From self-driving vehicles and air taxis to satellite-based electronic toll collection and smart chip-embedded cards, India’s transportation sector is witnessing quite a few path-breaking innovations through advancements in technologies such as artificial intelligence (AI), robotics, and machine learning (ML). Concomitantly, progress in the telecom sector such as the widespread adoption of 5G and digitalisation is also complementing the developments in the transportation sector. These new-age technologies are not only serving as major milestones but are also driving the industry towards enhanced operational efficiencies, improved user experience, greater safety while commuting, and environmental sustainability. A modern transportation system is also the backbone of a growing economy such as India.
A look at the key technologies and innovations that are shaping the sector…
AI-powered autonomous and connected vehicles
Self-driving or autonomous vehicles (AVs) are expected to revolutionise transportation, with estimates projecting the Indian autonomous vehicle market to reach $11.37 billion by 2030. Further, according to a Deloitte report, AV technology has the potential to reduce operational expenses for logistics firms by up to 30 per cent.
AVs are equipped with internet of things (IoT) sensors (radar, cameras, and laser-based light detection and ranging) to detect traffic, pedestrians, and potential physical hazards in real time. After collating this data, these vehicles use sophisticated software, AI algorithms, and ML to direct signals to the automobile’s actuators to prompt appropriate responses. There are six levels of AVs, with driverless ones being the most advanced (Levels 5 and 6), and the remaining being fully controlled vehicles driven by physical drivers and aided by advanced safety technology (up to Level 3).
Another area of innovation is the emergence of “connected cars”, propelled by the need for seamless in-car internet technology from end consumers amidst the emergence of 5G. These days, automobile original equipment manufacturers (OEMs) are developing dedicated smartphone apps for users to remotely manage car functions such as locking/unlocking the doors, opening the sunroof, remote parking and engine ignition/stop. It also enables in-car entertainment as passengers listen to their favourite songs or watch videos. Further, geofencing is emerging as an important security feature that alerts the user if the vehicle is driven beyond the set geographical boundary. Vehicle-to-vehicle connectivity is also a significant feature in traffic management and preventing road accidents.
India is taking steps to promote autonomous and connected vehicles in the country. For instance, in 2023, the Ministry of Road Transport and Highways (MoRTH) introduced the Automated and Connected Vehicles Regulation Guidelines defining the framework for the testing and deployment of AVs in the country. Besides, the Department of Telecommunications recently amended its Flight and Maritime Connectivity Rules to allow the use of in-flight Wi-Fi on all domestic flights once the aircraft reaches an altitude of 3,000 metres in Indian airspace. Several start-ups and established players are working on developing their AV prototypes. A case in point is Tata Elxsi, a front runner when it comes to self-driving automobiles. Start-ups such as Swaayatt Robots and Minus Zero are also making exemplary progress in this field while Ashok Leyland, Honda and Mahindra are exploring possibilities in AVs. Parallely, Hyundai, Kia and Nissan have developed connected solutions. Further, this year, the Bengaluru and Delhi metros are venturing into driverless metro trains.
Expediting the queue with MaaS, RFID, GNSS and facial recognition
Industry estimates suggest that an average Indian driver spends 128 hours per annum in traffic. Mobility-as-a-service (MaaS) is emerging as a beacon of hope for passengers that rely on mass transit. The concept of MaaS entails an amalgamation of numerous transport services into a single mobility service. For instance, having a single pass or a subscription-based or pay-as-you-go payment system to access multiple modes of public transportation such as carpooling, on-demand cabs, or intercity bus/metro travel. This has the added advantage of cutting down the sector’s carbon emissions. Studies project India’s MaaS market to grow from $0.87 billion in 2023 to $4.71 billion by 2030 at a CAGR of 32.39 per cent. L&T Metro Rail Hyderabad Limited is exemplifying MaaS by integrating its operations with other modes of transport such as ride-sharing services. It also has QR code-based ticketing and smart cards to streamline fare collection. The Delhi metro, too, has launched a digital QR ticketing system in collaboration with Amazon Pay. Further, in September 2024, myTVS launched its pan-Indian MaaS solution for last-mile electric vehicle fleet operators offering everything from leasing, servicing, spare parts and charging solutions to telematics, roadside assistance, insurance, and tyre management.
In addition to MaaS, some other technologies are gaining traction in the realm of ensuring hassle-free commutes. For instance, a few years ago, the National Highways Authority of India (NHAI) launched toll collection on national highways through FASTags using radio frequency identification (RFID) technology for making toll payments automatically while the vehicle is in motion. RFID is an IoT technology that uses a microchip and an antenna to track vehicles and store relevant information. Each RFID has a unique 13-digit electronic code that links the vehicle to the driver’s FASTag account. According to the Economic Survey, toll digitalisation has reduced the waiting time at toll plazas, from 734 seconds in 2014 to merely 47 seconds in 2024. Now, to take this concept further, the NHAI has floated expressions of interest for the implementation of a global navigation satellite system (GNSS)-based electronic toll collection system. GNSS vehicles will have an onboard tracking unit that will transmit signals to toll chargers to calculate the distance and time of vehicles. Akin to a FASTag, the toll amount will be debited directly through a vehicle owner’s bank account.
Further, the aviation sector has witnessed a reduction in the entry time for passengers at Digi Yatra-enabled airports from an average of 15 seconds (through the manual process) to 5 seconds (using the app). Currently, this facial recognition service is available at 24 airports in the country and has been used by over 30 million people. To prevent user data from being misused, this data is deleted from local airport databases 24 hours following the departure of their flight. At the same time, airlines such as Lufthansa and Malaysian Airlines are relying on blockchain for ticketing solutions.
Enhancing user experience through AR/VR, virtual agents, and AI
India’s AR/VR industry is estimated to reach $250 billion by 2028. Within the transportation sector, AR/VR is being employed for various purposes such as enhancing travellers’ experience and employee training. For instance, the Puri-Konark railway line uses AR-VR technology to promote the Jagannath culture in the train while Mumbai’s Chhatrapati Shivaji Maharaj Terminus is equipped with AR screens to offer passengers infotainment while they wait for their trains. Meanwhile, Meta is reportedly working with BMW to explore how AR and VR technology can revolutionise car travel whereas Mercedes Benz is utilising these technologies to transform purchasing and the user experience. In the aviation industry, Vistara is planning to deploy these technologies for training its crew, whereas the Bengaluru International Airport has entered the metaverse by launching the BLR Metaport, which has a 3D interface to enable customers to navigate terminals.
Parallely, Air India and IndiGo have in place generative AI virtual agents and chatbots to handle passenger queries. Similarly, Royal Caribbean Cruise’s “Icon of the Seas” has an AI-based chatbot to resolve common guest queries. The cruise line is also leveraging AI to trim food waste and track revenues. Uber, the ride-hailing platform, is building its own large language models using AI to promote localisation and expedite the adoption in new cities. Currently, Uber is available in 63 languages globally, including eight in India. Further, the Pune division of Central Railway is going big on AI for automated track monitoring for enhanced passenger safety while the Pune Expressway has introduced AI-powered intelligent traffic management system to streamline vehicle flow and detect traffic violations.
Conclusion
Although the Indian transportation sector is witnessing some iconic digital disruptions, there exist some roadblocks to their mass adoption. For example, while the facial biometric data of passengers is deleted 24 hours after their flight leaves, a study by NITI Aayog in June stressed the need for spelling out data deletion rules more lucidly to include the data stored on external databases. To this end, it suggested recurrent cybersecurity audits and vulnerability inspections for the Digi Yatra platform along with independent algorithmic audits. Further, for models such as MaaS to succeed, integrating novel technologies with legacy systems can be complex (in terms of multistakeholder collaboration, frequent technological updates, and having a skilled workforce to undertake this task) and capital-intensive. Another major challenge in the case of autonomous vehicles is that this technology is still at its nascent stage and taking the human element out of the equation is likely to face some customer inertial until more empirical use cases emerge regarding their safety. Moreover, the regulatory landscape in the country needs to keep pace with evolving realities. For instance, while the European Union has a full-fledged AI Act, India is still at the drawing board stage as far as its AI regulations are concerned.
Nevertheless, the industry has in store a bright future brimming with technological innovations, as the government, academia and the industry come together to help it take one step at a time.
