ROBOTAXI MARKET ANALYSIS
Global robotaxi market is estimated to be valued at US$ 2.58 billion in 2024 and is expected to reach US$ 81.92 billion by 2031, exhibiting a compound annual growth rate (CAGR) of 63.9% from 2024 to 2031.
Discover market dynamics shaping the industry request sample copy
Advancements intechnology can make robotaxis safer and more affordable, thus, public opinion is expected to shift more favorably towards driverless vehicles. Major technology companies and automakers have been investing heavily in developing robotaxis, and this will help to improve the services offered and cut costs down to levels that are competitive with traditional taxis. Widespread deployment of robotaxis in certain regions is expected around 2030, depending on market's regulatory environment and infrastructure readiness. If costs come down sharply and performance rises to surpass human-driven vehicles, the robotaxi market could become larger than currently estimated.
Rising need for convenient and faster mode of transportation
Due to busy lifestyles and traffic congestion in major cities around the world, there is rising need amongst people for a convenient and faster mode of transportation. Commuting to work or for personal errands is becoming a chore for many people due to long hours spent stuck in traffic. People have less free time and want to utilize it effectively rather than wasting it sitting in vehicles. Robotaxis offer a convenient solution as these can maneuver nimbly through traffic and reach destinations faster than conventional taxi services. Users can book a robotaxi through a mobile app and the vehicle can pick them up from their location within minutes. This helps save a significant amount of time otherwise spent driving or waiting for public transportation.
The autonomous driving technology powering robotaxis also means that these can operate round the clock without needing breaks. Thus, customers will have access to transportation services even late at night or very early morning when other options are limited. Working professionals with unpredictable schedules find robotaxis useful. Robotaxis can fill an important gap and meet the first and last mile connectivity needs of people. The service will be hassle-free as users will not have to find parking, pay for fuel or bother with tickets or fines. As more high-tech features are added, the entire commuting experience will become seamless, personalized and engaging for passengers.
For instance, in July 2022, the EU approved the General Safety Regulation, marking the initial legal framework permitting automated and fully driverless cars to operate on European roads. Member states foresee its implementation fostering innovation and enhancing the competitiveness of the automotive sector. Increasing technological advancements in autonomous vehicles can drive the market growth, resulting in heightened demand for self-driving taxis within the region. Numerous companies providing self-driving shuttles globally, such as EasyMile, Navya, and 2getthere, are headquartered in Europe.
Get actionable strategies to beat competition: Get instant access to report
Growing popularity of the shared mobility-on-demand model
In recent years, shared mobility sector has experienced tremendous growth with new platforms and services disrupting traditional modes of transportation. Ride-hailing through apps has become a mainstream option for urban travellers while bike and scooter sharing have taken off in several cities. This new shared mobility-on-demand model provides users flexibility and access while avoiding the high costs of personal vehicle ownership. It has captured people's imagination as a convenient, affordable and environment-friendly way to travel within cities. Robotaxis provides true driverless mobility, this can operate as self-driving taxis or function within a ride-sharing network.
For instance, Chinese authorities released a series of preliminary regulations in August 2022, enabling self-driving firms to provide rides and implement fees for fully autonomous vehicles (AVs). The market for electric robotaxis is expanding due to their economical operational and maintenance expenses.
Key Takeaways from Analyst:
Global robotaxi market growth is driven by advancements in self-driving technology and declining costs. Major players like Waymo, Cruise and Tesla have already begun testing their driverless vehicles on public roads. Declining costs of sensors and computing power can make robotaxis a commercially viable proposition for ride-hailing companies to deploy at scale. However, high upfront investments and regulatory uncertainty can hamper widespread adoption of robotaxi.
Asia Pacific, especially China, is expected to emerge as the dominate region in the robotaxi market due to R&D investment and testing of autonomous vehicles. Chinese technology giants like Baidu, Pony.ai and WeRide are vigorously working to commercialize full self-driving taxis in major Chinese cities over the next 5 years. Geographical constraints and lower costs provide China an edge over North America and Europe in pilot projects and scaling of robotaxi fleets.
U.S. continues to lead the way in most advanced self-driving systems and maintaining partnerships with automobile manufacturers. California, Arizona and Texas are the forerunners for opening roads for robotesting and operation.
Market Challenges: Regulatory Barriers
Autonomous vehicles need level 4 or 5 autonomy to operate without a human driver, but current regulations are not fully equipped to handle this technology. Policymakers must develop and implement new rules to ensure the safe deployment of robotaxis on public roads, which is a complex and time-consuming process.
Market Opportunities: Expansion in Urban Mobility Solutions
Global robotaxi market offers significant opportunity to address the growing demand for efficient transportation in urban areas. As cities become more congested, robotaxis can provide a reliable and scalable mobility solution. By leveraging advanced autonomous technology, companies can reduce traffic congestion, enhance public transportation systems, and provide convenient door-to-door services.
Discover high revenue pocket segments and roadmap to it: Get instant access to report
In terms of Application Type, Passenger Transportation segment dominates the market owing to convenience and flexibility
By application type, passenger transportation segment is estimated to contribute the highest market share of 60.4% in 2024, owing to its convenience and flexibility for commuters. Robotaxis allow passengers to hail a driverless vehicle directly from their smartphone instead of waiting for public transportation. This on-demand model makes transportation much more convenient as compared to relying on fixed bus or train schedules. Passengers have flexibility to travel exactly when these people want without any delays. Robotaxis also pick up and drop off passengers right at their pickup/drop off locations, thus, saving commuters time spent walking to/from bus stops or train stations. The door-to-door service experience is similar to ride-hailing but without the concern of traffic causing lateness. For those who cannot drive or choose not to own a private vehicle, robotaxis provide an affordable alternative to get around cities conveniently. As urban populations continue growing and traffic congestion worsens, the value of this convenient and flexible on-demand transportation model will drive more commuters to utilize robotaxis for passenger transportation over goods delivery.
In terms of Vehicle Type, Cars segment dominates the market owing to reliability and cost-effectiveness
In terms of vehicle type, cars segment is estimated to contribute the highest market share of 62.8% in 2024, owing to various advantages over other options like shuttles/vans. Cars allow for a more personalized experience transporting single riders or small groups point-to-point. Their smaller size makes it easier to navigate congested urban streets and allows flexible pickup/drop off locations compared to larger vehicles. From a operational cost standpoint, cars have lower maintenance fees and fuel costs relative to their passenger capacity. Modern cars also come equipped with necessary safety features and designs optimized for street-legal driving scenarios. Riders have come to expect and feel most comfortable using self-driving car models based on their familiarity with ride-hailing services already popularized by companies using car fleets. While shuttles/vans provide higher maximum capacities, car is the optimal vehicle type due to its personalized experience, low costs and street-readiness to meet diverse rider demands as more cities adopt autonomous on-demand transportation.
In terms of Component, LiDAR segment dominates the market owing to reliability and cost-effectiveness
By component, LiDAR segment is estimated to contribute the highest market share of 44.2% in 2024, owing to its superior perception capabilities essential for safe autonomous driving. While cameras and radars provide useful redundant sensing, only LiDAR sensors emit laser pulses that can accurately map surroundings in 3D regardless of lighting conditions or time-of-day. The precise distance measurements from millions of laser points allow self-driving systems to perceive obstacles, road boundaries and attribute meanings to complex scenes in a way that cameras alone cannot. This unmatched spatial awareness is critical for robotaxis performing complex navigation tasks like lane changing, intersection crossing and unprotected turns amidst mixed traffic scenarios. As the industry moves towards higher levels of autonomy requiring no oversight, the need for reliable sensing able to handle any environment increases. LiDAR offers the most robust perception solution to avoid accidents and gain consumer trust necessary for widespread robotaxi adoption. Although the upfront costs of LiDAR are higher than other components, the value it provides in safety makes it the ideal long-term sensor choice for OEMs and ride-hailing firms aiming commercialization at scale.
To learn more about this report, request sample copy
North America has emerged as the dominant region in the global robotaxi market with the highest market share of 41.3% in 2024 due to the presence of major robotaxi leaders such as Waymo, Cruise and Motional operating extensively in the region. With expansive roadways and highways spread across major cities like San Francisco, Phoenix, Detroit and others, North America provides an ideal testing ground for robotaxi technologies. The open regulatory environment in the U.S. and Canada also allows robotaxi companies to trial and test their technologies without excessive restrictions.
North America robotaxi market growth is driven by robust investment from tech giants like GM, Ford and others who have invested billions into self-driving ventures. Localization of operations along with significant progress in technology development has helped North American firms establish an early advantage. The industry is witnessing strong commitment from municipalities as well, eager to embrace innovative mobility solutions. For instance, the cities of San Francisco and Phoenix have partnered with leading companies to launch commercial robotaxi services.
China has emerged as the fastest growing regional market for robotaxi with estimated market share of 76.2% for the forecast period of 2024-2031. Major Robotaxi players are aggressively expanding their footprint in major Chinese cities to leverage the large market opportunity. The Chinese government is highly supportive of autonomous vehicle technologies and industrial development. It aims to commercialize robotaxis across major cities by 2025. Several local startups are emerging and collaborating with global leaders in self-driving technologies.
Beijing, Shanghai, Guangzhou and Shenzhen provide optimal conditions to pilot robotaxi services owing to their large urban populations and extensive urban infrastructure of dedicated lanes, roads and signals tailored for connected vehicles. Chinese companies are forging strategic partnerships to accelerate deployment timelines and capitalize on national priorities and local demand. The integrations of 5G networks and V2X technologies have further propelled progress.
Robotaxi Market Report Coverage
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2023 | Market Size in 2024: | US$ 2.58 Bn |
| Historical Data for: | 2019 to 2023 | Forecast Period: | 2024 to 2031 |
| Forecast Period 2024 to 2031 CAGR: | 63.9% | 2031 Value Projection: | US$ 81.92 Bn |
| Geographies covered: |
|
||
| Segments covered: |
|
||
| Companies covered: |
Aptiv, AutoX, Baidu, Beijing Didi Chuxing Technology Co., Ltd., BMW, Cruise, Daimler AG, DiDi Chuxing, EasyMile, Ford, General Motors, Hyundai, Lyft, Motional, Inc., Nissan, Tesla, Toyota, Waymo LLC, Zoox, Inc. |
||
| Growth Drivers: |
|
||
| Restraints & Challenges: |
|
||
Uncover macros and micros vetted on 75+ parameters: Get instant access to report
*Definition: Robotaxi is an autonomous electric vehicle designed for ride-hailing and ride-sharing services. It uses an array of sensors like lidar, radar and cameras to navigate road conditions without human intervention. Passengers can book and pay for rides through a smartphone app, which dispatches the nearest available Robotaxi. The vehicle's self-driving system is equipped with advanced mapping and navigation capabilities to safely transport riders to their destinations within urban areas.
Share
About Author
Ameya Thakkar is a seasoned management consultant with 9+ years of experience optimizing operations and driving growth for companies in the automotive and transportation sector. As a senior consultant at CMI, Ameya has led strategic initiatives that have delivered over $50M in cost savings and revenue gains for clients. Ameya specializes in supply chain optimization, process re-engineering, and identification of deep revenue pockets. He has deep expertise in the automotive industry, having worked with major OEMs and suppliers on complex challenges such as supplier analysis, demand analysis, competitive analysis, and Industry 4.0 implementation.
Missing comfort of reading report in your local language? Find your preferred language :
Transform your Strategy with Exclusive Trending Reports :
Frequently Asked Questions
Credibility and Certifications
860519526
9001:2015
27001:2022
Need a Custom Report?
We can customize every report - free of charge - including purchasing stand-alone sections or country-level reports
Customize NowSelect a License Type
Credibility and Certifications
860519526
9001:2015
27001:2022
Joining thousands of companies around the world committed to making the Excellent Business Solutions.
View All Our Clients
U.S.: 
U.K. : 
India : 
