Artificial Intelligence (AI) In Transportation Market

AI in Transportation Market Size & Growth (2023 - 2028)

The global artificial intelligence (AI) in transportation market is expected to reach $3.87 billion by 2028 and is estimated to grow at a CAGR of 15.8% between 2023 and 2028.

The entire world has been affected by a wave of technological improvements in which artificial intelligence (AI) has spearheaded the technological revolution. Furthermore, the presence of a robust automation industry around the world has also required the presence of artificial intelligence. The transportation sector in particular has been the largest consumer of AI technologies. This factor must be evaluated with a level of scrutiny to understand the dynamics of global AI in the transportation market. The demand for AI for transportation has increased due to advances in automation technology. Artificial intelligence has become one of the most sought-after technologies in the world, driving the growth of global AI in the transportation market.

There is an urgent need to ensure that long distance freight transport is regulated and controlled with a high level of control, which has also led to the growth of the global market. Considering the factors mentioned above, the global market for AI in transportation is expected to accumulate large revenues in the coming years.

Rapid use of learning technology automation for product innovation, such as autonomous vehicles, parking and lane changing aids, and smart energy systems are driving AI strongly in the transportation market. In addition, the growing need for advanced transportation planning, driver behavior, data management, road marking, etc. is accelerating the growth of the market.

Drivers and Restraints of Artificial Intelligence in Transportation Market

Market Drivers

The development of autonomous vehicles is a major determinant in the growth of AI in the transportation market. AI is a key technology for autonomous driving systems because it is the only technology that enables reliable, real-time recognition of objects around the vehicle. Currently, there are significant investments to come in the automotive industry, particularly for the optimization of autonomous driving technology, by major equipment manufacturers (OEMs). Therefore, the development of integrated autonomous vehicles with intelligent functionality is expected to drive global market growth in the long term.

Market Restraints

AI-based systems are mostly cloud-based, requiring expensive bandwidth to power the system. Also, as it is a new technological solution that requires better training and skills, which translates into high costs. These significant challenges result in high operating costs for AI when used in transportation. Additionally, AI-powered machines include a variety of individual processors, relays, and other components that require maintenance and replacement from time to time, as well as a large amount of power to operate, resulting in high operating costs. These challenges have a significant impact on the growth of global artificial intelligence in the transportation market.

AI IN TRANSPORTATION MARKET REPORT COVERAGE:

Market Segmentation

AI in Transportation Market - By Application:

• Autonomous Trucks
• HMI Trucks
• Semi-Autonomous Trucks

Autonomous trucks had the largest market share in the transportation AI market in 2019. The increasing development of the trucking industry is further increasing the demand for autonomous trucks. In addition, the growth of the logistics industry in the United States for the transportation of goods is driving the need for autonomous trucks. It is also estimated that more than 65% of the merchandise is transported by truck in the world, which accelerates the growth of this application. The deployment of autonomous trucks will also result in a reduction in maintenance and administration expenses to approximately 45%. These key factors will drive the demand for artificial intelligence in the transportation industry, thus providing autonomous driving and impeccable passenger safety.

AI in Transportation Market - By Type:

• Machine learning technology
  • Computer vision
  • Context awareness
  • Deep learning
  • Natural language processing

• Process
  • Data mining
  • Image recognition
  • Signal recognition

AI in Transportation Market - By Region:

1. North America
   1. U.S
   2. Canada
2. Europe
   1. Norway
   2. Germany
   3. Sweden
3. Asia Pacific
   1. China
   2. India
   3. Japan
4. Latin America
   1. Brazil
   2. Mexico
   3. Argentina
5. Middle East and Africa

              a. Middle East

              b. Africa

Among all locales, North America is supposed to keep on being the biggest area in the AI in the transportation market during the conjecture period. Trucks make up most of the shipping business in the US. Increasing interests in self-ruling trucks and administrative improvements identified with consistence, security and duty (CSA) in the nation are likely to see the United States as the most significant area on the planet.

Asia Pacific (APAC) is expected to experience the fastest growth during the foreseen period. This is mainly due to higher truck sales in the region and the increasing use of AI in transportation in countries like Japan and China. Japan is estimated to be the fastest growing country in the Asia Pacific transportation AI market during the outlook period. In the maturing Japanese truck market, companies are finding new revenue streams by integrating AI-based functionality into trucks, which in turn further supports APAC's rapid growth.

Market Key Players

Some of the key players in the global AI in transportation market are Daimler AG, MAN SEPACCAR Inc., Scania Group, ZF Friedrichshafen AG, Intel Corporation, and Valeo SA.

Impact Of Covid-19 On Artificial Intelligence In Transporation Market

The impact of coronavirus has been seriously felt in the transportation sector. The pandemic has changed the way people travel today. Without a doubt, with the safety of people in mind, public transport operators are reorganizing their operating procedures to prioritize the safety of travelers and regain their confidence. Security measures such as sanitation, the correct implementation of social distancing are now essential. With the resumption of services, the transport system may also experience a sudden increase in demand. Likewise, business and business trips will also see an increase. The transport system must satisfy this demand in compliance with the directives. Artificial Intelligence (AI), Internet of Things (IoT) and Intelligent Transportation System (ITS) applications can solve many transportation system problems. You can help reduce person-to-person transmission and prevent cluster epidemics in public transportation systems by monitoring compliance with specific COVID standards, while improving efficiency and ease of monitoring.

Recent Developments

• Mikael Johansson develops autonomous vehicles and artificial intelligence solutions at Scania.
• The new universal search engine using the latest artificial intelligence technology means that Scania workshops solve vehicle-related problems more quickly.
• Renowned market intelligence firm Infiniti Research has announced the completion of its latest article on AI in Transportation.
• From production to product, from sales to legal services: Artificial intelligence (AI) opens new avenues for the automotive industry to further improve the customer experience and make processes more efficient. To responsibly seize these opportunities, Daimler AG is the first automaker to establish AI management principles.