Global Artificial Intelligence (AI) in Transportation Market 2023-2030

Global Artificial Intelligence (AI) in Transportation Market 2023-2030

Global AI in Transportation Market Size, Share & Trends Analysis Report by Offering (Hardware and Software), by Process (Signal Recognition, Object Recognition, and Data Mining), and by Application (Traffic Management, Road Safety and Security, Parking Management, Automotive Telematics and Other), Forecast Period (2024-2031)

The global AI in transportation market is anticipated to grow at a CAGR of 12.1% during the forecast period (2024-2031). The growing adoption of generative AI with improving machine learning models is the key factor supporting the growth of the market globally. The impact of generative AI in the connected transportation landscape has been recognized in data intelligence and AI, leveraging artificial intelligence and machine learning models. The market players are also focusing on introducing AI-based generative solutions in transportation that further bolster the market growth. For instance, in June 2023, Geotab Inc. announced that it introduced generative AI models into its platform by setting a new machine learning models in the connected transportation industry. By increasing the standard for connected transportation by giving participating consumers easy access to on-demand information about the efficiency, sustainability, and performance of their vehicles.

Segmental Outlook

The global AI in transportation market is segmented on the offering, process, and application. Based on the offering, the market is sub-segmented into hardware and software. Based on the process, the market is sub-segmented into signal recognition, object recognition, and data mining. Further, based on application, the market is sub-segmented into traffic management, road safety and security, parking management, automotive telematics, and other applications (license plate recognition). Among the offerings, the software sub-segment is anticipated to hold a considerable share of the market owing to the development of advanced software for predictive fleet maintenance using IoT and AI technologies.

The Automotive Telematics Sub-Segment is Anticipated to Hold a Considerable Share of the Global AI in Transportation Market

Among the applications, the automotive telematics sub-segment is expected to hold a considerable share of the global AI in the transportation market. The segmental growth is attributed to the increasing adoption of AI-based integrated solutions for transportation fleet operators. Transportation fleet operators convert their fleets into energy and mixed fuel operations and work to improve compliance, productivity, and safety. For instance, in October 2023, Teletrac Navman US Ltd. launched TN360 Transport– an AI-based integrated solution focused on the needs of the transport industry. The platform provides a wide range of effective features that are intended to improve fleet operations' sustainability, assure compliance standards, expedite operations, and improve safety.

Regional Outlook

The global AI in transportation market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). Among these, Asia-Pacific is anticipated to hold a prominent share of the market across the globe, owing to the growing adoption of AI in transportation to minimize traffic congestion, increase passenger safety, and reduce the risk of accidents.

The North America Region is Expected to Grow at a Significant CAGR in the Global AI in Transportation Market

Among all regions, the North American region is anticipated to grow at a considerable CAGR over the forecast period. Regional growth is attributed to the growing adoption of AI-based technology to optimize transportation and improve the overall efficiency of the transportation system. Market players provide technology-based transportation solutions by improving road safety, optimizing traffic signal timing, enhancing last-mile delivery, and providing market insights. For instance, in November 2023, INRIX, Inc. launched INRIX Compass, an innovative AI-powered technology for transportation intelligence. Compass employs generative artificial intelligence (GenAI) and INRIX's roughly 50-petabyte data lake to identify root causes, provide proactive recommendations, and effectively handle transportation-related issues.

Market Players Outlook

The major companies serving the global AI in the transportation market include AltexSoft Inc., Aurora Innovation Inc., General Motors, Intel Corp., NVIDIA Corp., and others. The market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in June 2021, Cubic Corp. announced its Cubic Transportation Systems (CTS) business division partnership with CVEDIA scale deep learning models for GRIDSMART omnidirectional cameras and other intelligent transportation systems (ITS) solutions.

The Report Covers

Market value data analysis of 2023 and forecast to 2031.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global AI in transportation market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.