Robo-Taxi Market (Autonomy: Level 4 and Level 5; Fuel: ICE, Hybrid, Fully Electric; Vehicle: Cars and Shuttles; Application: Public Transport and Others; Region: North America, Europe, Asia Pacific, Latin America, Middle East & Africa) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2019 - 2030
Press Release :
Ballooning Size of Robo-Taxi Fleet Changing the Outlook of Public Transportation Industry
While the personal mobility landscape is undergoing profound changes, robo-taxis are emerging as a new trend that is changing consumer perception towards mobility as a service. Autonomous vehicles (AVs) are gaining immense popularity in the ever-evolving public transport landscape, which is now being integrated with a broader mix of mobility services.
The robo-taxi market, despite being at a nascent stage right now, is growing rapidly at a value CAGR of ~58%. With a mounting number of countries in the world increasing focus on integrating public transport with urban mobility solutions, the adoption of robo-taxis is expected to reach new heights in the coming years. In 2018, the sales of robo-taxis in the public transport industry accounted for ~65% of the global sales, and the total revenue share of the public transport landscape is expected to reach nearly 90% by 2030.
Taking into consideration the enormous sales potential of robo-taxis in the public transport industry, global auto giants are foraying into the robo-taxis market to leverage lucrative opportunities. With prominent dynamics of the robo-taxi market commonly viewed through the lens of technology, the competitive landscape of the market is likely to be characterized by a mounting number of collaborations between automakers and technology companies, in the coming years.
Request a sample to get extensive insights into the Robo-Taxi Market
Global Leaders and New Entrants Focus on Leveraging on First Mover’s Advantages
The global market for robo-taxis is moderately fragmented, with the presence of a large number of leading as well as new businesses in the market. Uber Technologies Inc., Tesla Inc., Beijing Xiaoju Technology Co, Ltd., Waymo LLC, and EasyMile are among the leading companies that are gaining a strong foothold in the market. Meanwhile, a slew of lesser-known technology companies such as Aptiv, AImotive, Baidu, Inc., Aurora, and Keolis, are gaining immense growth in the market, with increasing focus on public transport and the energy generation & storage aspect of robo taxis.
To understand how our report can bring difference to your business strategy, Ask for a brochure
Uber unveiled a third-generation of autonomous robo-taxis in collaboration with Volvo in the United States (U.S), in June 2019, and the company also announced that it will commence with the testing of these cars by 2020. However, with the incident of an autonomous car meeting with an accident in Arizona, U.S., which caused the death of a pedestrian, a majority of leading companies in the robo-taxi market have announced to have put their autonomous tests on hold.
While global auto giants are moving towards consolidating their position in the robo-taxi market, smaller technology companies are also entering the market to collaborate with big companies as their independent service providers. In June 2019, Waymo LLC announced that it had signed an agreement with Renault and Nissan for the strategic development of self-driving cars for the market in France and Japan, along with the announcement of possibly entering other countries in Asia. In April 2019, Uber Technologies Inc.’s Advanced Technologies Group (Uber ATG) announced that it had joined forces with Toyota, DENSO, and Softbank Vision Fund, and these companies have invested US$ 1 billion in the company.
Stuck in a neck-to-neck competition with other brands? Request a custom report on “Robo-Taxi Market”
Europe and China Emerge as Top Revenue Pockets for Manufacturers
The European Union has been considered by leading players in the robo-taxi market as the most lucrative region with a favourable business environment on account of the regulatory framework that supports environment-driven activities in the region. In 2018, Europe accounted for nearly half the revenue share of the robo-taxi market. However, China as well as the United States are expected to emerge as the top countries that grab the attention of market players with more lucrative growth opportunities in the coming years.
Baidu, Inc., a Chinese multinational technology company specializing in Internet-related services, announced in March 2019 that it will test its autonomous rides in Changsha in China, and 100 test vehicles will be a part of a fleet of robo-taxis in the country by the end of 2019. Beijing Xiaoju Technology Co., Ltd, a leading provider of taxi hailing, private car hailing, ride sharing, and other transportation services in China, announced in July 2019, that the company had received an investment of US$ 600 Mn from Toyota Motor Corporation for the formation of a joint venture with GAC Toyota Motor to offer services to the ride-sharing platform.
Global Robo-Taxi Market - Key Insights
- The global robo-taxi market is anticipated to expand at a CAGR of ~58% between 2019 and 2030.
- The level 4 segment currently holds 100% share of the market, and it is likely to maintain its dominance due to infrastructure and safety regulations hindering the adoption of level 5 robo-taxis.
- In terms of fuel, hybrid and fully electric are lucrative segments of the robo-taxi market.
- Robo-taxis are expected to be adopted by ride-hailing companies, majorly to reduce operating costs and offer rides to consumers at competitive prices, and in order to sustain in the competition.
Drivers of Robo-Taxi Market
Robo-taxis are projected to be majorly hybrid or fully electric vehicles, as electric vehicles are easy to compute due to lesser number of parts, and therefore, help lower emissions.
- Robo-taxis lower the operational costs of fleet owners by 30% to 50%. Rising competition among ride-service providers is driving them to find effective means to lower operational costs, which is subsequently driving the robo-taxi market.
- The evolvement of ride-hailing as a mobility service and rising consumer demand for lower ride rates are expected to drive the robo-taxi market.
Challenges for Robo-Taxi Market
- Robo-taxis require considerably high initial investment, which is a major factor hindering their adoption.
- Several countries lack proper regulatory frameworks, which is estimated to further hamper their adoption.
Robo-Taxi Market: Segment Analysis
- The global robo-taxi market has been segmented based on autonomy, fuel, application, vehicle, and region.
- Based on autonomy, the level 4 segment held a dominant share of the robo-taxi market. Level 4 robo-taxis are self-driving; they can operate without human intervention on select routes, highways, and cities where the infrastructure is capable of supporting autonomous driving. Challenges in terms of infrastructure and regulatory framework are hindering the adoption of level 5 robo-taxis. They are expected to be launched not before 2025, as they are fully autonomous and capable of operating even in bad weather, traffic congestion, and radar interference.
- Based on fuel, the hybrid segment is anticipated to expand significantly during the forecast period. Stringency in emission regulations is prompting the automotive industry to shift toward vehicle electrification. Hybrid vehicles experience lesser downtime as compared to that experienced by fully-electric vehicles, which further reduces operational costs. Companies such as Ford Motors have plans to offer hybrid autonomous vehicles for ride-sharing. The fully electric segment is also expected to hold a significant share of the robo-taxi market, as the demand for electric shuttles rises and advancements in battery technology makes the adoption of fully-electric vehicles more viable for fleets.
- Based on application, the public transport segment held a notable share of the robo-taxi market. A majority of robo-taxis would be self-driving cars that are likely to be employed for ride-hailing purposes. Companies such as Uber Inc. and Waymo are focused on the launch of robo-taxis majorly for on-demand mobility services contributing to public transport, and consequently, the public transport segment is expected to lead the robo-taxi market.
- In terms of vehicle, the cars segment is anticipated to hold a dominant share of the robo-taxi market, as ride-hailing companies are focused on the development of self-driving cars.
Global Robo-Taxi Market: Regional Analysis
- In terms of region, North America is projected to hold a prominent share of the global market.
- This is primarily due to a favorable regulatory framework supporting autonomous driving in the U.S.
- The U.S. has a higher consumer acceptance rate for robo-taxis, and the country has the presence of key market participants, thereby driving the market in the region.
Global Robo-Taxi Market: Competitive Landscape
Key players operating in the global robo-taxi market include
- Waymo LLC
- Uber Technologies
- GM Cruise
- AB Volvo
- Beijing Xiaoju Technology Co., Ltd.
Robo-Taxi Market – Scope of the Study
A new market study on the robo-taxi market was recently published by Transparency Market Research (TMR), which provides a complete analysis on how the market will grow between 2019 and 2030. The study covers all the growth indicators as well as growth prospects of the robo-taxi market in terms of value (US$ million) and volume (units).
Information featured in the study unveils important statistics and data about the demand for robo-taxi across various industrial verticals. This has helped the authors of this study in reaching precise estimates on the valuation of the robo-taxi market.
TMR’s study on the robo-taxi market helps readers understand the business strategies that proved profitable for leading stakeholders in the market. It also focuses on various regulations that stakeholders must keep in mind for succeeding in the robo-taxi market. In this study, readers can also find unique as well as accurate information on the market dynamics of the robo-taxi landscape, to help companies in adopting appropriate business strategies in the coming future.
TMR’s study includes recent developments that are setting the degree of competition in the robo-taxi market, along with accurate and complete information about leading players in the market. Leading robo-taxi manufacturers and new businesses in the robo-taxi market are profiled in the study. Information featured in the study helps readers understand the growth prospects of the robo-taxi market for the assessment period.
Key Questions Answered in TMR’s Robo-Taxi Market Report
- Why is the demand for robo-taxis with internal combustion engines increasing at a rapid pace?
- Why is the robo-taxi market growing in the European Union?
- What should market players’ strategies be to gain a competitive edge in the robo-taxi industry in Europe?
- How will changing environmental reforms influence dynamics of the robo-taxi market?
- What are the major barriers to growth for new entrants in the robo-taxi market?
- Why is the demand for robo-taxis high in public transport applications?
The research methodology followed by analysts for the production of TMR’s report on the robo-taxi market includes two main stages – primary research and secondary research. For conducting secondary research, analysts were given access to various important, external proprietary databases and a large internal repository, which helped them ensure the validity and reliability of the data and statistics acquired through secondary research on the robo-taxi market. Analysts have come to conclusions on how the robo-taxi market will grow, after deriving exclusive and accurate insights from both, primary and secondary resources.
Primary resources that have contributed to the production of this study include discussions with key opinion leaders, enterprise size expert inputs, response analysis, and data triangulation. Interviews were conducted by analysts with brand managers of market players in the supply chain of the robo-taxi market, and their respective c-level executives. Industry experts and investors were also approached to collect industry-validated information about the robo-taxi market. Primary as well as secondary resources provide exclusive information about the market, which act as a mark of reliability and validation from robo-taxi market players, and makes TMR’s estimates on the future prospects of the robo-taxi market more reliable and accurate.
Key Segments of the Robo-Taxi Market
TMR’s study on the robo-taxi market divides information into five important segments-autonomy, fuel, application, vehicle, and region. The exclusive insights featured in the study can help readers understand how growth of the robo-taxi market is influenced by various market dynamics, including the emerging trends based on these segments.
Middle East & Africa