Robo Taxi Market Size is projected to reach USD 107,682.14 million by 2031, growing at a CAGR of 67.6%: Straits Research

According to Straits Research, “The global robo taxi market size was valued at USD 1,032.27 million in 2022. It is projected to reach USD 107,682.14 million by 2031, registering a CAGR of 67.6% during the projected period (2023–2031).”

New York, United States, April 17, 2024 (GLOBE NEWSWIRE) -- Robo Taxis are autonomous vehicles used by e-hailing services. Common terms for a taxi that operates without a human driver include "robot taxi" and "robot cab." In order to reduce the high overhead costs associated with providing these services, the initiative's major focus is on doing away with the need for human drivers altogether. Using a robot taxi is the most fuel-efficient option available. It lessens the odds of accidents happening, too.

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Demand For Fuel-Efficient and Emission-Free Vehicles Drives the Global Market

Robo-taxis are designed to operate without any human input; thus, they need a new type of fuel system that is both reliable and cost-effective. The use of electric and fuel cell-powered automobiles achieves a further reduction in reliance on fossil fuels. Since they do not release polluting gases into the air, this benefits the environment.

The widespread adoption of fuel-efficient and emission-free automobiles is mostly driven by the growing awareness of the negative effects of air pollution, as well as the exponential growth of traffic congestion and greenhouse gas emissions. Compared to their conventional counterparts, these automobiles are safer for the environment. Therefore, the global expansion of the robot taxi market is bolstered by the desire for fuel-efficient and emission-free vehicles.

Government Regulations to Provide Opportunities for the Global Market

Several nations' governments have passed laws encouraging the use of autonomous vehicles. For instance, the Safely Ensuring Lives Future Deployment and Research in Vehicle Evolution Act (or Self Drive Act) was passed by the U.S. House of Representatives in September 2017 and is currently awaiting clearance by the Senate. This law aims to create uniform federal guidelines for the regulation of autonomous vehicles. In the past, companies in the autonomous vehicle industry showed a lot of enthusiasm for testing and evaluating driverless technologies.

Individuals or groups must submit an application to the National Highway Traffic Safety Administration (NHTSA) to request a waiver from federal motor vehicle safety criteria. It is worth noting that the NHTSA can only grant so many exemptions each year—specifically, 2,500. However, the Self-Drive Act mandates an increase from the present cap of 25,000 vehicles per year to a whopping 100,000 vehicles per year within three years. The worldwide market for autonomous taxis is growing, thanks partly to regulations like these from governments worldwide.

Regional Analysis

North America is the most significant global robo-taxi market shareholder and is estimated to exhibit a CAGR of 73.2% during the forecast period. The region of North America encompasses the countries of the United States, Canada, and Mexico, which have been the subject of analysis in the robo-taxi market research. The expansion of the robo-taxi market in the region is being supported by several advancements made by companies such as Google, General Motors, Tesla, and other industry players. In 2020, Tesla introduced its inaugural autonomous ride-sharing network, featuring a robot-taxi model, intending to enhance the customer experience through improved efficiency. The expansion of the robot taxi market within the region can be attributed to the various advancements made by different organizations.

Key Highlights

  • Based on application, the global robot taxi market is categorized into goods transportation and passenger transportation. The goods transportation segment is the highest contributor to the market and is predicted to exhibit a CAGR of 70.31% during the forecast period.
  • Based on the component, the global robot-taxi market is segmented into camera, RADAR, LiDAR, and ultrasonic sensors. The camera segment is the highest contributor to the market and is predicted to exhibit a CAGR of 74.39% during the forecast period.
  • Based on the application, the global robot taxi market has been categorized into Level 4 (L4) and Level 5 (L5). The Level 4 (L4) segment dominates the global market and is expected to exhibit a CAGR of 69.17% during the forecast period.
  • Based on propulsion, the global robot-taxi market has been categorized into electric, fuel cell, and hybrid. The electric segment owns the highest market share and is predicted to exhibit a CAGR of 70.61% during the forecast period.
  • North America is the most significant global robo-taxi market shareholder and is estimated to exhibit a CAGR of 73.2% during the forecast period.

Competitive Players 

Key companies operating in the global robo-taxi market are Waymo LLC (a subsidiary of Alphabet Inc.), Cruise LLC (a subsidiary of General Motor Company), Tesla, Nissan Motor Corporation, Lyft, Inc., Uber Technologies, Daimler AG, and others.

Market News

  • In May 2023, Nissan Motor Co., Ltd. (Nissan), Mitsubishi Motors Corporation (Mitsubishi Motors), and NMKV Co., Ltd. (NMKV) announced that cumulative production of the Nissan Sakura and Mitsubishi Motors eK X EV mini electric vehicles reached 50,000 units since production started approximately one year ago. Both vehicles are produced at Mitsubishi Motors' Mizushima Plant in Okayama Prefecture, Japan.
  • In April 2023, Nissan highlighted a wide range of electrified and seamlessly connected vehicles that aim to exceed consumer expectations at Auto Shanghai 2023. Premieres include two EV concepts: the Max-Out convertible sports car, which made its China debut, and the Arizona SUV, which made its global debut. Arizona is designed to meet China's diverse mobility needs.

Global Robo Taxi Market: Segmentation

By Applications

  • Goods Transportation
  • Passenger Transportation

By Component

  • Camera
  • LiDAR
  • Ultrasonic Sensor
  • Others

By Propulsion

  • Electric Vehicle
  • Fuel Cell Vehicle
  • Hybrid Vehicle

By Level of Automation

  • Level 4 (L4)
  • Level 5 (L5)

By Regions

  • North America
  • Europe
  • Asia-Pacific

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About Straits Research Pvt. Ltd.

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