Artificial Intelligence in Transportation Market Report 2026

The artificial intelligence in transportation market size has grown exponentially in recent years. It will grow from $4.27 billion in 2025 to $5.16 billion in 2026 at a compound annual growth rate (CAGR) of 20.8%. The growth in the historic period can be attributed to growth in urban traffic congestion, expansion of connected vehicle infrastructure, increased use of data analytics in logistics, rising investments in intelligent transport systems, early adoption of ai in fleet operations.

The artificial intelligence in transportation market size is expected to see exponential growth in the next few years. It will grow to $10.8 billion in 2030 at a compound annual growth rate (CAGR) of 20.3%. The growth in the forecast period can be attributed to increasing deployment of autonomous transportation solutions, rising investments in smart mobility platforms, growing demand for real-time traffic optimization, expansion of ai-driven public transport systems, increasing focus on logistics efficiency. Major trends in the forecast period include increasing adoption of ai-based traffic management systems, rising deployment of predictive maintenance platforms, growing use of ai-driven route optimization tools, expansion of semi-autonomous truck operations, enhanced integration of real-time transportation analytics.

The increasing demand for autonomous vehicles is expected to drive the growth of artificial intelligence in the transportation market in the coming years. An autonomous vehicle refers to a mode of transport capable of operating independently in an “autopilot” mode, traveling from a starting point to a specified destination using a range of onboard technologies and sensors such as adaptive cruise control, active steering, anti-lock braking systems, GPS navigation, lasers, and radar. Artificial intelligence enables autonomous vehicles to manage driving functions and detect potential accidents or obstacles. For example, in December 2023, according to a report published by the Victoria Transport Policy Institute, a Canada-based research organization, it is estimated that half of all new vehicles could be autonomous by 2045, and half of the total vehicle fleet by 2060. Therefore, the rising demand for autonomous vehicles is driving the growth of artificial intelligence in the transportation market.

Major companies operating in the artificial intelligence in transportation market are concentrating on the development of advanced pricing technologies, including AI-driven dynamic pricing models, to improve revenue optimization, pricing precision, and competitive positioning across logistics operations. AI-based dynamic pricing models use artificial intelligence to analyze real-time and historical data related to demand trends, asset utilization, market conditions, and competitive benchmarks, enabling continuous recommendations of optimal pricing ranges for transportation services. For instance, in September 2023, Imaginnovate, a US-based software company, launched a Dynamic Pricing Engine, an artificial intelligence solution designed to automate pricing in the transportation and logistics industry. This tool helps organizations establish competitive and profitable prices by evaluating factors such as transportation modes, equipment, demand levels, and competition, thereby optimizing revenue while preserving customer satisfaction.

In March 2024, Hayden AI, a US-based vision AI and spatial analytics company, announced a partnership with Snapper Services, the developer of the Mosaiq Transit Intelligence Suite, to strengthen data analytics capabilities for public transportation providers. Through this collaboration, Hayden AI’s mobile perception platform, which is deployed on buses for transit zone enforcement, is integrated with Snapper’s advanced analytics solution, Mosaiq Insights. The partnership aims to deliver actionable insights to transit agencies by leveraging both newly generated and existing data sources. Snapper Services is a New Zealand-based company that specializes in developing intelligent transportation solutions.

Major companies operating in the artificial intelligence in transportation market are The Volvo Group, Mercedes-Benz Group AG, Scania AB, Peloton Interactive Inc., Valeo SA, Xevo Inc., Nvidia Corporation, Intel Corporation, Robert Bosch GmbH, Continental AG, Microsoft Corporation, International Business Machines Corp, Magna International Inc., ZF Friedrichshafen AG, Alphabet Inc., Daimler AG, General Motors Company, Aptiv plc, Denso Corporation, Xilinx Inc., TomTom NV, Harman International Industries Inc., Nauto Inc., FiveAI Inc., Waymo LLC, Uber Technologies Inc., Tesla Inc., Mobileye NV, Baidu Inc., AutoX Inc., Ponyai Inc., TuSimple Inc., Aurora Innovation Inc., Embark Trucks Inc., Plusai Inc.

North America was the largest region in the artificial intelligence in transportation market in 2025. Asia-Pacific is expected to be the fastest growing region in the forecast period. The regions covered in the artificial intelligence in transportation market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence in transportation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial Intelligence in transportation market includes revenues earned by entities by road traffic management systems, unmanned aircraft systems, automation of train operation (ATO), automatic identification systems (AIS) for shipping and autonomous navigation. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.