Generative Artificial Intelligence in Supply Chain Market Report 2024

This Generative Artificial Intelligence In Supply Chain market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The generative artificial intelligence in supply chain market size has grown exponentially in recent years. It will grow from $0.28 billion in 2023 to $0.41 billion in 2024 at a compound annual growth rate (CAGR) of 43.4%. The growth observed in the historic period can be attributed to advancements in computational power, the expansion of e-commerce, greater availability of big data, an increased focus on automation, and rising investment in AI research and development.

The generative artificial intelligence in supply chain market size is expected to see exponential growth in the next few years. It will grow to $1.73 billion in 2028 at a compound annual growth rate (CAGR) of 43.7%. The anticipated growth during the forecast period can be attributed to the rising demand for real-time supply chain visibility, an increasing need for AI-powered supply chain planning tools, higher investment in AI for supply chain innovation labs, growing demand for AI in predictive logistics, and a rising interest in advanced forecasting techniques. Key trends expected to shape this period include technological advancements, blockchain technology, 5G technology, and the Internet of Things (IoT).

The growth of e-commerce is expected to fuel the expansion of generative artificial intelligence (AI) in the supply chain market in the coming years. E-commerce, which involves the buying and selling of goods and services over the Internet through online platforms and mobile applications, has surged due to the increasing popularity of online shopping, advancements in digital payment systems, and broader internet access. In e-commerce supply chains, generative AI is used to optimize inventory management, improve demand forecasting, streamline logistics, automate order processing, and personalize customer experiences by analyzing vast amounts of data to develop more efficient, data-driven strategies. For example, in November 2023, the International Trade Administration, a US-based Department of Commerce, projected that consumer e-commerce in the UK would generate $285.6 billion in revenue by 2025, representing 36.3% of the retail market as of January 2021. Moreover, e-commerce revenues in the UK are expected to grow at an average annual rate of 12.6% by 2025. As a result, the rise of e-commerce is driving the growth of generative AI in the supply chain market.

Key companies in the generative AI in the supply chain market are focusing on developing innovative technologies, such as cognitive solutions, to enhance predictive analytics and optimize supply chain operations. Cognitive solutions are advanced technologies that simulate human thought processes to analyze, interpret, and act on complex data. They use AI, machine learning, and natural language processing to enable systems to understand, reason, and learn from data, similar to human cognitive abilities. For instance, in December 2023, Blue Yonder, a US-based supply chain management company, launched Blue Yonder Orchestrator, a generative AI tool designed to improve decision-making and accelerate supply chain orchestration. This tool utilizes advanced AI algorithms to automate and optimize complex supply chain processes, boosting efficiency and accuracy. Key features include real-time data analysis, allowing dynamic adjustments to inventory and logistics based on current conditions and forecasts. It integrates seamlessly with existing supply chain infrastructure, offering actionable insights and recommendations to enhance overall operational performance.

In September 2023, Logility Inc., a US-based provider of AI-driven supply chain planning solutions, acquired Garvis for an undisclosed amount. This acquisition is intended to strengthen Logility's demand forecasting capabilities by incorporating Garvis's AI-native and generative AI technologies. Garvis, based in Belgium, specializes in AI and cloud-based platforms for supply chain forecasting and demand planning.

Major companies operating in the generative artificial intelligence in supply chain market are Amazon.com Inc., Microsoft Corporation, Deutsche Post AG, Intel Corporation, Accenture plc, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, NVIDIA Corporation, Infosys Limited, Dematic Inc., Zebra Technologies Corporation, PTC Inc., Teradata Corporation, Blue Yonder Inc., L&T Technology Services Limited, Manhattan Associates Inc., Nitor Infotech Private Limited, Logility Inc., LLamasoft Inc., Covariant Inc., FourKites Inc., Kanerika Inc., ClearMetal Inc.

North America was the largest region in the generative artificial intelligence in supply chain market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative 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 generative artificial intelligence in supply chain market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence (AI) in the supply chain involves using advanced AI technologies to create or optimize various elements within the supply chain process. This includes developing new models for demand forecasting, optimizing logistics routes, creating simulations for supply chain scenarios, and more. Generative AI improves decision-making by providing more accurate predictions and innovative solutions, ultimately enhancing efficiency, reducing costs, and improving responsiveness to market changes.

The primary components of generative AI in the supply chain are solutions and software. In this context, solutions refer to comprehensive systems or packages designed to address specific challenges within supply chain management. These solutions can be deployed in cloud-based or on-premise environments and are utilized by various end-users, including those in retail, manufacturing, healthcare, and other sectors.

The generative artificial intelligence in supply chain market research report is one of a series of new reports that provides generative artificial intelligence in supply chain market statistics, including generative artificial intelligence in supply chain industry global market size, regional shares, competitors with a generative artificial intelligence in supply chain market share, detailed generative artificial intelligence in supply chain market segments, market trends and opportunities, and any further data you may need to thrive in generative artificial intelligence in supply chain industry. This generative 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 generative artificial intelligence in supply chain market consists of revenues earned by entities providing services such as supply chain planning and optimization, logistics and transportation management, supplier relationship management, and predictive maintenance. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative artificial intelligence in supply chain market also includes sales of inventory optimization software, supply chain planning platforms, logistics and transportation management systems, warehouse automation and robotics, risk management software, and product lifecycle management software. 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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