Artificial Intelligence in Transportation Market Report 2025

This Artificial Intelligence in Transportation market report covers market characteristics, size & growth, segmentation, regional & country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The artificial intelligence in transportation market size has grown rapidly in recent years. It will grow from $3.63 billion in 2024 to $4.29 billion in 2025 at a compound annual growth rate (CAGR) of 18.2%. The growth in the historic period can be attributed to use of cameras and sensors for collision avoidance, use of ai to analyze information in real time, use of high-performance computing and deep learning systems, growth inThe availability of big data for training ai models, increasing emphasis on automation for improved safety and efficiency.

The artificial intelligence in transportation market size is expected to see exponential growth in the next few years. It will grow to $9.17 billion in 2029 at a compound annual growth rate (CAGR) of 20.9%. The growth in the forecast period can be attributed to expansion of ai applications in supply chain and logistics for efficient operations, surge in adoption of ai for autonomous vehicle development, integration of ai in multimodal transportation planning and coordination, growth in the use of ai for real-time route optimization and traffic prediction, increasing demand for ai-driven solutions in public transportation systems. Major trends in the forecast period include development of ai-powered mobility-as-a-service (maas) platforms, emphasis on explainable ai for transparency in decision-making processes, use of ai for personalized and adaptive in-vehicle experiences, customization of ai solutions for specific transportation modes and industries, collaboration between ai developers and transportation stakeholders.

The rising demand for autonomous vehicles is expected to drive the growth of artificial intelligence in the transportation market moving forward. Autonomous vehicles are transport systems capable of navigating from one location to another in 'autopilot' mode, utilizing various in-vehicle technologies and sensors such as adaptive cruise control, active steering, anti-lock braking systems, GPS navigation, lasers, and radar. These vehicles rely on artificial intelligence to operate safely and detect potential accidents or obstacles. For instance, in December 2023, a report by the Victoria Transport Policy Institute, a Canada-based research organization, projected that half of new vehicles could be autonomous by 2045, with half of the overall vehicle fleet becoming autonomous by 2060. Thus, the growing demand for autonomous vehicles will fuel the expansion of artificial intelligence in the transportation sector.

Increasing urbanization is anticipated to drive the growth of artificial intelligence in the transportation market. Urbanization refers to the transition of rural areas into urban settings due to economic growth and industrialization. Artificial intelligence plays a crucial role in optimizing transportation in urban landscapes, enabling smarter traffic management, predictive maintenance, and the use of autonomous vehicles, thereby enhancing efficiency and reducing traffic congestion. As per the World Bank Group's report in April 2023, over half of the world's population currently resides in urban areas, and by 2045, this urban population is predicted to reach 6 billion, marking a 1. 5 times increase. Consequently, the rise in urbanization acts as a catalyst for artificial intelligence adoption in transportation.

Technological advancements stand out as a prominent trend fueling the artificial intelligence in the transportation market. Key market players are concentrating on innovating new products to fortify their market positions. For instance, in January 2022, Qualcomm, a US-based semiconductor manufacturer, introduced Snapdragon Ride. This technology aims to simplify autonomous driving and Advanced Driver Assistance Systems (ADAS) by integrating high-performance, energy-efficient hardware, artificial intelligence (AI) technologies, and an autonomous driving stack. Snapdragon Ride offers comprehensive tools for building deep neural networks (deep learning), resulting in a cost-effective, high-performance system.

Major players in the artificial intelligence in transportation sector are rolling out AI tools like the Dynamic Pricing Engine to tackle logistics industry challenges. This tool utilizes multiple variables like transportation modes, equipment, demand, and market competition to generate price ranges for logistics services. For instance, Imaginnovate, a US-based software firm, introduced the Dynamic Pricing Engine in September 2023. This AI tool automates pricing strategies in transportation and logistics, enabling companies to set competitive yet profitable prices. It considers factors such as transportation types, equipment, demand, and competition to optimize revenue while ensuring customer satisfaction.

In March 2024, Hayden AI, a US-based vision AI and spatial analytics company, announced a partnership with Snapper Services, the developers of the Mosaiq Transit Intelligence Suite, to enhance data analysis capabilities for public transportation providers. This collaboration combines Hayden AI's mobile perception platform, which is used on buses for transit zone enforcement, with Snapper’s advanced analytics platform, Mosaiq Insights. The aim is to provide transit agencies with valuable insights by leveraging both new and existing data sources. Snapper Services, based in New Zealand, specializes in developing intelligent transportation solutions.

Major companies operating in the artificial intelligence in transportation market include The Volvo Group, Mercedes-Benz Group AG, Scania AB, Peloton Interactive Inc., Valeo SA, Xevo Inc., Nvidia Corporation, Intel Corporation, Robert Bosch GmbH, Continental AG, Microsoft Corporation, International Business Machines Corp, Magna International Inc., ZF Friedrichshafen AG, Alphabet Inc., Daimler AG, General Motors Company, Aptiv plc, Denso Corporation, Xilinx Inc., TomTom NV, Harman International Industries Inc., Nauto Inc., FiveAI Inc., Waymo LLC, Uber Technologies Inc., Tesla Inc., Mobileye NV, Baidu Inc., AutoX Inc., Ponyai Inc., TuSimple Inc., Aurora Innovation Inc., Embark Trucks Inc., Plusai Inc.

Artificial intelligence in transportation involves the application of AI to process and predict data for travel and transportation operations, with the aim of improving efficiency. This includes the collection of traffic patterns, the minimization of road congestion, and the enhancement of public transportation schedules. Through these processes, AI contributes to optimizing logistics and reducing turnaround time.

The primary offerings in artificial intelligence in transportation are categorized into hardware and software. Hardware constitutes the physical components of a computer or its delivery mechanisms for executing software instructions. In the realm of transportation AI, hardware includes neuromorphic and von Neumann hardware. Various technologies, such as deep learning, computer vision, context awareness, and natural language processing, play a role in processes like signal recognition, object recognition, and data mining. These technologies find applications in semi-autonomous trucks, truck platooning, predictive maintenance, precision mapping, autonomous trucks, and other related areas.

The artificial intelligence in transportation market research report is one of a series of new reports that provides artificial intelligence in transportation market statistics, including artificial intelligence in transportation industry global market size, regional shares, competitors with a artificial intelligence in transportation market share, detailed artificial intelligence in transportation market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence in transportation industry. This artificial intelligence in transportation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

North America was the largest region in the artificial intelligence in transportation market in 2024. Asia-Pacific is expected to be the fastest growing region in the forecast period. The regions covered in the artificial intelligence in transportation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the artificial intelligence in transportation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Artificial Intelligence in transportation market includes revenues earned by entities by road traffic management systems, unmanned aircraft systems, automation of train operation (ATO), automatic identification systems (AIS) for shipping and autonomous navigation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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