by The global Artificial Intelligence in Transportation Market is poised for substantial growth, with a market size of USD 2.1 billion in 2021 and a projected compound annual growth rate (CAGR) of 16.9% during the forecast period. The integration of artificial intelligence (AI) technology in the transportation sector is revolutionizing the industry, with autonomous vehicles being a prominent example of its application.
AI Technology Revolutionizes Transportation
AI technology enables vehicles to recognize their surroundings in real-time, optimizing autonomous cars for better efficiency and safety. Original equipment manufacturers (OEMs) are increasingly incorporating AI into vehicles to enhance their performance and capabilities.
Key Market Trends
- Consolidation and Partnerships: Collaboration among market players is a notable trend, with companies like Continental and NVIDIA partnering to develop AI-driven self-driving vehicle systems.
- Safety Features: Rising adoption of road safety features in vehicles, driven by government initiatives mandating safety measures, is boosting demand for AI technology in transportation.
- Reducing Accidents: The use of AI technology reduces road accidents and fatalities by minimizing human error. Governments are promoting AI adoption to enhance passenger and driver safety.
Impact of COVID-19 Pandemic
The COVID-19 pandemic had a negative impact on the market due to economic recession and disruptions in manufacturing operations. Demand for AI technology in transportation declined, affecting vehicle production and supply chains.
Market Drivers
- Reducing Road Accidents: The increasing rate of road accidents is a significant driver for AI technology adoption in transportation, as it enhances safety and reduces fatalities caused by accidents.
- Truck Platooning: Truck platooning, driven by AI technology, provides exceptional opportunities for the transportation sector, reducing emissions and improving logistics.
Market Restraint
Lack of Infrastructure: The existing infrastructure in the transportation sector does not fully support AI technology, posing a challenge to its widespread adoption.
Segment Overview
- Autonomous Trucks Dominate: Autonomous trucks are expected to dominate the market due to their increasing demand in logistics and transportation for cost reduction and efficiency.
- Software Category: Software, which includes predictive intelligence, is the dominant category, providing advanced features and enhancing functionality, such as voice recognition and signal recognition.
Regional Landscape
- North America Leads: North America holds the largest revenue share, driven by increased purchasing power and a focus on road safety. The region benefits from strong financial conditions and a robust supply chain.
- Asia Pacific Growth: The Asia Pacific region is experiencing stable revenue growth, with China and Japan leading the way in the adoption of AI technology in transportation.
Competitive Landscape
Major players in the market include Continental, Bosch, NVIDIA, and Microsoft, who are at the forefront of driving innovation in AI technology for transportation.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa):
https://www.fairfieldmarketresearch.com/report/artificial-intelligence-in-transportation-market
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This press release first seen on Brilad
COMTEX_442544934/2840/2023-10-27T15:48:54
Julian Lopez is professor emeritus of finance, served as the founding academic affairs dean and founding chair of the finance department.
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No journalist was involved in the writing and production of this article.