Robo Taxi Market by Application and Geography - Forecast and Analysis 2022-2026

The Robo taxi market is projected to grow by USD 568.65 million with a CAGR of 8.21% during the forecast period 2021 to 2026.

This robo taxi market research report provides valuable insights on the post-COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers the robo taxi market segmentation by application (goods transportation and passenger transportation) and geography (North America, Europe, APAC, South America, and the Middle East and Africa). The robo taxi market report also offers information on several market vendors, including Aptiv Plc, Argo AI LLC, Aurora Operations Inc., AutoX Inc., Baidu Inc, Beijing Xiaoju Technology Co. Ltd., Cruise LLC, Easymile SAS, LeddarTech Inc., Lyft Inc, May Mobility, Mobileye Technologies Ltd., Navya SA, Nissan Motor Co. Ltd., Nuro Inc., NVIDIA Corp., Tesla Inc., Waymo LLC, WeRide, ZF Friedrichshafen AG, and Zoox among others.

What will the Robo Taxi Market Size be During the Forecast Period?

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Robo Taxi Market: Key Drivers, Trends, and Challenges

Our researcher studied the historical data for years, with 2021 as the base year and 2022 as the estimated year, and produced drivers, trends, and challenges for the robo taxi market. In the COVID-19 pandemic, the demand for the robo taxi market was impacted significantly. A holistic analysis of drivers will help in predicting exact demands and refining marketing strategies to gain a competitive advantage.

Key Robo Taxi Market Driver

• Increased focus of OEMs on the development of robo taxis is one of the key drivers fueling the robo taxi market growth.
• The automotive industry is witnessing a structural shift in terms of demand-side behavior.
• In the late 1970s and the early 1980s, vehicles were perceived as an extension of the personality of an end-user. This phenomenon has drastically changed, where the generation of Baby Boomers and Millennials have shifted to new car ownership models, such as carpooling, cab services, and car rentals, owing to factors such as traffic congestion in urban areas and cities. 
• Although the robo taxi concept is still in a nascent stage for commercialization, numerous experts are expecting this concept to drive the future of the automotive industry. 
• In the US government, regulatory bodies are expected to drive collaboration between the automotive and electronics industries by introducing directives that mandate automotive OEMs to provide technical support in the form of hardware and software updates for a minimum of ten years after the launch of a model, compelling OEMs to enter into long-term partnerships with manufacturers of electronics. This, in turn, will drive market growth in the forecasted period.

Key Robo Taxi Market Trend

• Internet of Things integration powered by AI technology in automobiles is one of the key robo taxi market trends propelling the market growth.
• IoT generally means a network created by physical devices such as home appliances, vehicles, and other items embedded with network connectivity, actuators, sensors, software, and electronics to communicate with each other. 
• IoT integration is necessary for autonomous vehicles as automotive AI would require inputs from multiple physical devices to perform its actions effectively.
• Autonomous AI would require data analytics and sophisticated mapping features to support the self-drive function. This will drive vehicle manufacturers to enter into partnerships with hardware and software companies to develop technological building blocks.
• IoT allows automotive AI in a vehicle to read information stored within the cloud and alter drive patterns accordingly. This system will also help in reducing traffic and reducing the chances of an accident when vehicles communicate with each other about speed and braking distance. Owing to these factors, the market is expected to witness significant growth during the forecast period.

Key Robo Taxi Market Challenge

• Less system reliability is one of the factors limiting the robo taxi market growth.
• System reliability is being challenged by users, and this determines the acceptance level among users.
• Since the passenger vehicles market is likely to register a high number of first-time users of autonomous technologies, customers must be repeatedly assured of the reliability of such new technology-enabled systems and sub-systems. 
• Although Level 3 autonomous vehicles use an advanced driver assistance system (ADAS) to prevent accidents and assist the driver, the safety aspect is still not very clear. 
•  Sensors and systems that deliver vehicle automation need to be tuned accurately to avoid false positives. Improper tuning of the autonomous vehicle technology system may create unwanted stoppages of the vehicle.
• The purpose of the autonomous vehicle technology system is defeated if the technology is tuned to generate only high-risk alerts. Therefore, electronic system manufacturers need to consider such consequences if they must deliver in line with user expectations. 

This robo taxi market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2022-2026.

Parent Market Analysis

Technavio categorizes the global robo taxi market as a part of the global trucking market. Our research report has extensively covered external factors influencing the parent market growth potential in the coming years, which will determine the levels of growth of the robo taxi market during the forecast period.

Who are the Major Robo Taxi Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• Aptiv Plc
• Argo AI LLC
• Aurora Operations Inc 
• AutoX Inc.
• Baidu Inc
• Beijing Xiaoju Technology Co. Ltd.
• Cruise LLC
• Easymile SAS
• LeddarTech Inc.
• Lyft Inc
• May Mobility
• Mobileye Technologies Ltd.
• Navya SA
• Nissan Motor Co. Ltd.
• Nuro Inc.
• NVIDIA Corp.
• Tesla Inc.
• Waymo LLC
• WeRide
• ZF Friedrichshafen AG
• Zoox

This statistical study of the robo taxi market encompasses successful business strategies deployed by the key vendors. The robo taxi market is fragmented, and the vendors are deploying organic and inorganic growth strategies to compete in the market.

Product Insights and News

• easymile.com - The company offers robo taxi services such as the EZ10 passenger shuttle.

To make the most of the opportunities and recover from the post-COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments while maintaining their positions in the slow-growing segments.

The robo taxi market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies.

Robo Taxi Market Value Chain Analysis

Our report provides extensive information on the value chain analysis for the robo taxi market, which vendors can leverage to gain a competitive advantage during the forecast period. The end-to-end understanding of the value chain is essential in profit margin optimization and evaluation of business strategies. The data available in our value chain analysis segment can help vendors drive costs and enhance customer services during the forecast period.

Which are the Key Regions for Robo Taxi Market?

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32% of the market’s growth will originate from APAC during the forecast period. China is the key market for the robo taxi market in APAC. Market growth in this region will be faster than the growth of the market in other regions.

Another region offering significant growth opportunities to vendors is North America. The presence of well-developed road infrastructure and connectivity solutions will facilitate the robo taxi market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

COVID-19 Impact and Recovery Analysis

The outbreak of COVID-19 had a negative impact on the regional market. However, the large-scale vaccination drives conducted in the region led to the lifting of COVID-19-related restrictions in 2021. This, in turn, is expected to drive the growth of the regional market during the forecast period.

What are the Revenue-generating Application Segments in the Robo Taxi Market?

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The robo taxi market share growth by the goods transportation segment will be significant during the forecast period. Although there are stringent regulations and policies in terms of the use of robo taxis, growing government initiatives in some countries to promote commercial robo taxis are encouraging the use of robo taxis. Various governments worldwide, such as the US, Dubai, and Canada, are formulating policies and regulations for promoting robo-taxi transportation and logistics. These initiatives are anticipated to strengthen the goods transportation segment of the market during the forecast period.

This report provides an accurate prediction of the contribution of all the segments to the growth of the robo taxi market size and actionable market insights on the post-COVID-19 impact on each segment.

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What are the Key Data Covered in this Robo Taxi Market Report?

• CAGR of the market during the forecast period 2022-2026
• Detailed information on factors that will drive robo taxi market growth during the next five years
• Precise estimation of the robo taxi market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the robo taxi industry across North America, Europe, APAC, South America, and the Middle East and Africa
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of robo taxi market vendors

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