Robo Taxis Market Report 2025

This Robo Taxis report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The robo taxis market size has grown exponentially in recent years. It will grow from $1.19 billion in 2024 to $2.01 billion in 2025 at a compound annual growth rate (CAGR) of 69.1%. The growth in the historic period can be attributed to increased worries about road safety, expanding need for commute services, rising concerns about pollutants, growing demand for cost-effective and secure means of transportation, rise of ride-sharing services.

The robo taxis market size is expected to see exponential growth in the next few years. It will grow to $17.19 billion in 2029 at a compound annual growth rate (CAGR) of 71%. The growth in the forecast period can be attributed to continued development of autonomous driving systems, regulatory support for autonomous vehicles, integration with smart city infrastructure, demand for cost-effective and convenient transportation, increasing population. Major trends in the forecast period include partnership between automotive and tech companies, fleet-wide adoption of electric robo-taxis, improved user interfaces and customer experience, deployment of 5g networks for seamless connectivity, integration with public transportation systems.

Increasing concerns regarding road safety are anticipated to drive the growth of the robo-taxis market in the future. Self-driving and autonomous vehicles are equipped with various advanced driving technologies, such as front and rear crash prevention systems, which can detect different objects around them for smooth driving operations. These technologies can significantly reduce the number of road accidents caused by driver behavior or errors, providing a safer and more economical transportation solution. For instance, in March 2024, Eurostat, the European Union's statistical office, reported that in 2022, there were 20,653 road accident fatalities in Europe, marking a 3.7% increase from 19,917 in 2021. Therefore, the rising concerns about road safety are fueling the growth of the robo-taxis market.

An increase in the production and sales of electric vehicles is projected to drive the growth of the robo-taxis market in the coming years. Electric vehicles are defined as vehicles powered by an electric motor that draws electricity from a battery and can be charged from an external source. The integration of EVs into the robo-taxi market promotes environmental sustainability, reduces air pollution, and enhances the adoption of connected-car features. For example, in January 2024, a report from Kelley Blue Book, a US-based company under Cox Automotive, revealed that in 2023, a record 1.2 million car buyers in the United States opted for electric vehicles, representing 7.6% of the overall U.S. vehicle market, an increase from 5.9% in 2022. Thus, the rise in production and sales of electric vehicles is propelling the growth of the robo-taxis market.

Major companies in the robo-taxi market are concentrating on developing technologically advanced products to enhance their market presence. For example, in December 2022, Motional, a US-based autonomous vehicle firm, partnered with Uber Technologies Inc., a US-based transportation company, to launch a robotaxi service in Las Vegas, Nevada. For the first time, Uber customers were able to request an autonomous ride using Motional's all-electric Hyundai IONIQ 5-based robotaxis. The service initially began with vehicle operators to prepare for a fully driverless commercial offering, which is expected to be available to the public in 2023. This collaboration represents a significant advancement toward the widespread deployment of autonomous vehicles in ride-hailing services.

Strategic partnerships are a crucial aspect of the robo-taxis market, facilitating market expansion and strengthening the position of major companies. In August 2023, Pony. ai entered into a joint venture with Toyota Motor Investment Co Ltd (TMCI) and GAC Toyota Motor Co Ltd. (GTMC) to accelerate the mass production and deployment of driverless robotaxis. This collaboration involves GTMC providing Pony. ai with Toyota-branded battery electric vehicles equipped with Level 4 autonomous driving capabilities.

In November 2022, Motional, a U. S. -based autonomous driving company formed through collaboration between Hyundai Motor Group, a South Korea-based automobile company, Aptiv, an Ireland-based automotive technology supplier, and Lyft, a U. S. -based mobility service provider offering ride-hailing, vehicles for hire, motorized scooters, bicycle-sharing systems, rental cars, and food delivery, declared their joint venture to launch an autonomous ride-hailing service in Los Angeles. This marks an eagerly anticipated milestone for Motional and Lyft as they introduce robotaxis to Lyft users in Los Angeles for the first time.

Major companies operating in the robo taxis market include Waymo LLC, AutoX Inc., Tesla Inc., Baidu Inc., General Motors Company, Lyft Inc., Nissan Motor Corporation, NAVYA Group, Ford Motor Company, Mercedes-Benz Group AG, Bayerische Motoren Werke AG, Volkswagen AG, EasyMile SAS, Ridecell Inc., Nvidia Corporation, AB Volvo, Uber Technologies Inc., Aptiv plc, Beijing Xiaoju Technology Co. Ltd., MOIA GmbH, Zoox Inc., Aurora Innovation Inc., May Mobility Inc., Optimus Ride Inc., Voyage Auto Inc., Pony ai Inc., Nuro Inc., FiveAI Inc., Oxbotica Ltd.

Europe was the largest region in the robo taxis market in 2024. Asia-Pacific is expected to be the fastest-growing region in the robo taxis market during the forecast period. The regions covered in the robo taxis market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the robo taxis market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Robo-taxis are technologically advanced vehicles equipped with various driver assistance technologies, such as front and rear crash prevention systems, object detection capabilities for smooth driving, and lane departure prevention. These autonomous vehicles operate without the need for human drivers and are designed for transporting passengers or goods, aiming to reduce transportation costs and enhance affordability for day-to-day operations.

The main components of robo-taxis include cameras, radar, Lidar (Light Detection and Ranging), ultrasonic sensors, and other technologies. Cameras capture images of the surroundings during driving, interpreting environmental details like signboards, traffic lights, and animals to facilitate smooth driving and prevent road crashes. Robo-taxis offer various services, including car rental and station-based services, with different propulsion types such as electric, battery, and hybrid. These vehicles find applications in goods transportation and passenger transportation.

The robo taxis market research report is one of a series of new reports that provides robo taxis market statistics, including robo taxis industry global market size, regional shares, competitors with a robo taxis market share, detailed robo taxis market segments, market trends and opportunities, and any further data you may need to thrive in the robo taxis industry. This anomaly detection market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The robo taxis market consists of sales of self-driven or driverless cars. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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