Agentic AI In Transportation And Smart Mobility Market Size & Share Analysis - Growth Trends & Forecasts (2025 - 2030)

Global Agentic AI In Transportation And Smart Mobility Market Trends and Insights

OEM Push for L4/L5 Automated Platforms

Automakers have earmarked multi-billion-dollar war chests to accelerate Level 4 and Level 5 programs. Hyundai Motor Group alone committed USD 21 billion for 2025-2028, allocating USD 6 billion to autonomous driving and robotics partnerships that fuse edge inference with centralized training.^{[1]Hyundai Motor Group, “Hyundai Motor Group Commits to U.S. Growth with USD 21 Billion Investment,” hyundaimotorgroup.com} Toyota’s USD 13 billion plan signals that competitive advantage is migrating from mechanical engineering prowess to learning-centric software differentiation. The capital outlay is simultaneously de-risking adoption for Tier-1 suppliers and startups that can plug-in modular planning stacks. Consequently, the Agentic AI in transportation and smart mobility market is becoming integral to long-term brand equity as vehicles transition into continuously improving software platforms.

Regulatory Incentives for V2X-Enabled Safety

Mandates for V2X equipment and AI auditability are altering purchase criteria for fleet operators. The U.S. Department of Transportation now ties autonomous testing permits to evidence of explainable decision frameworks.^{[2]U.S. Department of Transportation, “Connected Vehicle Infrastructure Investment,” transportation.gov} Parallel provisions under the EU AI Act assign liability according to algorithmic transparency, nudging adopters toward agentic systems able to document learning provenance. Early compliance winners gain preferential access to controlled test corridors, enhancing data flywheels that further widen capability gaps. Japan’s green-light for driverless operations on 25 roads by March 2025 entrenches the practice of proving learn-and-adapt logic in real traffic, catalysing demand across the Agentic AI in transportation and smart mobility market.

Rising Urban Congestion Costs

City governments face rising congestion-driven productivity losses-USD 87 billion annually in the United States alone—and are shifting procurement toward AI-adaptive traffic control. Google’s Green Light deployment in 70 cities trimmed signal delays by up to 20% while cutting fuel burn 15%, validating tangible return on investment for agentic traffic orchestration.^{[3]Google, “Green Light Traffic Optimization Project,” google.com} Municipalities therefore view such systems as a direct lever to reclaim GDP drag and meet climate goals. The feedback loop between enhanced emergency response times and public acceptance is further emboldening investments, reinforcing the long-run demand trajectory for the Agentic AI in transportation and smart mobility market.

Rapid Drop in Onboard AI Compute USD/TOPS

Automotive-qualified silicon costs plummeted from USD 2,000 per TOPS in 2023 to under USD 800 in 2024 as specialized architectures like NVIDIA Thor delivered 2,000+ TOPS within a 1,000-watt envelope. Similar cost curves from Horizon Robotics are widening accessibility across mid-tier vehicle classes. Once compute outlays fall beneath those of sensor redundancy, managerial economics favor intelligence over hardware excess, accelerating install rates throughout the Agentic AI in transportation and smart mobility market.

Sparse Edge-Cloud 5G Coverage Outside Tier-1 Cities

Connectivity shortfalls force vehicles to default to local inference, throttling the real-time collaboration needed for swarm learning. Operators consequently deploy dual-mode stacks that raise bill-of-materials and complicate operational policies when fleets roam between coverage zones. Competitive advantage therefore concentrates in urban cores, limiting scale efficiencies for nationwide services and tempering growth expectations within the Agentic AI in transportation and smart mobility market.

Public Skepticism Toward Self-Learning AV Logic

Surveys reveal 61% of U.S. adults fear self-driving technology, with just 13% extending trust to learning-based platforms. Liability studies show the public assigns more blame to autonomous service providers than to human drivers in identical crash scenarios. To bridge the trust gap, industry coalitions such as PAVE are staging live demonstrations, yet adoption curves remain sensitive to high-visibility incidents. Reputation risk therefore imposes conservative rollout cadences, dampening near-term volume expectations despite technological readiness.

Segment Analysis

By Application: Emergency Services Drive Innovation

Emergency & Roadside Assistance is forecast to surge at 35.23% CAGR, even as Ride-Hailing retained the largest 38.41% revenue share of the Agentic AI in transportation and smart mobility market in 2024. Deployment in 911 dispatch centers has cut average response times 25-40%, a performance delta that municipalities willingly underwrite through premium service contracts. Ride-Hailing pioneers meanwhile exploit cross-fleet learning to minimise pick-up latency, but profit pools are increasingly contested by logistics operators repurposing agentic routing engines.  

The Agentic AI in transportation and smart mobility market is also seeing Smart Logistics and Robo-Delivery platforms unlock 30% energy savings by adjusting routes in line with live demand clusters. Public Transit Optimisation tools allocate bus capacity dynamically, reducing idle miles while boosting passenger satisfaction. Advanced Traffic Management integrates with these services to deliver city-scale coordination, creating data network effects where algorithmic insights from ride-sharing feed emergency services and vice versa. Stakeholders consequently prioritise openness standards to preserve interoperability across growing application constellations.

Note: Segment shares of all individual segments available upon report purchase

By Offering: Data Services Accelerate Growth

Software Stack solutions captured 42.15% of 2024 revenue, yet Data & Simulation Services are expanding 38.65% annually as safety regulators insist on millions of virtual test miles before public deployment. Operators favour simulation-native validation flows that reduce expensive on-road trials and shorten certification lead times. Consulting services are gaining momentum as legacy fleets struggle with retro-fit complexity and compliance uncertainty.  

Hardware remains essential for sensor fusion latency but faces commoditisation pressure. Hence, value creation is migrating toward lifelong learning loops that update vehicle behaviour post-sale. This shift unlocks recurring revenue models that appeal to capital-market investors chasing software-like margins, ensuring sustained momentum for the Agentic AI in transportation and smart mobility market.

By Deployment Mode: Hybrid Architectures Gain Momentum

Edge/On-Vehicle processing still accounts for 43.62% of the Agentic AI in transportation and smart mobility market size, primarily to guarantee sub-10 millisecond latency for collision avoidance. However, Hybrid Edge-Cloud approaches are scaling 36.23% annually as operators offload non-critical computation to cloud GPUs, lowering vehicle unit cost while preserving safety envelopes.  

Cloud-Only models are reserved for depot-based use cases such as autonomous yard tractors where deterministic connectivity is assured. Infrastructure-Centric schemes flourish in closed campuses like ports, where a single control tower orchestrates fleets to achieve near-zero downtime. This architectural pluralism enables providers to tailor cost-performance profiles to operational contexts, further broadening addressable demand.

By Technology Layer: Learning Systems Lead Growth

Planning/Decision-Making software contributed 32.61% of 2024 revenue and remains indispensable; however, Edge-to-Cloud Learning modules are set to grow 38.95% as fleets recognise that resilient performance stems from perpetual adaptation rather than one-off feature releases. Perception stacks have reached component maturity, spawning open-standard interfaces that lower switching costs.  

Control and Actuation software is integrating driver preference models patented by Ford, enabling vehicles to personalise dynamics without compromising regulatory compliance. The aggregation of these layers into unified DevOps pipelines ensures over-the-air updates propagate seamlessly, which in turn elevates customer lifetime value within the Agentic AI in transportation and smart mobility market.

Note: Segment shares of all individual segments available upon report purchase

By Transportation Mode: Air Mobility Emerges

Passenger Cars maintained 42.59% revenue share, yet Air Mobility eVTOL/UAM platforms are registering a 39.06% CAGR as urban air corridors become operational. eVTOL developers such as Supernal rely on agentic flight-path optimisers that judiciously manage battery state, weather volatility and three-dimensional traffic.  

Commercial Road Freight fleets embed eco-routing agents that balance load weight, delivery windows and refuelling stops, trimming diesel consumption 8-12% across pilot programs. Micro-Mobility operators focus on fleet-wide charge orchestration, while rail incumbents deploy predictive maintenance agents to avoid unplanned stoppages. Cross-modal reuse of learning models accelerates innovation cycles, securing expansion capacity for the Agentic AI in transportation and smart mobility market across diverse transport verticals.

Geography Analysis

North America accounted for 38.53% of global revenue in 2024, a position reinforced by USD 1.2 billion in federal grants for connected infrastructure and a permissive state-level testing regime. U.S. venture investors injected over USD 1 billion into agentic innovators such as Wayve, signalling confidence in software-centric platforms. Canadian smart-city pilots, notably Toronto’s Quayside redevelopment, provide live laboratories where mobility, energy and public safety data converge to refine cross-domain agents.

Asia-Pacific is the fastest-growing region with a 34.26% CAGR. China’s Apollo program reached 10-city commercial scale, while South Korea earmarked KRW 1.1 trillion (USD 825 million) to leapfrog toward Level 4 capabilities. Japan’s designation of driverless corridors funnels real-world data into edge-cloud learning pools, reinforcing first-mover advantages and attracting semiconductor investment that underpins cost leadership. Local manufacturers of AI accelerators further democratise adoption, deepening the Agentic AI in transportation and smart mobility market’s reach.

Europe maintains resilient expansion under the EU AI Act’s structured liability provisions that reward explainable AI. German premium OEMs co-develop decision stacks with chipmakers to meet stringent TÜV safety thresholds, while Nordic countries experiment with carbon-credit marketplaces that monetise eco-routing outputs. Pan-regional focus on privacy mandates encryption-by-design data transfer, compelling vendors to refine federated learning schemes and strengthening buyer confidence in agentic offerings.