Generative Artificial Intelligence (AI) in Logistics Market Report 2025

This Generative Artificial Intelligence (AI) in Logistics market report provides a comprehensive analysis of the market’s characteristics, size, and growth, including segmentation, regional and country-level breakdowns, competitive landscape, market shares, trends, and strategies. It also tracks historical and forecasted market growth across various geographies.

The generative artificial intelligence (AI) in logistics market size has grown exponentially in recent years. It will grow from $0.6 billion in 2024 to $0.8 billion in 2025 at a compound annual growth rate (CAGR) of 32.7%. The growth in the historic period can be attributed to increasing demand for real-time data analysis, growth in e-commerce, expansion of global supply chains, increasing industrial infrastructure, and rise of automation in warehouse management.

The generative artificial intelligence (AI) in logistics market size is expected to see exponential growth in the next few years. It will grow to $2.46 billion in 2029 at a compound annual growth rate (CAGR) of 32.4%. The growth in the forecast period can be attributed to increasing demand for real-time data, increasing use of IoT devices, rising investment in AI technologies, rising need for supply chain visibility, and rising demand for enhanced customer experience. Major trends in the forecast period include technological advancements, autonomous vehicles, predictive analytics, robotic process automation, and digital twins.

The anticipated growth in e-commerce sales is expected to drive advancements in generative artificial intelligence (AI) within the logistics sector. As e-commerce becomes more popular due to its convenience, broader product range, and the rise of digital technology, generative AI is increasingly used to streamline inventory management, improve route planning, and forecast demand, leading to greater efficiency and cost savings. For example, in May 2024, a report from the Census Bureau of the Department of Commerce revealed that e-commerce sales in 2023 totaled approximately $1.11 trillion. During the first quarter of 2024, total retail sales were about $1.82 trillion, with e-commerce sales experiencing an 8.5% increase from the same period in 2023, compared to a 2.8% rise in overall retail sales. This growth in e-commerce is fueling the expansion of generative AI in the logistics market.

Key players in the generative AI logistics market are focusing on adopting cutting-edge technologies such as natural language interfaces to boost operational efficiency and accuracy in supply chain management. A natural language interface allows users to interact with supply chain management software using everyday language, simplifying data queries, report generation, and operational management without requiring specialized technical expertise. For instance, in September 2023, FourKites, Inc., a US-based supply chain visibility and logistics technology firm, introduced FinAI, a generative AI tool designed to improve supply chain management. FinAI leverages a natural language interface to extract insights, automate tasks, and optimize operations by analyzing vast amounts of data, including 3 million shipments per day, 18 million estimated times of arrival (ETAs), and 62 billion miles tracked annually.

In September 2023, Logility Inc., a US-based software company, acquired Garvis BV, a Belgium-based provider of generative AI in logistics, for an undisclosed amount. This acquisition is intended to accelerate the incorporation of AI-driven demand forecasting technology into Logility's supply chain learning solutions.

Major companies operating in the generative artificial intelligence (AI) in logistics market are Microsoft Corporation, Amazon Web Services Inc., Intel Corporation, Accenture plc, International Business Machines Corporation, Oracle Corporation, Honeywell International Inc., SAP SE, NVIDIA Corporation, Cognizant Technology Solutions Corporation, Epicor Software Corporation, Blue Yonder Group Inc., Coupa Software Incorporated, Kinaxis Inc., ShipBob Inc., Project44 Inc., Vorto Inc., Logility Inc., FourKites Inc., Shippeo SAS, Freightos Ltd., Slync.io Inc., Locus.sh, ClearMetal Inc.

North America was the largest region in the generative artificial intelligence (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 generative artificial intelligence (AI) in logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative artificial intelligence (AI) in logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence (AI) in logistics involves leveraging sophisticated algorithms and machine learning to improve logistics processes. This includes forecasting demand, optimizing delivery routes, and efficiently managing inventory, leading to reduced costs, more precise deliveries, better operational efficiency, and enhanced customer satisfaction.

Key types of generative AI used in logistics include variational autoencoders (VAEs), generative adversarial networks (GANs), recurrent neural networks (RNNs), and long short-term memory (LSTM) networks, among others. A Variational Autoencoder (VAE) is an artificial neural network designed to create new data similar to the input data. Components of generative AI encompass software, hardware, and various solutions, with deployment options available both on-premises and in the cloud. Generative AI applications in logistics span warehouse management, route optimization, inventory control, supply chain analytics, last-mile delivery optimization, and customer service, with use cases across industries such as retail, healthcare, banking and finance, aerospace, telecommunications, and technology.

The generative artificial intelligence (AI) in logistics market research report is one of a series of new reports that provides generative artificial intelligence (AI) in logistics market statistics, including generative artificial intelligence (AI) in logistics industry global market size, regional shares, competitors with a generative artificial intelligence (AI) in logistics market share, detailed generative artificial intelligence (AI) in logistics market segments, market trends and opportunities, and any further data you may need to thrive in medical connectors industry. This generative artificial intelligence (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 generative artificial intelligence (AI) in logistics market consists of revenues earned by entities by providing services such as real-time data analysis, dynamic pricing optimization, predictive maintenance, customer behavior analysis, and fraud detection. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative artificial intelligence (AI) in logistics market also includes sales of autonomous vehicles, autonomous vehicle drones, and warehouse robotic solutions. 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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