Robo-Taxi Market - Growth, Trends, and Forecast (2020 - 2025)

The Robo-taxi market (henceforth referred to as the market studied) is anticipated to register a CAGR of about 120.52% during the forecast period (2020 – 2025).

• The growing issues of traffic congestion in major cities around the world, increasing pollution and adversely impacting health and overall quality of life. The demand for zero-emission vehicles or green vehicles is rising, also there is surge in autonomous cars demand.
• Currently, three trends are accelerating transformative change in automotive industry which are zero-emission vehicles, autonomous driving and new mobility models. Autonomous, zero-emission Robo-taxis embody all three of these trends, offering the potential for convenient, personalized transport as an attractive alternative to owning a car or using public transport.
• Robo-taxis are still in testing phases and carries a baggage of challenges which includes, high manufacturing cost, the risk of injury to drivers and pedestrians, lack of proper government regulations and inadequate infrastructure for operating Robo-Taxis. These factors are likely to hinder the growth of the robo-taxi market.
• However, Robo-taxis also provide an opportunity to significantly increase traffic capacity by reducing safe stopping distances between cars. As robots can react almost instantly, it is reasonable to reduce the enforced safe distance while still expecting higher safety levels.

Key Market Trends

Robo-Taxis Are Attracting People Around the World

Almost all the vehicle manufacturers are testing and launching electric and autonomous vehicles around the world. Majority of the manufacturers are testing autonomous taxis for seeing the results and response of people. Globally, people are welcoming the robo-taxi concept based on which the technology and vehicle manufacturing companies have started working on it.

In 2018, a survey conducted globally around automotive megatrends. According to the survey;

• Consumers without cars would be likely to use autonomous vehicle-based mobility services to replace journeys by both conventional car and public transport. Approximately 45% of people without regular access to car are ready to use Robo-taxis instead of conventional public transport. Nearly 25% of people would use Robo-taxis instead of conventional taxis.
• However, for car owners to switch to Robo-taxis, they would need to be convinced that Robo-taxis would at least match the experience in the key areas of independence, comfort and convenience.

As soon as Robo-taxis are perceived as being more convenient than cars which they certainly have the potential to be then the demand for car-based mobility will increase.

Europe is Likely to Dominate the Robo-Taxi Market

The Robo-Taxi market is anticipated to be lead by Europe followed by China and United states respectively. European is the leading region which is providing advanced mobility technology and supportive infrastructure for the Robo-taxi market. Majority of the fleet- operators who are working on Robo-taxi have found favorable business environment from all the perspective such as regulatory framework that support environment-driven vehicle technologies in the region.

China is also rapidly working on the Robo-taxi concept. For Instance, Didi Chuxing, China’s leading taxi service providing company is developing autonomous driverless cars. Its technology partner is an electric car startup called CHJ Auto. Together they are working to create an all-electric robotaxi that can shuttle passengers around China's crowded megacities with no drivers at all.

Competitive Landscape

The Robo-taxi Market is in nascent stage due to the market has limited number of players who are operating which includes NAVYA, Uber Technologies Inc., Waymo LLC, EasyMile, Didi Chuxing Technology Co., AB Volvo, Baidu Inc., and amongst others.

The companies are testing on Robo-taxis and making partnerships so that they can be ahead in the competition. For instance:

• NAVYA, is already building and selling Level 4 shuttles and cabs in the U.S. that run fully on electric power and can reach a top speed of 55 mph.
• Waymo recently unveiled a Level 4 self-driving taxi service in Arizona, where they had been testing driverless cars without a safety driver in the seat for more than a year and over 10 million miles.
• Magna has developed technology (MAX4) to enable Level 4 capabilities in both urban and highway environments. The company is working with Lyft to supply high-tech kits that turn vehicles into self-driving cars.
• Volvo and Baidu announced a strategic partnership to jointly develop Level 4 electric vehicles that will serve the Robo-taxi market in China.

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