Global Artificial Intelligence in Transportation and Logistics Market Size, Share & Trends Analysis Report, By Components, By Application, By Region Forecasts, 2023 - 2030

Global Artificial Intelligence in Transportation and Logistics Market Size, Share & Trends Analysis Report, By Components, By Application, By Region Forecasts, 2023 - 2030

Global Artificial Intelligence in Transportation and Logistics Market was valued at US $ 2.8 Billion in 2022 and is expected to reach US $ 15.2 Billion by 2030 growing at a CAGR of 23.4% during the forecast period 2023 – 2030.

The application of artificial intelligence technologies in the transportation and logistics industry is included in the artificial intelligence (AI) in transportation and logistics market, which is also sometimes referred to as the AI in transportation and logistics market. The development, integration, and application of AI-powered systems and solutions to improve road, rail, aviation, and maritime logistics, as well as supply chain management and warehouse operations, are the main areas of focus for this market. AI in transportation and logistics refers to the application of sophisticated algorithms, automation, machine learning, and predictive analytics to enhance workflows and boost productivity along the whole logistical chain. Route optimisation, predictive maintenance, autonomous cars, real-time tracking, demand forecasting, inventory management, and last-mile delivery services are a few of the important applications in this business.

The market for artificial intelligence (AI) in logistics and transportation is expanding rapidly, driven mainly by the growing need for economical and effective transportation solutions. The need for logistics and transportation systems that can deliver goods and services more quickly, precisely, and affordably is growing as the world's economies expand. AI has shown itself to be a crucial enabler in meeting these goals. Businesses may optimise their logistics operations, route planning, and fuel consumption by utilising AI's predictive and optimisation skills, which can lead to significant cost savings. Furthermore, the transportation industry benefits from AI's ability to improve supply chain management, predictive maintenance, and real-time decision-making, which guarantees smooth cargo movement and little downtime.

“Software segment, by component, to be dominating market from 2023 to 2030.”

With a market share of more than 48.72%, the software sector commands the leading position in the AI in transportation and logistics industry. In the meantime, the rapidly increasing use of AI-enabled devices and sensors is expected to propel the hardware segment's quick expansion in the near future. The necessity for AI-driven software solutions in fields like supply chain optimisation, fleet management, and predictive maintenance is what's driving the software component's growth. Simultaneously, the hardware category is growing at a steady rate of 24.65% CAGR due to the growing use of AI-enabled devices and sensors, such as radar, LiDAR, and cameras, which are essential for gathering data for AI algorithms. The growing need for AI-powered consultancy, installation, training, and support services is another reason why the services sector is expanding.

“Route optimization and scheduling segment, by application, to be dominating market from 2023 to 2030.”

Route optimisation and scheduling is leading the Artificial Intelligence (AI) in Transportation and Logistics Market with a substantial market share of 26.7% in 2023. The necessity of supply chain optimisation and cost reduction is driving the rise of route optimisation and scheduling. Artificial Intelligence (AI) becomes a crucial instrument, able to analyse traffic data in real-time, weather patterns, and vehicle characteristics to optimise schedules and routes. This improvement produces noticeable efficiencies by reducing fuel usage and shortening delivery times. With a 20.34% CAGR, predictive maintenance is a rapidly expanding competitor as a result of businesses using AI to predict equipment failures. Businesses can avoid expensive downtime by using this kind of foresight, which improves overall operational efficiency.

“North America to be largest region in Artificial Intelligence in Transportation and Logistics market.”

Leading the way, North America will hold a sizable market share of 33.5% in 2023. North America has a long history of innovation in the transportation and logistics industry, which contributes to its leadership in this field. The area is home to several globally recognised logistics and transportation companies, which creates an ideal environment for the development of AI solutions tailored to the particular requirements of the sector. Businesses in North America were among the first to use AI in logistics and transportation. To cut expenses, boost customer service, optimise supply chains, and plan routes better, they have invested in AI-based solutions.

Artificial Intelligence in Transportation and Logistics Competitive Landscape

The competitive landscape of the Artificial Intelligence in Transportation and Logistics market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Artificial Intelligence in Transportation and Logistics technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Artificial Intelligence in Transportation and Logistics market is highly competitive, with numerous companies vying for market share. Prominent companies in the Artificial Intelligence in Transportation and Logistics Market include:

Google AI, Microsoft Azure, IBM Watson, Amazon Web Service, Intel AI, NVIDIA AI, Bosch, Uber, FesEx, Siemens, UPS, Deutsche Post, JCB, Komatsu, Volvo Group, CNH Industrial, Scania AB, Daimler AG, Robert Bosch GmbH, Continental AG, and others.

Recent Developments:

Google AI and Waymo announced their joint venture to progress the autonomous trucking industry on January 10, 2023. Through this agreement, Waymo's autonomous driving technology will be used for decision-making related to starting and stopping as well as interactions with other vehicles and pedestrians. Google AI's machine learning technology will be utilised for road navigation.

Amazon Logistics Route Optimizer, a cutting-edge AI-powered tool, was unveiled on March 8, 2023. This application uses machine learning to optimise delivery routes by utilising real-time weather and traffic data. This optimisation improves Amazon's logistical efficiency by cutting fuel use and delivery delays.

FedEx and IBM partnered on May 11, 2023, to introduce artificial intelligence (AI)-driven supply chain management solutions. FedEx will utilise IBM's Watson AI platform to analyse data from its vast network of trucks, aeroplanes, and warehouses. Optimising supply chain processes, cutting expenses, and improving customer service are the objectives.

UPS unveiled the UPS Delivery Assistant, a ground-breaking AI-powered tool, on July 12, 2023. In order to find any safety issues and enhance driver behaviour, this system applies machine learning to examine data from UPS's fleet of trucks and drivers.

Deutsche Post and Microsoft announced their partnership to develop AI-powered logistics solutions on September 14, 2023. These solutions will analyse data from Deutsche Post's vast network of post offices by utilising the capabilities of the Microsoft Azure cloud computing platform.