partnerships have also been witnessed between autonomous technology providers and ride-hailing companies to tap into the global robotaxi market potential.
The increasing global population and rapid urbanization have led to growing traffic congestion levels in major cities worldwide. This has increased the demand for alternative transportation solutions like robotaxis that can help address mobility challenges. Moreover, robotaxis are expected to significantly reduce vehicle emissions by optimizing routing and transporting more people per vehicle.
Market drivers
The adoption of autonomous transportation is one of the key drivers of the robotaxi market. Autonomous vehicles are increasingly being seen as a viable solution to issues like road accidents caused due to human errors, increased productivity due to the ability to utilize travel time efficiently, mobility for elderly and disabled people, and reduced transportation costs compared to owning a private vehicle. Several commercial robotaxi services have already been launched in certain cities globally and the experience is driving greater adoption.
Current Geopolitical Situation and its Impact on Robotaxi Market Growth
The global geopolitical landscape has undergone tremendous changes in recent times. Political uncertainties and economic volatility in major markets across Europe, Asia and Americas continue to impact business confidence and spending. The ongoing Russia-Ukraine conflict has further exacerbated supply chain disruptions and inflationary pressures. Rising energy costs and potential fuel shortages in Europe pose significant challenges for the deployment of autonomous vehicles in the near future. However, governments worldwide are investing heavily in development of modern transportation infrastructure to drive economic growth as nations strive to build back better from the pandemic. Substantial funding allocated for research in autonomous driving and connectivity technologies bodes well for the robotaxi market over the long-run. While geopolitical headwinds may delay large-scale commercialization initially, ongoing tech breakthroughs and evolving mobility needs will continue to fuel adoption of robotaxis globally in the coming years.
Concentration of Robotaxi Market by Geographical Regions
The North American region currently accounts for the largest share of the global robotaxi market in terms of value. The US stands at the forefront with major technology companies and automakers ramping up testing and pilot projects for driverless vehicles across key cities. Substantial private investments and government support through initiatives like DOT's Automated Vehicle 4.0 Guidelines are facilitating regional growth. Asia Pacific is emerging as the fastest growing regional market, led by massive investments by Chinese technology giants and automakers to develop and deploy autonomous vehicles for movement of goods and people. Countries like Singapore and South Korea are also aggressively piloting robotaxi services to address urban mobility challenges and transition to smart cities.
Fastest Growing Regional Market for Robotaxis
The Asia Pacific region is poised to witness the highest growth in the robotaxi market over the coming years on account of rapid digitization, rising disposable incomes and increasing adoption of smart mobility solutions across populous nations. China, with its ambitious long-term plans to deploy autonomous vehicles at scale, continues to attract massive investments to bolster advanced R&D capabilities. Southeast Asian countries are aggressively testing robotaxis to provide alternative transportation options and decongest city centers. Governments in the region are collaborating with global OEMs to develop 5G-enabled robotaxi networks, which will significantly accelerate the regional market expansion through the forecast period.
Get more insights on this topic: Robotaxi Market
English
Arabic
Français
Español
Português
Deutsch
Türkçe
Dutch
Italiano
Russian