Burgeoning adoption of autonomous vehicles is one of the major factors propelling the demand for the incorporation artificial intelligence (AI) in transportation sector. In autonomous vehicles, AI is an important technology for autonomous driving systems, owing to its ability to allow real-time and reliable recognition of objects around the vehicle. In addition to this, the automotive industry is also witnessing soaring investments for the development and optimization of self-driving technology, by major original equipment manufacturers (OEMs). For instance, Tesla Inc. launched a sleek electric semi-truck equipped with semi-autonomous capabilities for the first time in November, 2017.

Due to the above-mentioned factor, the global artificial intelligence (AI) in transportation market is expected to increase its revenue from $1.4 billion in 2017 to $3.5 billion by 2023, demonstrating a CAGR of 16.5% during the forecast period (2018–2023). AI brings with it numerous useful features and advantages such as advanced navigation, adaptive cruise control (ACC), and automatic emergency braking (AEB), which play a major role in reducing the overall transportation and vehicle maintenance costs. Moreover, these advanced AI-powered systems also help in reducing road congestion, improving vehicle performance and providing higher driver safety.

Request to Get the Sample Report@ https://www.psmarketresearch.com/market-analysis/ai-in-transportation-market/report-sample

In the automotive sector, artificial intelligence is widely used in human–machine interface (HMI) and advanced driver assistance systems (ADAS) for enhancing the performance and efficiency of vehicles and improving passenger safety and road traffic. Of these, the HMI is expected to record higher utilization of AI during the forecast period. This is primarily attributed to the higher adoption of HMI in trucks as compared to the advanced driver assistance systems (ADAS). The ADAS are predicted to observe faster growth in the utilization of AI as compared to the HMI systems, during the forecast period.

The AI in transportation market is presently witnessing increasing number of product launches and surging number of partnerships amongst the major automotive AI systems manufacturing companies. For instance, NVIDIA and Continental entered into a partnership in February 2018 in order to develop AI-powered self-driving vehicle systems, which would be based on the NVIDIA DRIVE platform, and plan to launch this system in 2021. Furthermore, Scania and Haylion Technologies announced in February 2018 that they are partnering in order to develop technological solutions for public transport by autonomous, electrified, and connected buses.

Globally, North America is predicted to observe the highest adoption of AI in the transportation sector during the forecast period. This is mainly ascribed to the fact that trucks are the mostly widely used vehicles in the U.S. and so, the mushrooming investments on autonomous trucks will boost the adoption of AI-powered systems in them in the coming years. Moreover, the soaring regulatory developments in the country, pertaining to compliance, safety, and accountability (CSA) will lead to higher integration of AI-based systems in the vehicles.

Thus, it is clear that due to the ballooning need for autonomous vehicles and the soaring investments made by the governments and private companies across the globe, for the development of vehicles equipped with advanced AI-driven systems, the demand for AI in the transportation sector will surge in future.