The global robotaxi industry is entering a high-growth phase, with leading players like Alphabet Inc. (GOOGL  ) (GOOG  ) Waymo, Tesla Inc. (TSLA  ), Baidu Inc. (BIDU  ) Apollo Go, WeRide Inc. (WRD  ), and Pony AI Inc. (PONY  ) driving large-scale commercialization, according to Counterpoint Research.

Market Expansion Gains Momentum

Counterpoint Research said on Tuesday that the global robotaxi services market could reach $168 billion by 2035, with fleets expanding to 3.6 million vehicles, as the industry transitions from pilot programs to full-scale deployment.

U.S. And China Lead Deployment Race

The firm expects the U.S. to remain the innovation hub, led by companies like Waymo and Tesla. At the same time, China drives faster fleet deployment through players like Baidu Apollo Go, WeRide, and Pony AI, supported by government backing and lower costs.

Competition Intensifies Across Regions

Counterpoint Research said major players are scaling across North America, China, and key global cities, with additional competitors like Uber Technologies, Inc. (UBER  ) and Lyft, Inc. (LYFT  ) expanding partnerships, as Europe and other regions gradually open up new growth opportunities.

Recently, Morgan Stanley's Andrew Percoco said Tesla's ability to scale its unsupervised robotaxi fleet will drive its stock performance in 2026, adding that progress in Austin and in seven additional cities, along with improvements to its Full Self-Driving system, could help boost demand.