Increasing Use of AI in Transportation Firms Reducing Operation Costs
The advent of autonomous vehicles has led to the wide-scale integration of artificial intelligence (AI) technology in the transportation sector.
The advent of autonomous vehicles has led to the wide-scale integration of artificial intelligence (AI) technology in the transportation sector. AI is a primary technology for autonomous driving systems, as it is the only technology that allows real-time and reliable identification of objects around the vehicle. Owing to the burgeoning demand for autonomous vehicles, leading automotive original equipment manufacturers (OEMs) are making hefty investments in the advancement of autonomous technology for optimizing self-driving technology.
Moreover, the soaring focus of transportation companies on reducing their operational costs will help the AI in transportation market advance at a CAGR of 16.5% during 2018–2023. The market was valued at $1.4 billion in 2017 and it is expected to reach $3.5 billion revenue by 2023. The integration of AI solutions aids in reducing costs and improves the operations of such companies. Additionally, the adoption of AI-enabled solutions, such as adaptive cruise control (ACC) systems and auto emergency braking (AEB) systems helps in reducing driver fatigue and preventing potential road accidents, thereby saving lives and curtailing product delivery times.
Besides, the increasing adoption of truck platooning will also fuel the integration of AI technology in the transportation sector in the coming years. Platooning is extremely necessary for achieving the objective of autonomous driving, and it offers several advantages such as curtailment in emission rates, reduction in fuel consumption, and improvement in safety features. In recent years, many countries have taken several initiatives to allow truck platooning to make road transport cleaner, safer, and more efficient in the future.
Therefore, with the escalating focus of governments and transportation companies on road safety, automotive OEMs, such as Scania Group, Continental AG, Volvo Group, Intel Corp., Daimler AG, NVIDIA Corp., Robert Bosch GmbH, PACCAR Inc., and Valeo SA are increasingly integrating AI solutions in their vehicles. To offer advanced technologies to their customers, such OEMs are primarily focusing on partnerships and establishing new research centers. For instance, in February 2018, NVIDIA Corp. and Continental AG announced a partnership to develop AI-supported self-driving vehicle systems based on the NVIDIA DRIVE platform, for level 3 autonomous vehicles.
According to P&S Intelligence, North America will dominate the AI in transportation market in the foreseeable future, owing to the extensive sales of premium trucks in the region. The increasing regulatory developments related to compliance, safety, and accountability (CSA) and mounting investments being made in autonomous trucks in the U.S. will fuel the adoption of AI in the North American transportation sector in the coming years. For instance, the Automated Vehicles Comprehensive Plan developed by the U.S. Department of Transportation (USDOT) aims to prepare the country’s transportation system, promote collaborations and transparency, and modernize the regulatory environment.
Whereas, Asia-Pacific (APAC) is expected to integrate AI in the transportation sector at the fastest pace in the forthcoming years. This can be primarily attributed to the highest sales of trucks in the region and the rapid use of AI solutions in transportation in China and Japan. In the coming years, the transportation industry of Japan will adopt AI solutions at the highest rate, due to the maturing truck market of the country. Furthermore, China is also expected to integrate AI features in the trucks at a significant rate, owing to the growing digitization in the transport sector of the country.
Thus, the rising focus of transportation companies and governments on reducing operational costs and surging adoption of truck platooning will augment the integration of AI technology in the transportation sector in the foreseeable future.