What Is The Leading Driver Behind The Surge In Demand For Autonomous Vehicles Propels Growth In The Generative AI In Transportation Market Market Expansion in 2025

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How Large Will the Generative Artificial Intelligence (AI) In Transportation Market Size By 2025?
There has been a significant increase in the size of the generative artificial intelligence (ai) market in the field of transportation in the past few years. The market which is expected to grow from $1.01 billion in 2024 to $1.2 billion in 2025, predicts a compound annual growth rate (CAGR) of 18.8%. The historic rise can be linked to several factors such as the increase in data volumes produced by transportation systems, the rising demand for self-driving vehicles, enhanced consumer expectations, growing interest in traffic management, and an amplified emphasis on safety and efficiency.

How Big Is the Generative Artificial Intelligence (AI) In Transportation Market Size Expected to Grow by 2029?
Expectations are high for the generative artificial intelligence (ai) in transportation market to expand rapidly in the coming years, reaching a substantial size of $2.39 billion in 2029 with a compound annual growth rate (CAGR) of 18.9%. Factors contributing to this projected growth include an enhanced focus on cybersecurity, intensifying management of supply chains, emergence of smart cities, growth in mobility-as-a-service (MaaS), evolution of autonomous vehicles, and rising data accessibility. During the forecasted period, key trends to anticipate are constant progress in AI algorithms, implementation of smart solutions, advancements in 5G technology, the merging of AI with the Internet of Things (IoT), and advancements in cloud-based communication technology.

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Which Key Market Drivers Powering Generative Artificial Intelligence (AI) In Transportation Market Expansion and Growth?
The expected rise in self-driving vehicle requirement is set to drive the growth of generative AI in the transportation market. Autonomous vehicles, also referred to as self-driving or driverless vehicles, have the ability to operate without human intervention, thanks to a combination of radar, AI, cameras, machine learning algorithms, and sensors. The interest in these vehicles is primarily due to factors like safety considerations, state policy and incentives, consumer choice, and road congestion. Generative AI plays a crucial role in this domain by providing a host of driving scenarios and simulations for training autonomous vehicles, thereby increasing safety and system resilience. It also designs personalized user interfaces to match user preferences and improve engagement. A noteworthy illustration of this is the prediction made by the US government agency, the National Highway Traffic Safety Administration, in December 2022, stating that by 2025, the US roads will have 3.5 million autonomous vehicles, and by 2030, this number will increase to 4.5 million. Hence, the increasing demand for autonomous vehicles fuels the growth of generative AI in the transport industry.

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Which Fast-Growing Trends Are Poised to Disrupt the Generative Artificial Intelligence (AI) In Transportation Market?
Leading organizations within the generative artificial intelligence (AI) in transportation industry are dedicating resources to the development of progressive technologies like generative AI (GenAI) chatbots in order to improve the customization of user interactions. GenAI chatbots, as advanced systems, facilitate natural language dialogues via state-of-the-art machine learning models. For example, Wiliot, an Israeli firm that specializes in Internet of Things technology, introduced an innovation titled WiliBot in August 2024. WiliBot, a GenAI chatbot, allows for natural-language discussions related to any surrounding IoT-linked item. This sophisticated tool aims to merge tangible products with digital acumen, enabling businesses and end users to maintain significant dialogues about their goods and supply networks. WiliBot integrates large language model (LLM) with Wiliot's IoT environment, thereby allowing users to query about specifics relating to their products (for instance, shelf life, transport history, and sustainability parameters) through natural language. It utilizes live data sourced from Wiliot's self-powered IoT Pixels that track variables such as location, temperature, and humidity, sending this data via Bluetooth to be analyzed on the Wiliot cloud. WiliBot's AI-powered calculations can identify irregularities within the supply chain, such as unanticipated temperature fluctuations, and generate warnings or suggestions for amplified operational productivity.

What Are the Emerging Segments in the Generative Artificial Intelligence (AI) In Transportation Market?
The generative artificial intelligence (ai) in transportationmarket covered in this report is segmented -

1) By Type: Services, Solution
2) By Application: Route Optimization, Customer Support, Assess Safety, Predictive Maintenance, Other Applications
3) By End-User: Automotive Manufacturers, Transportation Agencies

Subsegments:
1) By Services: AI-Powered Traffic Management Services, Predictive Maintenance Services, Autonomous Vehicle Development Services, Route Optimization And Planning Services, AI-Based Logistics And Supply Chain Services
2) By Solution: Autonomous Driving Solutions, AI-Based Fleet Management Solutions, Intelligent Transport Systems (ITS) Solutions, AI-Powered Navigation And Mapping Solutions, AI-Driven Safety And Security Solutions

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Who Are the Global Leaders in the Generative Artificial Intelligence (AI) In Transportation Market?
Major companies operating in the generative artificial intelligence (AI) in transportation market are Amazon Web Services Inc., accenture* plc, International Business Machines Corporation, Oracle Corporation, Continental AG, SAP SE, Nvidia Corporation, Capgemini SE, Cognizant Technology Solutions Corp., Infosys Limited, Adobe Inc., HCL Technologies Limited, Wipro Ltd., ServiceNow Inc., Blue Yonder Group Inc., Geotab Inc., Kinaxis Inc., DataRobot Inc., Resilinc Corporation, LLamasoft Inc., ClearMetal Inc.

Which are the Top Profitable Regional Markets for the Generative Artificial Intelligence (AI) In Transportation Industry?
North America was the largest region in the generative artificial intelligence (AI) in the transportation market in 2024. The regions covered in the generative artificial intelligence (AI) in transportation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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