ROBOTAXI MARKET ANALYSIS

Robotaxi Market Size and Trends

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.

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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.

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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.