ARTIFICIAL INTELLIGENCE IN TRANSPORTATION MARKET Size and trends

Artificial Intelligence In Transportation Market Size and Trends

Global artificial intelligence in transportation market is estimated to be valued at US$ 2.48 Bn in 2025 and is expected to reach US$ 7.78 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 17.7% from 2025 to 2032.

To learn more about this report, Request sample copy

One of the major trends in the global artificial intelligence in transportation market is increasing adoption of autonomous vehicles. Automakers and technology companies are investing heavily in research and development of self-driving vehicles. These are focusing on developing advanced AI systems that can process data from sensors to detect objects and navigate through traffic without human intervention. The rise of connected and autonomous vehicles can transform transportation and boost demand for AI technologies in applications such as advanced driver assistance systems, autonomous passenger cars, and commercial vehicles. With further technological advancements, autonomous vehicles are poised to become mainstream over the next decade.

Increasing Demand for Autonomous Vehicles

The transportation sector is rapidly embracing automation technology due to growing demand for autonomous vehicles. Due to continuous advancements in artificial intelligence and its integration in self-driving features, people prefer  driverless vehicles. The freedom and flexibility provided by autonomous driving attracts many people. As people does not need to drive themselves, they can utilize travel time productively for work, rest or entertainment. This is especially valuable for growing elderly population who face challenges in operating vehicles.

Autonomous technology makes travel safer and more efficient. Automated vehicles minimize human error, thus, preventing majority of road accidents globally that occurs due to distraction or drunk driving. These can also communicate with each other to optimize traffic flow and reduce congestion. With AI-based navigation assistance, drive time and energy consumption is being cut down substantially. Leading automotive companies and tech giants are heavily investing to build fully autonomous cars that can handle all aspects of driving without human intervention. While the technology still needs to progress further to achieve level 5 automation, it is anticipated that autonomous vehicles will become mainstream and reshape the future of transportation.

For instance, in October 2023, Amazon, a multinational technology company that focuses on e-commerce, cloud computing, digital streaming, and artificial intelligence launched Automated Vehicle Inspection (AVI), a cutting-edge AI technology that is designed to ensure the safety and reliability of its delivery vans by detecting even the smallest anomalies, such as tire issues or body damage, before these become on-road problems.