Global AI in Transportation Market 2025-2035

Description

List of Tables

Global AI in Transportation Market Size, Share & Trends Analysis Report by Offering (Hardware and Software), by Process (Signal Recognition, Object Recognition, and Data Mining), and by Application (Traffic Management, Road Safety and Security, Parking Management, Automotive Telematics and Others), Forecast Period (2025-2035)

Industry Outlook

AI in transportation market was valued at $3.4 billion in 2024 and is projected to reach $20.7 billion by 2035, growing at a CAGR of 17.7% from 2025 to 2035. Market expansion is mainly driven by the increasing adoption of autonomous vehicle technologies, increasing efficiency and safety in the sector of AI-powered automation, predictive analysis, and transport. AI is keeping pace with the demand for AI-powered solutions such as autonomous trucks, smart traffic management systems, and predictive maintenance tools, which enable optimization of route planning and fuel efficiency. Similarly, integrating real-time data analytics, AI-based fleet management, and intelligent transport systems is changing the industry. These innovations help eliminate major challenges, including the need for traffic congestion, carbon emissions, and cost-effective logistics solutions.

Segmental Outlook

The global AI in transportation market is segmented by the offering, process, and application. Based on the offering, the market is sub-segmented into hardware and software. Based on the process, the market is sub-segmented into signal recognition, object recognition, and data mining. Further, based on application, the market is sub-segmented into traffic management, road safety and security, parking management, automotive telematics, and other applications (license plate recognition). Among the offerings, the software sub-segment is projected to dominate the market owing to demand for the increasing adoption of AI-powered solutions for predictive fleet maintenance, real-time data analysis, and smart transportation management, which can utilize IoT and machine learning technologies.

Automotive Telematics Sub-Segment is Anticipated to Hold a Considerable Share of Global AI in Transportation Market

Based on applications, the automotive telematics sub-segment is expected to have a significant part of the global AI in transportation market during the forecast period. Real-time vehicles play an important role in increasing AI-operated automotive telematics solutions with transportation and safety including tracking, future maintenance, and AI-operated fleet management. This progress enables making data-driven decisions better through the adaptation of fuel consumption, driver behavior monitoring, and route planning. Increasing integration of IOT and AI-based analytics in telematics systems has further increased the demand for intelligent transport solutions. For instance, in December 2024, NHTSA launched the Automated Vehicles Safety, Transparency, and Evaluation Program (AV STEP) to enhance oversight of automated driving systems (ADS). This initiative promotes transparency in ADS operations and aligns with the National Roadway Safety Strategy, introduced in January 2022, to reduce road injuries and fatalities.

Regional Outlook

The global AI in transportation market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, ASEAN Countries, Australia and New Zealand and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). In the regional outlook, North America is expected to dominate global AI in transportation market due to the widespread adoption of advanced technologies such as AI-powered telematics, computer vision, and predictive analytics for real-time fleet monitoring, where these solutions enable transportation providers to optimize routes, enhance safety, and improve operational efficiency.

The Asia-Pacific Region is Expected to Grow at a Significant CAGR in the Global AI in Transportation Market

The Asia-Pacific region is expected to grow at the highest CAGR in the global AI in transportation market during the forecast period. The regional expansion is driven by the increasing adoption of AI-powered traffic management systems, autonomous vehicles, and smart logistics solutions. Emerging economies such as China, Japan, and South Korea are investing heavily in AI-based transportation infrastructure to enhance mobility and reduce congestion. Additionally, government initiatives promoting intelligent transportation systems and rising investments in AI-driven fleet management and predictive maintenance solutions are further accelerating market growth.

Market Players Outlook

The major companies serving AI in transportation market include Aptiv Inc., Aurora Innovation Inc., General Motors Corp., Intel Corp., NVIDIA Corp., and others. These market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market.

Recent Developments

In July 2024, Uber Technologies introduced autonomous delivery robots in Japan, developed in collaboration with Mitsubishi Electric and Cartken. These robots are designed to enhance delivery efficiency and safety by leveraging AI-driven navigation and automation. Uber aims to expand the deployment of these autonomous delivery solutions to optimize last-mile logistics and improve customer experience.
In February 2023, Nikola Corp. announced that PlusAI's autonomous truck technology standard in its battery and fuel cell electric trucks starting in 2024, aiming to improve safety and operational efficiency.

The Report Covers:

Market value data analysis of 2025 and forecast to 2035.
Annualized market revenues ($ million) for each market segment.
Country-wise analysis of major geographical regions.
Key companies operating in global AI in transportation market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
Analysis of market-entry and market expansion strategies.
Competitive strategies by identifying 'who-stands-where' in the market.

Product Code: OMR2028095

1. Report Summary

Current Industry Analysis and Growth Potential Outlook
Global AI in Transportation Market Sales Analysis - Offering | Process | Application ($ Million)
1.1. Research Methods and Tools
1.2. Market Breakdown
- 1.2.1. By Segments
- 1.2.2. By Region

2. Market Overview and Insights

2.1. Scope of the Report
2.2. Analyst Insight & Current Market Trends
- 2.2.1. Key Findings
- 2.2.2. Recommendations
- 2.2.3. Conclusion

3. Competitive Landscape

3.1. Key Company Analysis
3.2. Intel Corp.
- 3.2.1. Overview
- 3.2.2. Financial Analysis
- 3.2.3. SWOT Analysis
- 3.2.4. Recent Developments
3.3. Kyndryl Inc.
- 3.3.1. Overview
- 3.3.2. Financial Analysis
- 3.3.3. SWOT Analysis
- 3.3.4. Recent Developments
3.4. NVIDIA Corp.
- 3.4.1. Overview
- 3.4.2. Financial Analysis
- 3.4.3. SWOT Analysis
- 3.4.4. Recent Developments
3.5. Key Strategy Analysis

4. Market Segmentation

4.1. Global AI in Transportation Market by Offering ($ Million)
- 4.1.1. Hardware
- 4.1.2. Software
4.2. Global AI in Transportation Market by Process ($ Million)
- 4.2.1. Signal Recognition
- 4.2.2. Object Recognition
- 4.2.3. Data Mining
4.3. Global AI in Transportation Market by Application ($ Million)
- 4.3.1. Traffic Management
- 4.3.2. Road Safety and Security
- 4.3.3. Parking Management
- 4.3.4. Automotive Telematics
- 4.3.5. Others (License Plate Recognition)

5. Regional Analysis

5.1. North America AI in Transportation Market Sales Analysis - Offering | Process | Application | Country ($ Million)
- 5.1.1. United States
- 5.1.2. Canada
5.2. Europe AI in Transportation Market Sales Analysis - Offering | Process | Application | Country ($ Million)
- 5.2.1. UK
- 5.2.2. Germany
- 5.2.3. Italy
- 5.2.4. Spain
- 5.2.5. France
- 5.2.6. Rest of Europe
5.3. Asia-Pacific AI in Transportation Market Sales Analysis - Offering | Process | Application | Country ($ Million)
- 5.3.1. China
- 5.3.2. India
- 5.3.3. Japan
- 5.3.4. South Korea
- 5.3.5. Australia & New Zealand
- 5.3.6. ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And Other)
- 5.3.7. Rest of Asia-Pacific
5.4. Rest of the World AI in Transportation Market Sales Analysis - Offering | Process | Application | Country ($ Million)
- 5.4.1. Latin America
- 5.4.2. Middle East and Africa

6. Company Profiles

6.1 Aptiv Plc
6.2 Aurora Innovation Inc.
6.3 Continental AG
6.4 Ford Motor Co.
6.5 General Motors Corp.
6.6 Magna International Inc.
6.7 Mercedes Benz Group AG
6.8 Mobileye Global Inc.
6.9 Nuro, Inc.
6.10 Oxa Autonomy Ltd.
6.11 PlusAI, Inc.
6.12 Pony.ai
6.13 PTV Planung Transport Verkehr GmbH
6.14 Renault S.A.
6.15 Tesla, Inc.
6.16 The Volvo Group
6.17 Uber Technologies Inc.
6.18 Waymo LLC
6.19 WeRide Inc.
6.20 ZF Friedrichshafen AG