Artificial Intelligence in Transportation Market: Overview
The market size for artificial intelligence in transportation was USD 2.1 billion in 2021, and it is projected to grow at a CAGR of 16.9 percent during the forecast period. Autonomous vehicles are manufactured using artificial intelligence technology. During the forecast period, artificial intelligence and transportation will grow owing to this technology's ability to recognize various things around vehicles in real-time and reliably. These autonomous cars benefit from using this technology for better optimization. It is this technology that original equipment manufacturers are using to provide efficient vehicles.
In the transportation market, the existing infrastructure does not support this technology. As a result, artificial intelligence cannot be used for transportation. The use of artificial intelligence in transport vehicles is rare in many regions around the world. However, not many vehicles make use of this technology despite the features it provides. This technology is not supported by most vehicles today. Due to the rise in demand for autonomous vehicles among developed nations, the incorporation of this technology will increase to ensure the safety of passengers and drivers. Among the market players, consolidation and a rise in partnerships are the key trends observed in AI in transportation. For example, Continental and NVIDIA announced a partnership in February 2018 to develop AI-driven self-driving vehicle systems using the NVIDIA DRIVE platform. A market introduction was expected in 2021. Furthermore, Scania partnered with Haylion Technologies to develop electrified, autonomous, connected bus solutions for public transportation.
Major vehicle original equipment manufacturers (OEMs) are investing heavily in the automotive industry to optimize self-driving technology. Tesla Inc., for instance, unveiled a sleek electric semi-truck with semi-autonomous features in November 2017. There has been an increase in the adoption of road safety features across various automobiles, which has driven demand for artificial intelligence technology. As a result of government initiatives mandating a few safety features in vehicles, the market is expected to grow. The demand for artificial intelligence and transportation is growing in order to reduce road accidents and fatalities caused by them. As a result of the integration of this technology in vehicles, most road accidents are reduced due to human error. Various governments are adopting this technology and educating their citizens about its benefits so that passengers and drivers can remain safe.
Artificial Intelligence in Transportation Market: COVID-19 Impact
As a result of the COVID-19 pandemic, there was a negative impact on the market's growth. Due to the recession and major disruptions in its operations, this industry faced many challenges. There had been a significant drop in demand for the vehicles. A lack of raw materials and labor also caused the manufacturing units to cease production. A number of different types of vehicles are manufactured using artificial intelligence, such as automobiles, trucks, etc. Still, since it is a costly process, demand for the technology has fallen since the pandemic. All of these factors had a negative impact on the growth of the market.
Artificial Intelligence in Transportation Market: Drivers
Increased Rate of Road Accidents to Drive Market Growth
Technology such as artificial intelligence is used in the transportation industry. As a result of the increased rate of road accidents, the market growth for various regions across the globe in the coming years shall be driven by the benefits associated with the use of this technology. The number of fatalities caused by these accidents will also contribute to future market growth. As a result of the use of this technology, the driver has been protected from various accidents that are caused by human error. The use of this technology also reduces human error to a great extent. Vehicles use this software to update themselves about traffic or congestion-related signs and specifications. These warnings also provide information about the accident-prone areas. Therefore, technology provides higher safety features for the transportation segment. This market will grow due to the growing demand for deep learning, a combination of artificial intelligence and machine learning
Truck Platooning Driving Market Growth
Truck platooning will provide the transportation market with exceptional scope. Truck platooning will be a major driver and provider of opportunities in the years to come. By providing advanced features through artificial intelligence, the transportation sector will be able to attract new customers and enjoy better growth in the coming years. Greater use of sensors will enhance the functionality of this technology as voice recognition and signal recognition provide better growth opportunities. Governing authorities should impose stringent policies or laws to limit carbon emissions in order to provide better opportunities for the growth of this market.
Artificial Intelligence in Transportation Market: Restraints
Lack of the Favourable Infrastructure to Hamper Market Growth
The market infrastructure does not currently support artificial intelligence for transportation. The deployment of artificial intelligence in this industry is becoming increasingly challenging. The lack of suitable infrastructure hinders the market's growth. Most of these transports do not support the use of technology. The market will grow well in the coming years due to the manufacturers' constant focus on producing vehicles that support artificial intelligence. Still, currently, the integration of artificial intelligence is difficult.
Artificial Intelligence in Transportation Market: Segment Overview
Autonomous Trucks to Dominate Market due to Development of Truck Industry
The truck industry's development is expected to increase the demand for these autonomic trucks in the coming years. The demand for these trucks is increasing across various nations worldwide for logistics purposes. There is an increasing demand for trucks as they help transport various goods in the coming years. Approximately 65% of the merchandise is transported globally by trucks. As a result of using autonomous trucks, the cost of maintenance and the amount spent on these drugs will be reduced. In the coming years, a cost reduction of about 45% will be reduced, which will also contribute to the industry's growth.
With Increased Human Machine Inference Application, Software Category Dominated Market
In the forecast period, the software segment held the largest market share, and it is anticipated that it will continue to rule the market during the forecast period. In the past, the segment has been dominated by software, which also happens to be your service platform. The software's also used in the human-machine interface applications of vehicles. There will be good growth in the software segment in the coming years since it also provides predictive intelligence to supply chains and is used in waterway shipping, railway transport, and air transportation. Artificial intelligence software will also be instrumental in reducing the number of breakdowns. As a result of this software, the vehicle can also be warned about certain risks that may be associated with its use under certain circumstances. Digital maps and satellite maps are used in these systems to provide better information about the roads and traffic.
Artificial Intelligence in Transportation Market: Regional Landscape
North America to Dominate Market due to Increasing Demand for Road Safety
Over the forecast period, it is anticipated that the North American market will account for the largest revenue share. In the forecast period, the financial condition of various nations in North America will play a major role in market growth. The market growth is expected to be driven by increased purchasing power and road safety demands in the coming years. Automation in the transportation industry for supply chain and logistics functions is expected to drive market growth during the next few years. As a result of automation in supply chain and logistics, consumers have been able to receive better services. As a result of the development of a number of regulations that ensure safety, compliance, and accountability in this region, more demand is expected in the coming years. Having strong financial conditions, these regions are more likely to invest in these technologies than any other region in the world. Constant research and development will also contribute to the development of new features. For instance, the automotive industry invested around USD 20 billion in Mexico.
The Asia Pacific market is anticipated to experience stable revenue growth throughout the forecast period due to the presence of a strong economy along with a good supply chain and logistics sector. Due to the increased sales of trucks in the Asia Pacific, this region will also see a lot of growth. Artificial intelligence will drive this market's growth in the years to come. In the Asia Pacific region, China and Japan have largely consumed these trucks in the past. Japan is expected to use artificial intelligence extensively in transportation in the future.
Global Artificial Intelligence in Transportation Market: Competitive Landscape
In February 2018, Continental and NVIDIA announced a partnership to develop AI-driven self-driving vehicle systems using the NVIDIA DRIVE platform. A market introduction was expected in 2021. Moreover, in February 2018, Scania partnered with Haylion Technologies to develop electrified, autonomous, connected bus solutions for public transportation.
Few of the players in the artificial intelligence in the transportation market include Continental (Germany), Bosch (Germany), NVIDIA (US), and Microsoft (US).
Global Artificial Intelligence in Transportation Market is Segmented as Below:
By Machine Learning Technology
Key Elements Included In The Study: Global Artificial Intelligence in Transportation Market
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