The artificial intelligence in transportation industry is focused on developing autonomous driving technologies through machine learning and computer vision. From self-driving cars to intelligent traffic management systems, AI is transforming how people and goods move across roads, railways, aviation and maritime routes. Vehicle automation enables advanced driver assistance features like adaptive cruise control and lane centering assistance, improving road safety.
The Artificial Intelligence in Transportation Market Size in transportation has the potential to reduce accidents, ease traffic congestion, lower fuel consumption, and offer mobility alternatives for elderly and disabled populations. \
The market size of AI in transportation is estimated to be valued at US$5.2 billion in 2024 and is expected to exhibit a CAGR of 42% over the forecast period of 2023-2031.
Key players in the artificial intelligence in transportation space include Waymo, Tesla, NVIDIA, Intel and Microsoft. Their focus is to develop scalable AI platforms and hardware that can power fully autonomous vehicles. Computer vision, reinforcement learning and neural network algorithms are utilized to enable vehicles to recognize their surroundings, predict behaviors and navigate roadways safely. However, building such advanced driving systems requires massive amounts of real-world training data. Companies are establishing partnerships with automakers, cities and logistics firms to collect transportation data, map environments and test self-driving prototypes.
The Artificial Intelligence in Transportation Companies from the need for more efficient transportation of people and goods. Traffic congestion costs economies billions annually in lost productivity and fuel wastage. Autonomous trucking and delivery bots have potential to ease such problems by removing human errors from transportation networks. Additionally, advances in AI are enabling new on-demand mobility models like driverless taxis and shuttles. This offers mobility options for those unable to drive themselves and reduces infrastructure costs compared to building new public transit lines.
As artificial intelligence capabilities continue scaling globally, the transportation industry is expanding into new international markets. Key adoption regions include China, the European Union and parts of Asia Pacific focused on smart city development. Collaboration between governments, startups and industry is helping establish regulations and test infrastructure to encourage autonomous vehicle testing and deployment. Over the next decade, AI is projected to transform major aspects of how people and freight move around the world.
Market key trends: One of the major trends in the artificial intelligence in transportation market is the transition towards self-driving vehicles. Automakers and tech companies are engaged in a race to develop fully autonomous systems and deploy robo-taxis and delivery bots at a commercial scale. Extensive testing of advanced driver assistance systems and self-driving prototypes on public roads is ongoing. As AI, sensors and wireless connectivity advance further, experts forecast level 4 and level 5 autonomous vehicles will become mainstream after 2025 and change personal mobility forever.
Porter's Analysis
Threat of new entrants: Entry of new players is moderate due to requirement of high investments in R&D and infrastructure development. However, threat is high from tech giants due to their strong financial resources.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of alternatives and price sensitivity. However, specialized AI products give benefit of differentiation to suppliers.
Bargaining power of suppliers: AI technology providers and software developers have high bargaining power due to specialized skills and switching costs for buyers.
Threat of new substitutes: Technological developments can lead to new substitutes like IoT, robotics, etc. Substitution threat is moderate presently but expected to increase over long term.
Competitive rivalry: Market has few global players with significant market shares. Competition is intensifying with companies focusing on new solutions and business models like mobility as a service.
Geographical Regions
North America currently holds the largest share of the global artificial intelligence in transportation market in terms of value, owing to large number of major players and high focus on innovation led by USA and Canada.
Asia Pacific is expected to be the fastest growing regional market stimulated by growing economies like China and India. This can be attributed to increasing internet and smartphone penetration, focus on smart transportation infrastructure projects, and government initiatives for AI adoption.
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