- TrendForce predicts that China's robotaxi market will reach $44.5 billion by 2035, about 900 times its current size.
- China's robotaxi industry is booming, driven by a well-established supply chain system that will rapidly reduce hardware costs.
China's robotaxi market is expected to see nearly 900-fold growth over the next decade, driven by improved supply chains and reduced hardware costs, according to a research report.
By 2035, China's robotaxi market size will reach 44.5 billion US dollars, with a compound annual growth rate (CAGR) of 96 percent between 2025 and 2035, according to a report released today by market research firm TrendForce.
This exceeds the estimated 2035 market size of $36.5 billion for the US robotaxi market, according to the report.
In 2025, China's robotaxi market size is projected to reach $52 million, while the US market is expected to reach $314 million, according to TrendForce.
China's robotaxi industry is booming, driven by a well-established supply chain system, which will lead to a rapid decline in hardware costs, according to the report.
Chinese companies are actively participating in the sector, led by Baidu, Pony AI, and WeRide, the report said.
With the rapid increase in the number of deployed vehicles and strong support from local electric vehicle (EV) makers and the supply chain, the hardware costs of robotaxi vehicles and autonomous driving solutions are expected to decline rapidly, according to TrendForce.
As a result, the per-mile cost of robotaxis is expected to decrease, thereby increasing user willingness to adopt the technology, the report said.
The US robotaxi market will be dominated by Tesla and Waymo, with a CAGR of 61 percent from 2025 to 2035, according to TrendForce.
Tesla is currently testing its robotaxi technology in Texas and plans to expand its services to the San Francisco Bay Area.
Tesla CEO Elon Musk said last week that the company was awaiting approval from California authorities and expected to launch robotaxi services in the Bay Area within one to two months.
Tesla leverages its vehicle manufacturing advantages and visual solutions to achieve relatively lower vehicle hardware costs, according to TrendForce.
While Waymo holds an early-mover advantage, its leadership position could be threatened by Tesla if it fails to accelerate expansion and effectively reduce costs, the report noted.
