Self-driving Taxi Market

According to a research report "Self-driving Taxi Market by Vehicle Type (Cars, Shuttles), Level of Autonomy (L4, L5), Propulsion (Electric, Fuel Cell), Component (Hardware, Software), Service Type (Car Rental, Station Based) and Region - Global Forecast to 2030" published by MarketsandMarkets, the global Self-driving Taxi Market is projected to grow from 1.3 thousand units in 2022 to 1,047 thousand units by 2030, at a CAGR of 132.6% during the forecast period.

Factors such as better cost efficiency, increase in road safety and improved user safety on use of self-driving taxi’s will increase demand for self-driving taxi’s around the world. These vehicles can be used for passenger and goods transport and are recently growing in popularity across countries. Plans by major countries to improve road safety and development in autonomous technology will also increase demand for these vehicles. Companies such as Waymo (US), Cruise LLC (US) among others are already testing such vehicles by plying them across specific areas.

Use of advanced sensors such as LIDAR, RADAR, others in automobiles to drive the market

At present, the concept of self-driving vehicles is trending as the chances of accidents on roads due to human error is reduced significantly. The idea of self-driving taxis without human intervention is expected to cater to the reduced traffic congestion on the roads and increased safety of passengers as a self-driving taxi is equipped with various sensors such as LiDAR, RADAR, and camera along with AR-HUD, that enables the self-driving taxi to avoid obstacle and route detection, which in turn increase the safety of passengers. There are various other features such as autonomous emergency braking (AEB) and lane keeping assistance (LKA) equipped in self-driving taxis to increase the vehicle safety. For instance, in 2019, Waymo also started the operation of its self-driving taxis in Arizona, US. Further, Cruise, a subsidiary of General Motors, started its self-driving taxis in San Francisco, US in early 2022. Similarly, in November 2022, Cruise announced to offer daytime driverless taxis to its customers in San Francisco, US. This is the first time after the launch of its nighttime driverless taxi, Cruise Av, that Cruise has offered in daytime.

Car rental segment of self-driving taxis to grow at a faster rate during the forecast period

The self-driving taxi service as a ride hailing application focuses on passengers rather than goods. Many automotive OEMs such as Tesla (US), Waymo LLC (US), Volkswagen AG (Germany), among others are developing their self-driving taxis with better fuel efficiency and better cost to the passengers. As the operating cost of a self-driving taxi will cater to the reduced cost to the passengers, thus increasing the demand. A completely autonomous taxi is intended to be more efficient as the self-driving taxi will be operated at fuel economical speeds. With the introduction of vehicles propelled on renewable fuels such as hydrogen fuel cell, electric vehicles, among others, the operational cost of self-driving taxis can be reduced significantly. Moreover, it will help in achieving an eco-friendly mode of transport. Japanese automotive giant, Hyundai and German OEM, Volkswagen announced that all their production car will be incorporated with Aurora Tech, a US-based startup. Hyundai and Volkswagen are expected to test the service by 2021. The company will deploy fuel cell electric vehicle Nexo and compact SUV Kona electric in Sejong for driverless taxi service. The vehicles would have level 4 automation.

LEVEL 4 automation to lead the market

Level 4 driving systems are conditional autonomous driving systems that reduces driver engagement compared to L2 and L3 semi-autonomous driving systems. In this system, the vehicle can drive autonomously under predefined conditions. It can handle various fundamental driving tasks such as steering, braking, and accelerating as well as complex driving situations such as response to situations such as: the sudden appearance of construction sites, roadblocks, and other road situations without external inputs from the driver. However, in these systems, the driver is required to be active in case of any emergencies to control the vehicle in emergencies. These vehicles can only be deployed in certain pre-programmed routes. EasyMile for instance, has introduced EZ10 as a level 4 vehicle which can be deployed on a geofenced and pre-programmed route and suitable for universities. Auro.AI, the autonomous vehicle platform by Ridecell, is also testing self-driving taxis at level 4 autonomy.

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