Artificial Intelligence in Transportation Market Size, Share, and Trends 2024 to 2034

Artificial Intelligence in Transportation Market Size and Forecast 2024 to 2034

The global artificial intelligence in transportation market size is estimated at USD 4.50 billion in 2024 and is anticipated to reach around USD 34.83 billion by 2034, expanding at a CAGR of 22.70% from 2024 to 2034.

Artificial Intelligence in Transportation Market Key Takeaways

• North America dominated artificial intelligence in transportation market in 2023.
• By offering, the software segment dominated the market in 2023.
• By application, the autonomous truck segment led the market in 2023.

U.S. Artificial Intelligence in Transportation Market Size and Growth 2024 to 2034

The U.S. artificial intelligence in transportation market size is evaluated at USD 1.26 billion in 2024 and is predicted to be worth around USD 9.94 billion by 2034, rising at a CAGR of 22.89% from 2024 to 2034.

The North American region is expected to have a dominant marketplace in the coming years. This region is expected to grow well due to the development of various regulations that ensure safety, compliance as well as accountability. The adoption of such regulations that out of favorable for the growth of the market shall create more demand in the coming year. The HOS Revisions will also be one of the factors driving the growth of the artificial intelligence technology in transportation sector. The strong economic condition of the North American region and the higher mount of disposable income shall be the leading factors for the growth of this industry. In order to ensure the safety of the passengers a few features are made mandatory in the manufacturing of the cars. The manufacturers are providing the vehicles with these features due to which the market for artificial intelligence is expected to grow well in the coming years. As these regions have strong financial condition the investments that come in these technologies are high as compared to any other regions across the globe. Constant research and development activities shall also be helpful in providing better features over the coming years. An investment of about U.S. dollar 20 billion was invested in Mexico in the automotive industry.

In the presence of the strong economy along with the good supply chain and logistics sector shall drive the market in the Asia Pacific region. All of these factors shall be instrumental in the growth of the market in the coming years. the Asia Pacific region will also see a good amount of growth in the coming years due to the increased sale of the trucks in this region. The use of artificial intelligence in these trucks will drive the market growth in the coming years. China and Japan have been the major consumers of these trucks in the past. in the Asia Pacific region Japan is projected to make the maximum use of artificial intelligence in the transportation market over the coming years.

Market Overview

The technology which is used in the manufacturing of the autonomous vehicles is artificial intelligence. It happens to be the only technology that provides real time and reliable recognition of various things around the vehicle and due to which the market for artificial intelligence and transportation will grow during the forecast period. The use of this technology helps in providing better optimization in these autonomous cars. Original equipment manufacturers are making use of this technology to provide efficient vehicles.

The existing infrastructure does not support the growth of this technology in the transportation market. And do to which the use of artificial intelligence for transportation becomes difficult. In many regions across the globe artificial intelligence technology is not used in many transport vehicles. Even though the features provided by the use of this technology are great not many vehicles make use of this technology. Most of the vehicles produced today are not supportive of this technology. But in the developed nations the demand for autonomous vehicles has increased to a great extent in order to ensure the safety of the passengers and the driver due to which the incorporation of this technology shall increase.

Manufacturers are constantly engaging on research and development activities in order to integrate the artificial intelligence technology in these regular vehicles. Let's play during the outbreak of the COVID-19 pandemic there was a negative impact on the growth of this market. This industry faced many challenges due to the recession in the market and major disturbance in its operations. The demand for the vehicles had dropped to a great extent. The manufacturing units had also stopped their production due to the unavailability of raw materials and labor. Artificial intelligence is used in the manufacturing of different types of automobiles trucks etc. As the integration of artificial intelligence in the vehicles is a costly affair the demand for it had reduced during the pandemic. All of these factors had a negative impact on the growth of the market.

Artificial Intelligence in Transportation Market Growth factors

• The various regulations which are imposed by the government in order to ensure the vehicle safety
• The increasing demand for them advanced driver assistance systems across the developed as well as the developing nations
• Increasing demand for the autonomous vehicles
• Increase in the partnership among the manufacturers

The growing demand for the use of artificial intelligence technology and transportation market is due to and increased adoption of road safety features across various automobiles. The government initiatives that have mandated a few safety features in the vehicles shall drive the market growth in the coming years. Growing demand for artificial intelligence is due to its use in the autonomous vehicles. In order to reduce the cases of accidents on the road and the fatalities caused by these accidents there's a growing demand for artificial intelligence and transportation. The integration of this technology in the vehicles helps in reducing the human error due to which most of the road accidents are caused. Road accidents happen to be one of the major reasons for death across the globe. Governments in various nations are adopting this technology and creating an awareness regarding its adoption in order to ensure the safety of the passengers and drivers. This technology improves the efficiency of the driver by sailing warnings on the areas that are accident prone and it also provides updates on the important signs and the upcoming roads. The demand for the autonomous cars is maximum in the developed regions and artificial intelligence technology is inbuilt in these cars. Many consumers prefer these vehicles as they provide better safety. The demand for these cars is growing especially in the aging population. The use of artificial technology also helps in predictive maintenance which ensures warning before the breakdown of the car.

Artificial intelligence technology is expected to grow well in the coming years due to growing demand for deep learning which is a combination of artificial intelligence and machine learning. Other reason for the growth of the market is truck platooning. Artificial intelligence will provide more features in the coming years in the transportation segment. Better opportunities for the growth of the market shall be provided by the integration of various features like signal recognition, voice recognition as well as the integration of various sensors that will help in making driving a better experience.

The use of artificial intelligence and transportation we'll see go to growth in the coming years as various governments are adopting policies and laws relating to the reducing of carbon emissions caused by the vehicles. The use of artificial intelligence helps and reducing the consumption of fuel and due to which this technology shall play an important role in reducing the carbon emissions. Initiatives taken by the government of supportive of the technology and these favorable regulations shall drive the market growth in the coming years. Additional assistance provided by the use of this technology in terms of indicating the roads that have less traffic, shorter distance roads etc. shall be other factors that shall increase the demand for this technology in the coming years.

Market Scope

Offering Insights

The software segment is expected to dominate the market in the coming years. On the basis of the offering the software segment is expected to have a larger market share in terms of revenue during the forecast period. The segment has dominated the market in the past due to the growing demand for software which happens to be your service platform. Software's are also used in the human machine interface applications of the vehicles. The software segment is expected to grow well in the coming years as it is also providing predictive intelligence for the supply chains. It is used in the waterway shipping, railway transport as well as the air carriers.

The use of artificial intelligence helps in managing a few risks by providing solutions. The use of artificial intelligence software's will also be instrumental in reducing the number of breakdowns. Which shall help in reducing the cost of operations and maintenance. The use of this software is also help in a warning or indicating the risks associated with the use of the vehicle in certain conditions. The use of the satellite maps and the digital maps in these systems provide better information about the roads as well as the traffic along the road. The software segment is expected to grow well in the coming years as the demand of the consumers across the globe for the autonomous vehicles is changing continuously.

Application Insights

On the basis of application, the autonomous truck segment is expected to dominate the market in the coming years. The segment had the largest market share in the past and it is expected to grow well in the coming years. The need for these autonomics trucks is expected to grow in the coming years due to the development in the truck industry. There is a growing demand for these drugs for the logistics purposes across various nations in the globe. Trucks play an important role in the transportation of various goods and the demand for them is expected to grow in the coming years.

About 65% transport of the merchandise is done by trucks across the globe. the use of the autonomous trucks shall help in reducing the cost of maintenance and the amount of expenses which are made on these drugs. They shall be reduction of about 45% in these costs. And it shall also be the factor for the growth of the industry in the coming years period.

Artificial Intelligence in Transportation Market Companies

• Volvo
• Daimler
• Scania
• Paccar
• Peloton
• Valeo
• Xevo
• ZF
• Zonar
• Tier-I Suppliers
• Software Suppliers
• Start-Up’s Bosch
• Intel
• NVIDIA
• Alphabet
• Continental
• Magna
• Man
• Microsoft
• Nauto
• IBM Corporation

Key market developments

• The major market players have invested an amount of U.S. dollars 20 billion in Mexico for the automotive market. This investment shall be instrumental in the growth of the artificial intelligence and transport for this region.
• The use of artificial intelligence in the transport sector shall provide high end features in the coming years.

Segments covered in the report

By Offering

• Hardware
• Neuromorphic
• Von Neumann
• Software
• Platforms
• Solutions

By Machine Learning Technology

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

By Process

• Signal Recognition
• Object Recognition
• Data Mining

By Application

• Semi Autonomous Truck
• Truck platooning
• Predictive maintenance
• Precision and mapping
• Autonomous truck
• Machine human interface
• Others

By Geography

• North America
• U.S.
• Canada
• Europe
• U.K.
• Germany
• France
• Asia-Pacific
• China
• India
• Japan
• South Korea
• Malaysia
• Philippines
• Latin America
• Brazil
• Rest of Latin America
• Middle East & Africa (MEA)
• GCC
• North Africa
• South Africa
• Rest of the Middle East & Africa