The world is moving towards a more connected, intelligent, and sustainable future. The transportation industry is at the centre of this shift, with the integration of the Internet of Things (IoT) and artificial intelligence (AI) emerging as game-changers. From smart roads to autonomous vehicles, these technologies are redefining how people and goods move, creating new possibilities for cities, businesses, and societies at large.
In Dubai, the city’s Autonomous Transportation Strategy is ambitious. It aims to transform 25 percent of the total transportation to autonomous mode by 2030. It also aims to reduce traffic accidents and losses by 12 percent and increase the productivity of individuals by 13 percent. It will save 396 million hours on transportation trips yearly. It will also reduce the spaces allocated for parking.
Read: Dnata deploys autonomous vehicles at Dubai World Central to revolutionize ground handling
The power of IoT and AI in mobility
At the heart of this transformation lies the powerful synergy between IoT and AI. IoT provides the sensory layer, devices, sensors, and systems that gather real-time data from vehicles, infrastructure, and the environment. AI acts as the brain, interpreting this data, predicting outcomes, and making intelligent decisions.
When combined, they enable everything from predictive maintenance and route optimization to self-driving capabilities and real-time traffic management. This isn’t about the future, it’s already happening.
Among the various sectors within the IoT market, automotive IoT is expected to dominate, with a projected market volume of $752.71 million in 2025. The total IoT spending on transport and logistics in the UAE stood at AED 359 million in 2024, growing at 17 percent CARG 2024-2030. The UAE logistics market was valued at $54.5 billion in 2024, with significant emphasis on technology adoption, including IoT, to improve supply chain visibility, operational efficiency, and real-time tracking.
Smart traffic management
Urban congestion is a growing challenge as cities continue to expand. Traditional traffic systems, based on fixed signal timing and manual monitoring, are no longer effective in responding to real-time traffic conditions. That’s where the fusion of IoT and AI is making a measurable difference.
Dubai is rolling out a smart traffic signal system using AI to ease congestion at major intersections by adjusting signal timings in real-time. The system aims to cut travel time by up to 20 percent, improve traffic flow, and reduce emissions. Covering all key intersections, the project is expected to be completed by mid-2026 and aligns with Dubai’s smart city goals to enhance road efficiency and safety.
Beyond ground traffic, the UAE is also innovating in the skies. In 2024, e& UAE partnered with the UAE Cyber Security Council to launch the ‘UAE Drones’ initiative — an advanced unmanned traffic management platform powered by 5G. The initiative enhances real-time threat detection, regulatory compliance, and secure drone operations, supporting the UAE’s ambition to lead in safe, tech-enabled air mobility.
Fleet optimization
Fleet operators, whether in logistics, public transport, or ride-hailing, face constant pressure to improve efficiency, reduce fuel costs, and meet service-level agreements. IoT and AI are transforming how fleets are managed, helping companies make smarter decisions, reduce downtime, and improve delivery accuracy.
Using IoT sensors embedded in vehicles, data such as location, fuel usage, engine health, driver behavior, and cargo temperature can be continuously collected and sent to centralized fleet management platforms. AI algorithms then process this data to optimize routes in real-time, predict maintenance needs, and even coach drivers for safer and more fuel-efficient driving.
Predictive maintenance
Public transportation agencies in the UAE are increasingly adopting AI-powered predictive maintenance systems to enhance fleet reliability and reduce operational costs. By embedding IoT sensors in vehicles, trains, and aircraft, operators can monitor critical components — such as engines, brakes, tires and battery systems — in real time. These sensors capture data on vibration, temperature, fluid levels, and wear-and-tear indicators.
AI algorithms then analyze this data to detect anomalies, forecast failures, and schedule maintenance proactively. The result is fewer breakdowns, safer journeys, and extended asset lifespans.
General Motors (GM) has implemented predictive maintenance using IoT sensors and AI to monitor assembly line robots. These technologies identify early signs of wear, reducing unexpected downtime by 15 percent and saving $20 million annually in maintenance expenses. This proactive approach extends equipment lifespans while preventing costly interruptions.
Autonomous vehicles
Perhaps the most futuristic and transformative example of AI and IoT in mobility is the development of autonomous vehicles (AVs). These vehicles are no longer the stuff of sci-fi; they’re being tested, refined, and even deployed in controlled environments around the world.
AVs rely heavily on IoT sensors, including LiDAR, radar, GPS, and high-resolution cameras, to perceive their surroundings. This sensor data is processed in real time by onboard AI systems capable of object detection, route planning, and decision-making, functions traditionally carried out by human drivers.
Waymo, a subsidiary of Alphabet Inc, operates a fully autonomous ride-hailing service in San Francisco. Their fleet of self-driving electric Jaguar taxis utilizes a combination of LiDAR, radar, and high-resolution cameras to navigate complex urban environments. The vehicles are equipped with onboard AI systems capable of real-time decision-making, ensuring safe and efficient transportation. Waymo’s approach exemplifies the integration of AI and IoT in autonomous vehicle development.
In the UAE, WeRide has launched the Middle East’s first fully driverless Robotaxi trial operations in Abu Dhabi. The initiative will test autonomous ride-hailing technology in real-world conditions, with plans for commercial rollout pending regulatory approval. It marks a major milestone in the region’s autonomous mobility ambitions and reflects growing public-private investment in AI-powered transportation.
Challenges on the road ahead
Despite the promise, integrating AI and IoT into transportation systems isn’t without its challenges:
- Cybersecurity and data privacy: With mobility systems now deeply connected, they become attractive targets for cyberattacks. Autonomous vehicles, traffic systems, and connected fleets collect and transmit sensitive data in real time. Ensuring this data remains secure is critical.
- Â Infrastructure readiness: Deploying smart mobility tech requires robust infrastructure: 5G networks, smart traffic signals, edge computing capabilities, and electrification. Many regions, especially in developing economies, lack this foundation, which slows down adoption.
- Interoperability and integration with legacy systems: Cities and transport operators often use fragmented legacy systems.
- Integrating modern IoT-AI platforms with outdated infrastructure and siloed databases is complex, costly, and time-consuming.
- A lack of common data standards across transport networks also creates friction when trying to achieve seamless communication between systems.
High capital costs and ROI uncertainty: While the long-term ROI of smart mobility is clear, initial investments are significant, from hardware and network deployment to cloud and AI infrastructure. Budget constraints and uncertainty over regulatory landscapes often make decision-makers hesitant.
Mobility is the way forward
Mobility is evolving toward the CASE model, Connected, Autonomous, Shared, and Electric. The success of this shift hinges on digital transformation at every level, from national transport strategies to last-mile delivery operations. It’s about creating ecosystems that are data-driven, cloud-enabled, and intelligence-powered.
Governments and enterprises must collaborate with technology leaders to build robust, scalable, and secure mobility solutions. Investments in digital infrastructure, AI capabilities, and data governance will be the key enablers.
The role of e& enterprise
At e& enterprise, being a trusted digital transformation partner for governments and large organizations, we bring the technical expertise and scalable solutions to power the future of mobility. In 2025 e& enterprise partnered with Emirates Transport to enhance vehicle connectivity and efficiency through advanced technologies.
This collaboration focuses on integrating IoT-driven insights, predictive maintenance, and real-time communication systems to improve traffic flow, reduce congestion, and enhance driver safety. The initiative aims to support the UAE’s vision for smarter, safer, and more sustainable mobility solutions.
From implementing IoT platforms that capture and manage vast transportation data, to deploying AI and machine learning models that enhance decision-making, our solutions are designed to be secure, sustainable, and future-ready. We work closely with clients to co-create tailored strategies, whether for smart city solutions and transport systems, fleet management, or green logistics.
Mobility is no longer just about getting from point A to B. It’s about creating smarter, more sustainable ways to connect people, places, and progress. With the right digital foundation, the road ahead is full of possibility.
The role of e& UAE: Collaborating on digital infrastructure
In collaboration with Dubai’s Roads and Transport Authority (RTA), e& UAE is exploring the application of 5G, AI, and IoT to enhance smart traffic systems and mobility services — initiatives that align with Dubai’s Digital Strategy 2023–2030.
Yasser Helmy is the vice president of IoT at e& enterprise.
