The global robo-taxi market is projected to experience huge growth from 2,024 units in 2020 to 3,830,912 units by 2030, at a CAGR of 112.67% according to MarketsandMarkets. The majority of the growth is expected at the end of this time period. The rising concerns over road safety, emissions, and the increasing demand for ride-hailing services have setup the conditions for the growth of the market. Autonomous vehicles also help in optimizing cost to the fleet operator. Newer business models like mobility as a service would provide another sustainable and profitable revenue stream in the future.
Autonomous vehicle manufacturers and operators are investing heavily for the deployment and testing of self-driving vehicles. Companies such as Uber, Lyft, DiDi, and Baidu are collaborating with Tier 1 companies in the race to deploy autonomous fleets. In 2017, Uber planned to buy 24,000 self-driving cars from Volvo. In 2018, Lyft partnered with Aptiv Plc for its self-driving cars. Lyft has successfully completed 5,000 rides in 2018 through its ride-hailing app. All these developments will lead to the growth of the car segment.
Rising emission concerns has led to the demand for fuel efficient vehicles. Robo-taxis would not just offer robotic assistance but usher in an era of fuel efficiency and lower carbon emissions through the use of mostly electric vehicles. The collaboration between Volvo and Uber is expected to introduce self-driving cars in the mid-size luxury segment by 2021—50% of which would be fully-electric cars. By 2030, two-third of the global population would reside in urban areas. Daimler is working with Bosch to develop self-driving electric cars in Germany that could be on the road by early 2020s. Full-electric robo-taxis are already in demand due to stringency in worldwide government regulations for an emission-free environment. The joint venture between Volvo and Baidu for electric self-driving taxis in China is an example of an eco-friendly and advanced technical approach. Likewise, the partnership between BMW and Daimler has raked in investments worth $1.13 B in autonomous electric cars.
The European region is estimated to be dominated by countries such as Germany, France, Norway, and the Netherlands. Technological advancements and developed & supportive infrastructure have helped the fleet operators test and deploy easily in these regions. As per the European Commission, there are about 180 automobile facilities across the EU and the sector is the largest investor in R&D. EVs are expected to become the rational choice for buyers in Europe as their prices are falling due to cheaper economical batteries and increasing EV ranges. The charging infrastructure in Europe is also expected to become more widespread due to government support. Europe is in the initial phase of electric mobility. This will boost the overall demand for self-driving taxis in the region. Moreover, manufacturers such as NAVYA, Aptiv, EasyMile, Moia, and Daimler have a major presence in the region.
The global robo-taxi market is dominated by major players such as Waymo LLC (US), Aptiv (Ireland), GM Cruise (US), Ridecell, Inc (US), Uber Technologies Inc. (US), NAVYA (France), and EasyMile (France). These companies have strong distribution networks at a global level. In addition, these companies offer an extensive service range in the market. The key strategies adopted by these companies to sustain their market position are new product developments, collaborations, and contracts & agreements. Recent developments:
- Waymo has developed its own LiDAR. The company is now making these sensors available to companies outside self-driving — beginning with robotics, security, agricultural technology, and more — so others can achieve their own technological breakthroughs. It announced that one of its 3D LiDAR sensors, Laser Bear Honeycomb, would be available to selected partners.
- Daimler AG chose San Jose for first phase roll out of its driverless shuttle service. The service would be rolled out in the second half of 2019.
- Cruise Automation launched autonomous grocery and food delivery service in San Francisco. The company partnered with on demand food delivery service ‘DoorDash.’ GM’s Chevy volt would be used for this service.
- NAVYA unveiled its AUTONOM SHUTTLE in the Geneva Motor Show. The vehicle can carry up to 15 passengers at a top speed of 16 km per hour. This vehicle is suitable for the first mile and last mile transportation.
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