Generative Artificial Intelligence (AI) in Transportation Market Report 2025

This Generative Artificial Intelligence (AI) in Transportation market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The generative artificial intelligence (AI) in transportation market size has grown rapidly in recent years. It will grow from $1.01 billion in 2024 to $1.21 billion in 2025 at a compound annual growth rate (CAGR) of 19.6%. The growth in the historic period can be attributed to the increasing volume of data generated in transportation systems fuels, the demand for autonomous vehicles, rising consumer expectations, rising interest in traffic management, and increasing focus on safety and efficiency.

The generative artificial intelligence (AI) in transportation market size is expected to see rapid growth in the next few years. It will grow to $2.46 billion in 2029 at a compound annual growth rate (CAGR) of 19.5%. The growth in the forecast period can be attributed to increasing focus on cybersecurity, increasing supply chain management, the rise of smart cities, growth of mobility-as-a-service (MaaS), expansion of autonomous vehicles, and increasing data availability. Major trends in the forecast period include continuous improvements in AI algorithms, adoption of smart solutions, advancements in 5G technology, and convergence of AI with the Internet of Things (IoT), development in cloud-based communication technology.

The growing demand for autonomous vehicles is anticipated to drive the expansion of generative artificial intelligence (AI) in the transportation market. Autonomous vehicles (AVs), or self-driving vehicles, operate without direct human control by using a combination of sensors, cameras, radar, AI, and machine learning algorithms. The increasing demand for AVs is driven by factors such as safety concerns, government policies and incentives, consumer preferences, and traffic congestion. Generative AI enhances the training of autonomous vehicles by generating diverse driving scenarios and simulations, which improves system robustness and safety. It also develops personalized user interfaces to better match user preferences and enhance interactions. For example, the National Highway Traffic Safety Administration reported in December 2022 that there will be 3.5 million self-driving vehicles on U.S. roads by 2025 and 4.5 million by 2030. As a result, the rising demand for autonomous vehicles is propelling the growth of generative AI in the transportation market.

Leading companies in the generative AI in transportation market are focusing on developing advanced technologies such as generative AI (GenAI) chatbots to enhance personalized user experiences. These chatbots facilitate natural language conversations using advanced machine learning models. For instance, in August 2024, Wiliot, an Israel-based company specializing in Internet of Things technology, introduced WiliBot, a generative AI (GenAI) chatbot designed for natural-language interactions with any ambient IoT-connected product. WiliBot connects physical products with digital intelligence, allowing businesses and consumers to engage meaningfully about product details and supply chains. By integrating a large language model (LLM) with Wiliot’s ambient IoT technology, WiliBot enables users to inquire about product information such as shelf life, transport history, and sustainability metrics. It uses real-time data from Wiliot's self-powered IoT Pixels, which monitor factors such as location, temperature, and humidity. This data is transmitted via Bluetooth to the Wiliot cloud for analysis. WiliBot's AI algorithms can detect supply chain issues, such as temperature deviations, and generate alerts or recommendations to improve operational efficiency.

In August 2024, Blue Yonder Group, Inc., a US-based supply chain management company, acquired One Network Enterprises for approximately $839 million. This acquisition aims to integrate One Network's Digital Supply Chain Network with Blue Yonder’s existing solutions, creating a unified platform for real-time optimization and collaboration across various supply chain tiers, from suppliers to customers. One Network Enterprises, Inc., based in the US, provides generative AI solutions for supply chain management and transportation.

Major companies operating in the generative artificial intelligence (AI) in transportation market are Amazon Web Services Inc., Accenture plc, International Business Machines Corporation, Oracle Corporation, Continental AG, SAP SE, Nvidia Corporation, Capgemini SE, Cognizant Technology Solutions Corp., Infosys Limited, Adobe Inc., HCL Technologies Limited, Wipro Ltd., ServiceNow Inc., Blue Yonder Group Inc., Geotab Inc., Kinaxis Inc., DataRobot Inc., Resilinc Corporation, LLamasoft Inc., ClearMetal Inc.

North America was the largest region in the generative artificial intelligence (AI) in the transportation market in 2024. The regions covered in the generative artificial intelligence (AI) in transportation market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative artificial intelligence (AI) in transportation market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence (AI) in transportation involves the use of AI models to create new data that improves various aspects of transportation systems. Its main objectives are to enhance efficiency, safety, and innovation by developing better system designs, predicting and mitigating traffic issues, optimizing logistics and fleet management, and advancing vehicle technologies.

Generative AI in transportation primarily includes services and solutions. Services encompass consulting, integration, and support to assist businesses in implementing and optimizing AI technologies for greater efficiency and innovation. These services are applied in areas such as route optimization, customer support, safety assessment, and predictive maintenance. They are utilized by a range of end-users, including automotive manufacturers and transportation agencies.

The generative artificial intelligence (AI) in transportation market research report is one of a series of new reports that provides generative artificial intelligence (AI) in transportation market statistics, including generative artificial intelligence (AI) in transportation industry global market size, regional shares, competitors with a generative artificial intelligence (AI) in transportation market share, detailed generative artificial intelligence (AI) in transportation market segments, market trends, and opportunities, and any further data you may need to thrive in the generative artificial intelligence (AI) in transportation industry. This generative artificial intelligence (AI) in transportation market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The generative artificial intelligence (AI) in transportation market consists of revenue earned by entities by providing services such as autonomous vehicle navigation, traffic management and control, supply chain optimization, safety enhancements, and urban planning and infrastructure design. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative artificial intelligence (AI) in transportation market also includes sales of embedded AI systems, autonomous systems components, edge AI devices, and AI-enhanced navigation systems. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

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.

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