Remember when robotaxis felt like a sci-fi fantasy that was always "five years away"? Well, that five-year window might finally be closing. According to a new report from Counterpoint Research, the robotaxi industry is about to enter a large-scale growth phase, with global sales projected to hit 1.3 million units annually by 2035—worth a cool $54 billion.

The research firm says the industry is moving from pilot programs to mass-market deployment, driven by improvements in autonomous technology, falling system costs, and increasingly supportive regulations. In other words, robotaxis are becoming their own distinct automotive category, centered on Level 4 autonomous vehicles and high-utilization fleets.

So where will all these self-driving cabs be roaming? Counterpoint expects China to lead global robotaxi adoption, thanks to strong policy backing and rapid deployment from domestic players. The U.S. will remain a key hub for innovation and commercialization, while Europe is expected to gain momentum as its regulations mature. Together, China and the U.S. are projected to account for the majority of robotaxi sales by 2035, with broader adoption accelerating across other regions after 2030.

On the competitive front, Counterpoint highlighted a handful of companies leading the charge: Alphabet Inc. (GOOGL)'s Waymo, Tesla Inc. (TSLA), Baidu Inc. (BIDU)'s Baidu Apollo, WeRide Inc. (WRD), and Pony AI Inc. (PONY). These players are at the forefront of transitioning toward purpose-built autonomous vehicles, rather than retrofitting existing cars.

The firm also noted that collaborations between automakers and technology providers, along with the rollout of dedicated robotaxi models, are expected to lower vehicle costs and improve unit economics. Translation: as these partnerships mature and production scales, the economics of robotaxis should get a lot more attractive. Manufacturers that can scale production efficiently and integrate Level 4 autonomy effectively could unlock significant profitability as adoption expands.

So, the race is on. The next decade will likely see robotaxis go from novelty to necessity, reshaping how we think about urban mobility. And for investors, the question is which companies will be driving—not just riding—this transformation.