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Electric Vehicle (EV) Taxi Market Size - By Propulsion, By Service, By Ownership Model, By Range, By Charging Infrastructure, By Vehicle, Growth Forecast, 2026 - 2035
Report ID: GMI11429
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Published Date: December 2025
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Report Format: PDF
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Authors: Preeti Wadhwani, Aishvarya Ambekar
Premium Report Details
Base Year: 2025
Companies covered: 22
Tables & Figures: 140
Countries covered: 21
Pages: 206
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Electric Vehicle (EV) Taxi Market
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Electric Vehicle Taxi Market Size
The global electric vehicle taxi market was estimated at USD 25.7 billion in 2025. The market is expected to grow from USD 27.5 billion in 2026 to USD 90 billion in 2035, at a CAGR of 14.1%, according to latest report published by Global Market Insights Inc.
The accelerating transition toward clean mobility, intelligent fleet management, and electrified transportation ecosystems is redefining the EV Taxi market. Modern EV taxi platforms integrate high-density battery systems, smart charging networks, AI-based fleet optimization, and real-time vehicle health monitoring. These capabilities allow operators to minimize operating costs, enhance route efficiency, reduce emissions, and improve passenger safety standards. Governments, urban mobility providers, and ride-hailing platforms are increasingly shifting toward electric taxis to comply with sustainability mandates, reduce fuel dependency, and modernize city mobility grids. This transition eliminates fuel volatility, supports predictive fleet maintenance, and strengthens the overall efficiency of urban transportation networks.
For instance, in October 2025, many European cities expanded their Zero-Emission Taxi Zones, requiring new taxi registrations to be electric, while large-scale mobility operators introduced AI-controlled charging schedules and energy-availability forecasting to reduce downtime and extend vehicle life cycles.
Strategic investments, partnerships, and platform consolidation are shaping the evolution of the EV Taxi landscape. Leading EV manufacturers and mobility-tech companies are developing long-range EV taxi models, integrating solid-state batteries, and setting up ultra-fast charging corridors to support high-mileage taxi operations. Charging network providers, battery suppliers, and digital mapping companies are jointly creating interoperable platforms that enable seamless payments, optimized trip allocation, and energy-efficient routing.
For instance, in September 2024, India officially approved a new incentive scheme for electric vehicles (EVs) with a budget of 109 billion (approximately $1.3 billion). This initiative, named the PM Electric Drive Revolution in Innovative Vehicle Enhancement (PM E-DRIVE), was approved during a Union Cabinet meeting chaired by Prime Minister Narendra Modi.
The strong adoption of EV taxis is driven by rising urban pollution levels, the need for low operating costs, expansion of ride-hailing services, and government subsidies for EV ownership. Electrified taxi fleets offer long-term cost savings through reduced fuel expenses, fewer moving parts, and extended warranty systems. AI-powered mobility platforms can now evaluate driver behavior, optimize idle-to-drive ratios, predict demand hotspots, and manage energy consumption without manual decision-making.
EV taxi solutions are also gaining popularity in airport fleets, intercity mobility, and tourist transport segments. Operators are deploying rugged EV models, telematics units, digital fare meters, and cloud dashboards to ensure predictable operations, lower maintenance costs, and compliance with green mobility regulations. This integrated setup increases fleet uptime, supports cleaner transportation, and strengthens long-term service reliability.
North America and Europe represent high-value EV taxi markets due to strong EV incentives, strict emission regulations, and advanced charging infrastructure. Mature telematics ecosystems, reliability-focused fleet programs, and supportive city mobility policies further accelerate adoption. Key areas of development include solid-state battery taxis, vehicle-to-grid (V2G) integration, and AI-driven predictive charge management.
The Asia-Pacific region shows the highest growth potential, driven by expanding urban populations, aggressive EV policies, falling battery prices, and widespread adoption of affordable EV taxi models. China leads the high-volume deployment of EV taxis across metropolitan regions, while India, Japan, and South Korea adopt long-range EV sedans, compact urban taxis, and multi-purpose EV fleet solutions for ride-hailing, corporate mobility, and shared transport applications.
4.22 % market share
Collective market share in 2024 is Collective Market Share in 2025 is 19.2%
Electric Vehicle Taxi Market Trends
The rapid deployment of ultra-fast chargers and commercial battery-swapping stations is reducing EV taxi downtime dramatically. Fleets can recharge or replace depleted batteries within minutes, ensuring continuous service availability. This infrastructure evolution supports higher productivity, longer operating cycles, and smoother fleet rotations, making EV taxis operationally feasible even in high-demand urban corridors.
For instance, in October 2025, Dubai announced rollout of 208 ultra-fast EV charging stations for taxis. This supports the trend and opportunity around “surge in ultra-fast charging infrastructure,” enabling taxi fleets to recharge quickly and maximize utilization.
Purpose-built EV taxis designed with high-capacity batteries, durable drivetrains, and passenger-optimized cabins are becoming mainstream. Automakers and mobility players are investing in dedicated electric taxi platforms to improve up time, reduce charging frequency, and enhance comfort. This trend boosts operational efficiency and ensures EV taxis meet the demanding requirements of continuous urban fleet operations.
AI-powered fleet automation is reshaping EV taxi operations by optimizing dispatching, predicting demand hotspots, and minimizing idle time. Intelligent algorithms support real-time route adjustments, driver assistance, and automated scheduling. These capabilities enhance utilization rates, cut operational costs, and improve responsiveness, making EV taxi fleets significantly more efficient and competitive in urban mobility markets.
Global cities are introducing zero-emission taxi mandates, requiring fleets to transition to EVs within specific urban districts. These policies reduce pollution, support sustainability goals, and accelerate fleet electrification. As regulations tighten, operators are increasingly adopting EV taxis to comply with clean-air requirements and maintain unrestricted access to high-demand urban service zones.
Electric Vehicle Taxi Market Analysis
Based on vehicle, the market is divided into passenger vehicles, and commercial vehicles. The passenger vehicles segment dominated around 68% market share in 2025 and is expected to grow at a CAGR of more than 13.6% through 2035.
Based on propulsion, the electric vehicle taxi market is segmented into battery electric vehicles (BEVs), Hybrid electric vehicles (HEVs), and Plug-in hybrid electric vehicles (PHEVs). The battery electric vehicles segment dominates the market accounting for around 60% share in 2025 and is expected to grow at a CAGR of over 14.4% from 2026 to 2035.
Based on service, the electric vehicle taxi market is segmented into ride-hailing, cab services, fleet operator services, and robotaxi services. In 2025, ride-hailing segment dominated with around 44.1% share due to lower operational costs, reduced emissions, and government incentives supporting green mobility. Ride-hailing companies are increasingly integrating EVs into their fleets to meet sustainability goals and respond to rising consumer demand for eco-friendly transportation.
Based on range, the electric vehicle taxi market is divided into short range (150 km per charge), medium range (150-250 km per charge), and long range (250+ km per charge). The short range (150 km per charge) segment dominated the electric vehicle etaxi market.
China dominated the electric vehicle taxi market in Asia Pacific with around 37% share and generated USD 4.02 billion revenue in 2025.
The electric vehicle taxi market in Germany is expected to experience significant and promising growth from 2026 to 2035.
The electric vehicle taxi market in U.S. is expected to experience significant and promising growth from 2026-2035.
The electric vehicle taxi market in Brazil is expected to experience significant and promising growth from 2026-2035.
The electric vehicle taxi market in UAE is expected to experience significant and promising growth from 2026-2035.
Electric Vehicle Taxi Market Share
Electric Vehicle Taxi Market Companies
Major players operating in the electric vehicle taxi industry are:
Electric Vehicle Taxi Market News
The electric vehicle taxi market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn), and shipment (Units) from 2022 to 2035, for the following segments:
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Market, By Vehicle
Market, By Propulsion
Market, By Service
Market, By Ownership Model
Market, By Range
Market, By Charging Infrastructure
The above information is provided for the following regions and countries: