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    India AI in Transportation Market

    ID: MRFR/ICT/57099-HCR
    200 Pages
    Aarti Dhapte
    September 2025

    India AI in Transportation Market Research Report By Offering (Hardware, Services, Software), 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 Monitoring, Others), and By Machine Learning Technology (De...

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    India AI in Transportation Market Summary

    The India AI in Transportation market is projected to grow from 192.5 USD Million in 2024 to 520 USD Million by 2035.

    Key Market Trends & Highlights

    India AI in Transportation Key Trends and Highlights

    • The market is expected to experience a compound annual growth rate (CAGR) of 9.45% from 2025 to 2035.
    • By 2035, the market valuation is anticipated to reach 520 USD Million, indicating robust growth potential.
    • In 2024, the market is valued at 192.5 USD Million, reflecting the increasing integration of AI technologies in transportation.
    • Growing adoption of AI technologies due to the need for enhanced operational efficiency is a major market driver.

    Market Size & Forecast

    2024 Market Size 192.5 (USD Million)
    2035 Market Size 520 (USD Million)
    CAGR (2025-2035) 9.45%

    Major Players

    Tech Mahindra, Infosys, Ola Electric, LocoNav, MapmyIndia, Ather Energy

    India AI in Transportation Market Trends

    Government programs aiming at digital transformation and smart city projects are driving the notable growth of the India AI in Transportation Market. The National AI Strategy's launch places a strong emphasis on incorporating AI into a number of industries, including transportation.

    In order to improve the effectiveness of logistics and public transportation systems, this drive encourages the development of autonomous vehicles, predictive maintenance, and route optimisation. India's fast urbanisation is another major factor driving the industry, raising demand for cutting-edge transit options that may reduce traffic and enhance security.

    AI-driven solutions, such as intelligent public transport applications and traffic control systems, are emerging to efficiently address these issues as cities expand. Furthermore, India offers a significant chance for AI solutions to flourish due to the country's growing smartphone usage and adoption of digital payments.

    Businesses can utilise AI to improve user experience, maximise ridesharing alternatives, and provide individualised transport services as more people rely on smartphone apps for transportation. Another trend that has gained popularity recently is the expansion of public-private sector partnerships, which has led to joint initiatives to develop and implement AI technology in transportation infrastructure.

    In keeping with the government's emphasis on improving commuter security, AI-based monitoring technologies are also being incorporated to guarantee safety and lower crime in public transport. All things considered, the industry is expected to grow steadily, with new technologies and rising demand for more intelligent transportation options influencing its future in India.

    Market Segment Insights

    India AI in Transportation Market Segment Insights

    India AI in Transportation Market Segment Insights

    AI in Transportation Market Offering Insights

    AI in Transportation Market Offering Insights

    The India AI in Transportation Market, categorized under the Offering segment, presents a dynamic landscape, integrating advanced technological solutions into the transportation sector. The market growth is underpinned by the increasing need for efficient transportation solutions, driven by the rapid urbanization and population growth in India.

    The transition towards smart transportation systems is prominent, emphasizing innovative hardware that is pivotal for enhancing vehicle automation and connectivity. Robotics and sensors, comprising essential components, facilitate real-time data processing and decision-making.

    In addition to hardware, the role of services in the India AI in Transportation Market cannot be understated. With a growing focus on developing intelligent transportation applications, service providers are increasingly involved in delivering data analytics, predictive maintenance, and fleet management solutions.

    These services are crucial in helping companies optimize route planning, reduce operational costs, and improve safety. They leverage machine learning algorithms to analyze traffic patterns and predict potential disruptions, which significantly enhance the overall efficiency of transportation systems.

    AI in Transportation Market IoT Communication Technology Insights

    AI in Transportation Market IoT Communication Technology Insights

    The IoT Communication Technology segment within the India AI in Transportation Market showcases a robust framework supporting diverse sub-segments such as Cellular, LPWAN, LoRaWAN, Z-Wave, Zigbee, NFC, and Bluetooth. Cellular technology is pivotal for delivering real-time data and connectivity across vast urban and rural ecosystems, significantly enhancing transport efficiency.

    LPWAN stands out for its low power consumption over long distances, making it ideal for smart city applications and logistics tracking. LoRaWAN, with its focus on long-range wireless communication, plays a significant role in IoT devices, while Z-Wave and Zigbee contribute to home automation and smart infrastructure integration.

    The flexibility and energy efficiency of NFC are crucial for cashless transactions and smart ticketing solutions in transportation. Bluetooth technology bridges user devices with transportation networks, ensuring seamless experience.

    The India AI in Transportation Market revenue from this segment is critical in driving innovation, addressing urban congestion, and improving safety and efficiency through interconnected transport systems. With steady market growth, the emphasis on smart technology and infrastructure in India continues to propel this sector, presenting numerous opportunities for stakeholders.

    AI in Transportation Market Application Insights

    AI in Transportation Market Application Insights

    The Application segment of the India AI in Transportation Market encompasses a diverse range of technologies aimed at improving efficiency, safety, and operational capabilities in the transportation sector. Significant focus has been on Autonomous Trucks and Semi-autonomous Trucks, which are transforming logistics by enabling faster and safer freight deliveries across the nation.

    Truck Platooning, which involves a group of trucks traveling closely together leveraging autonomous driving technology, is another area gaining attention due to its potential to enhance fuel efficiency and reduce road congestion. Technologies such as Human-Machine Interface (HMI) are critical for ensuring seamless interaction between drivers and AI systems, enhancing user experience and operational safety.

    Predictive Maintenance plays a vital role in minimizing downtime and maintenance costs by leveraging AI to foresee potential vehicle failures, while Precision and Mapping technologies contribute to the accurate navigation and optimization of routes, proving particularly important in India's densely populated urban areas.

    Additionally, Traffic Detection and Computer Vision-Powered Parking Management systems are helping to streamline urban traffic flow and parking solutions, addressing the growing concern of urban congestion.

    AI in Transportation Market Machine Learning Technology Insights

    AI in Transportation Market Machine Learning Technology Insights

    The Machine Learning Technology segment plays a pivotal role in the India AI in Transportation Market, significantly enhancing operational efficiencies and safety measures within the industry.

    As the market evolves, technologies such as Deep Learning, Computer Vision, Natural Language Processing, and Context Awareness contribute to the sophisticated capabilities of transportation systems across India. Deep Learning, for instance, enables more accurate predictions and decision-making in logistics and traffic management, facilitating timely and efficient service.

    Computer Vision is crucial for applications like automated vehicle guidance and real-time monitoring, improving safety and reducing accidents on the road. Natural Language Processing enhances driver and passenger interactions with smart transportation systems, making communication seamless and more efficient.

    Meanwhile, Context Awareness empowers systems to adapt to varying environments and user needs, ensuring a smarter, user-friendly public transport experience.

    Get more detailed insights about India AI in Transportation Market Research Report - Forecast to 2035

    Key Players and Competitive Insights

    The India AI in Transportation Market is experiencing rapid growth driven by advancements in artificial intelligence technologies and increased demand for enhanced operational efficiency in the transportation sector. As the country embraces digitalization, various stakeholders, including logistics providers, public transport authorities, and automotive manufacturers, are actively integrating AI solutions.

    The competitive landscape is characterized by a mix of established automotive giants and emerging technology firms that are striving to harness AI capabilities to optimize routes, manage fleets, and improve safety measures.

    Companies are investing in research and development to stay ahead in this dynamic market, focusing on innovations that can cater to evolving customer needs and regulatory requirements. Additionally, partnerships and collaborations within the industry are becoming more prevalent as firms seek to combine expertise and resources in AI to enhance their product offerings.

    Moreover, the organization has focused on understanding the specific needs of the Indian market, allowing it to tailor its solutions effectively. This localized approach, combined with a reputation for reliability and quality, has solidified the company's position within the competitive landscape of the AI transportation sector in India.

    Tech Mahindra, a prominent player in the India AI in Transportation Market, offers a range of cutting-edge solutions tailored to address the unique challenges of the transportation industry. The company's services encompass AI-driven data analytics, intelligent transportation systems, and smart mobility solutions, positioning it as a key enabler of innovation.

    Tech Mahindra's strengths include its vast expertise in software development and its established presence in various transportation domains, allowing it to cater to a diverse clientele. The company has engaged in several strategic partnerships and collaborations that enhance its portfolio and market reach, facilitating the integration of AI technologies into existing transportation frameworks.

    Notably, Tech Mahindra's commitment to research and development has positioned it favorably, enabling the company to stay ahead of competitors while continuously evolving its product offerings to meet the demands of the Indian transportation sector.

    The combination of a solid market presence, innovative solutions, and strategic initiatives underscores Tech Mahindra's role in shaping the future of AI in transportation in India.

    Key Companies in the India AI in Transportation Market market include

    Industry Developments

    The 5G Automotive Association and the ITS India Forum collaborated in February 2025 to promote Vehicle-to-Everything (V2X) connection solutions, emphasising the use of AI to improve traffic safety, tolling, and congestion control.

    With the launch of its TrackEi onboard train inspection system in April 2025, L&T Technology Services (LTTS) greatly increased rail safety by utilising high-resolution cameras, laser sensors, and NVIDIA Jetson edge computing to identify track flaws in real time at speeds exceeding 100 km/h. Reliance and Qualcomm-backed Netradyne, an AI fleet safety startup, enrolled over 450,000 cars worldwide in May 2025.

    The firm uses AI-powered cameras and sensors to track driver behaviour and lower accident rates. With AI-enabled signals, ANPR, and real-time management capabilities, Nagpur Municipal Corporation started implementing its Integrated Intelligent Traffic Management System in August 2024; however, full enforcement is still pending certification.

    Furthermore, the Indian Ministry of Road Transport and Highways said in October 2024 that expert committees will be implementing AI-driven solutions for automated penalty enforcement, satellite-based tolling, and traffic monitoring. When taken as a whole, these achievements show a strong push to incorporate AI into India's road, rail, and urban mobility systems.

    Market Segmentation

    Outlook

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

    Report Scope

     
    Report Attribute/Metric Source: Details
    MARKET SIZE 2023 173.6(USD Million)
    MARKET SIZE 2024 192.5(USD Million)
    MARKET SIZE 2035 520.0(USD Million)
    COMPOUND ANNUAL GROWTH RATE (CAGR) 9.455% (2025 - 2035)
    REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
    BASE YEAR 2024
    MARKET FORECAST PERIOD 2025 - 2035
    HISTORICAL DATA 2019 - 2024
    MARKET FORECAST UNITS USD Million
    KEY COMPANIES PROFILED Mahindra & Mahindra, Tech Mahindra, Zebra AI, Nexus Mobility, Infosys, Ola Electric, LocoNav, DriveU, Rivigo, MapmyIndia, Curemetrix, Niramai, Ather Energy, Wipro, Tata Consultancy Services
    SEGMENTS COVERED Offering, IoT Communication Technology, Application, Machine Learning Technology
    KEY MARKET OPPORTUNITIES Autonomous vehicle development, Smart traffic management systems, Predictive maintenance solutions, AI-driven logistics optimization, Enhanced passenger safety technologies
    KEY MARKET DYNAMICS Rising adoption of smart technologies, Government initiatives and funding, Increasing focus on safety, Growing demand for efficiency, Expansion of ride-sharing platforms
    COUNTRIES COVERED India

    FAQs

    What is the expected market size of the India AI in Transportation Market by 2024?

    The expected market size of the India AI in Transportation Market by 2024 is valued at 192.5 million USD.

    What will the market value be by 2035?

    By 2035, the market value of the India AI in Transportation Market is projected to reach 520.0 million USD.

    What is the anticipated compound annual growth rate (CAGR) from 2025 to 2035?

    The anticipated CAGR for the India AI in Transportation Market from 2025 to 2035 is 9.455 percent.

    Which segment of the India AI in Transportation Market is expected to have the highest value by 2035?

    The Services segment is expected to have the highest value at 185.0 million USD by 2035.

    What are the key players in the India AI in Transportation Market?

    Some key players in the India AI in Transportation Market include Mahindra & Mahindra, Tech Mahindra, Ola Electric, and Tata Consultancy Services.

    What is the projected market size for the Software segment by 2035?

    The projected market size for the Software segment in the India AI in Transportation Market by 2035 is 185.0 million USD.

    What are the anticipated growth drivers for the India AI in Transportation Market?

    Anticipated growth drivers for the market include the increasing integration of AI technologies in transportation systems and rising demand for intelligent transportation solutions.

    How is the Hardware segment valued for the year 2024?

    The Hardware segment is valued at 57.5 million USD in the year 2024.

    What challenges does the India AI in Transportation Market face?

    Challenges faced by the market include infrastructure limitations and regulatory hurdles surrounding AI technologies.

    What impact might current global scenarios have on the India AI in Transportation Market?

    Current global scenarios could influence supply chain dynamics and innovation rates within the India AI in Transportation Market.

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