EV Taxi Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 33.5 Billion |
| Market Size (2029) | USD 68.10 Billion |
| CAGR (2024 - 2029) | 12.55 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
EV Taxi Market Analysis
The EV Taxi Market size is estimated at USD 33.5 billion in 2024, and is expected to reach USD 68.10 billion by 2029, growing at a CAGR of 12.55% during the forecast period (2024-2029).
Over the long term, owing to the increase in demand for electric vehicles and growing concerns about pollution caused by vehicles and the government spending on infrastructure for electric vehicles, initiatives to boost demand for electric vehicles are expected to encourage fleet owners to shift toward electric-powered vehicles rather than choosing conventional fuel vehicles. However, major players are also indulging in developing charging infrastructure for electric vehicle taxis, which will further boost the market.
However, the electric taxi market faces significant challenges due to the higher initial manufacturing costs compared to traditional internal combustion engine vehicles. This obstacle is particularly pronounced in low-income areas, where affordability is a critical factor in vehicle procurement decisions. Despite the potential long-term cost savings and environmental benefits of electric taxis, the upfront investment presents a barrier to adoption, impeding the transition toward cleaner transportation solutions in these communities.
Furthermore, the electric taxi industry is expected to grow due to increasing demand for ride-hailing and ride-sharing services worldwide and rising demand from online taxi booking channels. An increase in the cost of vehicle ownership compared to other modes of transportation, increasing traffic congestion, and low taxi fares are other major factors driving the electric taxi market.
EV Taxi Market Trends
The Four-wheeler Taxi Vehicle Type Expected to Hold a Significant Market Share
One of the primary factors fuelling the four-wheeler EV taxi segment’s growth is the increased adoption of electric vehicles worldwide, mostly because of the stringent governmental regulations against pollution and environmental aspects. The demand for electric vehicles is directly linked to the infrastructure available to charge these vehicles in the specific country.
Hence, to boost the demand for electric vehicles, governments are continuously increasing their spending to enhance the infrastructure in their region and provide a sufficient number of charging stations and other financial benefits to end users so that they are attracted toward these eco-friendly vehicles that help reduce pollution levels. Several players in the market are adopting various greener initiatives, and this, in turn, is anticipated to boost the market over the forecast period. For instance,
- In February 2023, Uber Technologies, India’s leading ride-sharing company, signed a Memorandum of understanding (MoU) with Tata Motors, India’s leading automobile manufacturer and the pioneer of India’s EV evolution, to bring 25,000 XPRES–T EVs into their premium category service. Aligned toward its goal of a clean and green environment, Tata Motors will be aiding Uber in electrifying its services across the Indian cities of Delhi NCR, Mumbai, Kolkata, Chennai, Hyderabad, Bengaluru, and Ahmedabad. The company will begin the delivery of the cars to Uber fleet partners in a phased manner.
Further, Norway, which has a high adoption rate of electric vehicles and a waiting list for the delivery of EVs, is enhancing the infrastructure for EV taxis very rapidly. Even with the electrification of other modes of transportation, particularly private cars, the use of electric taxis remains marginal. Norway's capital, Oslo, has the highest number of electric cars per capita in the world, but only 2% of the taxi fleet is fully electric.
- Car-sharing fleets in many European countries already contain a large number of electric vehicles. As of 2023, 60% of Italy's station-based car-sharing fleet consisted of electric cars, while this figure stood at around 30% in the Netherlands.
As these abovementioned factors continue to develop, they are likely to drive the growth trajectory over the coming years. This is expected to have a subsequent positive impact on the electric vehicle taxi market.
Asia-Pacific Remains the Largest Regional Market
Asia-Pacific is expected to be the largest regional market for electric vehicle taxis. The demand is driven by the high adoption rate of electric vehicles in the region and the growing demand for taxi fleets. The region has large economies like India and China, which are very highly populated, and the demand for taxi services in the region is also growing with the rising rate of urbanization in the region because of the developing nature of these economies.
- As of August 2023, there were a little under 64,000 company taxis registered in South Korea.
- In 2023, the penetration rate of electric vehicles in India reached 6.4%, a significant increase in comparison with a decade ago. More than 1.5 million electric vehicles were sold in India in 2023, the majority of which were electric two-wheelers.
There are several major players in the region, like BYD, which sells 60% of its pure electric cars for public transport. Moreover, The "Support Measures to Encourage the Development of Electric Vehicle (EV) Charging and Battery Swap Facilities in Shanghai" were jointly issued by the Shanghai Municipal Development & Reform Commission (SMDRC), which are further expected to drive the market.
Support for the construction of pilot taxi charging stations is also being provided in China. Pilot stations built in 2022 will receive a financial subsidy equal to 30% of the cost of charging equipment. Subsidies will be made available for the installation of advanced battery swap stations that meet relevant requirements in certain public service sectors such as ports, logistics, sanitation, and taxis.
Similarly, in India, the government is pushing major fleet operators like Ola and Uber to expand their electric vehicle fleet and convert 40% of vehicles to electric by the end of 2026. Niti Aayog officials and the Ministries of Road Transport, Power, Renewable Energy, and Steel, as well as the Departments of Heavy Industries and Trade, were among those recommending taxi operators in India to gradually convert to electric in India. Manufacturers in India are planning to take initiatives and launch new electric products for taxi services.
EV Taxi Industry Overview
The EV taxi market is moderately consolidated, with a few players accounting for most of the market share. Some of the prominent companies in the EV taxi market are Ola Cabs, Uber Technologies Limited, Connexxion, and Blue Smart Mobility. Several players in the market are establishing various business strategies to gain a competitive advantage in the electric taxi market. For instance,
- In January 2023, Ola Cabs, a leading ride-hailing company, revealed plans to introduce 10,000 electric vehicles into the premium segment. The company was nearing completion of its electrification rollout, which was set to occur in the upcoming weeks. In an official statement, Ola emphasized that its new premium fleet would be serviced by top-rated drivers, ensuring a seamless experience for passengers with guaranteed ride allocation, zero cancellations, and exclusively cashless transactions.
- In November 2023, MegaCabs, a prominent airport taxi operator, introduced its inaugural fleet of electric vehicles (EVs) in Delhi, offering eco-friendly transportation choices to its clientele. Starting with an initial 100 EVs, the company aims to increase the number of e-cabs to 300 by the conclusion of the current financial year.
- In May 2022, LEVC (London Electric Vehicle Company) announced a new collaboration with Geotab, the global leader in IoT and connected transportation, to provide cutting-edge fleet management systems on its class-leading electric TX taxi and VN5 van.
- In June 2022, the Scottish government announced that it would invest more than GBP 30 million to accelerate the transition to zero-emission transportation. Funding was being prioritized to focus on used electric vehicles and the taxi industry to support a just transition to net zero.
EV Taxi Market Leaders
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Taxi Electric
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Connexxion
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eee-Taxi
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OLA
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Blue Smart Mobility
*Disclaimer: Major Players sorted in no particular order
EV Taxi Market News
- June 2024: Bangalore International Airport Limited, India, in partnership with Refex eVeelz, introduced electric taxis for passengers. These new electric taxis can be reserved at airport taxi stations in both terminals or via the BLR Pulse Mobile app.
- January 2024: Xanh SM Laos announced plans to expand its electric taxi service to Savannakhet Province. This marked not only the company's next step in brand development but also its continued commitment to promoting electric vehicles and environmental protection in Laos.
- June 2023: Uber Technologies announced electric vehicle rides at Mumbai International Airport, India. The Uber Green Taxi is available for passengers traveling to and from the Mumbai airport. The company aims to contribute to reducing carbon emissions and promoting sustainable mobility throughout the city.
- April 2023: Green and Smart Mobility Joint Stock Company (GSM) launched Vietnam's first pure electric taxi service, called Green SM Taxi. This marked a significant milestone in the Vietnamese taxi industry by introducing smart, eco-friendly transportation free from pollutants and noise.
EV Taxi Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Adoption of Electric Vehicles to Result in a Positive Outlook for the Electric Taxi Market
4.2 Market Restraints
4.2.1 Stringent Transportation Regulatory Hurdles to Restrict Market Growth
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Hybrid Electric Vehicle
5.1.2 Battery Electric Vehicle
5.1.3 Plug-in Hybrid Electric Vehicle
5.2 Vehicle Type
5.2.1 Two-wheeler Taxi
5.2.2 Four-wheeler Taxi
6. Geography
6.1 North America
6.1.1 United States
6.1.2 Canada
6.1.3 Rest of North America
6.2 Europe
6.2.1 Germany
6.2.2 United Kingdom
6.2.3 France
6.2.4 Italy
6.2.5 Rest of Europe
6.3 Asia-Pacific
6.3.1 China
6.3.2 India
6.3.3 Japan
6.3.4 South Korea
6.3.5 Rest of Asia-Pacific
6.4 South America
6.4.1 Brazil
6.4.2 Argentina
6.4.3 Rest of South America
6.5 Middle East and Africa
6.5.1 Saudi Arabia
6.5.2 United Arab Emirates
6.5.3 South Africa
6.5.4 Rest of Middle East and Africa
7. COMPETITIVE LANDSCAPE
7.1 Vendor Market Share
7.2 Company Profiles
7.2.1 Taxi Electric
7.2.2 Connexxion
7.2.3 eee-Taxi
7.2.4 ANI Technologies Pvt. Ltd (Ola Cabs)
7.2.5 Blu Smart Mobility
7.2.6 CAB-EEZ Infra Tech Pvt. Limited
7.2.7 GREL Cabs
7.2.8 Electric Cab North America
7.2.9 GoGreen Cabs
7.2.10 Phoenix Taxis
7.2.11 Uber technologies Inc.
7.2.12 Say Taxi
7.2.13 GSM Green and Smart Mobility Joint Stock Company
7.2.14 Prakriti
- *List Not Exhaustive
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
EV Taxi Industry Segmentation
An electric vehicle taxi refers to a taxi or ride-sharing vehicle powered by an electric motor and battery rather than traditional internal combustion engines fueled by gasoline or diesel. EV taxis offer a sustainable and environmentally friendly transportation option, emitting zero tailpipe emissions during operation.
The EV taxi market is segmented by type, vehicle type, and geography. By type, the market is segmented into hybrid electric vehicles, battery electric vehicles, and plug-in hybrid electric vehicles. By vehicle type, the market is segmented into four-wheelers and two-wheelers. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. The report offers the market sizes and forecasts for all the above segments in value (USD).
| Type | |
| Hybrid Electric Vehicle | |
| Battery Electric Vehicle | |
| Plug-in Hybrid Electric Vehicle |
| Vehicle Type | |
| Two-wheeler Taxi | |
| Four-wheeler Taxi |
EV Taxi Market Research Faqs
How big is the EV Taxi Market?
The EV Taxi Market size is expected to reach USD 33.5 billion in 2024 and grow at a CAGR of 12.55% to reach USD 68.10 billion by 2029.
What is the current EV Taxi Market size?
In 2024, the EV Taxi Market size is expected to reach USD 33.5 billion.
Who are the key players in EV Taxi Market?
Taxi Electric, Connexxion, eee-Taxi, OLA and Blue Smart Mobility are the major companies operating in the EV Taxi Market.
Which is the fastest growing region in EV Taxi Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in EV Taxi Market?
In 2024, the Asia Pacific accounts for the largest market share in EV Taxi Market.
What years does this EV Taxi Market cover, and what was the market size in 2023?
In 2023, the EV Taxi Market size was estimated at USD 29.30 billion. The report covers the EV Taxi Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the EV Taxi Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What is the future outlook of the EV Taxi Market?
The EV Taxi Market is expected to grow exponentially, and it is driven by a) Ongoing technological advancements b) Decreasing battery costs c) Increasing environmental awareness
What are the key challenges faced by the EV Taxi Market Face Market?
Key challenges faced by the Electric Vehicle Taxi Market include a) High initial investment costs b) Limited charging infrastructure c) Range anxiety among potential users
EV Taxi Industry Report
The global electric vehicle (EV) taxi market is experiencing significant growth, driven by the rising demand for EVs and increased environmental consciousness. The market is segmented by propulsion into battery electric vehicles (BEVs), hybrid electric vehicles (HEVs), and plug-in hybrid electric vehicles (PHEVs), with BEVs leading due to their lower maintenance costs. Additionally, the market categorizes taxis into two, three, and four-wheelers, with four-wheelers expected to see notable growth.
The Asia-Pacific region dominates the new energy vehicle taxi market size, primarily due to high EV adoption rates and the presence of major manufacturers. North America also shows promising growth, propelled by key players and supportive government policies. Strategic partnerships and acquisitions are enhancing the market's expansion, providing ample investment opportunities in the electric vehicle taxi sector.
Industry analysis indicates that the market is set for substantial growth, with industry forecasts predicting continued expansion. The market analysis reveals that market leaders are capitalizing on the economic advantages of electrification in the taxi industry. The market overview highlights the importance of market segmentation and market trends in understanding the market's dynamics.
Market research shows that the industry outlook is positive, with market growth driven by environmental and economic factors. The industry reports provide detailed insights into market size and market share, while industry research underscores the significance of market data and market value in shaping industry trends.
In conclusion, the report provides a comprehensive analysis of the new energy vehicle taxi market, including market predictions, market review, and industry statistics. The report example and report PDF offer valuable industry information and market outlook, making it a crucial resource for research companies and stakeholders in the EV taxi market.
EV Taxi Market Report Snapshots
