PUBLISHER: The Business Research Company | PRODUCT CODE: 1428383
PUBLISHER: The Business Research Company | PRODUCT CODE: 1428383
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 from The Business Research Company 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 size has grown exponentially in recent years. It will grow from $3.39 billion in 2023 to $5 billion in 2024 at a compound annual growth rate (CAGR) of 47.6%. The growth observed in the historical period can be attributed to globalization, increasing complexity in supply chain networks, rising customer expectations, the growth of e-commerce, and the 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 $21.35 billion in 2028 at a compound annual growth rate (CAGR) of 43.7%. The anticipated growth in the forecast period can be attributed to the demand for predictive analytics in supply chain management, an increasing focus on sustainability, the growth of autonomous vehicles in logistics, and a rise in demand for real-time inventory visibility. Major trends expected in the forecast period include the increasing use of machine learning for demand forecasting, the rise of digital twins in supply chain optimization, the growth in AI-powered robotic process automation, an emphasis on supply chain resilience, and the 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 increasing demand within the food and beverage industry is expected to fuel the growth of the artificial intelligence in the supply chain market. The food and beverage industry encompasses various operations related to the production, processing, packaging, distribution, and retailing of food and drink items. To streamline operations, the industry employs artificial intelligence in supply chain management, ensuring efficient inventory management, minimizing the risk of stockouts, and optimizing distribution and logistics networks for timely and cost-effective product delivery. For example, the USDA Rural Development 2021 Highlights report notes $467.20 billion in food and beverage (F&B) sales in 2021. Additionally, a report from Kirin Holdings Company Limited reveals a global consumption of about 185.60 million kiloliters of beer in 2021, reflecting a 4.0% increase from the previous year. Hence, the growing demand in the food and beverage industry is a significant driver for the 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 September 2021, Panasonic Corporation acquired Blue Yonder for $8.5 billion. This strategic move is set to expedite the shared autonomous supply chain goals of Panasonic and Blue Yonder. By combining Blue Yonder's AI- and ML-powered planning, execution, and commerce solutions with Panasonic's sensing technologies and edge devices, the acquisition aims to empower businesses in building smarter and more interconnected e-commerce strategies, retail locations, warehouses, transportation, and workplaces. Blue Yonder is a US-based supply chain management company that leverages AI and ML capabilities to provide digital solutions for supply chain transformations and omnichannel commerce fulfillment.
Major companies operating in the artificial intelligence in supply chain market report are 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 2023. 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.
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.
Artificial Intelligence In Supply Chain Global Market Report 2024 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on artificial intelligence in supply chain market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for artificial intelligence in supply chain ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The artificial intelligence in supply chain market global report from the Business Research Company answers all these questions and many more.
The 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 impact of sanctions, supply chain disruptions, and altered demand for goods and services due to the Russian Ukraine war, impacting various macro-economic factors and parameters in the Eastern European region and its subsequent effect on global markets.
The impact of higher inflation in many countries and the resulting spike in interest rates.
The continued but declining impact of covid 19 on supply chains and consumption patterns.