Market Size of Robo Taxi Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 70.00 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | Europe |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Robo Taxi Market Analysis
The Robo-taxi market was valued at USD 1.2 Billion in 2021 and is projected to grow to USD 28.11 Billion by 2027, registering a CAGR of 70% during the forecast period.
The COVID-19 pandemic had a massive impact on the market studied as lockdowns and trade restrictions have led to supply chain disruptions and a halt of vehicle production across the world. Due to the strict lockdown, several companies extended to launch Robo-taxi ride-hailing services. For instance, In 2020, Waymo postponed its ride-hailing services due to a lockdown. However, as restrictions eased, players started focusing on mitigating such risks and developments to create momentum in the market during the forecast period.
Over the medium term, the rise in the integration of advanced driver assistance in an autonomous vehicle is likely to witness major growth during the forecast period. Additionally, technological advancements in advanced driver assistance systems and a growing emphasis on multifunctional systems create lucrative opportunities for players to develop autonomous vehicles.
The growing issues of traffic congestion in major cities around the world, increase pollution and adversely impact health and overall quality of life. The demand for zero-emission vehicles or green vehicles is rising, also there is a surge in autonomous cars demand. Currently, three trends are accelerating transformative change in the automotive industry which are zero-emission vehicles, autonomous driving, and new mobility models. Autonomous, zero-emission Robo-taxis embody all three of these trends, offering the potential for convenient, personalized transport as an attractive alternative to owning a car or using public transport.
Robo-taxis are still in testing phases and carries the baggage of challenges which includes, high manufacturing cost, the risk of injury to drivers and pedestrians, lack of proper government regulations, and inadequate infrastructure for operating Robo-Taxis. These factors are likely to hinder the growth of the robot-taxi market.
However, Robo-taxis also provide an opportunity to significantly increase traffic capacity by reducing safe stopping distances between cars. As robots can react almost instantly, it is reasonable to reduce the enforced safe distance while still expecting higher safety levels.
