South Korea AI In Transportation Market Overview
As per MRFR analysis, the South Korea AI In Transportation Market Size was estimated at 86.8 (USD Million) in 2023.The South Korea AI In Transportation Market is expected to grow from 96.25(USD Million) in 2024 to 334.3 (USD Million) by 2035. The South Korea AI In Transportation Market CAGR (growth rate) is expected to be around 11.984% during the forecast period (2025 - 2035)
Key South Korea AI In Transportation Market Trends Highlighted
The market for AI in transportation is expanding significantly in South Korea due to a number of important market factors. With programs designed to improve public transit networks and safety, the government's proactive approach to digital innovation is a powerful force.
Improved urban mobility and less traffic are the results of national policies that promote smart city initiatives and encourage the use of AI technologies in logistics optimisation and traffic control. Furthermore, the adoption of AI-powered autonomous vehicles and intelligent traffic systems is being driven by the growing demand for sustainable and efficient transportation solutions.
The AI in transportation sector in South Korea offers significant prospects for investigation, especially in the area of last-mile delivery services. There are opportunities for startups and IT companies as the demand for automated delivery systems increases due to the continued boom in online shopping.
Better route planning and operational efficiency are made possible by the deployment of real-time tracking and data analysis technologies, which are further supported by the nation's sophisticated telecommunications infrastructure. Environmental sustainability is becoming more and more important in the transportation industry, according to recent developments.
South Korea is promoting the use of AI technologies in electric and hydrogen-powered cars to reduce carbon emissions and maximise energy efficiency. Additionally, because of government and private sector initiatives to inform the public about the advantages of artificial intelligence (AI) in improving the efficiency and safety of transportation, public acceptance of developing technologies is still growing.
The incorporation of AI into transport systems will continue to be a key area of focus for future improvements as the nation makes investments in infrastructure to enable these breakthroughs.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
South Korea AI In Transportation Market Drivers
Government Initiatives for Smart Transportation
The South Korean government has been heavily investing in smart transportation solutions as part of its broader Economic Innovation Strategy. This includes significant funding for artificial intelligence (AI) applications in transportation to enhance safety, efficiency, and environmental sustainability.
The Ministry of Land, Infrastructure and Transport has flagged a budget increase of approximately 25% in the next fiscal year specifically for AI integration in public transportation systems. This initiative aligns with South Korea's commitment to becoming a global leader in smart city technologies, leveraging AI for traffic management and autonomous vehicles.
Approximately 60% of South Korea's urban areas are focused on smart transportation projects under this initiative, which is projected to enhance the South Korea AI In Transportation Market significantly.
Rise in Urbanization and Traffic Congestion
As urbanization continues to accelerate in South Korea, cities like Seoul see a dramatic increase in traffic congestion, with average commuting times rising by 30% over the last decade. The need for intelligent transportation systems that utilize AI to optimize traffic flow and reduce congestion is becoming imperative.
Reports indicate that traffic congestion costs about 2% of South Korea's GDP annually, necessitating the immediate implementation of AI-driven solutions. Major automotive corporations such as Hyundai and Kia are heavily investing in AI technologies to combat urban congestion while also tapping into the South Korea AI In Transportation Market for real-time monitoring and management of traffic systems.
Advancements in Autonomous Vehicle Technology
The advancement of autonomous vehicle technology in South Korea presents a substantial growth driver for the South Korea AI In Transportation Market. With organizations like the Korea Advanced Institute of Science and Technology (KAIST) conducting research on autonomous vehicle systems, the South Korean government has set a goal to have fully autonomous vehicles on the roads by 2027.
Furthermore, research indicates that the autonomous vehicle segment is expected to grow at a CAGR of 18% in the coming years. Collaboration between firms like Samsung, which is exploring AI chip technology for vehicles, and local universities enhances innovation within this sector, fueling the market's growth.
South Korea AI In Transportation Market Segment Insights
AI In Transportation Market Offering Insights
In the South Korea AI In Transportation Market, the Offering segment plays a crucial role in shaping the industry's landscape. The market's growth in offerings revolves around three primary components: Hardware, Services, and Software. Hardware aspects encompass advanced components such as sensors, cameras, and computing units that facilitate autonomous driving and traffic management systems.
The focus on innovative hardware solutions is vital for enhancing safety and operational efficiency within transportation. Meanwhile, Services include a broad range of functionalities, from autonomous vehicle operations to fleet management tools designed to optimize logistics and transportation services.
These services are becoming increasingly important due to the rising demand for enhanced performance in public transport and the logistics sector. On the other hand, Software solutions serve as the backbone of AI in transportation, enabling data analytics, machine learning applications, and real-time decision-making processes that improve operational efficiency.
The integration of AI-driven software significantly enhances vehicle safety metrics and environmental performance, leading to better traffic management and reduced congestion in urban areas. Furthermore, the government of South Korea fosters technological innovations in the transportation sector, which underpins the robustness of the AI in transportation offerings.
Each of these divisions presents distinct opportunities, challenges, and growth drivers, reinforcing the importance of a strategic approach to the South Korea AI In Transportation Market. As cities become smarter and more connected, the synergy between these offerings is likely to be pivotal for the future of transportation solutions in South Korea.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
AI In Transportation Market IoT Communication Technology Insights
The IoT Communication Technology segment within the South Korea AI In Transportation Market plays a critical role in enhancing connectivity and efficiency in transportation systems. With the increasing penetration of smart devices and the government's push towards smart city initiatives, technologies such as Cellular, LPWAN, and LoRaWAN are gaining traction.Cellular technology ensures seamless communication between vehicles and infrastructure, facilitating real-time data exchange for improved traffic management and safety.
LPWAN and LoRaWAN are particularly significant for low-power, long-range applications, allowing devices to communicate over vast distances without extensive energy consumption, making them ideal for monitoring and managing transportation networks.Zigbee and Z-Wave technologies are also essential as they support smart transportation systems by enabling devices to communicate within shorter ranges, fostering automation and enhancing user experience.
Furthermore, Bluetooth and NFC are instrumental in enhancing user interfaces, enabling seamless interactions between smart devices and vehicles. Overall, the IoT Communication Technology segment is pivotal to the growth of the South Korea AI In Transportation Market, driving innovation, enhancing operational efficiencies, and creating new opportunities for smart transportation solutions.
AI In Transportation Market Application Insights
The Application segment of the South Korea AI In Transportation Market is witnessing significant growth and innovation, driven by advancements in technologies that enhance efficiency and safety in transportation. Autonomous Trucks are gaining traction as they offer potential cost savings and improved logistics, while Semi-autonomous Trucks also hold considerable promise in enhancing freight operations.
Truck Platooning is seen as a method to improve fuel efficiency and reduce traffic congestion, creating synergies among vehicles on shared routes. The Human-Machine Interface (HMI) plays a crucial role in enabling interactions between drivers and AI systems, enhancing user experience and safety.
Predictive Maintenance is increasingly important for minimizing downtime and optimizing vehicle performance, showcasing the value of real-time data analytics. Precision and Mapping solutions are critical as South Korea's diverse terrain necessitates accurate navigation tools.
Traffic Detection mechanisms are evolving, allowing for smarter urban planning and congestion alleviation. Solutions like Computer Vision-Powered Parking Management not only streamline urban mobility but also support sustainability goals by promoting efficient land use.
Additionally, Road Condition Monitoring and Automatic Traffic Incident Detection contribute to safer driving environments. Driver Monitoring systems enhance safety by ensuring that drivers remain alert and engaged.
All of these applications underscore the innovations shaping the South Korea AI In Transportation Market, addressing critical challenges and paving the way for smarter transportation solutions.
AI In Transportation Market Machine Learning Technology Insights
The South Korea AI In Transportation Market is characterized by the extensive application of Machine Learning Technology, which plays a pivotal role in enhancing efficiency and safety within the transportation sector.
Deep Learning, a key aspect of this segment, excels in processing vast amounts of data, enabling advancements in predictive analytics and autonomous driving systems that enhance navigation and decision-making capabilities.
Computer Vision significantly contributes by allowing systems to interpret and understand visual information from the transportation environment, facilitating advanced driver-assistance systems and enhancing traffic management through real-time monitoring.
Natural Language Processing is crucial for enabling seamless human-vehicle interaction, allowing for intuitive communication and streamlined operations in increasingly automated transport solutions.
Context Awareness, on the other hand, enriches the operational capabilities by providing vehicles with the ability to recognize and respond to their surroundings dynamically, thereby improving passenger safety and optimizing logistics processes.
The South Korea AI In Transportation Market showcases a strong inclination towards these technologies, driven by governmental support and investments aimed at advancing smart transportation initiatives. Overall, these components play a vital role in the ongoing growth and development of the transportation landscape in South Korea.
South Korea AI In Transportation Market Key Players and Competitive Insights
The South Korea AI in Transportation Market has rapidly evolved, driven by advancements in technology, increasing demand for efficient transportation solutions, and a focus on smart city initiatives. The competitive landscape is characterized by various companies striving to leverage artificial intelligence to optimize logistics, improve passenger and freight transport, and enhance overall safety on the roads.
As more stakeholders enter the market, partnerships, innovations, and customer-centric solutions are becoming pivotal elements in maintaining a competitive edge. The market players are investing in research and development, exploring cutting-edge technologies like autonomous vehicles, predictive analytics, and machine learning to address the needs of a modern transport ecosystem.South Korea’s strategic emphasis on technology makes it a fertile ground for companies aiming to innovate traditional transportation methods.
Tmap Mobility stands out in the South Korea AI in Transportation Market due to its robust platform that integrates navigation and mobility services. The company has a strong market presence supported by its cutting-edge technology that provides real-time traffic information and smart route optimization, catering to the needs of consumers seeking efficient travel solutions.
One of the key strengths of Tmap Mobility lies in its ability to analyze data effectively, which enables users to make informed travel decisions while minimizing travel time and costs. Additionally, Tmap Mobility has formed strategic partnerships with local transportation companies and authorities, enhancing its service range and establishing a solid foothold in the competitive landscape.
The brand's commitment to user experience and continuous upgrades ensures that it remains relevant amid the rapidly changing dynamics of the transportation market.
Hyundai, a major player in the South Korea AI in Transportation Market, has made significant strides with its investments in AI technologies aimed at enhancing vehicle safety and connectivity. The company’s key products include autonomous vehicles and smart city solutions that integrate AI to improve traffic management and vehicle performance.
Hyundai enjoys a strong market presence, bolstered by its established reputation in the automotive industry and its commitment to innovation. The company has initiated several partnerships and collaborations with technology firms, enhancing its development capabilities in AI and machine learning, which play a crucial role in the modernization of transportation systems.
Moreover, Hyundai’s focus on electric and autonomous vehicles signifies its strength in adapting to market trends and consumer needs, ensuring that it maintains a competitive edge in design and functionality within the South Korean market.
Key Companies in the South Korea AI In Transportation Market Include
- Tmap Mobility
- Hyundai
- Kakao
- LG Electronics
- SK Telecom
- Uber
- Samsung
- DHL
South Korea AI In Transportation Market Developments
In order to improve reliability and safety, Hyundai Rotem and LG CNS started a pilot project in November 2024 to install AI-powered predictive maintenance systems on high-speed train lines. These systems use machine-learning algorithms to identify equipment anomalies prior to failures.
Seoul Metro unveiled an AI-enhanced crowd management system in February 2025 that combines predictive analytics and real-time surveillance data to streamline platform operations and ease traffic. By April 2025, SK Telecom will have introduced an AI-powered traffic-light control system for Busan that reduces average vehicle delay by 15% by dynamically adjusting signal timings using reinforcement learning.
In order to safely traverse mixed traffic circumstances, Kakao Mobility launched a trial of AI-powered driverless shuttle services in May 2025 on Jeju Island. The services use computer vision and onboard deep-learning models.
These programs demonstrate South Korea's active adoption of AI in transportation, ranging from road infrastructure and autonomous mobility to rail and urban transit, underscoring the country's dedication to intelligent, effective, and secure travel environments.
South Korea AI In Transportation Market Segmentation Insights
AI In Transportation Market Offering Outlook
- Hardware
- Services
- Software
AI In Transportation Market IoT Communication Technology Outlook
- Cellular
- LPWAN
- LoRaWAN
- Z-Wave
- Zigbee
- NFC
- Bluetooth
- Others
AI In Transportation Market Application Outlook
- Autonomous Truck
- Semi-autonomous Truck
- Truck Platooning
- Human-Machine Interface (HMI)
- Predictive Maintenance
- Precision & Mapping
- Traffic Detection
Computer Vision-Powered Parking Management
- Road Condition Monitoring
- Automatic Traffic Incident Detection
- Driver Monitoring
- Others
AI In Transportation Market Machine Learning Technology Outlook
- Deep Learning
- Computer Vision
- Natural Language Processing
- Context Awareness
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| Report Attribute/Metric Source: |
Details |
| MARKET SIZE 2023 |
86.8(USD Million) |
| MARKET SIZE 2024 |
96.25(USD Million) |
| MARKET SIZE 2035 |
334.3(USD Million) |
| COMPOUND ANNUAL GROWTH RATE (CAGR) |
11.984% (2025 - 2035) |
| REPORT COVERAGE |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| BASE YEAR |
2024 |
| MARKET FORECAST PERIOD |
2025 - 2035 |
| HISTORICAL DATA |
2019 - 2024 |
| MARKET FORECAST UNITS |
USD Million |
| KEY COMPANIES PROFILED |
Tmap Mobility, Hyundai, Kakao, LG Electronics, SK Telecom, Mobility as a Service, Uber, POSCO, Samsung, Daewoo, Hanwha, Naver, Cure, DHL, Lyft |
| SEGMENTS COVERED |
Offering, IoT Communication Technology, Application, Machine Learning Technology |
| KEY MARKET OPPORTUNITIES |
Smart traffic management systems, Autonomous vehicle development, AI-enhanced logistics optimization, Predictive maintenance solutions, Real-time passenger information systems |
| KEY MARKET DYNAMICS |
Technological advancements, Government regulations, Public safety concerns, Infrastructure investment, Consumer acceptance |
| COUNTRIES COVERED |
South Korea |
Frequently Asked Questions (FAQ) :
The South Korea AI In Transportation Market is expected to be valued at 96.25 million USD in 2024.
By 2035, the market is projected to grow significantly to 334.3 million USD.
The expected CAGR for the market from 2025 to 2035 is 11.984%.
The Services segment is anticipated to see substantial growth, rising from 36.25 million USD in 2024 to 130.5 million USD in 2035.
The Hardware segment is expected to reach a value of 105.0 million USD by 2035.
Key players in the market include Tmap Mobility, Hyundai, Kakao, LG Electronics, and SK Telecom.
Emerging trends in technology and increasing demand for smart transportation solutions create numerous opportunities in the market.
Mobility as a Service is a significant application driving growth in the AI In Transportation Market.
Challenges include rapidly evolving technology and the necessity for substantial investments for development.
Global economic conditions can influence investment patterns and technology adoption rates, thereby impacting market growth.
