AI in transportation market seen topping $11 billion by 2030

The Business Research Company says artificial intelligence in transportation is set for rapid growth through 2030, led by autonomous vehicles, smart traffic systems and logistics optimization. Asia-Pacific is projected to become the largest regional market, while software is expected to dominate spending.

Why it matters: - AI is moving from pilot projects into core transportation systems, changing how fleets, roads, rail and logistics networks operate. - The shift is expected to improve safety, cut congestion, lower operating costs and support autonomous mobility. - The market is also becoming a battleground for software, sensors, edge computing and connected infrastructure.

What happened: - The Business Research Company published its Artificial Intelligence (AI) In Transportation Global Market Report 2026 – Market Size, Trends, And Forecast 2026-2035. - The report projects the global AI in transportation market will surpass $11 billion by 2030. - Asia-Pacific is forecast to become the largest regional market by 2030, reaching $4.0 billion from $1.4 billion in 2025. - The U.S. is projected to be the largest single-country market, reaching $3.0 billion in 2030 from $1.2 billion in 2025.

The details: - The report puts the market’s overall CAGR at 21% through 2030. - Asia-Pacific is projected to grow at a 24% CAGR, supported by intelligent transportation deployments, connected and autonomous mobility, smart transit networks and AI-powered traffic optimization. - The U.S. market is projected to grow at a 21% CAGR, helped by autonomous vehicle commercialization, freight and logistics optimization, smart roadways and predictive maintenance for rail and aviation. - Software is expected to hold 62% of the market by 2030, equal to about $7 billion. - Software growth is tied to route planning, dispatch systems, machine learning for network management, digital twin tools, computer vision, edge AI and predictive analytics. - The hardware and software segments are expected to add more than $7 billion in value by 2030. - Hardware is forecast to grow by $2 billion between 2025 and 2030, while software is expected to grow by $5 billion. - The market is segmented by process into signal recognition, object recognition and data mining. - By technology, the report covers deep learning, computer vision and context-awareness. - Applications include semi-autonomous trucks, truck platooning, predictive maintenance, precision mapping, autonomous trucks and machine-human interfaces. - Waymo LLC led global AI in transportation sales in 2025 with a 4% share. - NVIDIA Corporation and Tesla Inc. each held 3%. - Alphabet Inc. and Microsoft Corporation each held 2%. - Robert Bosch GmbH, Mercedes-Benz Group AG, Aptiv plc, Continental AG and Intel Corporation each held 2%. - The report says the top ten firms accounted for 23% of revenues in 2025. - The market is moderately fragmented, with high barriers from AI development, data infrastructure, safety regulation, cybersecurity and system integration demands. - Other named players include Siemens AG, Uber Technologies Inc., ZF Friedrichshafen AG, HERE Technologies, Magna International Inc., Aurora Innovation Inc., Valeo SA, Cisco Systems Inc., PACCAR Inc., IBM Corporation, Volvo AB, TomTom N.V., Daimler AG, TuSimple Holdings Inc. and PlusAI Inc.

Between the lines: - Autonomous vehicles remain the clearest growth engine because they depend on AI for perception, decision-making and navigation. - Smart traffic management is gaining weight as cities seek to reduce travel times, fuel use and emissions. - Logistics and fleet optimization are expanding because e-commerce and same-day delivery keep raising delivery-speed expectations. - Generative AI is starting to shape the market, with safety analytics emerging as a new use case for transportation agencies. - INRIX launched INRIX Compass in March 2026, an AI roadway safety analytics platform for transportation agencies and government entities. - INRIX Compass combines generative AI, mobility data and safety guidelines to identify high-risk locations, recommend interventions and support Vision Zero goals.

What's next: - Asia-Pacific is expected to extend its lead through wider deployment of smart mobility systems and public-private infrastructure investment. - U.S. growth will likely continue as autonomous vehicles, smart roadways and AI-enabled freight systems move further into commercial use. - Demand for AI processors, sensors, in-vehicle computing and V2X infrastructure should keep pushing the hardware side higher. - The report says companies are focusing on vehicle autonomy, road safety, predictive maintenance and computer vision to defend or grow share. - The Business Research Company also says its 2026 reports now include market attractiveness scoring, TAM analysis, company scoring matrices, Excel forecasting dashboards, market hotspot infographics and updated trend analysis.

The bottom line: - AI in transportation is moving from a niche technology story to a large-scale infrastructure market, with software, autonomous mobility and traffic intelligence driving the next phase of growth.