Robotaxis are autonomous vehicles that operate as self-driving taxis, facilitating on-demand mobility services without human involvement in vehicle operation. The increased demand for self-driving vehicles, owing to the integration of automation in vehicles, has significantly contributed to the growth of the global market. The popularity of autonomous vehicles among customers has propelled the development of vehicles that eliminate human drivers' requirements. The adoption of automation in vehicles has reduced the necessity for human drivers, consequently decreasing the chances of accidents caused by human errors. Moreover, incorporating various sensors, such as RADAR, LiDAR, and others, in robotaxis has enhanced their operational efficiency, leading to their growth in the global market.
The robotaxi market is primarily driven by factors such as increasing demand for vehicles that are fuel-efficient and have minimal emissions, as well as the pressing need to enhance road safety and traffic control. However, the market growth is expected to be hindered by challenges such as the high cost associated with research and development for implementation and the growing risk of cybersecurity threats. On the other hand, favorable government regulations and the development of smart cities are expected to create new avenues for the growth and expansion of the market during the forecast period.
Several latest trends in the market are driving the demand for robo-taxis. One such trend is the increased demand for shared mobility services. Ride-hailing and car-sharing services are becoming more popular, and autonomous vehicles like robo-taxis provide passengers a safer and more convenient mode of transportation. Advancements in technology are another significant trend driving the demand for robo-taxis. These vehicles are becoming more efficient & reliable, and offer passengers increased safety, comfort, and convenience. In December 2022, Uber and Motional, a joint venture between Hyundai and Aptiv that focused on commercializing self-driving technology, collaborated to introduce a robo-taxi service in Las Vegas. Although Motional had already launched similar services in Las Vegas via the Lyft and Via networks, this was the first instance where Uber provided self-driving rides to the public.
Moreover, the growing concerns around environmental sustainability have led to an increasing demand for vehicles with minimal emissions. As electric vehicles, robo-taxis offer a sustainable solution to these concerns. Additionally, the trend of urbanization has led to a greater need for efficient and sustainable transportation options in densely populated areas, and robo-taxis offer a safe, convenient, and affordable way to travel in these areas.
North America dominated the market in 2022. It can be due to the presence of key market players in the region, including Waymo, GM Cruise, and Uber, who have established manufacturing facilities and are actively deploying autonomous vehicles in various cities across the region. Furthermore, the high demand for vehicles with minimal emissions and the growing trend of shared mobility services have further boosted the demand for robo-taxis in the region. Additionally, the support of governments in North America, such as the US Department of Transportation, is also contributing to the growth of the market in the region.
Uber Technologies INC.
Beijing Xiaoju Technology Co, Ltd.
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