The market for robotaxis is set for substantial growth in the next decade, rising to $38.6 billion by 2030, up from just $1 billion in 2023, according to new data from Valuates Reports.
The market research firm said the revenues will come from increased demand for ride-hailing services and the need to increase profit margins for companies that provide these ride-hailing services.
Other factors driving growth include:
- Government efforts and increased investments from major players.
- Technological advancements to help refine the driving process.
- Need for improved road safety and traffic control on the road.
Additionally, when the COVID-19 pandemic broke out, demand for ride-hailing/ride-sharing fell by 80%, according to the Washington Post. This led to steeper fares and longer waits for ride-hailing, meaning Uber and Lyft could not afford to have as many drivers on the road. Instead, businesses are turning to robotaxis in their fleets to reduce operational costs and improve profit margins, Valuates Reports said.
With vehicle automation and an increased call for more safety in vehicles, human drivers are no longer a necessity. Robotaxis are expected to lower the risk of accidents caused by human mistakes with equipped radar, lidar and other sensors to increase awareness.
Simultaneously, the market for goods transportation in robotaxis is forecast to be the highest contributor to the market, reaching $21.71 billion by 2030, up from just $610 million in 2023. This segment will manage a compound annual growth rate (CAGR) of 70.5% during this forecast period.
The full research can be found in the Robottaxi Market by Application report.
