February 21, 2024

Robotaxi Market Propelled By The Growth Of Urbanisation And Smart Cities

The Robotaxi Market includes autonomous vehicles that provide passenger transportation services. These vehicles have several sensors and cameras that enable them to navigate through traffic. Robotaxis improve transport accessibility and are more convenient than traditional taxis. The global Robotaxi Market is estimated to be valued at US$ 2532.62 Bn in 2024 and is expected to exhibit a CAGR of 10 % over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The growth of urbanization and smart cities is a major trend fueling the robotaxi market. As the urban population swells, smart city projects are enabling autonomous transportation to optimize traffic flows and offer affordable mobility options. The use of robotaxis reduces the need for private vehicles and parking spaces while improving people’s access to employment centers, shops and recreational areas. Robotaxis can be deployed as shared services using smartphone apps, promoting their adoption. The development of 5G networks and advances in AI and sensor technologies will further support the expansion of commercial robotaxi services globally.

SWOT Analysis
Strength: Robotaxis offer on-demand mobility services that provide autonomous driving without the need for a licensed human driver. This allows round-the-clock availability of transport services.

Weakness: The high development and manufacturing costs involved in robotaxis pose a major challenge. Technical glitches and software/hardware failures can compromise passenger safety.

Opportunity: Growing focus on developing smart cities and reducing traffic congestion/ accidents presents an opportunity for robotaxis to become a mainstream mode of transportation. Their emissions-free operation also offers environmental benefits.

Threats: Strict safety regulations and testing requirements before deployment of robotaxis pose execution challenges. Hackers targeting security systems can threaten operational reliability. Delays in 5G infrastructure availability can hamper widespread commercialization.

Key Takeaways
The global robotaxi market demand is expected to witness high growth over the forecast period from 2024 to 2031.

The North American region currently dominates the market owing to major initiatives by US-based technology giants and auto manufacturers to develop and test autonomous vehicles. Favorable government regulations have accelerated commercial pilot programs in cities like Phoenix, San Francisco and Pittsburgh.

Key players

operating in the robotaxi market are Pfizer Inc., Novartis AG, Merck & Co. Inc., GSK PLC, AstraZeneca, Eli Lilly and Company, and Bristol-Myers Squibb Company (Celgene Corporation), among others. They are investing heavily in AI, 5G connectivity and sensor technologies to optimize the software/hardware integration required for safe driverless operations. Strategic partnerships are being forged with automakers for fleet manufacturing and with city planners for infrastructure support.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it