Impact Of AI, IoT And Big Data On Transportation Industry


Impact Of AI, IoT And Big Data On Transportation Industry

June 01, 2019 | By SYNARION IT

Impact Of AI, IoT And Big Data On Transportation Industry

In the prevailing scenario, humans are innovating various technologies for greater insight into our day-to-day activity so that we can improve our lifestyle by upgrading our processes. Such innovations like AI, IoT, and Big Data have made some fascinating and intriguing enhancements to the transportation industry as well. By the time, these cutting edge technologies and apps like Taxi Dispatch Solutions are driving almost every industry by transforming their concepts. Here, we are going to talk about how AI, IoT, and Big Data are ruling the transportation industry.

Problems in Transportation Industry

  • Getting around in any big city can be a real pain. Traffic jams seem to be a consistent complaint, and simply getting to work can turn into a burden, even on the best of days.
  • With more people than ever before flocking to the world’s major urban areas, the problem of crowding and inefficient transportation only stands to get much worse.

Introduction of IoT, Artificial Intelligence and Big Data in Transportation Industry

Artificial intelligence, the Internet of Things(IoT), and Big Data are changing the way everything works in the world. Starting from the transportation industry to our homes, the above technologies are making ripples.

As a matter of fact, the integration of these technologies in new mobile app development is a big deal for revenue generation. That means, its advantages and possibilities for the future seem endless.

IoT Introduction

Internet of Things (IoT) is an ecosystem of connected physical objects that anyone can access through the internet.

You’ll see this definition everywhere on the Internet. Still not getting it?

Now, let us explain you IoT in simple words-

  • The Internet of Things is actually a pretty simple concept, it means taking all the things around you and connecting them to the internet.
  • The ‘thing’ in IoT could be a human with a heart monitor or any automobile with built-in-sensors, i.e. objects that have been assigned an IP address and have the capability to transfer data over a network without any manual assistance.

IoT in the Transportation Industry

The adoption of IoT within the transportation industry has led to the incorporation of assorted tools & services that facilitate better transport management through-

  • Traffic congestion control system
  • Automotive telematics
  • Reservation System
  • Toll & ticketing systems
  • Security and surveillance system
  • Remote observance & others

Need for IoT in the On-Demand Taxi Industry

On-demand taxi firms like Uber and Ola have made a negative impact on the traditional taxi firms which uses taxi dispatch systems for taxi mobile app development.

That is to say, traditional taxi businesses are hanging on the verge.

In 2019, the transportation industry is forecast to invest $71 billion on IoT solutions.

Impact of IoT on Taxi Industry

  1. Cost
  2. Convenience
  3. Speed

Above all, the 3 main reasons why the on-demand taxi business is a massive hit. IoT brings all the processes on a centralized cloud network to gather real-time information.

  • Through the single system, all processes like dispatching, communication, swift service, and payment are integrated.
  • Likewise, the gap between the passengers and drivers can be eliminated through one-on-one communication, licensed drivers, and call masking features in terms of safety.

Let’s look at some stats that will justify the impact of IoT on the transportation market-

  • According to the report, global IoT in the transportation market valued at $135.35 billion in 2016 and is expected to reach $328.76 billion by 2023.
  • The highest revenue is generated in North America of $46.75 billion in 2016.
  • IoT in the transportation segment is growing at a CAGR of 13.1% from 2017 to 2023.

global IoT in Transportation Market

Artificial Intelligence Introduction

Artificial intelligence (AI) is the term in which a computer program or a machine has the ability to think and learn. The AI concept is all based on the idea of building machines having the ability to think, act, and learn just like humans.

Now, let us explain AI into more simpler words-

Artificial intelligence came from two different words-

  • Artificial that is a man-made while,
  • However, Intelligence is the ability of the mind to understand principles, truth, to acquire knowledge, facts or meanings, and apply it to practice.

Henceforth, artificial intelligence is an invention by humans to make life easy and comfortable.

Artificial Intelligence in Transportation Segment cab be worth 10.30 Billion USD by 2030

Artificial Intelligence in the Transportation Industry

AI applications in the transportation industry are driving the evolution of the next generation of Intelligent Transportation Systems.

Meanwhile, some of the most common aspects where we use in transportation are:

Autonomous VehiclesArtificial Intelligence in the Transportation Industry

  • Traffic Management Solutions
  • Smartphone Apps
  • Passenger Transportation
  • Law Enforcement

Impact of AI on the Transportation Industry

AI in the transport industry has made everything possible from road safety issues to monitoring the fleet management systems.

In fact, Artificial Intelligence(AI) has been an end to end solution provider.

Stats to prove the impact of AI on transportation and logistic Industry-

  • According to the report, global AI in transportation market size is USD 1.21 billion in 2017 and about to reach USD 10.30 billion by 2030
  • Certainly, It is growing  at a CAGR of 17.87% from 2017 to 2030

Artificial Intelligence in transportation market

Big Data Introduction

Firstly, Big Data is a term that can describe a large collection of data that is huge in size.  It is still growing exponentially with time.

Secondly, It has 3 forms-

  1. Structured
  2. Unstructured
  3. Semi-structured

So, Big data has the potential to mine all that data as information and use in many advanced analytics applications.

Big Data in Transportation Industry

  • Over the past few years, big data has transformed everything. Even the transportation industry making a daily commute a much more convenient experience.
  • On the other hand, Big Data is an evolving paradigm and has currently grabbed all the attention of global interest. Especially within the transportation industry.

Impact of Big Data in Transportation Industry

Various travel and transportation industry segments, such as airlines, railways, hospitality, and others. They have adopted big data analytics in their iPhone or Android app development to manage-

  • Customer records
  • Transaction history
  • Pricing data for better customer feedback
  • Enable optimized route planning
  • Detection of networks with poor infrastructure
  • Calculation of travel delay
  • Drive the market growth of big data in the taxi market as well

Alongside, here are the stats that show Big Data’s growth in the Market-

  • Big Data market revenues can increase from $42B in 2018 to $103B in 2027
  • Furthermore, the entire global software market to be worth $628B in revenue.

How AI, IoT, And Big Data Are Ruling The Market

  • In Tokyo, a group of companies is using location-enriched big data and artificial intelligence (AI) to place cabbies at the intersection of supply and demand, hoping that.
  • In addition, Japan Taxi Co., Ltd. has unveiled the Smart IoT Mobility System, which integrates a full suite of connectivity and communication features in a highly-optimized solution for commercial vehicle apps.

AI, IoT, And Big Data Are Ruling The Market


If these technologies are handles and integrated properly, it can be a great help for on-demand solutions like On-Demand Food Delivery App, On-demand taxi app development, on-demand car wash mobile apps, and On-Demand Doctor Appointment app and many more.


In conclusion, transportation problems become a challenge. Especially, when the system and users’ behavior is too difficult to model and predict the traveling patterns.

Eventually, technologies like AI, IoT, and Big Data are a big relief to all those challenges that the transportation segment is facing. 

IoT, AI and Big Data combined with your robust on-demand taxi booking app is a sure slingshot towards success.

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