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AI in Transportation Market Research Report Information by Offering (Hardware {CPU, GPU, Sensors, Others}, Services, Software {AI Platforms, AI Solutions}), By IoT Communication Technology (Cellular, LPWAN, LoRaWAN, Z-Wave, Zigbee, NFC, Bluetooth, Others), By Application (Autonomous Truck, Semi-autonomous Truck, Truck Platooning, Human-Machine Interface (HMI), Predictive Maintenance, Precision & Mapping, Traffic Detection, Computer Vision-Powered Parking Management, Road Condition Monitoring, Automatic Traffic Incident Detection, Driver Mon


ID: MRFR/ICT/5210-CR | 128 Pages | Author: Ankit Gupta| January 2024

AI in Transportation Market Summary

As per Market Research Future Analysis, the AI in Transportation Market is poised for significant growth, expanding from USD 2,745.6 million in 2024 to USD 6,118.7 million by 2032, reflecting a CAGR of 10.54% during the forecast period. The market was valued at USD 2,402.1 million in 2023. The integration of AI technologies is transforming the transportation sector, enhancing traffic efficiency, reducing congestion, and improving safety through autonomous vehicles. The rise of 5G technology is expected to further advance these capabilities, enabling real-time data communication and improved road maintenance.

Key Market Trends & Highlights

Key trends driving the AI in Transportation Market include advancements in safety and efficiency.

  • Market size in 2022: USD 2,745.6 million; projected to reach USD 6,118.7 million by 2032.
  • Hardware segment contributed 48.2% to market revenue in 2022.
  • Predictive Maintenance held the majority share in application insights in 2022.
  • North America accounted for ~39.8% of the market in 2022.

Market Size & Forecast

2023 Market Size: USD 2,402.1 million
2024 Market Size: USD 2,745.6 million
2032 Market Size: USD 6,118.7 million
CAGR: 10.54%
Largest Regional Market Share in 2022: North America.

Major Players

Siemens Mobility, Nvidia Corporation, NEC Corporation, Huawei Technologies Co. Ltd, Valeo, Daimler AG, Scania, Continental AG, Magna International Inc., Intel Corporation, IBM Corporation, Robert Bosch GmbH, Microsoft, ZF Friedrichshafen AG.

Artificial Intelligence (AI) is termed as one of the emerging fields transforming the transport sector. In recent years, AI has made a lot of progress, as machine learning techniques have been combined with technologies used to search and analyze the large quantities of data produced by the development of the digital world. The successful growth of AI can be attributed to the continuous development of communications networks and the Internet of Things, and the advancements in transport devices. AI can make traffic more efficient, ease traffic congestion, free driver's time, make parking easier, and encourage car and ridesharing. As AI helps keep road traffic flowing, it can also reduce fuel consumption caused by vehicles idling when stationary and improve air quality and urban planning.

FIGURE 1: AI IN TRANSPORTATION MARKET SIZE 2019-2032 (USD MILLION)

AI in Transportation Market Overview

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

As per Analyst at MRFR โ€œThe use of AI and 5G will ultimately improve road safety, reducing the total number of accidents on the road. Autonomous vehicles (AVs) or self-driving vehicles will be able to reduce the risk of alcohol or drug-impaired drivers getting behind the wheel of a conventional vehicle.โ€

AI in Transportation Market Trends

INCREASING FOCUS ON ENHANCING DRIVER AND VEHICLE SAFETY

A rising number of road accidents and deaths are a major global concern. Developing intelligent systems for road traffic is a way of solving road traffic safety and other such issues. Enabling an even faster connection between transport systems, the 5G network will offer new application options to advance autonomous cars. 5G is expected to have a positive impact on road maintenance with the rise of video and radar data. For instance, road maintenance crews will be able to receive alerts of life-threatening hazards on the road. The use of AI and 5G will ultimately improve road safety, reducing the total number of accidents on the road.

Autonomous vehicles (AVs) or self-driving vehicles will be able to reduce the risk of alcohol or drug-impaired drivers getting behind the wheel of a conventional vehicle. The continuing evolution of automotive technology aims to deliver greater safety benefits and deliver automated driving systems (ADS). Automated vehicles help reduce crashes, prevent injuries, and save lives. For instance, in June 2020, Mercedes-Benz partnered with NVIDIA to develop an in-vehicle computing system and an AI infrastructure for use in Mercedes models and is expected to roll out in 2024. NVIDIAโ€™s AI computing architecture will aid Mercedes to streamline its progress in autonomous driving.

AI in Transportation Market Segment Insights

AI in Transportation Offering Insights

Based on Offering, the AI in Transportation Market segmentation includes (Hardware {CPU, GPU, Sensors, Others}, Services, Software {AI Platforms, AI Solutions}). Hardware will be the majority share in 2022, contributing around 48.2% to the market revenue. Rapid advancements in technology have enabled a variety of AI applications across industry verticals, one of which is transportation. However, every software application developed requires suitable hardware that forms a base to perform cognitive functions. Hardware components used in AI for transportation mainly consists of sensors, CPUs, GPUs, and others.

FIGURE 2: AI IN TRANSPORTATION MARKET, BY Offering, 2022 VS 2032 (USD BILLION)

AI IN TRANSPORTATION MARKET, BY Offering, 2022 VS 2032 (USD BILLION)

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

AI in Transportation IoT Communication Technology Insights

Based on the IoT Communication Technology, the AI in Transportation Market segmentation is Cellular, LPWAN, LoRaWAN, Z-Wave, Zigbee, NFC, Bluetooth, Others. Cellular dominated the market in 2022. Cellular IoT technology for AI in the transportation market refers to incorporating artificial intelligence (AI) technologies into the cellular Internet of Things (IoT) ecosystem within the transportation industry. The cellular IoT technology allows devices and systems, such as vehicles, traffic lights, surveillance cameras, and infrastructure, to be connected and communicate using wireless cellular networks.

This connectivity enables data collection, real-time monitoring, and control of various aspects of transportation. With the integration of AI, cellular IoT technology can enhance the efficiency, safety, and overall performance of transportation systems. AI algorithms and machine learning models can analyse the vast data from IoT devices to make intelligent decisions and predictions in real time.

AI in Transportation Application Insights

Based on Application, the AI in Transportation Market segmentation includes Autonomous Truck, Semi-autonomous Truck, Truck Platooning, Human-Machine Interface (HMI), Predictive Maintenance, Precision & Mapping, Traffic Detection, Computer Vision-Powered Parking Management, Road Condition Monitoring, Automatic Traffic Incident Detection, Driver Monitoring, Others. The Predictive Maintenance held the majority share in 2022. Breakdown of vehicles may cause several annoying situations for an organization causing major delays in delivering goods, expensive repairs, and financial losses. Predictive maintenance may overcome this problem with data-driven insights designed with the help of algorithms and machine learning techniques. This system predicts when the parts will fail, based on the historical performance data gathered from the sensing technologies and other information to preventively manage the fleets and reduce the vehicle breakdown and cost required for heavy maintenance repairs.

AI in Transportation Machine Learning Technology Insights

Based on Machine Learning Technology, the AI in Transportation Market segmentation includes Deep Learning, Computer Vision, Natural Language Processing, Context Awareness. Computer Vision segment dominates the market in 2022 contributing 33.7% of total market share. Computer vision technology involves a high-performance computing system that interprets and gains knowledge from the graphical content generated and identified by the camera system enabled with deep learning models. With this, the organization can improve traffic management, driver and passenger safety, monitor & control criminal activities on-board, and asset protection.

AI in Transportation Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, Middle East and Africa and South America. The North America AI in Transportation market accounted for ~39.8% in 2022. North America is likely to be the largest contributor to the AI transportation market. This includes the US, Canada, and Mexico. Some of the factors responsible for the growth of the market include the rising need for enhanced operational efficiency and increasing adoption to enhance driver and vehicle. Moreover, the presence of established players such as Intel Corporation, Microsoft Corporation, IBM Corporation, Magna International Inc. is one of the factors driving the growth of the regional market.

Canada is likely to follow the US in terms of regional market share. The growth of the regional market can be attributed to the increasing need for vehicle safety in autonomous vehicles and achieving operational efficiency. For instance, in November 2020, The Magna International launched Gen5 โ€œone-boxโ€ solution is a Mobileye EyeQ5-based systemโ€”one of the industryโ€™s first where the forward-facing camera and related software are contained in a single assembly.

FIGURE 3: AI IN TRANSPORTATION MARKET SIZE BY REGION 2022 VS 2032

AI IN TRANSPORTATION MARKET SIZE BY REGION

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, South Korea, and Brazil.

AI in Transportation Key Market Players & Competitive Insights

The global market for AI in transportation has witnessed significant growth over the forecast period due to the growing need for enhanced vehicle safety. There are several domestic, regional, and global players operating in the AI in transportation market who continuously strive to gain a significant share of the overall market. During the study, MRFR has analyzed some of the major players in the AI in Transportation Market who have contributed to the market growth. These include Siemens Mobility, Nvidia Corporation, NEC Corporation, Huawei Technologies Co. Ltd, Valeo, Daimler AG, Scania, Continental AG, Magna International Inc., Intel Corporation, IBM Corporation, AB Volvo, Microsoft, Robert Bosch GmbH, and ZF Friedrichshafen AG.

Among these, Robert Bosch GmbH, Continental AG, Daimler AG, Nvidia Corporation, and ZF Friedrichshafen AG are among the top 5 players in the AI in Transportation Market. These players focus on expanding and enhancing their product portfolio and services to remain competitive and increase their customer base. Additionally, these players are focusing on partnerships & collaborations to expand their business and customer base to enhance their market position.

Key Companies in the AI in Transportation market include

  • Siemens Mobility
  • Huawei Technologies Co.,Ltd.
  • Intel Corporation
  • NEC Corporation
  • Microsoft
  • IBM
  • Robert Bosch GmbH
  • Valeo
  • Daimler AG
  • Scania AB
  • Continental AG
  • Magna International Inc.
  • Volvo
  • ZF Friedrichshafen AG
  • Nvidia

AI in Transportation Industry Developments

  • Q2 2024: Waymo expands autonomous trucking partnership with J.B. Hunt Waymo announced an expanded partnership with J.B. Hunt Transport Services to deploy autonomous trucks for freight hauling in Texas, marking a significant step in commercializing AI-driven logistics solutions.
  • Q2 2024: Aurora Innovation secures $820 million in new funding to accelerate self-driving truck rollout Aurora Innovation raised $820 million in a new funding round to support the commercial launch of its autonomous trucking platform, with participation from major institutional investors.
  • Q3 2024: Volvo Group and Nvidia launch next-generation AI-powered autonomous truck platform Volvo Group and Nvidia unveiled a new AI-based platform for autonomous trucks, aiming to enhance safety and efficiency in long-haul freight operations through advanced machine learning and sensor fusion.
  • Q2 2024: Cruise wins California approval to expand autonomous vehicle testing to commercial delivery Cruise received regulatory approval from California authorities to begin using its autonomous vehicles for commercial delivery services, expanding its AI-driven transportation offerings beyond passenger rides.
  • Q3 2024: Tesla appoints new VP of AI for Autopilot and Full Self-Driving division Tesla announced the appointment of a new Vice President of AI to lead its Autopilot and Full Self-Driving teams, signaling a renewed focus on advancing AI capabilities in its transportation products.
  • Q2 2024: Daimler Truck opens new AI research center in Berlin Daimler Truck AG inaugurated a dedicated AI research facility in Berlin to accelerate the development of intelligent transportation systems and autonomous vehicle technologies.
  • Q3 2024: Mobileye and Volkswagen announce partnership for AI-powered urban mobility pilot in Hamburg Mobileye and Volkswagen launched a pilot program in Hamburg to deploy AI-powered autonomous shuttles for public transportation, aiming to gather data and refine urban mobility solutions.
  • Q2 2024: Amazon acquires AI logistics startup Vimaan to boost warehouse automation Amazon completed the acquisition of Vimaan, a startup specializing in AI-driven logistics and warehouse automation, to enhance its supply chain efficiency and transportation network.
  • Q3 2024: Hyundai Motor launches AI-based smart traffic management system in Seoul Hyundai Motor introduced a city-wide AI-powered traffic management system in Seoul, designed to optimize traffic flow and reduce congestion using real-time data analytics.
  • Q2 2024: Nuro secures $600 million contract to deploy autonomous delivery vehicles for major US retailer Nuro announced a $600 million contract with a leading US retailer to deploy its AI-powered autonomous delivery vehicles across multiple states, expanding its footprint in last-mile transportation.
  • Q3 2024: Einride opens first US remote operations center for electric, autonomous freight Einride opened its inaugural US remote operations center to support the deployment and monitoring of its AI-driven electric and autonomous freight vehicles.
  • Q2 2024: TuSimple receives USDOT approval for fully driverless truck operations on public roads TuSimple announced it has received approval from the US Department of Transportation to operate fully driverless trucks on public highways, marking a regulatory milestone for AI in transportation.

AI in Transportation Market Segmentation

AI in Transportation Offering Outlook

  • Hardware

    • CPU

    • GPU

    • Sensors

    • Others

  • Services

    • Software

    • AI Platforms

    • AI Solutions

AI in Transportation IoT Communication Technology Outlook

  • Cellular
  • LPWAN
  • LoRaWAN
  • Z-Wave
  • Zigbee
  • NFC
  • Bluetooth
  • Others

AI in Transportation Application Areas Outlook

  • Autonomous Truck
  • Semi-autonomous Truck
  • Truck Platooning
  • Human-Machine Interface (HMI)
  • Predictive Maintenance
  • Precision & Mapping
  • Traffic Detection
  • Computer Vision-Powered Parking Management
  • Road Condition Monitoring
  • Automatic Traffic Incident Detection
  • Driver Monitoring
  • Others

AI in Transportation Machine Learning Technology Outlook

  • Deep Learning
  • Computer Vision
  • Natural Language Processing
  • Context Awareness

AI in Transportation Regional Outlook

  • North America

    • US

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • Japan

    • India

    • Rest of Asia-Pacific

  • Middle East & Africa

    • South America

Report Attribute/Metric Details
Market Size 2023 USD 2402.1 Million
Market Size 2024 USD 2745.6 Million
Market Size 2032 USD 6118.7 Million
Compound Annual Growth Rate (CAGR) 10.54% (2024-2032)
Base Year 2023
Market Forecast Period 2024-2032
Historical Data 2019- 2021
Market Forecast Units Value (USD Million)
Report Coverage Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends
Segments Covered Offering, Application, IoT Communication Technology, Machine Learning Technology and Region
Geographies Covered Europe, North America, Asia-Pacific, Middle East & Africa, and South America
Countries Covered The US, Germany, Canada, UK., Italy, France, Spain, Japan, China, Australia, India, South Korea, Brazil, and others.
Key Companies Profiled ยทSiemens Mobility, Huawei Technologies Co. Ltd., Intel Corporation, NEC Corporation, Microsoft, IBM, Robert Bosch GmbH, Valeo, Daimler AG, Scania AB, Continental AG, Magna International Inc., Volvo, ZF Friedrichshafen AG, Nvidia
Key Market Opportunities ยทIncreasing Demand For AI Solutions In Railway Cargo Transportation
Key Market Dynamics ยทRising need for enhanced operational efficiencyยทย ย ย ย ย ย  Increasing focus on enhancing driver and vehicle safety


Frequently Asked Questions (FAQ):

The AI in Transportation Market size is expected to be valued at USD 2402.1 Million in 2023.

The global market is projected to grow at a CAGR of 10.54% during the forecast period, 2024-2032.

North America had the largest share of the global market.

The key players in the market are Siemens Mobility, Nvidia Corporation, NEC Corporation, Huawei Technologies Co. Ltd, Valeo, Daimler AG, Scania, Continental AG, Magna International Inc., Intel Corporation, IBM Corporation, AB Volvo, Microsoft, Robert Bosch GmbH, and ZF Friedrichshafen AG.

The Hardware category dominated the market in 2022.

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