Autonomous/Driverless Shuttles Market Surges USD 13.47 Bn by 2034

Autonomous/Driverless Shuttles Market Growth Drivers, Challenges and Opportunities

According to market projections, the global autonomous/driverless shuttles industry is expected to grow from USD 1.70 billion in 2024 to USD 13.47 billion by 2034, reflecting a CAGR of 23%. Europe leads the autonomous shuttles market with 38% share, while Asia-Pacific shows fastest growth. Fully autonomous, electric, and LiDAR-based shuttles dominate, with public transport and government use leading; airports and universities see rapid growth.

The global autonomous/driverless shuttles market is forecasted to expand from USD 2.09 billion in 2025 to USD 13.47 billion by 2034, growing at a CAGR of 23% from 2025 to 2034. The growing adoption of autonomous cars by fleet operators coupled with scarcity of manual drivers has driven the market expansion.

Additionally, rising focus of automotive brands for integrating ADAS in vehicles along with rapid investment by government for deploying driverless shuttles in public transportation is playing a vital role in shaping the role in shaping the industrial landscape. The integration of advanced sensor technologies such as LiDAR and radar for enhanced perception in autonomous shuttles is expected to create ample growth opportunities for the market players in the upcoming days.

Global Autonomous/Driverless Shuttles Market Growth and Trends 2025

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Introduction

The global autonomous/driverless shuttles market is a prominent sector of the automotive industry. This industry deals in providing autonomous shuttle services in different parts of the world. There are several types of vehicles used in this sector comprising of fully autonomous shuttles and semi-autonomous shuttles. These vehicles are powered by different technologies including electric, hybrid and fuel cells. It finds application in various sectors comprising of public transport, airports & tourism, business & industrial parks, university & college campuses, hospitals & large facilities and some others. This market is expected to rise significantly with the growth of the electric mobility sector around the globe.

Highlights of the Global Autonomous/Driverless Shuttles Market

  • Europe generated highest revenue of the global autonomous/driverless shuttles market with a share of around 38%.
  • Asia-Pacific is expected to rise with the highest CAGR during the forecast period.
  • By vehicle type, the fully autonomous shuttles segment led the market with a share of around 65%.
  • By vehicle type, the semi-autonomous shuttles segment is expected to rise with the highest CAGR during the forecast period.
  • By propulsion type, the electric shuttles segment held the largest share the market with 70%.
  • By propulsion type, the fuel cell shuttles segment is expected to grow with the highest CAGR during the forecast period.
  • By technology, the LiDAR-based systems segment dominated the market with a share of around 40%.
  • By technology, the AI & ML algorithms segment is expected to rise with the fastest CAGR during the forecast period.
  • By capacity, the 11-20 passengers segment led the industry with a share of around 45%.
  • By capacity, the above 20 passengers segment is expected to grow with the fastest CAGR during the forecast period.
  • By application, the public transport segment held the largest share of the market with a share of around 50%.
  • By application, the airports & tourism segment is expected to rise with the highest CAGR during the forecast period.
  • By end user, the municipal & government bodies segment led the market with a share of around 40%.
  • By end user, the universities & institutions segment is expected to rise with the highest CAGR during the forecast period.

The major trends in this market consists of partnerships, deployment of autonomous shuttles in airports and advancements in ADAS sensors.

Partnerships

  • Various ride railing companies are partnering with automotive manufacturers to deploy autonomous shuttles in motorsport tournaments. For instance, in June 2025, WeRide partnered with Renault Group. This partnership is done for launching a level-4 autonomous minibus shuttle service in Roland-Garros tournament.

Deployment of Autonomous Shuttles in Airports

  • The airline companies are constantly deploying autonomous shuttles for enhancing airport operations. For instance, in July 2025, dnata announced to deploy autonomous shuttles in Dubai Airport. This deployment is done by a collaboration between TractEasy, dnata, Dubai Airports and the UAE General Civil Aviation Authority (GCAA).

Advancements in ADAS Sensors

  • Numerous automotive brands are integrating advanced ADAS sensors in modern vehicles to enhance autonomous driving. For instance, in August 2024, Dewesoft launched Obsidian and Navion. Obsidian and Navion are advanced sensors designed for providing unparalleled precision and reliability in autonomous vehicles.

Vehicle Type Insights

How did the fully Autonomous Shuttles Segment Led the Global Autonomous/Driverless Shuttles Market in 2025?

The fully autonomous shuttles segment dominated the global autonomous/driverless shuttles market with a share of around 65%. The growing adoption of fully autonomous shuttles in modern airports for carrying passengers from lounge areas to aircrafts has boosted the market expansion. Additionally, rapid investment by automotive brands for developing fully autonomous shuttles is playing a vital role in shaping the industrial landscape. Moreover, partnerships and collaborations among market players to deploy these shuttles in urban areas is expected to drive the growth of the global autonomous/driverless shuttles market.

The semi-autonomous shuttles segment is expected to expand with the highest CAGR during the forecast period. The increasing demand for semi-autonomous shuttles from 5-star hotels for transporting passengers has driven the market expansion. Also, the rising focus of automotive companies for integrating high-quality sensors in semi-autonomous shuttles is contributing to the industry in a positive manner. Moreover, joint ventures among airline authorities and shuttle providers for deploying semi-autonomous shuttles in airports is expected to propel the growth of the global autonomous/driverless shuttles market.

Propulsion Type Insights

What Made the Electric Shuttles to be the Most Dominant Segment of the Global Autonomous/Driverless Shuttles Market in 2025?

The electric shuttles segment held the largest share the global autonomous/driverless shuttles market with 70%. The increasing adoption of electric vehicles in different parts of the world for lowering vehicular emission has driven the market expansion. Also, numerous government initiatives aimed at providing incentives to EV purchasers is playing a vital role in shaping the industrial landscape. Moreover, the growing focus of airline providers to deploy electric shuttles in modern airports is expected to boost the growth of the global autonomous/driverless shuttles market.

The fuel cell shuttles segment is expected to rise with the highest CAGR during the forecast period. The growing investment by automotive companies for developing fuel cell shuttles to cater the needs of end-users has driven the market expansion. Additionally, numerous government initiatives aimed at developing the hydrogen infrastructure is contributing to the industry in a positive manner. Moreover, increasing emphasis of engine manufacturers for developing advanced fuel cells is expected to propel the growth of the global autonomous/driverless shuttles market.

Technology Insights

What Made the LiDAR-Based Systems Segment to Lead the Global Autonomous/Driverless Shuttles Market in 2025?

The LiDAR-based systems segment dominated the global autonomous/driverless shuttles market with a share of around 40%. The increasing use of LiDAR sensors in autonomous vehicles to enhance vehicular safety has driven the market expansion. Additionally, rapid investment by automotive component manufacturers for developing high quality LiDAR systems for modern cars is playing a prominent role in shaping the industrial landscape. Moreover, numerous advantages of LiDAR-systems including high accuracy and precision, environmental and lighting independence, efficiency and automation, versatility and accessibility, and some others is expected to drive the growth of the global autonomous/driverless shuttles market.

The AI & ML algorithms segment is expected to expand with the fastest CAGR during the forecast period. The integration of AI-based sensors in autonomous shuttles to enhance driving experience has boosted the market growth. Also, the deployment of AI-integrated ADAS solutions in semi-autonomous shuttles to facilitate driverless functions is contributing to the industry in a positive manner. Moreover, rapid investment by automotive brands for integrating ML and AI in shuttles is expected to propel the growth of the global autonomous/driverless shuttles market.

Capacity Insights

Why did the 11-20 Passengers Segment Held the Largest Share of the Global Autonomous/Driverless Shuttles Market in 2025?

The 11-20 passengers segment led the global autonomous/driverless shuttles industry with a share of around 45%. The increasing use of 11-20 passenger shuttles in hotels to transport tourist from one place to another has driven the market expansion. Also, rapid investment by automotive companies to manufacture mid-sized shuttles is expected to drive the growth of the global autonomous/driverless shuttles market.

The above 20 passengers segment is expected to rise with the highest CAGR during the forecast period. The growing adoption of above 20 passenger shuttles in airports for carrying passengers from aircrafts to lounge area has boosted the market growth. Additionally, the rising deployment of these shuttles in urban areas to enhance public transportation is expected to propel the growth of the global autonomous/driverless shuttles market.

Application Insights

Why did the Public Transport Segment Held the Largest Share of the Global Autonomous/Driverless Shuttles Market in 2025?

The public transport segment dominated the global autonomous/driverless shuttles market with a share of around 50%. The increasing adoption of autonomous shuttles by municipalities to enhance public transportation has driven the market expansion. Additionally, rapid investment by government for developing the public transportation sector is contributing to the industry in a positive manner. Moreover, partnerships among automotive brands and public organizations to deploy autonomous vehicles in public transportation is expected to drive the growth of the global autonomous/driverless shuttles market.

The airports & tourism segment is expected to expand with the highest CAGR during the forecast period. The rising focus of airline companies for adopting driverless shuttles in modern airports has driven the market growth. Also, rapid investment by government for modernizing the airports in urban areas is playing a vital role in shaping the industrial landscape. Moreover, collaborations among airport authorities and automotive brands for deploying autonomous shuttles in airports is expected to boost the growth of the global autonomous/driverless shuttles market.

End User Insights

Why did the Municipal & Government Bodies Segment Held the Largest Share of the Global Autonomous/Driverless Shuttles Market in 2025?

The municipal & government bodies segment led the global autonomous/driverless shuttles market with a share of around 40%. The increasing adoption of autonomous shuttles by municipal organizations has boosted the market expansion. Additionally, rapid investment by government for developing the public transportation infrastructure is expected to propel the growth of the global autonomous/driverless shuttles market.

The universities & institutions segment is expected to grow with the highest CAGR during the forecast period. The rising deployment of electric shuttles in universities and institutions to lower emission has driven the market growth. Also, rapid investment by modern universities to purchase mid-sized shuttles for enhancing student transportation inside university campus is expected to foster the growth of the global autonomous/driverless shuttles market.

Geographical Insights

Why Europe Dominated the Global Autonomous/Driverless Shuttles Market in 2025?

Europe led the global autonomous/driverless shuttles market with a share of around 38%. The increasing sales of autonomous shuttles in several nations such as Germany, Italy, France, UK, Denmark and some others has driven the market expansion. Additionally, rapid investment by government for strengthening the public transportation infrastructure coupled with rise in number of 5-star hotels is playing a crucial role in shaping the industrial landscape. Moreover, the presence of various market players such as 2getthere, Navya, Transdev, Karsan and some others is expected to propel the growth of the global autonomous/driverless shuttles market in this region.

  • In September 2025, Karsan announced to launch a new range of autonomous shuttles. This new range of autonomous shuttles are designed for enhancing public transportation in Germany.

Germany and Italy are the significant contributors in this region. In Germany, the market is generally driven by the presence of numerous shuttle service providers coupled with rapid adoption of eco-friendly vehicles. In Italy, rise in number of hotels and resorts along with technological advancements in the automotive sector is driving the market expansion.

Asia-Pacific is expected to grow with the highest CAGR during the forecast period. The growing adoption of semi-autonomous shuttles in various countries such as India, China, Japan, South Korea and some others has bolstered the industrial growth. Also, numerous government initiatives aimed at developing the EV charging infrastructure coupled with increase in number of smart city projects is contributing to the industry in a positive manner. Moreover, the presence of numerous market players such as Baidu, WeRide, Yutong and some others is expected to drive the growth of the global autonomous/driverless shuttles market in this region.

  • In August 2025, WeRide partnered with Shenzhen Bus Group. This partnership is done for launching a Level 4 fully driverless Robobus in China.

China and Japan are the prominent contributors in this region. In China, the market is driven by the constant development of the automotive sector along with advancements in V2X technology. In Japan, the growing investment by government for developing smart cities as well as rapid growth in the public transportation infrastructure is driving the market expansion.

Industry Leader Announcement

August 2025 Announcement
David Keene MBE, the CEO of Aurrigo International plc We have been working with Kanata North Business Association for over six years on how we can effectively bring autonomous vehicles to the streets of Canada. This important project accelerates this vision, and we believe we have the real-world technology in place in Auto-Shuttle that will prove driverless vehicles can operate safely and effectively in all weather conditions.

Competitive Landscape

The global autonomous/driverless shuttles market is a rapidly developing industry with the presence of several dominating players. Some of the prominent companies in this industry consists of Local Motors, May Mobility, Navya, 2getthere, Coast Automonous, EasyMile, Auro Robotics, Baidu, Transdev, Optimus Ride and some others. These companies are constantly engaged in providing shuttle services based on autonomous vehicles and adopting numerous strategies such as collaborations, launches, partnerships, business expansions, acquisitions, joint ventures and some others to maintain their dominance in this industry.

Transdev Regional Revenue % (2024)

  • According to the annual report of Transdev, around 28.2% revenue of the company was generated from the France region followed by others in 2024.

Recent Developments

  • In August 2025, Aurrigo International plc launched a nine-seater passenger Auto-Shuttle in Kanata. This Level 4 electric and autonomous shuttle is engineered to operate in challenging Canadian conditions such as snow, ice, rain, wind, and falling leaves.
  • In July 2025, Lyft partnered with BENTELER Mobility. This partnership is done for launching an autonomous shuttle service in the U.S. by 2026.
  • In July 2025, Karsan launched an autonomous airport bus. This bus is designed to operate at Rotterdam Airport in the Netherlands.

Top Autonomous/Driverless Shuttles Market Players

Autonomous Driverless Shuttles Market Top Key Players

Autonomous/Driverless Shuttles Market Segments

By Vehicle Type

  • Fully Autonomous Shuttles
  • Semi-Autonomous Shuttles

By Propulsion Type

  • Electric Shuttles
  • Hybrid Shuttles
  • Fuel Cell Shuttles

By Technology

  • LiDAR-Based Systems
  • RADAR-Based Systems
  • Camera & Vision Systems
  • GPS & Navigation Systems
  • AI & Machine Learning Algorithms
  • V2X Communication Systems

By Capacity

  • Up to 10 Passengers
  • 11–20 Passengers
  • Above 20 Passengers

By Application

  • Public Transport (urban & intercity routes)
  • Airports & Tourism
  • Business & Industrial Parks
  • University & College Campuses
  • Hospitals & Large Facilities
  • Others

By End User

  • Municipal & Government Bodies
  • Transportation Operators
  • Corporate Enterprises
  • Universities & Institutions
  • Others

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • Middle East & Africa
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  • Insight Code: 1815
  • No. of Pages: 150
  • Format: PDF/PPT/Excel
  • Last Updated: 09 September 2025
  • Report Covered: Revenue + Volume
  • Historical Year: 2021-2023
  • Base Year: 2024
  • Estimated Years: 2025-2034

Meet the Team

Laxmi Narayan is a seasoned Research Analyst at Towards Automotive, with 5 years of specialized experience in market research, analysis, and consulting within the automotive technology domain.

Learn more about Laxmi Narayan

Aditi Shivarkar, with 14+ years of experience in automotive market research, specializes in tracking trends across vehicle technologies, mobility solutions, and materials innovation. She delivers accurate, actionable insights that drive excellence in the automotive sector—fueling strategies around electrification, sustainability, and advanced manufacturing.

Learn more about Aditi Shivarkar

FAQ's

The market is projected to grow from USD 2.09 billion in 2025 to USD 13.47 billion by 2034, at a strong CAGR of 23%. The growth is fueled by driver shortages, government-backed smart mobility projects, and the adoption of EV-based shuttle fleets in public and private transportation.

Fully autonomous shuttles hold the lead with ~65% market share due to deployment in airports and urban public transit systems. Meanwhile, semi-autonomous shuttles are expected to post the highest growth, driven by demand from premium hotels, airports, and industrial campuses.

LiDAR-based systems dominate with 40% share due to their precision and reliability. However, AI & ML-powered algorithms are emerging as the fastest-growing technology segment, enhancing predictive safety, navigation, and fleet optimization critical for scaling urban deployment.

Governments are actively funding pilot programs, providing EV incentives, and developing charging/hydrogen infrastructure. Policies promoting zero-emission mobility and smart city projects are accelerating adoption, especially in Europe and Asia-Pacific.

Strategic partnerships are crucial for scaling deployment. Examples include WeRide-Renault (autonomous minibuses), dnata-TractEasy in Dubai Airport, and Lyft-BENTELER in the U.S. These collaborations combine automotive expertise with mobility operators’ service networks, ensuring faster commercialization.

Integration of AI/ML algorithms with V2X communication and 5G networks will significantly enhance safety and real-time decision-making. Improved battery technology and hydrogen fuel cells will also reduce operating costs, expanding viability for large-scale fleets.

Investors can explore opportunities in LiDAR & radar sensors, AI navigation software, EV charging infrastructure, and hydrogen fuel cell technology. These complementary segments are expected to experience accelerated growth alongside shuttle deployment.

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