Market Overview
The
Global Artificial Intelligence in Transportation Market was
valued USD 4.0 billion in 2023, and it is further anticipated to reach a market value of
USD 35.6 billion by 2033 at a CAGR of 24.4%.
AI in transportation is the process of using Artificial Intelligence in the transportation industry to improve efficiency, safety, and overall performance. They include applications like autonomous vehicles, traffic management systems, predictive maintenance, route optimization, and passenger experience enhancements. It allows vehicles to perceive and interpret their surroundings, make real-time decisions, and adapt to changing conditions, leading to reduced accidents, lower emissions, optimized logistics, etc. The market has seen significant growth over the past few years and is predicted to grow significantly during the forecasted period.
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.
Key Takeaways
- Market Size: The Global Artificial Intelligence (AI) in Transportation Market is projected to grow by 29.5 billion, at a CAGR of 24.4% during the forecasted period.
- Market Definition: Artificial Intelligence (AI) in transportation is the process of enhancing safety through predictive analytics and autonomous systems.
- Process Analysis: By Process, the Object Recognition segment is expected to lead with the largest market share in 2024 & is anticipated to dominate throughout the forecasted period.
- Offering Analysis: Based on the Offering, the software is expected to come out as a dominant force with the largest revenue share during the forecasted period.
- Machine Learning Technology Analysis: By Machine learning Technology, deep learning is expected to come out as a dominant force with the largest revenue share during the forecasted period.
- Application Analysis: By Application, the autonomous truck is expected to have led throughout the forecasted period with a revenue share of 44.7% in 2024.
- Regional Analysis: North America is expected to hold a 41.2% revenue share in the Global Artificial Intelligence (AI) in transportation Market in 2024.
Use Cases
- Driver monitoring: AI-based monitoring system uses sensors and cameras inside vehicles to analyze driver behavior and attentiveness. They detect signs of fatigue, distraction, drowsiness, or impairment and alert drivers or take corrective actions to prevent accidents.
- Predictive maintenance: Artificial Intelligence (AI) analyses vehicle data and infrastructure to predict when maintenance or repairs are required. They monitor many transport factors like engine performance, wear & tear on components, and historical maintenance data as their algorithm can identify patterns and anomalies that indicate potential issues.
- License plate recognition: License plate recognition systems powered by AI, automate the process of identifying and recording license plate numbers from vehicles. They are helpful for toll collection, parking management, law enforcement, and traffic monitoring.
- Object detection and tracking: They use data from sensors such as cameras, LiDAR, and radar to detect and identify objects such as vehicles, pedestrians, cyclists, and obstacles in real time. They can make decisions on how to navigate safely, avoid collisions, and maintain appropriate distances, enhancing road safety and efficiency.
Market Dynamic
Drivers
Safety Enhancement Through Accident PreventionThe 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 globally. Artificial Intelligence (AI) systems play a critical role in preventing accidents caused by human errors & providing live updates on road conditions, traffic, & accident-prone areas.
Rise of Autonomous Vehicles and Deep Learning Technologies
Growing demand for autonomous vehicles, fueled by deep learning technologies that combine machine learning & AI, further boosts the industry. Vehicles can perceive their environment, make real-time decisions, & navigate through complex scenarios without human intervention, thereby enhancing safety, efficiency, & convenience.
Restrains
Lack of Suitable Infrastructure
The absence of suitable and stable infrastructure to support advanced technologies is restraining the growth of the market. Many traditional transportation systems like roads, bridges, and traffic control systems, were not designed with Artificial Intelligence (AI) integration in mind. Implementation of Artificial Intelligence (AI) requires robust communication networks, data storage capabilities, and sensor installations to function effectively.
Difficulty in Deploying Artificial Intelligence
Integration of Artificial Intelligence (AI) requires extensive planning, investment, and coordination among stakeholders which obstructs the growth of this market. Data privacy concerns, regulatory compliance, and interoperability issues further obstruct the process of deployment.
Opportunities
Impact of Increased Road Accidents
AI in the transportation market holds great opportunities due to the increased rate of road accidents and the associated benefits. Artificial Intelligence (AI) improves driver safety significantly and minimizes human errors by reducing accidents caused by human error.
Truck platooning
Truck platooning offers opportunities within the transportation market, as it delivers advanced capabilities, and attracts a wider customer base, through the integration of artificial intelligence. Greater use of sensors will enhance the functionality of this technology as voice recognition and signal recognition provide better growth opportunities.
Trend
Safety and Security
AI-based driver systems can detect potential threats on the road, such as pedestrians, vehicles, or obstacles. They use sensors, cameras, and machine learning algorithms to alert drivers. They are also perfectly capable of taking preventive measures like automatic braking or lane keeping. AI-powered platforms are identifying anomalous behavior in network traffic and protecting sensitive data stored in onboard systems.
Customer Service and Experience
Trending AI-powered chatbots and virtual assistants are transforming customer service in the transportation industry by offering continuous support and personalized experiences. Passengers can receive notifications about delays, gate changes, or alternative routes, keeping them informed and reducing frustration.
Research Scope and Analysis
By Process
Object recognition is a major driver of AI in the Transportation Market and is expected to grow with the largest revenue share, as it is a fundamental process, which 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.
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.
Machine Learning TechnologyIn 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 improve transportation systems & solutions. Its capacity for processing vast & complex data sets allows the development of more sophisticated & efficient Artificial Intelligence (AI) applications in the transportation sector, making it a major driver of innovation and growth in this market.
By Application
The autonomous truck segment is anticipated to maintain its market dominance in the forecasted period, building on its significant past market share in 2024. 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.
The Artificial Intelligence in Transportation Market Report is segmented based on the following
By Process
- Data Mining
- Object Recognition
- Signal Recognition
By Offering
By Machine Learning Technology
- Deep Learning
- Computer Vision
- Natural Language Processing
- Context Awareness
By Application
- Autonomous Trucks
- HMI in Trucks
- Semi-Autonomous Trucks
- Others
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, fuels the adoption of artificial intelligence in transportation. Japan, in particular, is projected to lead in integrating Artificial Intelligence (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
Artificial Intelligence (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
Recent Developments
- In April 2024, Fleet management technology supplier Motive announced an array of new Artificial Intelligence (AI) products, Omnivision, the first and only general-purpose computer vision platform for physical operations. This gives our customers across waste services, construction, transportation, and many others across the physical economy more visibility than ever before.
- In February 2024, the U.S. Department of Transportation introduced a new opportunity for small businesses in America to utilize Artificial Intelligence (AI) advancements for enhancing transportation which involves multiple phases aimed at creating effective decision-support tools for state, local, and tribal transportation agencies.
- In October 2023, Microsoft and Siemens announced a partnership to boost the use of Artificial Intelligence (AI) across various industries, including transportation which includes leveraging Microsoft Azure AI services to aid Siemens' transportation and other industry clients in using AI to enhance operations and sustainability.
- In July 2023, AWS, Meta, Microsoft, and TomTom collaborated to establish the Overture Maps Foundation, aiming to develop the initial open map dataset. This dataset will encompass road network details crucial for companies developing autonomous vehicles and other transportation services.
Report Details
| Report Characteristics |
| Market Size (2024) |
USD 5.0 Bn |
| Forecast Value (2033) |
USD 35.6 Bn |
| CAGR (2024-2033) |
24.4% |
| Historical Data |
2018 – 2023 |
| Forecast Data |
2024 – 2033 |
| Base Year |
2023 |
| Estimate Year |
2024 |
| Report Coverage |
Market Revenue Estimation, Market Dynamics, Competitive Landscape, Growth Factors and etc. |
| Segments Covered |
By Offering (Hardware and Software),By Machine Learning Technology (Deep Learning, Computer Vision, Natural Language Processing, and Context Awareness), By Process (Data Mining, Object Recognition, and Signal Recognition), By Application (Autonomous Trucks, HMI in Trucks, Semi-Autonomous Trucks, and Others) |
| 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 |
Physio-Control Inc., Schiller, Medtronic, Abbott, Boston Scientific Corporation, Koninklijke Philips N.V., Zoll Medical Corporation, BIOTRONIK, Progetti Srl, LivaNova Plc, and Other Key Players |
Frequently Asked Questions
The Global Artificial Intelligence in Transportation Market size estimates a value of USD 4.0 billion in 2023 and is expected to reach USD 35.6 billion by the end of 2033.
North America is expected to be the largest market share for the Global Artificial Intelligence in Transportation Market with a share of about 41.2% in 2024.
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 24.4 percent over the forecasted period.