Market Overview
The
Global Artificial Intelligence in Transportation Market is expected to reach a value of
USD 4.0 billion in 2023, and it is further anticipated to reach a market value of
USD 26.6 billion by 2032 at a
CAGR of 23.5%. The market has seen significant growth over the past few years and is predicted to grow significantly during the forecasted period as well.
Artificial intelligence is reshaping the transportation sector, with applications spanning several modes of transport, including autonomous operation of cars, trains, ships, & airplanes, leading to smoother traffic flows, which aims to enhance daily lives by making all transportation methods smarter, safer, cleaner, & more efficient. AI-driven autonomous transport holds the potential to minimize human errors, a significant factor in numerous traffic accidents, thereby contributing to increased safety and reliability on the roads.
Market Dynamic
The transportation industry is increasingly turning to AI, and the benefits associated with this technology are anticipated to drive strong demand in the coming years, as the increasing rate of road accidents & resulting fatalities will be significant drivers of market growth worldwide, as AI systems play a critical role in preventing accidents caused by human errors & providing live updates on road conditions, traffic, & accident-prone areas. Moreover, the growing demand for autonomous vehicles, fueled by deep learning technologies that combine machine learning & AI, will further boost the industry.
However, the current infrastructure does not fully support the integration of artificial intelligence in transportation, creating a major challenge. While manufacturers are working on vehicles designed for AI integration, the lack of infrastructure readiness remains a restraint to market growth, making deployment of AI in the industry complex.
Research Scope and Analysis
By Offering
In terms of offerings, the software segment is expected to lead in revenue during the forecast period, as it has already established its dominance in recent years, as the market owing to the growth in demand for software, including service platforms. These software solutions are important in human-machine interface applications for vehicles & are expected to experience major growth as they provide predictive intelligence for supply chains across waterway railway transport, shipping, & air carriers.
The integration of artificial intelligence in software assists in risk management and minimizing breakdowns, thereby lowering operational & maintenance costs. Further, the use of satellite & digital maps improves road information & traffic awareness. The ever-evolving need for autonomous vehicles across the globe further fuels the growth of the software segment.
By Application
The autonomous truck segment is anticipated to maintain its market dominance in the forecasted period, building on its significant past market share. The continuous evolution of the trucking industry is driving the need for autonomous trucks, particularly for logistics operations across the globe. Trucks are integral to the transportation of goods, representing more than half of global merchandise transport. The adoption of autonomous trucks not only improves cost efficiency but also lowers maintenance expenses, leading to significant cost savings, which is expected to be a key growth factor for the industry in the coming years, resulting in a noteworthy reduction in operating expenses.
By Machine Learning Technology
In terms of
machine learning technology, the deep learning segment takes the lead in the global artificial intelligence in the transportation market, commanding the largest share in terms of revenue in 2023, which reflects the significant role deep learning plays in driving advancements within the industry, harnessing its capabilities to improves transportation systems & solutions. Its capacity for processing vast & complex data sets allows the development of more sophisticated & efficient AI applications in the transportation sector, making it a major driver of innovation and growth in this market.
By Process
Object recognition is a major driver of Global Artificial Intelligence in the Transportation Market in 2023 and is expected to maintain its growth throughout the forecasted period, as it is a fundamental process, that involves AI systems identifying & categorizing different objects and entities, like pedestrians, vehicles, traffic signs, & obstacles, in the surrounding environment. This critical technology depends on advanced computer vision techniques, including deep learning & neural networks, to interpret visual data from cameras & sensors deployed in vehicles & infrastructure.
Object recognition improves safety & efficiency in transportation by allowing autonomous vehicles to make real-time decisions, navigate complex road scenarios, & avoid collisions. It also plays a major role in traffic management, allowing smart systems to monitor & optimize traffic flow. As the transportation industry increasingly integrates AI, object recognition remains a key driver of innovation & progress, ensuring safer and more reliable transportation solutions.
The Artificial Intelligence in Transportation Market Report is segmented based on the following:
By Offering
By Application
- Autonomous Trucks
- HMI in Trucks
- Semi-Autonomous Trucks
- Others
By Machine Learning Technology
By Process
- Data Mining
- Object Recognition
- Signal Recognition
Regional Analysis
North America holds a dominant market share of 41.2% in 2023, and its growth is attributed to the development of regulations ensuring compliance, safety, and accountability in the transportation sector. These regulations create an increasing demand for artificial intelligence technologies, with revisions in Hours of Service (HOS) regulations being a driving factor. The region's robust economic conditions & higher disposable income levels also contribute to market growth as passenger safety features become mandatory in vehicle manufacturing. With significant investments & continuous R&D activities, North America leads in technological advancements, particularly with a significant USD 20 billion investment in Mexico's automotive industry.
Also, the Asia Pacific region benefits from a strong economy & a well-established supply chain & logistics sector, driving market growth, with growing sales of trucks in this region, particularly in countries like China & Japan, which fuels the adoption of artificial intelligence in transportation. Japan, in particular, is projected to lead in integrating AI solutions into the transportation market. All these factors position the Asia Pacific region for significant growth in the coming years.
By Region
North America
Europe
- Germany
- The U.K.
- France
- Italy
- Russia
- Spain
- Benelux
- Nordic
- Rest of Europe
Asia-Pacific
- China
- Japan
- South Korea
- India
- ANZ
- ASEAN
- Rest of Asia-Pacific
Latin America
- Brazil
- Mexico
- Argentina
- Colombia
- Rest of Latin America
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa
- Israel
- Egypt
- Rest of MEA
Competitive Landscape
The global artificial intelligence in transportation market experiences a highly competitive landscape with many key players competing for market share. These companies are aiming for innovations in autonomous vehicles, traffic management systems, & predictive maintenance solutions. Start-ups are also gaining ground, offering niche AI applications. Further, government regulations, partnerships, & R&D investments play important roles, as companies focus on securing their positions in this dynamic & rapidly evolving sector.
In October 2023, Amazon introduced a new AI-powered technology called Automated Vehicle Inspection (AVI) to enhance the safety & reliability of its delivery vans, which can detect even the tiniest irregularities in the vans, like the tire issues or body damage, before they pose on-road problems. It replaces the need for human inspections, offering peace of mind to fleet managers. Further, Amazon is collaborating with tech startup UVeye to launch AVI in the United States, Canada, Germany, & the United Kingdom.
Some of the prominent players in the global Artificial Intelligence in Transportation Market are:
- Volvo
- ZF
- Daimler
- Microsoft
- Intel
- NVIDIA
- Magna
- Intel
- IBM Corp
- Xevo
- Other Key Players
COVID-19 Pandemic & Recession: Impact on the Global Artificial Intelligence in Transportation Market:
The COVID-19 pandemic & the following economic recession have had a mixed impact on global artificial intelligence in the transportation market, as the pandemic accelerated the adoption of AI-driven solutions in transportation, like autonomous vehicles & smart traffic management, as they promised improved safety & efficiency in the face of social distancing and enhanced workforce availability. On the other hand, economic uncertainties & budget constraints caused by the recession slowed down some AI projects & investments. Also, the AI in transportation market faced challenges due to distributed supply chains & minimized consumer demand, but it also gained momentum as the industry recognized the long-term benefits of AI in ensuring resilient & optimized transportation systems, which may continue to drive growth in the post-pandemic era.
Report Characteristics |
Market Size (2023) |
USD 4.0 Bn |
Forecast Value (2032) |
USD 26.6 Bn |
CAGR (2023-2032) |
23.5% |
Historical Data |
2017 - 2022 |
Forecast Data |
2023 - 2032 |
Base Year |
2022 |
Estimate Year |
2023 |
Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
Segments Covered |
By Offering (Hardware and Software), By Application
(Autonomous Trucks, HMI in Trucks, Semi-
Autonomous Trucks, and Others), By Machine
Learning Technology (Deep Learning, Computer
Vision, Natural Language Processing, and Context
Awareness), By Process (Data Mining, Object
Recognition, and Signal Recognition) |
Regional Coverage |
North America – The US and Canada; Europe – Germany, The UK, France, Russia, Spain, Italy, Benelux, Nordic, & Rest of Europe; Asia- Pacific– China, Japan, South Korea, India, ANZ, ASEAN, Rest of APAC; Latin America – Brazil, Mexico, Argentina, Colombia, Rest of Latin America; Middle East & Africa – Saudi Arabia, UAE, South Africa, Turkey, Egypt, Israel, & Rest of MEA
|
Prominent Players |
Volvo, ZF, Daimler, Microsoft, Intel, NVIDIA, Magna,
Intel, IBM Corp, Xevo, and Other Key Players |
Purchase Options |
We have three licenses to opt for: Single User License (Limited to 1 user), Multi-User License (Up to 5 Users), and Corporate Use License (Unlimited User) along with free report customization equivalent to 0 analyst working days, 3 analysts working days and 5 analysts working days respectively. |
Frequently Asked Questions
The Global Artificial Intelligence in Transportation Market size is estimated to have a value of USD 4.0
billion in 2023 and is expected to reach USD 26.6 billion by the end of 2032.
North America has the largest market share for the Global Artificial Intelligence in Transportation
Market with a share of about 41.2% in 2023.
Some of the major key players in the Global Artificial Intelligence in Transportation Market are Volvo, ZF,
Intel, and many others.
The market is growing at a CAGR of 23.5 percent over the forecasted period.