Global robotaxi market expected to rise from $400m in 2023 to $45.7b in 2030

Chinese autonomous driving companies are ramping up efforts to make forays into overseas markets and expand the number of robotaxi fleets as part of a broader push to bolster the large-scale commercial application of self-driving vehicles and enhance their competitiveness on the global intelligent automotive landscape.

Experts said the accelerated global expansion of cutting-edge technology will create huge opportunities for urban transport systems, with cities around the world adapting regulations to accommodate autonomous vehicles on public thoroughfares.

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They added that Chinese self-driving companies boast relatively abundant experience in diversified road-testing and operational scenarios — from high-density urban centers to suburban areas. Meanwhile, ensuring the safety and stability of robotaxis remains a top priority given the complex traffic conditions and urban environments in different countries.

Data from research firm MarketsandMarkets showed the scale of the global robotaxi market is expected to rise from $400 million in 2023 to $45.7 billion in 2030, at a compound annual growth rate of 91.8 percent during the period.

The consultancy said the growth of the robotaxi market is influenced by rising demand for ride-hailing services, high research and development investment, and government focus on reducing emissions, boosting infrastructure development and spurring the electrification of vehicles.

Robin Li, co-founder and CEO of Chinese tech heavyweight Baidu Inc, said 2025 will be a pivotal year for the growth of its autonomous ride-hailing platform Apollo Go, with plans to expand fleet size and ride volume faster than ever.

Apollo Go has provided more than 11 million rides to the public. Altogether, the service has deployed over 1,000 fully driverless vehicles globally and has expanded its presence to 15 cities.

"Looking ahead, we will deepen our presence in existing markets while strategically entering new ones, capturing broader growth opportunities worldwide," Li said, adding that he sees a clear path to profitability for Apollo Go as costs in hardware and other areas decrease and the growing operational scale results in more efficiency.

The company has stepped up its global expansion pace. It has signed a strategic cooperation agreement with the Roads and Transport Authority of Dubai, the United Arab Emirates, to launch autonomous driving testing and services in the city.

The move marks Apollo Go's first international fleet deployment outside the Chinese mainland and Hong Kong and its first entry into the Middle East. It will deploy 100 fully autonomous vehicles in Dubai by the end of this year, using its sixth-generation robotaxi, with plans to expand the fleet to no fewer than 1,000 by 2028.

All tests and services will be conducted in line with Dubai's local laws and adapted to regional needs. The collaboration aims to integrate autonomous ride-hailing into Dubai's broader transportation ecosystem, offering enhanced mobility services for residents and contributing to the city's intelligent infrastructure goals.

Moreover, it has inked a strategic partnership with Autogo, a UAE-based autonomous mobility solutions company, with the goal of deploying the largest fully driverless fleet in Abu Dhabi, capital of the UAE.

Initial trials of dozens of Apollo Go autonomous vehicles will be deployed in select areas of Abu Dhabi, with phased expansion planned ahead of full commercial operations by 2026.

Earlier this month, Apollo Go expanded testing in Hong Kong after completing over 14,000 kilometers of testing and being granted an updated pilot license by the Transport Department of Hong Kong. With the new license, it is able to conduct trials across expanded routes.

It received permits to test autonomous vehicles in Hong Kong in December 2024, marking its first entry into a right-hand drive market and an important milestone in its journey toward globalization.

With the expanded testing, the number of its vehicles operating in each test has been increased to 10, and the testing area will include dozens of roads. Looking ahead, the company said it anticipates an orderly rollout of autonomous vehicles in Hong Kong, ensuring safety as a top priority.

"Chinese self-driving enterprises have strong technical prowess and accumulated rich testing and operational experience in the domestic market. They aspire to play a bigger role in the international autonomous vehicle field by leveraging their strengths," said Zhu Keli, founding director of the China Institute of New Economy.

There is a surging demand for autonomous vehicles in overseas markets, while the open environment and supportive measures for autonomous driving technology in some countries, such as the UAE and Luxembourg, provide these companies with ideal testing sites and broader development space, Zhu said.

Their global expansion will bolster the maturity of autonomous driving technology, propel the in-depth integration of global industrial chains, optimize resource allocation and inject fresh impetus into the self-driving sector across the globe, he added.

Chinese self-driving company Pony.ai announced earlier this month that it has inked a strategic partnership with US-based ride-hailing service provider Uber to deploy its robotaxis onto the latter's platform.

The partnership is expected to be first rolled out in a key market in the Middle East later this year, with a goal of scaling deployments to additional international markets in the future, said Pony.ai. During the initial pilot phase, these vehicles will have a safety operator onboard until the companies' fully autonomous commercial launch.

This is a key step in Pony.ai's global expansion strategy, the company said, highlighting that its seventh-generation autonomous driving system facilitates the mass production of robotaxis on a more scalable and cost-effective basis.

This technological advancement aligns with the strategic goals of the partnership, empowering Uber's platform to more quickly and safely integrate autonomous vehicles as the collaboration expands to new markets.

Pony.ai has accelerated steps to expand its presence in overseas markets. It has established an R&D center in Luxembourg, with a key focus on accelerating autonomous driving innovation and integrating self-driving technologies into the country's next-generation transportation, while offering customized solutions for the European market.

It has obtained a scientific testing permit for Level 4 autonomous driving from authorities in Luxembourg. This authorization expands Pony.ai's global testing portfolio, building on existing permits in China, the United States and South Korea.

Level 4 vehicles can intervene if there is a system failure and do not require human assistance in most circumstances. However, a manual override option is still available.

Under the newly granted permits, Pony.ai will commence on-road testing in collaboration with Emile Weber, Luxembourg's premier mobility solutions provider. The collaboration leverages Emile Weber's expertise in delivering integrated mobility solutions across public transit, private transportation and tourism sectors.

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The company has also set up a joint venture in South Korea in collaboration with a local tech company to promote the development and application of self-driving technology. The two sides plan to deploy an autonomous driving vehicle fleet in Seoul to provide ride-hailing services to the public.

"China is at the global forefront of R&D and the application of self-driving technology, while the accelerated expansion of Chinese self-driving companies in overseas markets will be conducive to propelling the large-scale commercialization of the cutting-edge technology globally," said Zhang Xiang, a visiting professor at the engineering department of Huanghe Science and Technology University.

Zhang said authorities in the Middle East and some European countries have a relatively open attitude toward autonomous driving vehicles and are promoting the testing and use of robotaxis thanks to technological advancements and cost reductions provided by robotaxis when compared to conventional taxi services.

Zhang emphasized that due to the differences in road conditions, laws and regulations in various countries, enterprises need to conduct more road tests based on diverse scenarios, and learn about local traffic rules and consumer habits, adding there will be differentiated requirements in terms of privacy protection and data management, and compliance in overseas markets.

Self-driving startup WeRide recently announced the launch of fully driverless robotaxi trial operations in Abu Dhabi, the first deployment of its kind in the Middle East. Starting this quarter, a fleet of its robotaxis will be piloted on public roads without a safety driver, marking a major milestone in the advancement of smart mobility in the city.

The company is accelerating its global business expansion, with the UAE as a key market for autonomous driving growth and innovation. In July 2023, the company received the UAE's first and only national license for self-driving vehicles, authorizing testing and operation of its autonomous vehicles on public roads nationwide.

In December 2024, WeRide and Uber launched their ride-hailing partnership in Abu Dhabi, marking the largest commercial robotaxi service outside the US and China.

"Chinese self-driving companies expanding presence abroad may encounter some challenges, such as differences in culture, laws and regulations. Meanwhile, competition in overseas markets is fierce. They need to constantly enhance their technological strength in order to gain a firm foothold on the international stage," said Li Xinbo, an automotive industry analyst at China Auto Information Technology (Tianjin) Co Ltd.

Moreover, as the operating costs and compliance risks in overseas markets are relatively high, these enterprises need to carefully assess and formulate strategic plans, speed up localization efforts and launch services that cater to local requirements when carrying forward their globalization push, Li said.

Contact the writer at fanfeifei@chinadaily.com.cn