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Artificial Intelligence (AI) In Smart City Mobility Market Growth Analysis: How Will Revenue Expand During The Forecast Period?
The artificial intelligence (AI) in smart city mobility market has experienced significant expansion over recent years. This market is projected to expand from $7.54 billion in 2025 to $9.21 billion in 2026, demonstrating a compound annual growth rate (CAGR) of 22.2%. Historically, this expansion has been driven by factors such as the spread of urbanization trends, intensifying traffic congestion challenges, the initial embrace of intelligent transport systems, the development of sensor-enabled city infrastructure, and growing financial commitments towards smart city pilots.
The artificial intelligence (AI) in smart city mobility market is set for substantial growth in the upcoming years, with projections indicating a rise to $20.72 billion by 2030, maintaining a compound annual growth rate (CAGR) of 22.5%. This expansion during the forecast period can be attributed to the proliferation of autonomous and connected vehicle ecosystems, increased capital outlay in smart mobility infrastructure, a surging demand for low-emission urban transport methods, the growing integration of AI with urban planning tools, and the wider adoption of data-driven traffic management platforms. Prominent trends throughout this period include the heightened deployment of AI-powered traffic optimization systems, a greater embrace of smart public transit analytics, the deeper integration of autonomous mobility platforms, the expansion of intelligent parking management solutions, and an intensified focus on obtaining real-time urban mobility insights.
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Artificial Intelligence (AI) In Smart City Mobility Market Opportunity Drivers: What Is Creating New Revenue Potential?
The increasing integration of autonomous vehicles is projected to boost the expansion of AI within the smart city mobility market moving forward. Autonomous vehicles are equipped with advanced technologies that enable them to operate and navigate without human intervention, leveraging sensors and artificial intelligence. The adoption of these vehicles is on the rise due to public regulatory approvals and the rollout of commercial services that support driverless ride-hailing in urban areas, thereby enhancing user acceptance and utilization. AI in smart city mobility solutions provides essential infrastructure support like traffic prediction, real-time routing, and connected vehicle data, facilitating the safe and efficient integration of autonomous vehicles into urban traffic systems. For instance, according to the Insurance Institute for Highway Safety (IIHS), a US-based non-profit organization, in December 2023, it is anticipated that global autonomous vehicle connections will reach approximately 3.5 billion by 2025, increasing to 4.5 billion by 2030. Therefore, the growing adoption of autonomous vehicles is expected to propel the growth of AI in the smart city mobility market.
Artificial Intelligence (AI) In Smart City Mobility Market Segmentation And Category Breakdown
The artificial intelligence (AI) in smart city mobility market covered in this report is segmented –
1) By Component: Software; Hardware; Services
2) By Deployment Mode: On-Premises; Cloud
3) By Technology: Machine Learning And Deep Learning; Computer Vision; Sensor Fusion
4) By Application: Traffic Management; Public Transportation; Parking Management; Autonomous Vehicles; Ride Sharing; Other Applications
5) By End-User: Government; Transportation Agencies; Private Operators; Other End-Users
Subsegments:
1) By Software: Traffic Analytics Platforms; Mobility Management Systems; Data Visualization Solutions; Predictive Analytics Tools; Route Optimization Software; Incident Detection Systems
2) By Hardware: Traffic Sensors; Surveillance Cameras; Communication Devices; Edge Computing Units; Control Centers Equipment
3) By Services: System Integration Services; Consulting Services; Maintenance And Support Services; Data Management Services; Deployment And Training Services; Managed Mobility Services
Artificial Intelligence (AI) In Smart City Mobility Market Innovation Trends Driving Future Development
Leading firms within the artificial intelligence in smart city mobility market are prioritizing sophisticated software tools designed for predictive maintenance, including AI and vehicle-to-everything (V2X)-powered intelligent traffic management systems. Their aim is to secure a competitive edge by facilitating continuous monitoring, prompt identification of issues, and proactive upkeep of urban transportation infrastructure. AI and V2X denote the convergence of artificial intelligence algorithms with vehicle-to-everything communication capabilities, allowing for instantaneous data exchange among vehicles, infrastructure, individuals, and networks to enhance traffic management and support the proactive maintenance of smart city mobility frameworks. As an illustration, in October 2024, the DubAI Roads and Transport Authority, a public transportation and mobility entity based in the UAE, introduced the V2X Network. This initiative aimed to facilitate real-time vehicle-to-infrastructure communication, thereby boosting traffic safety and efficiency. This smart mobility project enables immediate communication between vehicles and roadway infrastructure. It links traffic signals with in-car systems to provide immediate information like signal status, speed advice, and road conditions. Leveraging this interconnected data, it assists in optimizing traffic movement, mitigating congestion, and enhancing travel time predictability along important routes. Furthermore, the network promotes safer driving by offering timely alerts and increasing awareness at intersections.
Artificial Intelligence (AI) In Smart City Mobility Market Competitive Analysis Of Major Industry Participants
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.
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Artificial Intelligence (AI) In Smart City Mobility Market Regional Analysis And Leading Geography
North America was the largest region in the AI in smart city mobility market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in smart city mobility market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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Wasay has over a decade of experience in market research, data modelling, and analytics, with prior experience at GlobalData and Decision Tree Consulting Services. At The Business Research Company , he leads research operations across syndicated studies, customized consulting engagements, and the Global Market Model platform. His professional experience includes supporting organizations such as Boston Consulting Group, KPMG, and Ernst & Young. Wasay holds a degree in Electronics and Communications Engineering, postgraduate management qualifications from International Management Institute Belgium and Indian School of Business and Entrepreneurship, and completed the Integrated Program in Business Analytics from Indian Institute of Management Indore.