Robotaxi Market Is Estimated To Witness High Growth Owing To Advancement in Autonomous Technology
- Ronak Shah
- U.S.A
- January 17, 2025

The Robotaxi Market is estimated to be valued at US$ 2.58 Bn in 2024 and is expected to exhibit a CAGR of 63.9% over the forecast period 2024-2031, as highlighted in a new report published by Coherent Market Insights’ The growth of the Robotaxi market is attributed to the advancement in autonomous technology along with increasing investment for development of self-driving vehicles.
Autonomous vehicle technology has witnessed significant growth over the past few years owing to integration of technologies such as radar, lidar, GPS systems and computer vision systems in vehicles. Leading OEMs, technology companies and ride hailing companies are collaborating to develop full autonomous vehicles without pedals and steering wheel. For instance, in 2021, General Motors, Honda, Uber and Lyft partnered to develop vehicles that can safely operate without human drivers by 2023.
Key Market Trends: The increasing preference for shared mobility services and government support for adoption of autonomous vehicles are the major trends in the Robotaxi market. On-demand mobility services are gaining traction among consumers as it offers flexibility, affordability and accessibility. Various companies are launching robotaxi services in different cities. For example, in 2021 Waymo started offering driverless robotaxi services in Phoenix metro area. Also, governments across countries are coming up with regulations to test and commercialize self-driving vehicles. For instance, in 2021, California established a new program to allow companies to test fully autonomous vehicles without backup drivers.
Robotaxi Market opportunity: The global ride-hailing market size was valued at USD 76.03 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of : 19.4% from 2021 to 2028. The growing adoption of ride-hailing apps and services has opened up opportunities for the deployment of autonomous vehicles for ride-hailing services.
The autonomous delivery market size was valued at USD 33.87 billion in 2020 and is expected to expand at a CAGR of 31.8% from 2021 to 2028. Growing demand for quick and flexible delivery of food and packages has boosted the adoption of autonomous delivery robots and vehicles. Robotaxi operators can leverage autonomous delivery technology to offer cargo delivery services in addition to passenger transportation.
Key Market Takeaways: The global robotaxi market size is anticipated to witness a CAGR of 63.9% during the forecast period 2024-2031, owing to growing investments in autonomous vehicle technology by major automakers and tech companies.
On the basis of application type, shuttle services is expected to hold a dominant position, owing to high demand for shared autonomous transportation in specific areas like airports, business parks etc.
By vehicle type, passenger vehicles segment is expected to hold the major share owing to growing focus of OEMs in development of passenger robotaxis.
Regionally, North America is expected to hold a dominant position over the forecast period, due to large technology companies focusing on developing robotaxis and supporting regulations.
Competitor Insights: Key players operating in the robotaxi market include Toyota, Tesla, Ford etc. with major automakers actively working towards launch of autonomous ride-hailing services.
Recent Developments: In June 2023, Waymo announced that it would launch its fully driverless robotaxi service in San Francisco, making it the first city outside of Phoenix to get access to the service. Waymo had been testing its fifth-generation driverless vehicles in the dense and diverse streets of San Francisco for over a year. After collecting massive amounts of driving data and miles logged, Waymo stated its vehicles were ready to transport passengers without human safety drivers. Initially, the driverless rides will be available in select neighborhoods to test passenger demand and routing capabilities. If all goes well, Waymo aims to expand the driverless service to more parts of the city by the end of 2023. The launch in San Francisco marks a significant step for Waymo in commercializing its robotaxi technology and competing with other companies vying to dominate the autonomous vehicle market. More information in full report.