The robo-taxi market is set to explode in the coming years, with nearly 4 million units expected to be in circulation by 2030.

A report conducted by Marketsandmarkets expects the market to grow from 2,024 units in 2020 to reach 3,830,912 units by 2030, at a compound annual growth rate (CAGR) of 112.67%. The rise in these vehicles and projected numbers is influenced by an increase in demand for ride-hailing services, high investments into research and development in the field, infrastructure developments and a worldwide focus from governments looking to reduce emissions by offering incentives towards people purchasing electric vehicles.

The report touches on the forecast of the robo-taxi industry long term, how the market may possibly cope with high implementation costs and the impact of ride-sharing services on the robo-taxi market.

There are a multitude self-driving taxi manufacturers that are looking to increase their impact on the industry. These include the likes of Waymo, GM Cruise, Uber Technologies Inc. and EasyMile.

Cars are expected to lead the charge for robo-taxis with most testing and development of technology being carried out on cars. Waymo, owned by Google parent company Alphabet, has recently begun charging people for rides in the “Waymo One”, its fully autonomous driving system, in Phoenix, Arizona. Collaborating with Chrysler, Waymo has purchased thousands of Chrysler Pacifica Hybrid minivans for its services, and is said to open a new business model for companies developing or working on robo-taxi technology. Uber is also looking to invest in the market, after ordering over 20,000 Volvo XC90’s to scale its share in self-driving vehicles. 

Passenger transportation is the fastest and largest growing market in the sector, due to the development in passenger technologies increasing at a greater speed compared to goods transportation. Rideshare services such as Uber, Lyft and DiDi will continue to boost the market and the research and development undertaken within the sector.

The Asia-Pacific region is expected to be the largest source of growth in the robo-taxi market. Rising emission concerns, and a focus on increasing shared mobility as well as being a leader in groundbreaking technology ensure the region is primed to host millions of automated vehicles. Asian car manufacturers such as Mitsubishi, Nissan and Hyundai are expected to lead the way in the sector, and Singapore was the first country to debut robo-taxis on its streets in 2016.

To access the report in full, click here.