AI in Logistics Global Market Report 2024

The AI in logistics market size has grown exponentially in recent years. It will grow from $12.21 billion in 2023 to $18.01 billion in 2024 at a compound annual growth rate (CAGR) of 47.5%. Historical growth can be attributed to the increasing complexity of supply chain networks, rising demand for real-time logistics solutions, advancements in AI and machine learning technologies, the growing e-commerce sector, and the need for efficiency and cost optimization in logistics operations.

The AI in logistics market size is expected to see exponential growth in the next few years. It will grow to $83.26 billion in 2028 at a compound annual growth rate (CAGR) of 46.6%. Forecasted growth can be attributed to the expansion of autonomous vehicles and drones in logistics, a rising demand for predictive analytics in supply chain management, the growth of smart warehouses and fulfillment centers, the integration of blockchain technology for transparent and secure transactions, and an increasing focus on sustainability and green logistics. Major trends in the forecast period include the adoption of AI-powered route optimization for delivery fleets, the development of AI chatbots for customer service and support, the emergence of predictive maintenance solutions for logistics assets, the utilization of AI for demand forecasting and inventory management, and the implementation of AI-enabled risk management systems for supply chain resilience.

The burgeoning growth of the e-commerce sector is expected to drive the expansion of the AI in logistics market in the foreseeable future. E-commerce involves the online buying and selling of goods or services, along with the transfer of data and funds to complete transactions. The integration of AI in logistics aids e-commerce businesses in streamlining their operations and enhancing efficiency, leading to benefits such as route optimization, supply chain optimization, and personalized shopping recommendations. For example, the International Trade Administration reported that consumer e-commerce accounted for 30% of the UK's overall retail sector in September 2022, up from 20% in 2020, with an annual e-commerce revenue exceeding $120 billion. Additionally, in 2021, 82% of individuals in the UK made at least one online purchase, further highlighting the growth of e-commerce and its impact on the market.

Key players in the AI in logistics market are focusing on introducing advanced solutions, such as AI-powered supply chain management and orchestration solutions, to enhance their competitiveness in the market. These solutions leverage artificial intelligence to streamline and optimize various aspects of the supply chain. For instance, in December 2023, Blue Yonder, an India-based digital supply chain management solutions company, launched Blue Yonder Orchestrator, a generative AI tool that simplifies supply chain management and orchestration. This innovative feature utilizes large language models (LLMs), cloud data, and prompt engineering to recommend supply chain decisions, providing business users with instant access to advice, forecasts, and intelligent decisions to improve supply chain operations.

In October 2022, Dachser Group SE & Co. KG, a Germany-based logistics company, acquired Kasasi GmbH, a German software company specializing in developing and applying AI solutions to optimize transport and logistics operations. This strategic acquisition aims to expand Dachser's capabilities in rail transportation monitoring and analysis solutions, particularly in sectors such as rail, retail, food, and pharmaceuticals. Kasasi GmbH will continue serving its existing clientele while focusing on future expansion in rail transportation monitoring and analysis solutions.

Major companies operating in the AI in logistics market report are Amazon.com Inc, Alphabet Inc., Microsoft Corporation, DHL International GmbH, United Parcel Service, Inc., FedEx Corporation, CEVA Logistics AG, Intel Corporation, IBM Corporation, Oracle Corporation, Kuehne + Nagel International AG, NVIDIA Corporation, XPO Logistics, Inc., Zebra Technologies, HAVI, Infor, Echo Global Logistics, Symbotic, C3 AI, Turvo Inc., project44 Inc., Wise Systems, Inc., Covariant, Cognitivescale Inc., Slync.io Inc., Transportation Applied Intelligence LLC.

North America was the largest region in the AI in logistics market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the AI in logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the AI in the Logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The AI in the Logistics market includes revenues earned by entities by providing route optimization, predictive analytics, warehouse automation, demand forecasting, inventory control and planning, and fleet performance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

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).

Artificial intelligence in logistics encompasses the application of machine learning (ML) and algorithms to automate and optimize different facets of the logistics sector. Its purpose is to streamline routine tasks, enhance efficiency, lower costs, and facilitate intelligent decision-making.

The primary offerings of AI in logistics consist of software and services. Software entails the provision of automation, data analysis, and decision-making support. Various technologies, including machine learning, natural language processing, context awareness computing, and computer vision, are employed across various applications such as self-driving vehicles and forklifts, planning and forecasting, human-machine collaboration, and automation of ordering and processing. These solutions find application in diverse industry verticals including automotive, food and beverages, manufacturing, healthcare, and retail.

The AI in logistics market research report is one of a series of new reports that provides AI in logistics market statistics, including AI in logistics industry global market size, regional shares, competitors with a AI in logistics market share, detailed AI in logistics market segments, market trends and opportunities, and any further data you may need to thrive in the AI in logistics industry. This AI in logistics 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 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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