Artificial Intelligence in Transportation Market Report 2031 by Segments, Geography, Dynamics, Recent Developments, and Strategic Insights

The artificial intelligence in transportation market is expected to register a CAGR of 16.5% during 2023–2031. Advancements in machine learning technology and the integration of AI in vehicles is likely to remain a key trend in the market.

Artificial Intelligence in Transportation Market Analysis

• The transportation AI market is witnessing enormous growth owing to the rising consumption of AI in the transportation industry. Owing to increasing AI advancement in automation technologies, consumption of learning technology automation has drastically increased.
• This is supported by integration of product innovation is projected to drive the growth of the demand for AI in transportation in upcoming years. Also, owing to advancement of autonomous vehicles with intelligent integrated features, the transportation AI market is set to witness exponential growth across the globe in the upcoming years and North America is expected to continue its lead as the largest segment in the transportation AI market.
• The AI ​​in transportation market across the globe is also being backed by an increase in the investments in autonomous trucks and regulatory developments. This makes the transportation AI market highly lucrative for stakeholders to reap benefits from the immense potential of AI in transportation market.

Artificial Intelligence in Transportation Market Overview

• The artificial intelligence in transportation market is projected to exhibit significant growth over the coming years. The huge intake of AI technologies in the transportation sector has been the major factor contributing to the growth of the artificial intelligence in transportation market. Autonomous vehicles, automation technology, parking and lane changing aids, intelligent energy systems and more are some of the must-adopt technologies in the transportation industry since their provision enables companies to save time and cost.
• Safety and security play a vital role in attracting consumers and it is one of the primary drivers of the artificial intelligence market for transportation. In today’s world, manufacturers are under pressure to reduce operating costs. Business organisations are shifting focus from pipedreams to practical applications and learning how critical AI in transportation is to reducing costs and improving efficiency, a move that is anticipated to drive the growth of the AI in transportation market.

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Artificial Intelligence in Transportation Market: Strategic Insights

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Artificial Intelligence in Transportation Market Drivers and Opportunities

The Demand for AI in Transportation Owing to the Advancement in Automation Technology to Favor the Market

• The increasing demand for artificial intelligence in transportation is mainly due to the advancements in automation technologies. These technologies are leading to an increasing use of artificial intelligence across the transportation domain.
• Some of the main factors that are driving the market include the adoption of advanced technologies like computer vision and machine learning, for instance, smarter technologies are monitoring and redesigning the future of transport, prioritising passengers’ safety, reducing road accidents and traffic congestion; Big Data and machine learning to improve the safety standards and operational efficiency. For instance, AI-based solutions reduce the number of road accidents, improve traffic management and safety measures.
•  In addition, automation and efficiency are two major factors accounting for the increasing demand for AI in transportation. One aspect is about AI as a technology that can help automate and improve routine business activities in transportation.

The Concept of Truck Platooning 

• The increasing level of autonomy in transportation is a growth opportunity for AI – transportation market AI technologies can be the game changer in autonomous vehicles by simultaneously assisting human and machine drivers with Tesla autopilot. To provide this assistance, all forms of autonomous vehicles must first be equipped with advanced AI technologies allowing them to ‘see’ situations on the road, understand corresponding actions (such as hand directions and signs), and respond to those situations. The use of AI-generated rules and behaviours is a key enabling technology that allows vehicles to function autonomously.
•  Also, AI is expected to enable advanced decision-making systems to traverse traffic in a streamlined way, and to plan routes more easily. In addition, highly intelligent autonomous traffic management solutions can increase the fluidity and reliability of transport systems. With such elements coming into play, we can look forward to a seamless transport experience.

Artificial Intelligence in Transportation Market Report Segmentation Analysis

Key segments that contributed to the derivation of the Artificial intelligence in transportation market analysis are machine learning technology, application, and process.

• Based on machine learning technology, the artificial intelligence in transportation market is divided into deep learning, compute vision, and others.
• On the basis of application, the market is divided into semi-autonomous vehicles, autonomous vehicles, HMI, and others.
• Based on process, the artificial intelligence in transportation market is divided into data mining, image recognition, and signal recognition.

Artificial Intelligence in Transportation Market Share Analysis by Geography

• Artificial intelligence in transportation market Report comprises a detailed analysis of five major geographic regions, which includes current and historical market size and forecasts for 2021 to 2031, covering North America, Europe, Asia-Pacific (APAC), Middle East and Africa (MEA), and South America.
• Each region is further sub-segmented into respective countries. This report provides analysis and forecasts of 18+ countries, covering Artificial intelligence in transportation market dynamics such as drivers, trends, and opportunities that are impacting the markets at the regional level.
• Also, the report covers PEST analysis, which involves the study of major factors that influence the Artificial intelligence in transportation market in these regions.

Artificial Intelligence in Transportation Market Regional Insights

The regional trends and factors influencing the Artificial Intelligence in Transportation Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Artificial Intelligence in Transportation Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.

Artificial Intelligence in Transportation Market Report Scope

Artificial Intelligence in Transportation Market Players Density: Understanding Its Impact on Business Dynamics

The Artificial Intelligence in Transportation Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.

Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.

Major Companies operating in the Artificial Intelligence in Transportation Market are:

1. Accenture PLC
2. Amazon Web Services, Inc.
3. door2door GmbH
4. General Electric Company
5. IBM Corporation

Disclaimer: The companies listed above are not ranked in any particular order.

Artificial Intelligence in Transportation Market News and Recent Developments

The Artificial intelligence in transportation market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the Artificial intelligence in transportation market are listed below:

• Amazon.com, Inc. introduced new AI powered technology that will inspect delivery vans and helps keep drivers safe. (Source: Amzaon.com, Inc., Press Releases, Company Website, October 2023)
• The Department of Transportation allocated US$ 15 million in federal funding for small businesses for taking advantage of AI systems and new applications for the US transportation sector. (Source: The Department of Transportation, Government Website)
• Windracers, a U.K.-based global cargo vehicle operator, partners with Purdue as founding member of Center on AI for Digital, Autonomous and Augmented Aviation. This partnership aimed at innovation of tomorrow’s mode of autonomous aviation transportation. (Source: Purdue University, University Website, April 2024)

Artificial Intelligence in Transportation Market Report Coverage and Deliverables

The “Artificial intelligence in transportation market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Artificial intelligence in transportation market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Artificial intelligence in transportation market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST/Porter’s Five Forces and SWOT analysis
• Artificial intelligence in transportation market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Artificial intelligence in transportation market
• Detailed company profiles