May 27, 2024
Ict

Robotaxi Market adoption escalates with Automated Transportation’s Proliferation

The robotaxi market, led by autonomous driving technologies is advancing the future of mobility solutions by not just enhancing commuter experiences but also revolutionising transportation services. Ride-hailing via autonomous vehicles not only provides freedom from driving stresses but also increases access to shared transportation resources in an eco-friendly manner.

Robotaxis employ innovative vehicle automation and navigation techniques along with advanced sensory perception to safely transport passengers from one location to another with minimal human intervention. The ability of self-driving taxis to coordinate service via centralized control systems further streamlines mobility on demand. Rising demand for affordable and flexible short-distance commute options particularly across urban and suburban areas is a key factor driving the adoption of robotaxis. Autonomous driving technology is also expected to help reduce road accidents caused by human errors.

The global robotaxi market is estimated to be valued at US$ 2532.62 Bn in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the major trends in the robotaxi market is the evolution of shared mobility business models. Leading ride-hailing companies are actively working on the development of autonomous vehicles and infrastructure to deploy robotaxis for shared transportation services. This is expected to make commuting more economical and accessible while boosting recurring revenue streams for mobility platforms. Furthermore, continued advancements in AI, telecommunications, and high-definition mapping are supporting the sophistication of self-driving systems navigating complex urban environments. Collaborations between original equipment manufacturers, technology firms, and municipalities remain crucial for largescale robotaxi adoption over the coming years.

Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the robotaxi market requires huge capital investments in R&D, manufacturing and other infrastructures to develop autonomous vehicles.

Bargaining power of buyers: The bargaining power of buyers is high as robotaxis can provide an alternative mode of transportation to personal vehicle ownership, giving buyers more options.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as few large players dominate the supply of critical components like LiDAR, cameras and processors for self-driving systems.

Threat of new substitutes: The threat of new substitutes is high with continuous innovation in transportation technologies and shared mobility services posing competition to robotaxis.

Competitive rivalry: The competitive rivalry is intense with major technology and automobile companies investing heavily in robotaxis to gain first mover advantage in autonomous vehicles space.

Key Takeaways
The global robotaxi market size is expected to witness high growth over the forecast period buoyed by increasing funding in autonomous vehicle technologies.

Regional analysis:

North America is expected to dominate the robotaxi market during the forecast period. The US accounts for the largest share primarily due to supportive government policies and presence of major players testing robotaxis across various cities. China is projected to grow at the fastest pace during the forecast period supported by massive funding by local governments and technology companies.

Key players:

Key players operating in the robotaxi market are Uber, Waymo, Cruise, AutoX and Nuro. Waymo has pioneered the development of fully self-driving vehicles and is currently testing its robotaxis without safety drivers in parts of San Francisco. Cruise and Nuro have also received regulatory approvals to test and launch driverless delivery services in US cities.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it