Robotaxi Market

[223 Pages Report] The global robotaxi market, size was valued at USD 0.4 billion in 2023 and is expected to reach USD 45.7 billion by 2030, at a CAGR of 91.8% from 2023 to 2030. The growing need for convenient and secure transportation is the main factor propelling the market for robotaxis. People are increasingly looking for less stressful and more convenient alternatives to driving oneself about. Additionally, The Robotaxis' lower costs when compared to traditional taxi services or owning a private vehicle, as well as the growth of ride-sharing and Mobility-as-a-Service (MaaS) trends, are enticing more people to use them. The growing focus on sustainability, the necessity for efficient urban transit, and better safety as a result of eliminating human error are further factors that are driving the need for robotaxis. Due to legislative support, alliances, and changing attitudes regarding autonomous vehicles, this sector is growing.

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Market Dynamics:

Driver: Robotaxis to reduce operating costs and increase profit margins for ridesharing companies

In various aspects, robotaxis can potentially lower total operating costs and boost profit margins for ridesharing businesses. Driver salaries are sometimes the biggest expense for ridesharing companies. Robotaxis eliminates the need for paying drivers, which can drastically lower operating expenses. There are restrictions on the availability and the number of hours that human drivers can work. Robotaxis can run continuously for 24 hours without stopping due to technological advancements in battery and development in charging infrastructure. For ridesharing companies, higher utilization of robotaxi may lead to higher profit margins. As in the absence of drivers in the taxis is an opportunity for ride-hailing companies, such as Uber Technologies, Inc., Lyft, Inc., and Beijing Xiaoju Technology Co, Ltd., to reduce overall operating costs and increase profitability.

A majority of the startups in this market, such as Cruise LLC, Argo AI, Pony.ai, and Mobileye, are backed by renowned automotive manufacturers, ridesharing companies, and technology companies such as Ford, Volkswagen, Baidu, and Toyota, who have invested billions of dollars in the development of autonomous cars. In October 2022, Volkswagen (Germany) announced an investment of around USD 2.33 billion in Beijing robotics company Horizon (China) as it seeks to accelerate its deployment of autonomous vehicle tech in China. Waymo LLC, Baidu, Inc., and AutoX, Inc. are considered pioneers in this rapidly developing market as they are already offering robotaxi services to the public. Significant competition among these robotaxi makers and ride-hailing service providers is driving the market across the globe.

Restraint: High R&D expenditure and complexity in adoption of robotaxis

Deploying a full-fledged robotaxi service requires high investments because components such as ultrasonic sensors, cameras, and LiDAR are expensive. The deployment and adoption of robotaxi fleets is complex and time consuming. As of May 2022, very few level 4 and level 5 autonomous vehicles are available for tests. Therefore, the deployment of robotaxi services in a comprehensive manner is difficult. The widespread application of level 5 autonomous vehicles is capital-intensive and subject to regulatory compliance. A robotaxi is required to process large amounts of sensor data, which is almost 100 times higher than the most advanced vehicles available presently. The complexity of software is increasing exponentially, with Diverse Deep Neural Networks (DNNs) functioning simultaneously as part of a software stack.

Intensive DNN training using significant data is required to operate robotaxis in distinct conditions worldwide. This data is expected to grow exponentially due to the increasing number of robotaxi on the roads. For instance, a robotaxi fleet of 50 vehicles driving approximately six hours a day might produce approximately 1.6 petabytes of data daily. This volume of data is difficult to store and process for vehicles performing various functions under various conditions.

Google (US), Volkswagen (Germany), Volvo Cars (Sweden), Nissan (Japan), Toyota (Japan), and General Motors (US) have sufficient resources to tap into the robotaxi market. However, companies with limited resources are not capable of affording costly R&D processes.

Opportunity: Robotic assistance in goods delivery

Increased technological advancements and related AI applications for autonomous vehicles are expected to help create an increasing number of supporting services. Robotic assistance could also be used for delivery, picking up supplies, and other routine tasks by small businesses. The utilization of these services for autonomous cars and robotaxis is expected to be one of the key attractions for consumers to accept their services. For instance, Nuro, Inc. is one of the companies offering autonomous vehicles which can be used for the delivery of goods. The company has also received approval from NHTSA. Amazon used such autonomous vehicles for its deliveries as it acquired the autonomous vehicle company, Zoox in June 2020. In May 2022, following a partnership announced in late 2021, Motional, Inc. began end-to-end food deliveries for Uber Eats in Southern California using its autonomous IONIQ 5 robotaxi EVs. The pilot program marks the first autonomous deliveries for Motional’s robotaxis and the first autonomous vehicles used on the Uber Eats network.

Challenge: Gaining public and individual trust

Public safety is a major issue for fully autonomous vehicles. Some accidents while testing robotaxis have raised questions regarding their efficacy. In September 2022, General Motors’ autonomous vehicle unit Cruise recalled and updated software in 80 self-driving robotaxis after a June crash in San Francisco that resulted in minor injuries. In November 2022, a Zoox fully autonomous vehicle was involved in a crash with a tractor-trailer on Harmon Avenue east of Las Vegas Boulevard.

In 2021, a Tesla vehicle, while in its autopilot feature, crashed into a stationary police vehicle, resulting in an investigation by the NHTSA. Tesla cars have been involved in such incidents wherein cars have collided with stationary vehicles. The company has announced plans to convert approximately a million cars into robotaxis. Such incidents might discourage people from adopting autonomous driving technology.

Robotaxi Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of robotaxi. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include Waymo LLC (US), Baidu, Inc. (China), Beijing Didi Chuxing Technology Co., Ltd. (China), Cruise LLC (US), and EasyMile (France).

By vehicle type, Cars segment is estimated to account for the largest and the fastest market during the forecast period

Autonomous vehicle manufacturers and operators are investing heavily for the deployment and testing of self-driving vehicles. At present, developments and testing are seen in vans, shuttles, and cars. But as per the industry experts, due to the rise in ride-sharing services, the autonomous car market will dominate the overall market. Companies are working in partnerships to bring robotaxis into existence. For example, Hyundai (Japan) and Motional, Inc. (US) plan to begin transporting public passengers in the Ioniq 5 robotaxi in 2023, starting in Las Vegas and expanding to major cities in US. On February 1st, 2022, Cruise LLC, a division of General Motors specializing in autonomous vehicles, made level 4 robotaxis available in San Francisco.

Key players are adding new products to their portfolios. In July 2022, Baidu, Inc. unveiled its 6th generation robotaxi vehicle, Apollo RT6. It is the first steering wheel-free, all electric model designed for fully driverless autonomous driving. Such developments will create demand for robotaxi cars during the forecast period.

By Propulsion type, Electric propulsion segment is projected to account for the largest market size during the forecast period

Rising emission concerns has led to the demand for fuel efficient vehicles. Robotaxis would not just offer robotic assistance but usher in an era of fuel efficiency and carbon-free emissions.  In July 2022, Baidu, Inc. unveiled their 6th generation robotaxi vehicle Apollo RT6. It is the first steering wheel-free, all electric model designed for fully driverless autonomous driving. In addition, government regulations and improvements in public charging infrastructure in China, France, and Norway are fueling market growth for electric robotaxis. In August 2022, Chinese officials published a set of draft rules that will allow self-driving companies to offer rides and charge fees for fully autonomous vehicles (AVs). Low running and maintenance costs are the key factors driving the market growth for electric robotaxis.

 “Europe is anticipated to witness significant growth during the forecast period.”

The European region is estimated to be dominated by countries such as Germany, France, Norway, and the Switzerland. Technological advancements and developed & supportive infrastructure have helped the fleet operators to test and deploy easily in this region. The European Commission encourages global technology standardization and provides funds for R&D to increase the competitiveness of the EU automobile industry and maintain its position as a technological leader worldwide. Additionally, In July 2022, the EU passed the General Safety Regulation, the first legal framework to allow automated and fully driverless cars to become available on European roads. Member states anticipate its deployment will boost innovation and improve the competitiveness of the car industry. Furthermore, Growing technological trends for autonomous vehicles will greatly impact the market. This will boost the overall demand for self-driving taxis in the region. Several companies that offer self-driving shuttles around the world, like EasyMile, Navya, and 2getthere, are based in Europe.

Key Market Players

The robotaxi market is dominated by global players such as Waymo LLC (US), Baidu, Inc. (China), Beijing Didi Chuxing Technology Co., Ltd. (China), Cruise LLC (US), and EasyMile (France). These companies adopted new product launches, deals, and other strategies to gain traction in the robotaxi market.

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Scope of the Report

This research report categorizes the robotaxi market based on Application, Level of Autonomy, Vehicle, Propulsion, Component, Service Type, and Region.

Based on Application Type:

• Goods Transportation
• Passenger Transportation

Based on Level of Autonomy:

• Level 4
• Level 5

Based on Vehicle Type:

• Cars
• Shuttles/Vans

Based on Propulsion:

• Electric
• Fuel Cell

• Car Rental
• Station Based

Based on Component Type:

• Camera
• Radar
• LiDAR
• Ultrasonic Sensors

Based on the region:

• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • Singapore
• North America
  • US
  • Canada
  • Mexico
• Europe
  • France
  • Germany
  • Norway
  • Spain
  • UK
  • The Netherlands
  • Sweden
  • Switzerland
• Rest of the World
  • UAE
  • Russia

Recent Developments

• In May 2023, Beijing Didi Chuxing Technology Co., Ltd. Partnered with GAC AION for mass production of fully self-driving electric robotaxi. The first mass-produced model is expected to be on its shared mobility network and integrated into a large-scale mixed dispatching system by 2025.
• In May 2023, Waymo LLC and Uber Technologies Inc. partnered to bring Waymo’s autonomous driving technology to the Uber platform.
• In January 2023, EasyMile and multinational public transport operator Keolis (France) has taken a further step in completely automated mobility by remotely supervising two fully driverless shuttles, without any human supervisor on board, at the National Sports Shooting Centre. The objective of this new phase is to verify the financial and operational models of autonomous shuttles.
• In January 2023, The German Federal Ministry of Economics and Climate Protection (BMWK) has awarded a consortium of German experts in the field of autonomous driving USD 9.6 million for the SAFESTREAM project. The project aims to accelerate autonomous driving to SAE Level 4 in public transport in Germany.
• In December 2022, Motional, Inc. began conducting autonomous rides for Uber passengers in Las Vegas as part of a 10-year commercial agreement between the companies. Starting in 2023, its ride-hail services with Lyft and Uber in Las Vegas will become fully driverless (with no vehicle operator behind the wheel) and will begin scaling to other major US cities.
• In October 2022, EasyMile provides a commercial fleet of autonomous shuttles for a fully driverless service worth USD 3.9 million at the Belgian tourist site Terhills. The shuttles run 7 days a week, for up to 10 years.
• In September 2022, Waymo LLC and Swiss Re, one of the top reinsurance companies in the world, have established a research partnership to develop new risk assessment methodology to analyze Autonomous Vehicle (AV) risk correctly.
• In July 2022, Navya partnered with Negma Group aims to strengthen its financial resources and support its medium-term development cycle as well as its technological and commercial projects, particularly in the Middle East.

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