Global Artificial Intelligence in Transportation Market Surges to $6.3B by 2027, Driven by Growing Demand for Autonomous Vehicles
The global artificial intelligence in transportation market has witnessed remarkable growth in recent years, with revenues rising from $2.6 billion in 2022 to $3.1 billion in 2023. This reflects an impressive compound annual growth rate (CAGR) of 19.4%. The market is expected to continue expanding at the same CAGR, reaching a projected value of $6.3 billion by 2027.
Artificial intelligence plays a crucial role in the transportation sector, enabling the collection of traffic patterns, minimizing road congestion, and enhancing public transportation schedules. These advancements lead to optimized logistics and reduced turnaround time. The market offers various types of offerings, including both hardware and software, incorporating technologies such as deep learning, computer vision, context awareness, and natural language processing.
Major players in the market are actively focusing on technological advancements and innovations to strengthen their market positions. For example, Qualcomm, a US-based semiconductor manufacturing company, recently launched Snapdragon Ride. This technology aims to simplify autonomous driving and advanced driver assistance systems by combining high-performance, power-efficient hardware, artificial intelligence technologies, and an autonomous driving stack. It offers comprehensive tools for compiling deep neural networks.
In terms of regional analysis, North America emerged as the largest market for artificial intelligence in transportation in 2022. However, the Asia-Pacific region is expected to witness the fastest growth in the forecast period. The countries covered in the market report include Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, the UK, and the USA.
The growing demand for autonomous vehicles is anticipated to be a significant driver for the growth of the artificial intelligence in transportation market. Autonomous vehicles are capable of driving themselves in autopilot mode using various in-vehicle technologies and sensors, such as adaptive cruise control, active steering, anti-lock braking systems, GPS navigation technology, lasers, and radar. Artificial intelligence is employed to operate the vehicles and sense any accidents or obstacles.
A survey conducted by AlixPartners, a financial advisory and global consulting firm, revealed that over 60% of consumers in China, France, Italy, and Germany are aware of level 2 autonomy. This level means that some driving responsibilities are carried out by the vehicle, with the expectation that the driver will respond to interactions in a timely manner. Moreover, more than 50% of consumers are ready to give up vehicle ownership for robotaxi services. These findings indicate a growing demand for autonomous vehicles, which will drive the artificial intelligence in transportation market.
The artificial intelligence in transportation market includes revenues earned from road traffic management systems, unmanned aircraft systems, automation of train operation (ATO), automatic identification systems (AIS) for shipping, and autonomous navigation.
In summary, the global artificial intelligence in transportation market is experiencing significant growth, driven by the demand for autonomous vehicles. Technological advancements and innovations are shaping the market landscape, with major players striving to strengthen their positions. With the integration of artificial intelligence into transportation systems, we can expect improved traffic management, reduced congestion, and optimized logistics, ultimately enhancing the overall transportation experience.
