Increasing demand for ride-hailing services and the need to increase the profit margin for companies that provide ride-hailing services are expected to drive the growth of the Robo taxi market to be $ 1.03 billion in 2023. It is projected to reach $ 38.61 billion by 2030, registering a CAGR of 67.8% from 2023 to 2030.
The Robo Taxi market is segmented by application, component, propulsion, and automation - Level-4 and Level-5. The report covers global opportunity analysis and industry forecasts from 2021 to 2027. The top players in the Robo taxi market include Cruise, Daimler, Ford, Lyft, Nissan, Tesla, Uber, Volkswagen and Waymo.
Published under Autos & Vehicles Category, Valuates Reports said the worldwide Robo taxi market is growing due to government efforts and increased investments by the major players in the automotive automation industry.
In addition, technological advancements due to the R&D carried out by multiple startups and top players are expected to further fuel the adoption of autonomous vehicles, which is expected to increase the growth of the Robo taxi market.
Providing a better driving experience and increasing driving safety is expected to propel the robot taxi industry. With the emergence of vehicle automation, the necessity for a human driver has decreased, lowering the risk of accidents caused by human mistakes. A Robo-taxi is also fitted with numerous sensors, including RADAR, LiDAR, and others, making the vehicle more efficient to operate, resulting in the global rise of the Robo taxi market.
Influencing Trends
During the COVID-19 pandemic, over 5,000 independent contractors working for Lyft and Uber accounted for about $ 80 million in Economic Injury Disaster Loans, according to The Washington Post in May 2021. As a result of the pandemic, demand for ridesharing/ride-hailing fell by 80%, demonstrating that these firms couldn't afford to have a large number of drivers. Therefore, businesses have begun to place emphasis on adding robot taxis into their fleets, which is predicted to reduce operational costs and improve profit margins drastically. This, in turn, is expected to drive the Robo taxi market growth, the research firm said.
The need for better road safety and traffic control is expected to fuel the growth of the robot taxi market. In terms of safety and traffic congestion, Robo-taxis have various advantages over traditional vehicles. For example, short-range sensors (which provide details of moving things near the vehicle) and long-range sensors (which provide details of high-speed oncoming vehicles) are used to assist the vehicle in detecting any object or barrier in its path, reducing the risk of an accident.
Furthermore, the governments of several countries implement regulations in support of autonomous vehicles, which fuel the Robo taxi market growth. For example, the Self Drive Act provides a much-needed federal safety framework to support self-driving technology and its potential to save lives on the road, improve mobility, and create new economic opportunities across the country.
According to Valuates Reports, the goods transportation segment is projected to be the highest contributor to the market, with $ 0.61 billion in 2023, and is estimated to reach $ 21.71 billion by 2030, at a CAGR of 70.5% during the forecast period.
The passenger transportation segment is estimated to reach $16.89 billion by 2030 at a CAGR of 74.2%. North America would exhibit the highest CAGR of 29.6% during 2021-2030, the report said.
Courtesy: Valuates Reports. NB: Photo is representational; courtesy: Volkswagen.