Artificial Intelligence in Supply Chain Market Report 2025

The artificial intelligence in supply chain market size has grown exponentially in recent years. It will grow from $4.92 billion in 2024 to $7.19 billion in 2025 at a compound annual growth rate (CAGR) of 46.2%. The growth in the historic period can be attributed to globalization, increasing complexity in supply chain networks, rising customer expectations, growth of e-commerce, demand for real-time information.

The artificial intelligence in supply chain market size is expected to see exponential growth in the next few years. It will grow to $30.81 billion in 2029 at a compound annual growth rate (CAGR) of 43.9%. The growth in the forecast period can be attributed to demand for predictive analytics in supply chain management, increasing focus on sustainability, growth of autonomous vehicles in logistics, rise in demand for real-time inventory visibility. Major trends in the forecast period include increasing use of machine learning for demand forecasting, rise of digital twins in supply chain optimization, growth in AI-powered robotic process automation, emphasis on supply chain resilience, adoption of AI-driven chatbots for customer service in logistics.

The anticipated rise in the penetration rate of internet users is set to drive the growth of the artificial intelligence in the supply chain market. Over the past three months, an increasing number of internet users have accessed the web. This surge in internet usage allows for the efficient collection and dissemination of information among all supply chain members online. Businesses can now easily and quickly check inventory status, warehouse activity, and product movement. Artificial intelligence (AI) plays a pivotal role in predicting future consumer demand patterns, reducing costs related to overstocking unwanted inventory. For instance, as of July 2023, Statistics Canada reports that internet usage among Canadians aged 15 and older increased from 92% in 2020 to 95% in 2022, with the most significant increase observed among Canadians aged 75 and older, reaching 72% in 2022. Consequently, the surge in internet user penetration is a driving force behind the growth of the artificial intelligence in the supply chain market.

The rising demand in the food and beverage industry is projected to drive the growth of artificial intelligence in the supply chain market in the future. The food and beverage industry encompasses a wide range of activities related to the production, processing, packaging, distribution, and retailing of food and drink products. Within this sector, artificial intelligence is utilized in the supply chain for effective inventory management, reducing the risk of stockouts, and optimizing distribution and logistics networks for timely and cost-efficient product delivery. For example, in April 2022, a report from Common Thread Collective, a US-based e-commerce growth agency, indicated that global food and beverage sales rose from $435.3 billion in 2021 to $506 billion in 2022, with projections suggesting a reach of $857 billion by 2025. Thus, the increasing demand in the food and beverage industry is fueling the growth of artificial intelligence in the supply chain market.

A noteworthy trend in the artificial intelligence in the supply chain market is the prevalence of technological advancements. Major companies operating in this market are actively adopting advanced technologies to maintain their market position. An illustrative example is project44, a US-based software development company, which launched Movement GPT in April 2023. Movement GPT, hailed as the first-ever AI supply chain assistant, aims to revolutionize the supply chain by leveraging generative AI's capabilities. This innovative solution provides a highly engaging, natural language interface for users to obtain crucial data and manage their shipments with greater ease.

Major companies in the artificial intelligence in the supply chain market are dedicated to introducing next-generation solutions, such as delivery drones, to deliver reliable services to customers. Delivery drones, unmanned aerial vehicles (UAVs) designed for last-mile delivery, operate with artificial intelligence to transport lightweight containers. For instance, Drone Express, a US-based aviation company, collaborated with Microsoft Corporation in December 2022 to launch the DE-2020 drone. Equipped with artificial intelligence for in-flight navigation and decision-making, the DE-2020 drone enhances intelligence, autonomy, and safety, particularly for eco-friendly package delivery in urban environments.

In July 2022, International Business Machines Corporation (IBM), a US-based technology firm, acquired Databand.ai for an undisclosed sum. This acquisition allows IBM to improve its data observability capabilities by incorporating Databand's expertise in monitoring and maintaining data quality. As a result, IBM can offer more comprehensive solutions for identifying and addressing data pipeline issues in real time, thereby enhancing the performance and reliability of data-driven applications. Databand.ai is a US-based software company that provides artificial intelligence solutions for the supply chain.

Major companies operating in the artificial intelligence in supply chain market include Amazon.com Inc., Google LLC, Samsung Electronics Co Ltd., Microsoft Corporation, DHL Group, FedEx Corporation, General Electric Company, Intel Corporation, The International Business Machines Corp, Oracle Corporation, SAP SE, Micron Technology Inc., NVIDIA Corporation, C.H. Robinson Worldwide Inc., Havi Logistics AS, Cainiao Smart Logistics Network Limited, Zebra Technologies Corporation, Flexport Inc., Xilinx Inc., Echo Global Logistics Inc., Epicor Software Corporation, Blue Yonder Inc., Symbotic LLC, E2open LLC., C3.AI Inc, Relex Solutions Private Limited, DataRobot Inc, Splice Machine Inc., Covariant Inc, Llamasoft Inc.

North America was the largest region in the artificial intelligence in supply chain market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence in supply chain market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence in supply chain market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

Artificial intelligence in the supply chain involves the application of human intelligence simulation mechanisms to organize and analyze extensive amounts of supply chain information, identify trends, and forecast future issues. This technology is utilized for inventory optimization and shortage management.

The main types of artificial intelligence in supply chain offerings include hardware, software, and services. Hardware refers to the physical components of a computer or delivery mechanisms that store and execute instructions provided by the software. Various technologies, such as machine learning, natural language processing, context-aware computing, and computer vision, are applied in areas such as fleet management, supply chain planning, warehouse management, virtual assistant systems, risk management, freight brokerage, and others. End-users of AI in the supply chain span across industries such as automotive, aerospace, manufacturing, retail, healthcare, consumer-packaged goods, and food and beverages.

The artificial intelligence in supply chain market research report is one of a series of new reports that provides artificial intelligence in supply chain market statistics, including artificial intelligence in supply chain industry global market size, regional shares, competitors with a artificial intelligence in supply chain market share, detailed artificial intelligence in supply chain market segments, market trends and opportunities, and any further data you may need to thrive in the artificial intelligence in supply chain industry. This artificial intelligence in supply chain market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The artificial intelligence in supply chain market consists of revenues earned by entities through route optimization, predictive maintenance, and supplier management. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence in supply chain market also includes sales of warehouse robots, digital workers, and autonomous vehicles that are used in providing artificial intelligence in supply chain services. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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