The global robo taxi market size is estimated to grow by USD 568.65 million from 2021 to 2026, according to Technavio. The market is estimated to grow at a CAGR of 8.21% during the forecast period. The market is driven by the increased focus of OEMs on the development of robo taxis. Increasing traffic congestion has led many consumers to shift to new car ownership models, such as carpooling, cab services, and car rentals. To capitalize on this opportunity, automotive OEMs are developing technologies that focus on driverless, autonomous vehicle concepts. Although these technologies are still in a nascent stage for commercialization, numerous experts are expecting this concept to drive the future of the automotive industry. With many automobile manufacturers increasing their efforts to develop autonomous vehicles, the market growth will accelerate during the forecast period.
Technavio has segmented the market based on application (goods transportation and passenger transportation) and geography (North America, Europe, APAC, South America, and the Middle East and Africa). The market growth in the goods transportation segment will be significant during the forecast period. The increasing demand for last-mile delivery solutions and increasing initiatives to promote robo taxi transportation and logistics are driving the growth of the segment.
By geography, the global robo taxi market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global robo taxi market. APAC will account for 32% of the market growth during the forecast period. North America is another major region providing significant growth opportunities in the market. The presence of well-developed road infrastructure and connectivity solutions is a major factor driving the growth of the robo taxi market in North America.
The global robo taxi market is fragmented. The market consists of some well-established players that are into the design and development of transmission systems and components for electric vehicles. Vendors are focused on the development of level 4 and level 5 robo taxis, using artificial intelligence, radio detection and ranging (RADAR), and light detection and ranging (LIDAR) technologies to make them highly automated. Prominent vendors are focusing on improving the reliability, durability, and safety of autonomous taxis. There are numerous projects and initiatives under process in the global robo taxi market, which is playing a crucial role in driving the adoption of driverless taxis in designated places or areas. Owing to these factors, the robo taxi market is expected to intensify in competition during the forecast period. Some of the key vendors covered in the report include:
- Argo AI LLC - The company offers robo taxi services such as argo autonomy platform that includes the software, hardware, HD maps, and backend support needed to power full-service self-driving operations.
- AutoX Inc. - The company offers robo taxi services such as Robo Taxi and Robo Delivery.
- Baidu Inc - The company offers robo taxi services such as radish run which is an autonomous driving travel service platform.
- Easymile SAS - The company offers robo taxi services such as EZ10 passenger shuttle.
Global Robo Taxi Market – Market Dynamics / Leading trends influencing growth
- Internet of Things integration powered by AI technology in automobiles is identified as the key trend in the market.
- Automobile manufacturers are partnering with hardware and software companies to incorporate automation technologies such as AI and IoT in their vehicles.
- This is beneficial for autonomous vehicles because more individuals prefer smart devices to control various electronic devices.
- IoT allows automotive AI in a vehicle to read information stored within the cloud and alter drive patterns accordingly.
- It aids in reducing traffic and reducing the potentiality of an accident as vehicles communicate to each other about speed and braking distance.
- This trend will have a positive impact on the growth of the market during the forecast period.
Major challenges hindering growth
- Less system reliability is the major challenge affecting the growth of the market.
- Autonomous technologies such as advanced driver assistance system (ADAS) are designed to prevent accidents. However, the safety aspects are still not clear.
- Any occasional faults in the system could lead to driver discarding the use of such technologies.
- Also, improper tuning of the autonomous vehicle technology system may create unwanted stoppages of the vehicle.
- Many such challenges are expected to remain as obstacles to the growth of the global robo taxi market during the forecast period.