Market Trends of Robo Taxi Industry
This section covers the major market trends shaping the Robo-Taxi Market according to our research experts:
Robo-Taxis Are Attracting People Around the World
Almost all vehicle manufacturers are testing and launching electric and autonomous vehicles around the world. The majority of the manufacturers are testing autonomous taxis for seeing the results and responses of people. Globally, people are welcoming the Robo-taxi concept based on which the technology and vehicle manufacturing companies have started working on it. Several Robo taxi service providers are launching their services across the globe. For instance,
- In September 2022, Cruise will launch commercial robotaxi services in Austin, Texas, and Phoenix by the end of the year 2022.
- In July 2022, Baidu launched a new Robo-taxi that comes with a detachable steering wheel. The company offers ride-hailing service for 50% less than other taxi fares.
The growth of electric mobility and autonomous cars is likely to create a positive outlook for the market. For instance, Passenger cars contributed to more than 70% of the global EV sales in 2021. The SUV segment in passenger cars has been witnessing growth for the past few years, owing to the demand not only from North America and Europe but also from Asia-Pacific (Especially China).
Consumers without cars would be likely to use autonomous vehicle-based mobility services to replace journeys by both conventional cars and public transport. Approximately 45% of people without regular access to cars are ready to use Robo-taxis instead of conventional public transport. Nearly 25% of people would use Robo-taxis instead of conventional taxis.
However, for car owners to switch to Robo-taxis, they would need to be convinced that Robo-taxis would at least match the experience in the key areas of independence, comfort, and convenience.
As soon as Robo-taxis are perceived as being more convenient than cars which they certainly have the potential to be then the demand for car-based mobility will increase.
Europe is Likely to Dominate the Robo-Taxi Market
The Robo-Taxi market is anticipated to be led by Europe followed by China and the United States respectively. European is the leading region that is providing advanced mobility technology and supportive infrastructure for the Robo-taxi market.
Majority of the fleet- operators who are working on Robo-taxi have found favorable business environments from all the perspectives such as regulatory frameworks that support environment-driven vehicle technologies in the region.
Several key players operating in the Europe region are launching new autonomous vehicles in the region. For instance,
- In August 2021, Motional and Hyundai Motor Group launched IONIQ 5-based robotaxi. IONIQ 5 is a Level 4 autonomous vehicle that can operate without a driver.
- In January 2022, General Motors Co. announced that it is planning to introduce a "personal autonomous vehicle" by mid-decade. It further stated that GM and Cruise are gaining significant technological expertise and experience and are working to be the fastest to market with a retail personal autonomous vehicle.
China is also rapidly working on the Robo-taxi concept. For Instance, Didi Chuxing, China's leading taxi service providing company is developing autonomous driverless cars. Its technology partner is an electric car startup called CHJ Auto. Together they are working to create an all-electric robotaxi that can shuttle passengers around China's crowded megacities with no drivers at all.
- In July 2022, Baidu introduced a new self-driving taxi service Apollo Go in China.
- In April 2021, Toyota Motor Corp. unveiled in Japan new versions of the Lexus LS and Toyota Mirai, both equipped with Advanced Drive features a Level 2 autonomous system that helps keep the car in its lane, maintains the distance from other vehicles, and assists with lane changes and advanced-driver assistance and Toyota has also announced the purchase of Lyft's autonomous car division for USD 550 million.
