How Big Is the Driverless Taxi Market | Growth Analysis & Forecast 2031

Q: What are the factors responsible for the growth of driverless taxi market?

The growth is mainly driven by increasing urban mobility needs and declining costs of LiDAR and AI-based navigation systems.

Q: What are the key trends shaping the driverless taxi market?

Some of the key trends include integration of AI for real-time navigation and increasing trials of autonomous taxi services in urban areas.

Q: How large will the driverless taxi market be by 2031?

The driverless taxi market is projected to reach USD 22.8 billion by 2031.

Q: What are the barriers facing the driverless taxi market?

Key barriers include regulatory uncertainty, high initial costs, cybersecurity concerns, and public trust in fully autonomous vehicles.

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6W monitors the market across 60+ countries Globally, publishing an annual market outlook report that analyses trends, key drivers, Size, Volume, Revenue, opportunities, and market segments. This report offers comprehensive insights, helping businesses understand market dynamics and make informed decisions.

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Code: MTA6171

Publication Date: Jul 2025

How Big Is the Driverless Taxi Market?

According to 6Wresearch internal database and industry insights, the driverless taxi market was valued at USD 1.9 billion in 2024 and is anticipated to reach USD 22.8 billion by 2031, growing at a CAGR of 7.8% during the forecast period of 2025-2031.

This tremendous growth is fueled by increasing urban mobility needs, favorable government policies for smart transportation, and declining costs of LiDAR and AI-based navigation systems.

Growth Factors of the Driverless Taxi Market

Increasing urban congestion creating demand for efficient autonomous transport
Rising investments from tech giants and automotive OEMs in AI and autonomous mobility
Improvements in 5G and V2X communication refining AV safety and coordination
Regulatory approvals and pilot programs across major cities in North America, Europe, and Asia
Abridged cost of ride-hailing with automation eliminating human driver wages
Emphasis on sustainability through shared electric autonomous fleets

Driverless Taxi Market Trends

Driverless Taxi Market is witnessing trends such as integration of AI and deep learning for real-time navigation, growing partnerships between automakers and tech startups, and increasing trials of autonomous taxi services in urban areas. Moreover, consumer acceptance is rising, particularly in tech-savvy regions, while regulatory frameworks are evolving to enable commercial deployment. Shared mobility and electric powertrains are converging with autonomy, reshaping the future of urban transport ecosystems.

Emerging Developments in Driverless Taxi Market

In the Driverless Taxi Industry, emerging developments include the commercialization of robotaxi services in select U.S. cities by companies like Waymo and Cruise and significant investments in autonomous driving chips and simulation technologies. Meanwhile, global insurance models are adapting to address the liability structure in AV scenarios, and public-private partnerships are supporting large-scale infrastructure for AV-friendly roads.