Artificial intelligence (AI) in transportation refers to the integration of AI technologies such as machine learning, computer vision and natural language processing into vehicles and transportation systems. AI technologies are enhancing capabilities of autonomous vehicles, predictive maintenance, traffic management, vehicle cybersecurity and driving assistance systems. These technologies enable enhanced situational awareness and automated decision making for vehicles. AI improves safety by identifying hazardous objects and conditions and taking appropriate actions without any human intervention. For instance, AI systems can detect pedestrians and apply automatic braking to avoid accidents. AI technologies are also being used for predictive maintenance of transportation infrastructure and vehicles which helps reduce downtime and repair costs.
The Global Artificial Intelligence in Transportation Market is estimated to be valued at US$ 6.51 Bn in 2024 and is expected to exhibit a CAGR of 17.% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Artificial Intelligence in Transportation are Peloton, Paccar, Scania, Valeo, Xevo, ZF, Zonar, Nvidia Corporation, Siemens Mobility, NEC Corporation, Microsoft Corporation, IBM Corporation, Robert Bosch GmbH, Continental AG, Volvo Group. Key players are investing significantly in developing AI-based solutions which is fueling market growth.
Growing demand for autonomous vehicles is also driving the adoption of Artificial Intelligence in Transportation Market Demand AI helps self-driving vehicles make complex decisions based on the real-time data it receives from vehicle sensors and external sources. Automakers are actively collaborating with AI companies to integrate these technologies into production vehicles.
Geographic expansion to emerging markets is another key trend. Major market players are focusing on partnerships, mergers and acquisitions in developing countries in Asia Pacific and Middle East & Africa. This will help strengthen their presence in high growth potential markets and capture the expanding opportunities.
Market Key Trends
One of the major trends in the Artificial Intelligence In Transportation Market Size And Trends is the development of robotaxis. Robotaxis or driverless taxis are prototype passenger vehicles being developed by several companies including Waymo and Cruise to offer autonomous ride-hailing services. Robotaxis use a combination of AI, computer vision and other technologies for navigation and responding to traffic situations without any human input. This could significantly reduce transportation costs and emissions in the future.
Porter’s Analysis
Threat of new entrants: Low barrier to entry enables emerging companies to enter the market easily. However, established players have strong brand image and global presence.
Bargaining power of buyers: Large fleet operators and logistics companies have significant bargaining power due to their high demand.
Bargaining power of suppliers: Major technology giants like Microsoft, IBM, and Nvidia have high bargaining power as buyers depend on their AI, ML and analytics platforms.
Threat of new substitutes: Emergence of hyperloop and drone deliveries present potential alternatives but are still at a nascent stage.
Competitive rivalry: Intense competition exists among technology and automotive companies to offer advanced self-driving solutions and leverage connected vehicle technologies.
Geographical Regions
North America currently accounts for the largest share in the artificial intelligence in transportation market due to presence of major technology companies and increasing investments by automakers in autonomous vehicle testing.
Asia Pacific is expected to witness the fastest growth during the forecast period led by rising adoption of AI-based solutions across applications like fleet management, predictive maintenance, and autonomous driving in China, Japan and India. Countries are supporting development of smart transportation through initiatives such as ‘Made in China 2025’.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.