Stress on Emission-free Vehicles Leading to Robo-taxi Market Growth
A robo-taxi is also known as a self-driving taxi or a robo-cab. It’s a self-driving car that offers on-demand transportation services. The main goal is to do away with the need for a personal operator, which adds significantly to the operating costs of these services. These are self-driving cars with an autonomic level of 4 or 5, which are utilized in a simulated hailing service.
These fuel-efficient vehicles do not emit harmful gas emissions and contribute to environmental protection and preservation. These environmentally efficient self-driving cars are known for using less battery and minimizing the cost of vehicle operation. Important technologies for robo-taxis could include automatic car detectors, software platforms, or customized customer touchpoints.
Robo-taxi Market Summary
Due to the growing inclination for innovative mobility services such as ride-hailing in metropolitan areas, the worldwide robo-taxi market is gaining significant traction. Furthermore, advancements in autonomous driving, which enable innovative kinds of mobility, are one of the primary drivers of market growth. Many people and taxi firms in metropolitan areas are calling for automation, electrification, and networking to enable and shape the robo-taxi industry.
Globally, robo-taxis were valued at US$ 840.6 million in 2021 and will reach 24,322.8 million by 2028, exhibiting a CAGR of 61.72% between 2021 and 2028.
Daimler AG, Tesla Inc., General Motors, Waymo LLC, Ford Motor Company, NAVYA, Volvo, BMW AG, Fiat Chrysler Automobiles (FCA), and Nissan are among the major players in the global robo-taxi sector. The leading companies are now focusing on strategies like product innovations, mergers and acquisitions, new developments, joint ventures, collaborations, and partnerships to improve their market position in the global robo-taxi market.
Initiatives taken by the Global Automakers toward Robo-taxi Industry
In February 2020, Lyft and Aptiv announced that their collaboration resulted in the operational execution of 100,000 Robo-Taxi journeys in Las Vegas.
In December 2019, Robert Bosch GmbH and Mercedes-Benz maker Daimler AG announced a collaboration to launch the Robotaxi Program in San Jose, California.
Cruise, a self-driving car company majority-owned by General Motors, just received the final approval it needed to begin offering its robo-taxi service to paying customers in San Francisco. In a blog post, Cruise bragged that the permit is “the first-ever Driverless Deployment Permit given by the California Public Utilities Commission” and that it will let the business run “a commercial, driverless ride-hail service in a major US city.” The company’s automobiles are totally electric and battery-powered, which could help reduce greenhouse gas emissions that contribute to climate change.
Hyundai is testing a rideshare service in one of Seoul’s busiest districts, using two electric Ioniq 5s with in-house self-driving technology. The RoboRide trial will be the first ridesharing service using autonomous vehicles (AVs) in Gangnam — a trendy but congested region – and the Ioniq 5s deployed will have Level 4 capability, as determined by the Society of Automotive Engineers. That means the cars will be able to drive themselves without the need for human intervention; however, a safety driver would be present at all times. Hyundai, on the other hand, claims that the drivers will only “intervene in limited circumstances.”
The South Korean Ministry of Land, Infrastructure and Transport has granted the manufacturer a temporary autonomous driving operation permission to enable the experiment, and the service will be operated by Jin Mobility, a local startup that operates a car-hailing platform called i.M.
Reasons for the Growth in the Robo-taxi Industry
Regulations that allow taxi companies to operate without human drivers are critical. With the approval of regulatory laws in a number of nations, this sector is likely to outpace the passenger car market in the next years.
Overcrowding in public transportation, increasing infrastructure construction activities, and technological advancements in the automobile industry all have a beneficial impact on market value. Furthermore, there is huge market potential due to the strong demand for passenger cars and effective public transportation systems. Another significant growth factor is the increasing market penetration of cellphones, which allows for the booking and tracking of personal mobility.
Users can check their ride’s location on the mobile app and get inputs on high-traffic locations via a smart connected traffic system. Major market trends include an increase in demand for zero-emission mobility solutions and purpose-built electric vehicles for taxi services.
Region-wise Analysis of the Robo-taxi Market
Due to increased demand for robo-taxi and governments’ concern for the environment and vehicle safety, the Asia Pacific region leads the worldwide robo-taxi industry. Furthermore, the region’s market share grows as public transportation infrastructure improves in tandem with strong economic expansion and urbanization in developing countries. China, Japan, and Singapore account for significant shares of the regional market due to their rapidly growing populations.
North America is a lucrative market for robo-taxis around the world. The market size is boosted by significant technology advancements in autonomous driving and the growing use of robo-taxis across the region. Furthermore, the market value is boosted by the existence of important industry players, the early adoption of advanced driverless technology, and the well-established automotive industry.
Europe is also a promising market for robo-taxis, accounting for a significant portion of the global market. The region is a center for luxury cars, self-driving cars, and automotive research and development, all of which contribute to market revenues. Furthermore, the region’s resurgent economy, as well as the expanding passenger car markets in Germany, the United Kingdom, France, and Italy, promote market expansion.
Leading Key Players
- Tesla Inc. (US)
- Robert Bosch Gmbh (Germany)
- Waymo LLC (US)
- ZF Friedrichshafen AG (Germany)
- General Motors (US)
- Continental AG (Germany)
- Aptiv (Ireland)
- GM Cruise LLC (US)
- Lyft Inc. (US)
- Ridecell Inc (US)
- EasyMile (France)
- Navya (France)
The worldwide robo-taxi business appears to be very competitive, with a competitive landscape formed by several well-established competitors. The dedicated robo-taxi, which is currently under development, will be highly designed for autonomy and will not have a steering wheel or pedals. The market is developing due to rising demand for fuel-efficient and environmentally friendly automobiles, as well as advancements in vehicle-to-infrastructure connectivity.
Furthermore, the rise of self-driving automobiles is likely to boost the demand for robo-taxis. Thanks to technological advancements, automakers can now design electric vehicles specifically for ride-hailing. However, the rise of robo-taxis may have an impact on auto sales and manufacturers, lowering the demand for a second vehicle significantly.