Robotaxi Market To Generate $29,297 Million Revenue by 2030

The robotaxi market revenue will reach USD 29,297.0 million by 2030, witnessing 82.6% CAGR between 2024 and 2030.

This is credited to the continuous advancements in self-driving technologies, such as AI, perception, and sensors. A higher sensor precision, more-roust computing capacity, and enhanced self-driving software allow autonomous vehicles to travel through densely populated city areas without human intervention, on the way communicating securely with other vehicles on the roads, traffic infrastructure, and well as individuals (through their connected smartphones/tablets).

The growing environmental awareness continues to make low/zero-emission transportation options popular. This is, in turn, encouraging the development of self-driving cars for personal usage as well as shared mobility services. The requirement for an efficient public transportation solution is driven by the rapid urbanization, which results in a high frequency, length, density, and duration of traffic jams. Robotaxis could reduce traffic congestion as they provide shared rides with improved routing, thus decreasing the count of private automobiles on the roads. This could also lead to quicker journeys and less-dense traffic congestion, which would ultimately allow for a better experience of traveling within highly populated urban agglomerations.

Where the robotaxi sector goes from here would depend on the initiatives of governments and regulatory agencies. Laws and policies in support of the development of safety standards and the trialing and commercialization of autonomous vehicles would be vital. Already, for over a decade, governments in a large number of countries have started recognizing the advantages of autonomous vehicles for the commuters of the future, and they are swinging into action to encourage their usage, especially in Europe and North America.

Electric Vehicles Are Dominating Market

The electric category dominates the propulsion segment of the market. Compared to cars that run on an internal combustion engine (ICE), EVs do not have any exhaust emissions, which means they are operationally cleaner. The popularity of EVs fits with the global shift toward sustainability and environmental consciousness, as worries about climate change and air quality grow.

Comparing electric vehicles to conventional ICE vehicles, the former often also have lower running expenses. This is because EVs feature fewer moving parts, require less maintenance, and cost less to fuel than those using gasoline or diesel. These elements could result in cost reductions for the owners of robotaxi fleets, which would, in turn, help in making shared mobility cost-effective for passengers and shippers.

Moreover, the traveling experience in electric vehicles is improved by their silent and seamless operation. For the travelers in a robotaxi, a smoother, more-enjoyable ride may be made possible by the absence of engine noise and vibrations.

Further, many governments all around the world are implementing regulations and offering incentives to encourage the use of electric vehicles. Financial rewards, tax deductions, access to priority lanes, and waived registration fees are a few examples.

Hybrid Vehicles Are Expected To Undergo Significant Growth in Usage

Comparing hybrid vehicles to completely electric vehicles, the advantage of a longer range is seen in the former. In the context of robotaxi operations, where continuous operation and no downtime are crucial, the ability of hybrid vehicles to function for longer durations without needing to be charged could offer operators practical advantages.

Hybrid cars can use either an ICE or an electric motor, giving themselves more power source flexibility. For high speeds and difficult driving scenarios, the ICE can add additional torque, whereas the electric motor may facilitate low speeds or driving in cities. The market for robotaxis may benefit from this flexibility in power sources and, in turn, maximized energy efficiency, by being able to adapt to various driving situations.

Fleet managers and users who are used to conventional ICE vehicles will shift to hybrid vehicles more easily. This is because these automobiles retain the well-known automotive infrastructure and refueling procedure of conventional ICE variants, while providing the advantages of increased fuel economy and lower emissions.

Some of the key market players are Waymo LLC, Baidu Inc., Beijing Didi Chuxing Technology Co. Ltd., Cruise LLC, Easy Mile., Tesla Inc., Aptiv, Lyft, Zoox inc., and AutoX Inc.