The global AI in Transportation Market Size has been segmented based on offering, machine learning (ML) technology, and application.

Based on offering, the global market has been segmented into hardware and software. The hardware segment is further subdivided into Central Processing Unit (CPU), Graphics Processing Unit (GPU), sensors, and others.

Based on ML technology, the AI in Transportation Market Size has been segmented into deep learning, computer vision, NLP, and context awareness.

Based on application, the AI in transportation market has been segmented into autonomous truck, semi-autonomous truck, truck platooning, human-machine interface (HMI), predictive maintenance, precision mapping, and others.

Based on IoT communication, the AI in Transportation Market Size has been segmented into LTE, LPWAN, and 5G.

Regional Analysis

The geographic analysis of the AI in Transportation Market Size has been conducted for North America, Europe, Asia-Pacific, the Middle East & Africa, and South America.

North America accounted for the largest contributor to the AI in Transportation Market Size. The regional market comprises the US, Canada, and Mexico. According to MRFR analysis, some of the factors responsible for the market's growth include the rising need for enhanced operational efficiency and increasing adoption to enhance driver and vehicle. Moreover, the presence of established players such as Intel Corporation, Microsoft Corporation, IBM Corporation, and Magna International Inc. is one of the factors driving the growth of the regional market.

Europe is the second-largest contributor to the AI in transportation market. The regional market comprises the EU-27 countries and UK. According to MRFR analysis, the EU-27 countries, together, are expected to account for the highest market share, followed by the UK. The market has been driven by factors such as the government’s proposals to boost public and private investment in AI with a greater focus on its application in transport. The European Union (EU) has taken major steps to adapt to the developments taking the place of AI in the transportation sector. These measures include general strategies on AI and rules that support the innovations of technologies that enable the application of AI in transport while at the same time ensuring respect for its fundamental values and rights. Additionally, the growth in the market has also been due to the EU government providing financial support, particularly for research in the field of AI in transportation. In the shipping industry, the EU has adopted rules to harmonize AI digital reporting for ships to simplify information exchange procedures between the ships and the ports and digitalize cross-border transport operations. The first key step towards introducing AI in rail transport has been deploying the European Rail Traffic Management System (ERTMS), which provides trains with a driver assistance system. In the aviation industry, several research projects have been supported the development of AI and Air Traffic Management (ATM), covering issues such as predictability of traffic at different phases of flight, improvement of passenger flows at airports, and greater automation of the system.

Asia-Pacific has been segmented into China, Japan, India, and the Rest of Asia-Pacific. According to MRFR analysis, the region is expected to be the fastest-growing market for AI in transportation in terms of value. The regional market growth can be attributed to strong economic growth, booming logistics and supply chain sector, the shift of unorganized third-party logistics sectors to organized sectors, and the steadily growing population. The increasing focus on enhancing driver and vehicle safety and achieving enhanced operational efficiency are the main factors boosting the growth of the Asia-Pacific market; the increasing purchasing power of the middle-class population is also anticipated to play a major role in driving the regional market growth. Moreover, the major AI transportation companies based in the US and the UK are expanding their business in Asia-Pacific.

The market for AI in transportation in the Middle East & Africa is expected to witness significant growth. It is estimated to reach USD 1,447.5 million by 2026, registering a compound annual growth rate (CAGR) of 17.8% during the forecast period, 2020-2026. The growth AI transportation market in South America is low as compared to other regions. However, the regional market is expected to show significant growth during the forecast period due to the increasing demand for advanced AI autonomous vehicle solutions and road safety systems.

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Competitive Analysis

The key players of the global AI in transportation market include Siemens Mobility Solutions (Germany), Huawei Technologies Co. Ltd (China), Intel Corporation (US), NEC Corporation (Japan), Microsoft Corporation (US), IBM Corporation (US), Robert Bosch GmbH (Germany), Valeo (France), Daimler AG (Germany), Scania AB (Sweden), Continental AG (Germany), Magna International (Canada), Volvo (Sweden), ZF Friedrichshafen AG (Germany), and Nvidia (US).

Market Highlights

The major driving factors of the market are raising the demand for the AI in Transportation Market at the global level. The increased rate of road accidents in major regions of the world demands the implementation of artificial intelligence. A huge number of vehicles moving on-road are the main cause of the accident. Therefore, the increased number of road accidents and the concern to control the traffic is highly demanding for AI technology in transportation. AI technology implemented in vehicles will protect the driver from accidents. Because it is capable of providing quick updates about roads and important signs to the drivers, it will warn them on accident-prone areas. The safety rule features of AI transportation are higher compared to manual. The rise in the adoption of AI in vehicles will increase road safety and reduce accidents.

Moreover, the demand for autonomous vehicles is immense in the market. Today's generation highly prefers these vehicles due to their convenience feature. AI is an inbuilt technology in autonomous cars; it checks driving to vehicle maintenance; therefore, this technology is crucial in autonomous vehicles. The increase in demand for autonomous vehicles is a major driver for the market. Autonomous vehicles include deep learning technology with AI and machine learning combined, which helps the vehicles think, drive, and learn through the technology. The rise in demand for autonomous trucks is another driving factor for the market; as trucks transport huge and heavy loads, they get more prone to accidents. Therefore, AI technology in the truck will be very useful. All these growth factors are propelling the growth of AI in Transportation Market.

Truck platooning will be an exceptional scope for the market. This segment will drive the market at the global level. AI in transportation will come up with advanced features in the upcoming years, attracting new end users of the market. The integration of features in the vehicle such as sensors, voice recognition, signal recognition, and fusion will provide new growth opportunities. The AI in Transportation Market will notice tremendous growth during the forecast period. The market is projected to reach a CAGR of 18.03 % during the forecast period.

AI in transportation technology is considered the best solution. This technology also provides fuel efficiency and reduces carbon emissions features. This government's regulation will be favorable for the market's growth. Further, the rise in awareness for traffic segmentation will propel the market's demand. The implementation of AI in transportation will provide efficient routes, leading the driver to routes to move through less traffic.

The AI in the Transportation Market will flourish with the key market drivers to raise its demand. The rise in concern about road accidents increasing day by day is the major driver for this market. The rise in the number of vehicles moving on-road, which to continue higher in the future years, will lead to the adoption of AI in transportation. But, the high initial cost and deployment cost is hampering the market's growth rate. But the key players are checking the restraining factors to overcome them wisely.

The AI in Transportation Market competition is rising high due to the involvement of prominent players and the entry of new players. The automobile manufacturers are launching vehicles with AI technology to meet the public's demand. All these factors will help the market progress rapidly with good growth value.


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AI in Transportation Market Research Report: Information by Offering (Hardware [CPU, GPU, Sensors, and Others], Software [AI Platform and AI Solution]), ML Technology (Deep Learning, Computer Vision, Natural Language Processing (NLP), and Context Awareness), Application (Semi-Autonomous Truck, Truck Platooning, Predictive Maintenance, Precision & Mapping, Autonomous Truck, Human-Machine Interface (HMI), and Others), and Region (North America, Europe, Asia-Pacific, Middle East & Africa, and South America) - Forecast Till 2026

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