Global Electric Vehicle (EV) Taxi Market Report and Forecast 2024-2032

Global Electric Vehicle (EV) Taxi Market Outlook

The global ev taxi market is expected to grow at a CAGR of 18.4% between 2024 and 2032.

Key Takeaways

• Increase in the number of public charging stations worldwide is boosting the global electric vehicle (EV) taxi market growth. Vehicles scrappage policies are minimising the number of old ICE taxis on road which are noisy and less comfortable than electric vehicle cars.

• By 2040, the demand for electric air taxis is expected to be worth USD 1.5 trillion.

• Hyundai has revealed its latest electric air taxi, the S-A2 flying taxi, which is scheduled to launch in 2028.  Other prominent brands developing it include Boeing, Airbus, Toyota, and Uber.

The surge in environmental concerns among national authorities has a significant influence on the number of zero-emission automobiles traversing the streets of prominent urban centres. This has resulted in a heightened demand for electric vehicle (EV) taxis. Additionally, flying air taxis or electric air taxis have become one of the latest market trends. Ongoing research and development in vehicle safety, airworthiness, and traffic control have affected manufacturing outcomes tremendously by reducing operation and maintenance costs.

The demand for hybrid electric vehicle taxis and battery electric vehicle taxis is substantial. This is because they are ecofriendly and charge the same fare as internal combustion engine-based taxis. With the increasing integration of advanced technologies across cab booking platforms, electric taxis can now be hailed easily on mobile apps like Uber Green and Free Now Eco to transport people and goods from the source region to the place of destination. 

To encourage the adoption of electric taxis, many multi-mobility apps are also helping taxi drivers in purchasing home chargers for their electric vehicles, which is significantly driving up sales and reducing emissions associated with the automotive industry. 

The Asia Pacific region accounts for a significant electric vehicle (EV) taxi market share as a result of favourable policies and growing collaborations, such as the support from the United Nations Development Program and Japan.  With the expansion in the size of electric vehicle market in the region, electric taxis, especially two-wheelers and three wheelers are providing people with an alternative to public mode of transportation, easing the journey of travel to the destination. In countries like India, Bhutan, and Bangladesh, this demand is tremendously high as people look for cost-effective and sustainable alternatives to ICE vehicles due to rising fuel prices and heavy pollution. This is making Asia Pacific one of the leading regions of electric vehicle taxis with countries like Australia and South Korea increasing their adoption of electric vehicles to meet their net zero emission targets.

Market Segmentation

Global Electric Vehicle (EV) Taxi Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Propulsion Type

• Battery Electric Vehicle (BEV)

• Plug-In Hybrid Electric Vehicle (PHEV)

• Hybrid Electric Vehicle (HEV)

Market Breakup by Vehicle Type

• Two-Wheeler Taxi

• Three-Wheeler Taxi

• Four-Wheeler Taxi

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Competitive Landscape

The market players are increasingly prioritising the establishment of the necessary infrastructure to facilitate the widespread adoption of electric vehicles.

• Uber Technologies Inc.

• Nissan Motor Co Ltd.

• Akaris AG (Tesla Taxi Service)

• DiDi Global Inc.

• Travel Electric BV

• Lyft, Inc.

• ANI Technologies Pvt. Ltd.

• eee-Mobility Solutions Private Limited

• Blu-Smart Mobility Pvt. Ltd.

• Prakriti E-Mobility Private Limited

• Others

Key Highlights of the Report