Role of Artificial Intelligence in Transportation Market
The AI in transportation market is experiencing significant growth due to rising concerns about vehicle and driver safety, the increasing focus on reducing transportation costs, and advancements in autonomous vehicle technologies. In 2017, the market was valued at $1.4 billion and is projected to reach $3.5 billion by 2023, growing at a CAGR of 16.5% between 2018 and 2023. AI technologies like computer vision, deep learning, and natural language processing are at the heart of this revolution.
Technological Advancements
AI-based hardware such as video cameras, RADAR sensors, and LiDAR equipment are key components in autonomous vehicles under trial. Applications of AI in transportation include the Human-Machine Interface (HMI) and Advanced Driver-Assistance Systems (ADAS). While HMI dominated the market historically, ADAS is expected to grow rapidly due to its benefits in vehicle handling, accident prevention, and parking assistance.
Software Dominance
The software segment leads the AI in transportation market, driven by platforms like Microsoft Azure. Software solutions enable seamless integration with HMI and other applications, facilitating the development of intelligent and connected vehicles.
“AI transforms transportation into a smarter, safer, and more efficient ecosystem, revolutionizing how we move and connect.” – Industry Visionary
Industry Partnerships
Partnerships and acquisitions are shaping the market, with technology startups being acquired by major players. For instance, NVIDIA Corporation partnered with Continental in 2018 to create AI self-driving vehicle systems based on the NVIDIA DRIVE platform, aiming to introduce level 3 autonomous vehicles by 2021. Such collaborations are propelling innovation and market growth.
Autonomous Vehicles and AI
Advancements in autonomous vehicle technology are transforming the transportation sector. AI-powered systems enhance fleet utilization, reduce operational costs, and improve service levels. Companies like Tesla and Volvo, along with startups such as nuTonomy and TuSimple, are leading this charge with innovative autonomous vehicle solutions. Tesla’s launch of an electric semi-truck with semi-autonomous features in 2017 exemplifies this trend.
Future Outlook
Autonomous vehicles with AI-driven smart features are set to redefine transportation by improving safety and operational efficiency. Consumer preferences for safe and secure travel are driving automakers to integrate AI into their offerings, fueling long-term market growth globally.
Hence, the increasing consolidation among manufacturers and advancements in autonomous vehicle technology are key drivers of the AI in transportation market.
Tags:
AI, Transportation, Autonomous Vehicles, HMI, ADAS
