June 18, 2024
Robotaxi Market

Robotaxi Market poised to thrive in AI-driven mobility by 2030

The robotaxi market is witnessing rapid growth and adoption of autonomous driving technologies. Robotaxis, also known as driverless taxis, provide mobility services using self-driving cars that do not require human intervention for navigation or operation. Some key advantages of robotaxis include increased road safety by removing human errors, higher vehicle utilization without driver downtime, optimized routing using artificial intelligence, and lower transportation costs. The rapid urbanization and rising demand for convenient on-demand transportation have accelerated the need for autonomous vehicles across the world.

The Global Robotaxi Market Share 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 from 2024 to 2030.

Key Takeaways

Key players related content: Key players operating in the robotaxi market are Pfizer Inc., Novartis AG, Merck & Co. Inc., GSK PLC, AstraZeneca, Eli Lilly and Company, and Bristol-Myers Squibb Company (Celgene Corporation), among others.

Key players in the robotaxi market are focusing on developing advanced self-driving technologies and partnering with major automakers for commercial deployment of robotaxis. For instance, Waymo has partnered with Jaguar to launch 20,000 I-Pace electric SUVs integrated with its autonomous driving system.

Growing demand: There is a growing demand for autonomous vehicles across different regions due to benefits like ease of commuting for disabled people, traffic decongestion, and optimized first and last-mile connectivity. Many cities are conducting robotaxi pilot programs to assess their viability for commercial operations.

Global expansion: Leading robotaxi developers are expanding their services globally to major cities. For example, Cruise has received approval to charge fares for driverless rides in San Francisco. Automakers are also collaborating to deploy robotaxis internationally across North America, Europe and APAC regions by 2025.

Market key trends

Hybrid business models: Companies are exploring hybrid business models by combining robotaxis with existing transportation services. This involves using self-driving cars as shared shuttles for specific routes and as on-demand taxis in other areas.

Advanced sensing and computing: Ongoing improvements in sensors, radars, cameras and high-performance computers are enabling higher levels of autonomous driving. Robotaxis are being integrated with advanced systems for object detection, localization and decision-making.

Focus on fleet operations: As robotaxis are expected to be deployed at large commercial scales, developers are optimizing their technologies specifically for autonomous fleet management, remote vehicle monitoring, automatic vehicle dispatch and dynamic routing of fleets.

Porter’s Analysis
Threat of new entrants: New players face huge capital requirement to enter into robotaxi market owing to high R&D costs associated with robotaxi manufacturing.

Bargaining power of buyers: Individual buyers have less bargaining power and influence over prices due to the presence of few robotaxi providers globally.

Bargaining power of suppliers: Suppliers of automotive components have moderate bargaining power due to limited availability of substitute components and technologies.

Threat of new substitutes: Emergence of shared mobility and ride-hailing services pose potential threat but shared mobility complements robotaxi services.

Competitive rivalry: Intense competition exists among major robotaxi manufacturers to gain first-mover advantage through technological innovation and strategic partnerships.

The geographical regions where market concentration is high in terms of value currently are North America and Western Europe due to high disposable incomes and rapid adoption of new technologies. China is emerging as the fastest growing regional market for robotaxi due to government support for autonomous vehicle testing and deployment coupled with large urban population which will drive robotaxi demand.

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