AI in Smart City Mobility Market Report 2026

The artificial intelligence (AI) in smart city mobility market size has grown exponentially in recent years. It will grow from $7.54 billion in 2025 to $9.21 billion in 2026 at a compound annual growth rate (CAGR) of 22.2%. The growth in the historic period can be attributed to expansion of urbanization trends, increasing traffic congestion challenges, early adoption of intelligent transport systems, growth of sensor-enabled city infrastructure, rising investments in smart city pilots.

The artificial intelligence (AI) in smart city mobility market size is expected to see exponential growth in the next few years. It will grow to $20.72 billion in 2030 at a compound annual growth rate (CAGR) of 22.5%. The growth in the forecast period can be attributed to expansion of autonomous and connected vehicle ecosystems, increasing investments in smart mobility infrastructure, growing demand for low-emission urban transport solutions, rising integration of AI with urban planning tools, expansion of data-driven traffic management platforms. Major trends in the forecast period include increasing deployment of AI-driven traffic optimization systems, rising adoption of smart public transit analytics, growing integration of autonomous mobility platforms, expansion of intelligent parking management solutions, enhanced focus on real-time urban mobility insights.

The growing adoption of autonomous vehicles is expected to stimulate the expansion of the AI in the smart city mobility market in the coming years. Autonomous vehicles are transportation systems equipped with advanced technologies that enable them to navigate and operate without human drivers through the use of sensors and artificial intelligence. Adoption of autonomous vehicles is increasing as regulatory approvals progress and commercial deployments expand driverless ride-hailing and mobility services in urban areas, improving public acceptance and utilization. AI-driven smart city mobility solutions provide essential infrastructure capabilities such as traffic forecasting, real-time route optimization, and connected vehicle data management, allowing autonomous vehicles to operate safely and efficiently within urban traffic ecosystems. For instance, in December 2023, according to the Insurance Institute for Highway Safety (IIHS), a US-based non-profit organization, global autonomous vehicle connections are projected to reach approximately 3.5 billion by 2025 and increase further to 4.5 billion by 2030. Therefore, the rising adoption of autonomous vehicles is expected to drive the growth of the AI in the smart city mobility market.

Key companies operating in the artificial intelligence in smart city mobility market are focusing on advanced software solutions that enable predictive maintenance, such as AI and vehicle-to-everything (V2X)-enabled intelligent traffic management systems, to gain a competitive advantage by enabling real-time monitoring, early fault detection, and proactive maintenance of urban mobility infrastructure. AI and V2X refer to the integration of artificial intelligence algorithms with vehicle-to-everything communication technologies that enable real-time data exchange between vehicles, infrastructure, pedestrians, and networks to optimize traffic operations and support predictive maintenance of smart city mobility systems. For example, in October 2024, the Dubai Roads and Transport Authority, a UAE-based public transportation and mobility authority, launched the V2X Network to enable real-time vehicle-to-infrastructure communication and improve traffic safety and efficiency. It is a smart mobility initiative that enables real-time communication between vehicles and road infrastructure (Vehicle-to-Everything). It connects traffic signals with in-vehicle systems to deliver live updates such as signal status, speed guidance, and road conditions. By using connected data, it helps optimize traffic flow, reduce congestion, and improve travel time reliability across key corridors. The network also supports safer driving through timely alerts and enhanced intersection awareness.

In March 2024, Transit Technologies LLC, a US-based provider of mobility software and connected transportation platforms, acquired TripShot Inc. for an undisclosed amount. Through this acquisition, Transit Technologies aimed to enhance its smart mobility and AI-enabled urban transportation capabilities by integrating TripShot’s fleet management, route optimization, and real-time mobility data software into its comprehensive AI-powered SaaS mobility platform, supporting more efficient transit operations, real-time analytics, and optimized routing for smart city mobility initiatives. TripShot Inc. is a US-based developer of mobility operating system solutions that collect and analyze fleet, route, and passenger data.

Major companies operating in the artificial intelligence (AI) in smart city mobility market are Metropolis Technologies Inc., Waymo LLC, Via Transportation Inc., EasyMile SAS, INRIX Inc., Optibus Ltd., May Mobility Inc., Smart Parking Limited, Swiftly Inc., Mundys S.p.A., NoTraffic Ltd., Zoox Inc., NextBillion.AI Pte. Ltd., GoodVision Labs s.r.o., Autofleet Inc., Valerann Ltd., GridMatrix Ltd., Videonetics Technology Private Limited, Watsoo Express Private Limited, Mobipar Inc., Beep Inc., TrafiXCT Ltd., Intozi Tech Private Limited, Surf Beyond Limited.

Tariffs are influencing the artificial intelligence in smart city mobility market by increasing costs of imported sensors, cameras, edge computing units, communication devices, and control center hardware used in traffic and transit systems. Municipal authorities in North America and Europe are most affected due to dependence on imported smart infrastructure components, while Asia-Pacific faces cost pressures on exporting integrated mobility platforms. These tariffs are increasing project implementation costs and extending deployment timelines. However, they are also encouraging local manufacturing of smart city hardware, regional system integration, and software-led mobility optimization solutions.

The artificial intelligence (AI) in smart city mobility market research report is one of a series of new reports that provides artificial intelligence (AI) in smart city mobility market statistics, including artificial intelligence (AI) in smart city mobility industry global market size, regional shares, competitors with a artificial intelligence (AI) in smart city mobility market share, detailed artificial intelligence (AI) in smart city mobility market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence (AI) in smart city mobility industry. This artificial intelligence (AI) in smart city mobility 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.

Artificial intelligence (AI) in smart city mobility refers to the application of AI technologies to enhance urban transportation systems such as traffic control, public transit, autonomous vehicles, and ride-sharing platforms. It processes real-time inputs from sensors, cameras, and connected vehicles to boost efficiency, minimize congestion, and improve safety. It also enables city planners and operators to make informed, data-based decisions for infrastructure development and traffic optimization.

The primary components of artificial intelligence in smart city mobility include software, hardware, and services. Software refers to AI-driven systems that analyze transportation data, optimize mobility networks, and enhance urban efficiency and safety. These systems are deployed through cloud-based and on-premises models and use technologies such as machine learning, deep learning, computer vision, and sensor fusion. Applications include traffic control, public transportation systems, parking management, autonomous vehicles, ride-sharing, and others, and are used by governments, transportation authorities, private operators, and others.

The artificial intelligence (AI) in smart city mobility market consists of revenues earned by entities by providing services such as predictive maintenance for transportation infrastructure, smart parking solutions, public transport scheduling and route optimization, and autonomous vehicle integration. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence (AI) in smart city mobility market also includes sales of AI-powered parking management solutions, intelligent public transport systems, connected vehicle platforms, route optimization software, and AI-driven analytics platforms. 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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