Robo Taxis Global Market Opportunities and Strategies to 2033

This report describes and explains the robo taxis market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global robo taxis market reached a value of nearly $707.6 million in 2023. The market is expected to grow from $707.6 million in 2023 to $10.06 billion in 2028 at a rate of 70.1%. The market is then expected to grow at a CAGR of 71% from 2028 and reach $147.18 billion in 2033.

Growth in the historic period resulted from the increasing number of smart city projects, rising number of connected vehicles, increasing number of charging stations and growing demand for energy-efficient vehicles. Factors that negatively affected growth in the historic period were rising traffic fatality rates.

Going forward, the expanding 5G coverage, increasing production and sale of electric vehicles and rising urbanization will drive the growth. Factor that could hinder the growth of the robo taxis market in the future include rising automotive software costs.

The robo taxis market is segmented by vehicle type into shuttle/van and car. The car market was the largest segment of the robo taxis market segmented by vehicle type, accounting for 95.6% or $676.1 million of the total in 2023. Going forward, the shuttle/van segment is expected to be the fastest growing segment in the robo taxis market segmented by vehicle type, at a CAGR of 106.8% during 2023-2028.

The robo taxis market is segmented by service type into car rental and station based. The car rental market was the largest segment of the robo taxis market segmented by service type, accounting for 98% or $693.4 million of the total in 2023. Going forward, the station based segment is expected to be the fastest growing segment in the robo taxis market segmented by service type, at a CAGR of 86.5% during 2023-2028.

The robo taxis market is segmented by end-user into commercial and passengers. The passengers market was the largest segment of the robo taxis market segmented by end-user, accounting for 96.4% or $682.4 million of the total in 2023. Going forward, the commercial segment is expected to be the fastest growing segment in the robo taxis market segmented by end-user, at a CAGR of 112.1% during 2023-2028.

North America was the largest region in the robo taxis market, accounting for 89% or $629.7 million of the total in 2023. It was followed by Asia Pacific, Middle East and then the other regions. Going forward, the fastest-growing regions in the robo taxis market will be Asia Pacific and Middle East where growth will be at CAGRs of 96.8% and 88.2% respectively. These will be followed by North America where the market is expected to grow at CAGR of 46%.

The global robo taxis market is highly concentrated, with a large players operating in the market. The top ten competitors in the market made up to 72.7% of the total market in 2022. The market concentration can be attributed to the presence of large number of players in different geographies. Prominent players are launching the new products and licenses to develop business expertise with the other companies to consolidate their market positions across the globe, while others are distributing products. Lyft Inc was the largest competitor with a 9.8% share of the market, followed by Cruise LLC with 8.8%, Baidu Inc with 8.6%, Nuro Inc with 8.5%, EasyMile with 7.8%, Uber Technologies Inc with 7.6%, Beijing Didi Chuxing Technology Co Ltd with 6.7%, Waymo LLC with 6.3%, MOIA with 6.2% and AutoX Inc with 2.3%.

The top opportunities in the robo taxis market segmented by vehicle type will arise in the car segment, which will gain $8.19 billion of global annual sales by 2028. The top opportunities in the robo taxis market segmented by service type will arise in the car rental segment, which will gain $9.05 billion of global annual sales by 2028. The top opportunities in the robo taxis market segmented by end-user will arise in the passengers segment, which will gain $8.3 billion of global annual sales by 2028. The robo taxis market size will gain the most in the USA at $3.16 billion.

Market-trend-based strategies for the robo taxis market include focus on development of advanced robot taxis for revolutionizing urban transportation, focus on integration of new generation sensors to support high-level autonomous driving, focus on driverless ride-hail services to gain traction in urban mobility, focus on strategic partnerships among market players to commercialize autonomous mobility and focus on safety and comfort in robotaxis for passenger transportation.

Player-adopted strategies in the robo taxis market include focus on expanding business through new product launches and focus on product expansions through licenses to develop business expertise.

To take advantage of the opportunities, the analyst recommends robo taxis companies to focus on advancing technology and market expansion, focus on integration of advanced sensor technology for enhanced autonomy, focus on developing driverless ride-hail services, focus on enhancing safety and comfort in robo taxis, focus on the shuttle/van market segment, focus on the station-based market segment, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships for commercializing autonomous mobility, provide competitively priced offerings, focus on strategic pricing for competitive advantage, participate in trade shows and events, continue to use B2B promotions, focus on digital marketing for targeted outreach, focus on strategic partnerships for enhanced visibility and focus on the commercial market segment.