Europe's Robo-Taxi Market Size was valued at USD 0.05 Billion in 2022. The Global Europe Robo-Taxi market is projected to grow from USD 0.09 Billion in 2023 to USD 20.4 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 95.10% during the forecast period (2024 - 2032). Robo-taxis might increase ride-sharing companies' profit margins, and lower operating expenses are one of the major market drivers driving the Robo-Taxi market in Europe. The growing adoption of advanced driver assistance systems (ADAS) drives market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The European Robo-Taxi market CAGR is expanding because almost all manufacturers are testing and introducing electrified and autonomous vehicles across Europe. Many are embracing the Robo-taxi notion, the basis for which technology and car manufacturing businesses have begun working on it. Most manufacturers are testing autonomous taxis to observe the outcomes and reactions of consumers. In Europe, several companies offering robot taxi services are starting up. The market is expected to have a favorable outlook due to the rise of autonomous vehicles and electric mobility. For instance, in 2021, over 70% of EV sales came from passenger automobiles. Due to increased demand in Europe, the SUV segment of the passenger automobile market has been expanding during the last few years. Autonomous vehicle-based mobility services are anticipated to replace private and public transportation trips for consumers without cars. Robo-taxis is a viable alternative to traditional public transportation for about 45% of those without regular car access. A quarter of the population would rather take robo-cabs than traditional taxis.
However, car owners would have to be persuaded that Robo-taxis would provide an experience that was at least the same as theirs in terms of independence, comfort, and convenience for them to convert to the service. The demand for car-based mobility will rise as soon as robo-taxis are seen as more convenient than vehicles, which they most definitely have the potential to be.
Additionally, a key trend in the market is the increasing availability of emission-free and fuel-efficient automobiles. Manufacturers can now create electric and fuel-cell-powered automobiles because of the tightening emission regulations. Because Robotaxi is completely self-sufficient, it requires a sophisticated and effective fuel system to operate. It is anticipated that as these vehicles become more widely used, traffic congestion will decrease, improving air quality and lowering emissions. Vehicles with lower energy use also typically have lower operating expenses. For instance, electric vehicles' fuel and maintenance expenses are cheaper than those of conventional combustion engine vehicles. This affordability may motivate companies to run fleets of robot taxis, resulting in a rise in market share and adoption. Thus, driving the Europe Robo-Taxi market revenue.
Based on Application Type, the Europe Robo-Taxi market segmentation includes goods transportation and passenger transportation. The passenger transportation segment dominated the market. Traditional taxis are more likely than autonomous passenger taxis to be involved in traffic incidents. Additionally, although they have significant fuel and driver expenses, autonomous passenger taxis save money on travel between destinations.
The goods transportation segment is expected to grow fastest. Because most manufacturers are investing in driverless vehicles, the goods segment is expected to grow significantly during the projection period. One of the primary drivers of robotic taxi adoption is anticipated to be the robotic assistance that self-driving automobiles offer small enterprises for daily tasks like restocking and the transfer of items.
Figure 1: Europe Robo-Taxi Market, by Application Type, 2023 & 2032 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Based on the Level of Autonomy, Europe's Robo-Taxi segmentation includes level 4 and level 5. The level 4 category generated the most income. Self-driving robot taxis equipped with level 4 automation can function without human intervention on specific routes and places where the city's infrastructure permits autonomous driving. A cockpit is available for manual vehicle control on Level 4 robot-taxis. Level 4 robot taxis are becoming increasingly popular in Europe because they can save fleet operating expenses by 30% to 50%.
The level 5 category is predicted to have the quickest rate. This level of autonomy enables the car to run independently without a human's assistance. Level 5 autonomous cars are outfitted with advanced sensors and smart systems for safe urban navigation. The level 5 autonomy category is expected to provide significant income in the Europe robo-taxi market because of its high complexity and dependability.
Based on Vehicle Type, Europe's Robo-Taxi segmentation includes cars and shuttles/vans. The cars category has the largest market share. Electric robot taxis are becoming more and more popular as European countries place a greater emphasis on environmental awareness and sustainability. Electric cars are a more environmentally friendly and sustainable form of transportation that fits nicely with the region's goal of lowering carbon emissions.
The shuttles/vans category is anticipated to have the fastest rate. Vans and shuttles work effectively for last-mile connections, offering effective means of transportation between final destinations and public transit hubs. This fills an essential need in cities, where there may be fewer options for regular public transportation.
Based on Propulsion, Europe's Robo-Taxi segmentation includes electric, fuel cell, and hybrid. The electric category has the largest market share. Growing concerns about pollution have increased demand for fuel-efficient vehicles. Robo-taxis would bring great fuel efficiency and zero carbon emissions and offer robotic assistance. A cooperation between Uber and Volvo is expected to bring self-driving cars in the mid-size luxury class to market by 2021, with 50% of the vehicles being all-electric. By 2030, two-thirds of the European population will reside in urban areas. Daimler and Bosch are developing electric vehicles that can drive themselves in Germany by 2020.
The hybrid category is expected to have the speediest rate. Hybrid vehicles are designed to use both an electric motor and an internal combustion engine. Hybrid cars have a combustion engine backup for greater range and can run entirely on electricity, making them eco-friendly. Hybrid cars are popular because of their versatility, which allows them to be used for different types of travel.
Based on Component Type, Europe's Robo-Taxi segmentation includes camera, radar, LiDAR, and ultrasonic sensors. The LiDAR category has the leading market share. The distance between two cars is calculated using LiDAR, which reflects pulse light. When sophisticated sensors are combined with it, it operates more accurately. The rapid technical improvement in vehicle LiDAR and the emergence of 4D LiDAR are anticipated to present profitable growth prospects for the automotive LiDAR industry. Furthermore, a spike in funding and investments in LiDAR companies is anticipated to drive segment growth.
The radar category is predicted to have the most rapid rate. One of the most important parts of autonomous taxis for preventing collisions, avoiding other vehicles and pedestrians, and other functions is radar. Furthermore, there is a growing trend to improve automotive-type radars' signal bandwidth and range resolution.
The largest market share is expected to be in Germany. Germany is well known for being a significant center for the car industry. The country has a strong automotive industry and infrastructure due largely to manufacturers like Daimler, BMW, and Volkswagen. This can help with the development and implementation of robo-taxi fleets. Germany is renowned for its skill in this area as well. The nation has a track record of funding R&D, and its dedication to creativity may result in improvements in autonomous driving technology, which would help the Europe Robo-Taxi Market expand.
Figure 2: Europe Robo-Taxi Market Share BY Region 2023 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Major players in the sector are expanding their product lines and investing heavily in R&D, fueling the growth of the Europe Robo-Taxi market. Market participants are also taking part in several strategic initiatives to increase the size of their market share. Significant developments include new product introductions, contract agreements, mergers and acquisitions, higher investment levels, and collaboration with other organizations. To thrive in a highly competitive and ever-changing market, the Robo-Taxi industry must offer reasonably priced products.
Businesses engaged in research and development are trying to boost demand for Robo-Taxi from major participants in the market, including Waymo LLC, Baidu, Inc., Cruise LLC, Easy Mile, and Beijing Didi Chuxing Technology Co., Ltd.
January 2023: At the National Sports Shooting Centre, EasyMile and multinational public transport operator Keolis (France) have advanced fully automated mobility by remotely overseeing two autonomous shuttles without a human supervisor. Verifying the autonomous shuttles' operating and financial models is the aim of this second phase.
January 2023: A group of German experts in autonomous driving have been granted USD 9.6 million by the German Federal Ministry of Economics and Climate Protection (BMWK) for the SAFESTREAM project. The initiative intends to expedite autonomous driving in German public transportation to SAE Level 4.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 0.05Â Billion |
| Market Size 2023 | USD 0.09 Billion |
| Market Size 2032 | USD 20.4 Billion |
| Compound Annual Growth Rate (CAGR) | 95.10% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Application Type, Level of Autonomy, Vehicle Type, Propulsion, Component Type and Region |
| Region Covered | Europe |
| Countries Covered | Germany, France, United Kingdom, Italy, Spain, Sweden, Denmark, Luxembourg, Norway, Austria, and the Rest of Europe |
| Key Companies Profiled | Waymo LLC, Baidu, Inc., Cruise LLC, Easy Mile, and Beijing Didi Chuxing Technology Co., Ltd. |
| Key Market Opportunities | Robotic support for the transportation of goods Rising demand for efficient and convenient urban mobility solutions |
| Key Market Dynamics | Robo-taxis might increase ride-sharing companies' profit margins and lower operating expenses. Â Growing adoption of advanced driver assistance system (ADAS) |
Frequently Asked Questions (FAQ) :
The Europe Robo-Taxi market size was valued at USD 0.09 Billion in 2023.
The market is projected to grow at a CAGR of 95.10% during the forecast period, 2024-2032.
The key players in the market are Waymo LLC, Baidu, Inc., Cruise LLC, Easy Mile, and Beijing Didi Chuxing Technology Co., Ltd, among others.
The passenger transportation category dominated the market in 2023.
The level 4 category had the largest share of the market.
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