by Artificial intelligence (AI) in transportation refers to the use of AI technologies in self-driving vehicles, driver assistance systems, logistics optimization, and predictive maintenance applications. AI helps improve road safety by supporting key functions such as collision warning, automatic emergency braking, and blind spot monitoring. The adoption of AI enables vehicles to recognize objects, interpret situations and make decisions autonomously to enhance safety. Self-driving cars can identify traffic signs and signals, detect other vehicles, cyclists and pedestrians on the road. AI analyzes large volumes of data to predict equipment failures and optimize maintenance schedules. In logistics, AI helps improve routing and delivery of goods through real-time fleet management.
The Global Artificial Intelligence in Transportation Market is estimated to be valued at US$ 6.51 Bn in 2024 and is expected to exhibit a CAGR of 17.% over the forecast period from 2024 to 2031.
Key Takeaways
Key players operating in the Artificial Intelligence in Transportation are Peloton, Paccar, Scania, Valeo, Xevo, ZF, Zonar, Nvidia Corporation, Siemens Mobility, NEC Corporation, Microsoft Corporation, IBM Corporation, Robert Bosch GmbH, Continental AG, Volvo Group.
The key opportunities in Artificial Intelligence in Transportation Market Demand include developing autonomous vehicles, optimizing logistics operations through AI, predictive maintenance of vehicles and infrastructure using AI, and AI-based traffic management.
Major automotive companies are also collaborating with technology players to develop self-driving vehicles and driver-assistance systems. For instance, BMW partnered with Intel and Mobileye to develop autonomous electric vehicles by 2021. Such initiatives are fueling the adoption of AI across major regions including North America, Europe, Asia Pacific, Middle East & Africa and Latin America.
Market Drivers
The increasing demand for self-driving vehicles from logistics, mobility as a service and personal vehicle segments is a major driver for the Artificial Intelligence In Transportation Market Size And Trends Automakers and technology companies are investing heavily in developing autonomous vehicles which is expected to make transportation safer and more efficient. Automated driving functions powered by AI can help reduce traffic accidents caused by human errors. This in turn is fueling the need for artificial intelligence integration in vehicles.
PEST Analysis
Political: The government regulations and initiatives regarding transportation and infrastructure development is driving the adoption of artificial intelligence solutions in transportation sector. Development of smart cities initiatives focusing on implementing AI for traffic management and safety is a key factor.
Economic: Strong economic growth especially in emerging markets is increasing transportation needs. Increasing disposable income is boosting preference for shared mobility and autonomous vehicles which is positively impacting the artificial intelligence market in transportation.
Social: Younger population is more technology savvy and open to new technologies. Increasing concerns around road safety and reducing accidents are making artificial intelligence solutions attractive option.
Technological: Development of technologies like computer vision, deep learning and machine learning algorithms are enabling development of applications like autonomous vehicles, predictive maintenance and traffic management solutions. Integration of AI with IoT is allowing real-time data analysis for improved decision making.
The regions where market in terms of value is concentrated currently include North America and Europe. North America dominates currently supported by presence of major players and government initiatives for implementing smart transportation infrastructure. Majority of pilots and deployments for applications like autonomous vehicles and traffic management solutions have also taken place in this region. Europe follows North America in market share led by countries like Germany, U.K. and France focusing on developing AI-based mobility solutions.
The fastest growing regional market for artificial intelligence in transportation is expected to be Asia Pacific. Regional countries are witnessing strong economic growth and increasing transportation needs of growing population which is motivating infrastructure development leveraging AI. China especially stands out being the leader in adoption and development of autonomous vehicles and related technologies. Smart city initiatives in countries like India are also likely to boost AI adoption for transportation over coming years.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it.
About Author - Ravina Pandya
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