RoboTaxi Global Market Report 2024

The robotaxi market size has grown exponentially in recent years. It will grow from $1.41 billion in 2023 to $2.22 billion in 2024 at a compound annual growth rate (CAGR) of 57.2%. The rise during the historical period can be credited to a growing preference for environmental friendliness, heightened emphasis on sustainability, the imperative to decrease carbon emissions, rapid urbanization, and the expanding integration of autonomous technology.

The robotaxi market size is expected to see exponential growth in the next few years. It will grow to $13.57 billion in 2028 at a compound annual growth rate (CAGR) of 57.3%. The surge projected for the upcoming period can be primarily ascribed to a heightened emphasis on sustainability and decarbonization, the adoption of Advanced Driver Assistance Systems (ADAS) in vehicles, escalating concerns regarding traffic congestion, and the necessity to enhance overall functionality. Prominent trends anticipated for the forecast period encompass advancements in sensor technologies, breakthroughs in self-driving technology, state-of-the-art transportation services, automated and driverless transportation alternatives, and product innovation.

The escalating problem of traffic congestion is poised to fuel the growth of the robotaxi market in the coming years. Traffic congestion refers to a condition on road networks where traffic demand surpasses available road capacity. This issue often arises due to various factors, including high vehicle volumes, inadequate road infrastructure, inefficient traffic management, and disruptions such as accidents or construction, resulting in reduced roadway capacity and longer travel times for motorists. Robotaxis have the potential to alleviate traffic congestion by offering on-demand transportation services, optimizing routes, and reducing the number of privately owned vehicles on the road, thus enhancing traffic flow and mitigating congestion. For example, according to the Federal Highway Administration in January 2023, there was a 5.6% increase (+13.2 billion vehicle miles) in travel on all roads and streets compared to January 2022, totaling an estimated 247.3 billion vehicle miles for the month. Seasonally adjusted vehicle miles traveled for January 2023 amounted to 272.5 billion miles, reflecting a 4.5% increase (+11.6 billion vehicle miles) over January 2022 and a 3.1% change (+8.1 billion vehicle miles) from December 2022. Hence, the mounting issue of traffic congestion is a driving force behind the growth of the robotaxi market.

Key players in the robotaxi market are directing their efforts toward developing autonomous vehicles (AVs) equipped with detachable steering wheels to gain a competitive edge. An AV with a detachable steering wheel is a self-driving car designed to operate without human intervention but equipped with a removable steering wheel for manual control when necessary. For instance, in July 2022, Baidu Inc., a China-based technology company, introduced an AV featuring a detachable steering wheel. This innovation allows for more interior space and facilitates additional features such as extra seating, vending machines, desktops, or gaming consoles. The company plans to deploy this vehicle for its robotaxi service in China next year.

In August 2023, Toyota Motor Corporation, a Japan-based automobile manufacturer, partnered with Pony.ai with the aim of advancing the commercial application of high-level autonomous driving technology and enabling the mass production of robotaxis. Pony.ai is a US-based autonomous vehicle technology startup company offering robotaxi services.

Major companies operating in the robotaxi market are Amazon.com Inc., Toyota Motor Corporation, Mercedes-Benz Group AG, Ford Motor Company, BMW AG, Hyundai Motor Group, Tesla Inc., ZF Friedrichshafen AG, Volvo Personvagnar AB, Uber Technologies Inc., Zhejiang Geely Holding Group Co. Ltd., Baidu Inc., Aptiv PLC, Lyft Inc., Cruise LLC, Waymo LLC, Motional Inc., Pony.AI, EasyMile, MOIA, AutoX Inc., Navya, Didi Chuxing Technology Co. Ltd., GAC Aion New Energy Automobile Co. Ltd., Argo AI LLC.

Europe was the largest region in the robotaxi market in 2023. Asia-Pacific is expected to be the fastest growing region in the market. The regions covered in the robotaxi market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the robotaxi market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

A robotaxi is a driverless vehicle equipped with autonomous technology that can transport passengers from one location to another, functioning similarly to traditional taxis but without a human driver. RoboTaxis has the potential to revolutionize transportation by reducing congestion, lowering costs, and providing accessible mobility options.

The primary classifications of robotaxi encompass L4 robo-taxi and L5 robo-taxi. An L4 (Level 4) robotaxi possesses the capability of fully autonomous driving within specific conditions and environments, operating without human interference. Integral components utilized in robotaxi systems consist of light detection and ranging (LiDAR), radio detection and ranging (RADAR), cameras, and sensors. Service provisions include rental-based and station-based models, while propulsion options span electric vehicles, hybrid electric vehicles, and fuel cell vehicles. Robotaxi applications span both the goods transportation and passenger transportation sectors.

The robotaxi market research report is one of a series of new reports that provides robotaxi market statistics, including robotaxi industry global market size, regional shares, competitors with a robotaxi market share, detailed robotaxi market segments, market trends and opportunities, and any further data you may need to thrive in the robotaxi industry. This robotaxi market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The robotaxi market consists of sales of autonomous driving systems, communication systems, and fleet management platforms. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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