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Key Trend Reshaping the Artificial Intelligence in Transportation Market in 2025: ADAS Advancements Reshaping The Transportation Market

02-21-2025 08:28 AM CET | Logistics & Transport

Press release from: The Business Research Company

Artificial Intelligence in Transportation Market

Artificial Intelligence in Transportation Market

What market dynamics are playing a key role in accelerating the growth of the artificial intelligence in transportation market?
The rise in demand for self-driving vehicles is predicted to fuel the expansion of artificial intelligence within the transportation sector. Self-driving vehicles possess the capacity to autonomously navigate from a set starting point to a determined destination, using a combination of in-vehicle technologies and sensors such as active steering, adaptive cruise control, anti-lock braking systems, GPS navigation technologies, lasers, and radar. These autonomous vehicles typically leverage artificial intelligence to operate themselves and detect any potential accidents or obstacles. As an example, a report from the Canada-based research organization, Victoria Transport Policy Institute, in December 2023 forecasted that by 2045, 50% of new vehicles may be self-driving, and by 2060 this could extend to half of all vehicles. Thus, this upward trend in the demand for self-driving vehicles is expected to ignite growth in the artificial intelligence sector of the transportation industry.

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How will the growth rate of the artificial intelligence in transportation market shape industry trends by 2034?
The market size of artificial intelligence in transportation has seen a swift expansion in the past few years. The market, valued at $3.63 billion in 2024, is projected to reach $4.29 billion in 2025, showcasing a compound annual growth rate (CAGR) of 18.2%. This growth during the historical period is largely attributed to the employment of cameras and sensors for collision prevention, the application of ai for real-time data analysis, the increasing use of high-functioning computation and deep learning systems. Additionally, growth in the accessibility to big data for training AI models and an intensified focus on automation for enhanced safety and efficiency have also contributed.

In the coming years, the market size of artificial intelligence in transportation is projected to witness high-paced growth, reaching $9.17 billion by 2029 with a compound annual growth rate (CAGR) of 20.9%. This growth in the projected timeline is credited to the broader deployment of AI in supply chain and logistics for enhanced performance, an increased trend towards AI adoption for autonomous vehicle innovations, the incorporation of AI in multimodal transportation management, the rise in AI utilization for real-time route choosing and traffic estimation, and the mounting requirement for AI-powered solutions in public transit systems. Leading trends during the forecasted period encompass the establishment of AI-infused Mobility-as-a-Service (MaaS) platforms, an emphasis on decipherable AI for improved transparency in decision-making procedures, AI application for bespoke and adaptive in-vehicle experiences, modification of AI strategies for specific transportation methods and sectors, and alliances between AI creators and transportation stakeholders.

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What trends are poised to drive the future success of the artificial intelligence in transportation market?
In the arena of artificial intelligence in transportation, technological progress has been identified as a primary trend growing in popularity. The focus of key companies in this sector is on the innovation of novel products to bolster their standings in the market. For example, Qualcomm, an American semiconductor manufacturer, introduced Snapdragon Ride in January 2022. The purpose of Snapdragon Ride is to simplify autonomous driving and Advanced driver assistance systems. It achieves this by leveraging power-efficient hardware, high performance, artificial intelligence (AI) methodologies, and an autonomous driving software suite to present a cost-effective, energy-dense system. This system includes extensive tools for the development of deep neural networks, a component of deep learning.

Which primary segments of the artificial intelligence in transportation market are driving growth and industry transformations?
The artificial intelligence in transportation market covered in this report is segmented -

1) By Offering: Hardware, Software
2) By Machine Learning Technology: Deep Learning, Computer Vision, Context Awareness, Natural Language Processing
3) By Process: Signal Recognition, Object Recognition, Data Mining
4) By Application: Semi Autonomous Truck, Truck Platooning, Predictive Maintenance, Precision And Mapping, Autonomous Truck, Other Applications

Subsegments:
1) By Hardware: Sensors, Edge Computing Devices, Control Units And Processors, Communication Devices
2) By Software: AI Algorithms For Route Optimization, Autonomous Vehicle Software, Fleet Management Software, Predictive Maintenance Solutions, Traffic Management Systems

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Which geographical regions are pioneering growth in the artificial intelligence in transportation market?
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

Who are the influential players reshaping the artificial intelligence in transportation market landscape?
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.

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What Is Covered In The Artificial Intelligence in Transportation Global Market Report?

•Market Size Forecast: Examine the artificial intelligence in transportation market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the artificial intelligence in transportation market for a structured understanding.
•Key Players Overview: Analyze major players in the artificial intelligence in transportation market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the artificial intelligence in transportation market.
•Segment Contributions: Evaluate how different segments drive overall growth in the artificial intelligence in transportation market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the artificial intelligence in transportation market.
•Industry Challenges: Identify potential risks and obstacles affecting the artificial intelligence in transportation market.
•Competitive Landscape: Review strategic developments in the artificial intelligence in transportation market, including expansions, agreements, and new product launches.

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