PUBLISHER: The Business Research Company | PRODUCT CODE: 1509574
PUBLISHER: The Business Research Company | PRODUCT CODE: 1509574
AI in logistics and supply chain management involves leveraging artificial intelligence technologies to optimize and automate various processes across the supply chain, spanning from raw material acquisition to final delivery. This approach encompasses a range of activities aimed at enhancing operational efficiency and customer satisfaction while simultaneously reducing costs and mitigating risks.
The primary offerings in AI for logistics and supply chain management comprise solutions and services. Solutions encompass software applications or platforms employing artificial intelligence to address specific challenges or enhance processes. These solutions encompass various types, including artificial intelligence (AI), machine learning, robotics process automation (RPA), and natural language processing (NLP). Deployment options include both cloud-based and on-premise setups. AI in logistics and supply chain management finds application in diverse areas such as warehouse management, transportation management, order fulfillment, demand forecasting, inventory optimization, and supply chain planning. It caters to a multitude of industries including automotive, aerospace, manufacturing, retail, healthcare, among others.
The AI in logistics and supply chain management market research report is one of a series of new reports from The Business Research Company that provides AI in logistics and supply chain management market statistics, including AI in logistics and supply chain management industry global market size, regional shares, competitors with a AI in logistics and supply chain management market share, detailed AI in logistics and supply chain management market segments, market trends and opportunities, and any further data you may need to thrive in the AI in logistics and supply chain management industry. This AI in logistics and supply chain management 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 AI in logistics and supply chain management market size has grown exponentially in recent years. It will grow from $2.84 billion in 2023 to $4.03 billion in 2024 at a compound annual growth rate (CAGR) of 42.1%. The historical period's growth can be attributed to various factors including cost pressures and efficiency demands, talent shortages and skills gaps, the emergence of just-in-time inventory management, regulatory changes, trade agreements, and geopolitical instability.
The AI in logistics and supply chain management market size is expected to see exponential growth in the next few years. It will grow to $16.56 billion in 2028 at a compound annual growth rate (CAGR) of 42.3%. The forecast period's growth is anticipated to stem from the integration of augmented reality and virtual reality, blockchain adoption for enhanced supply chain transparency, optimization of multi-modal transportation, utilization of natural language processing for supply chain insights, and fostering collaboration within hybrid workforces. Key trends expected in the forecast period encompass the integration of AI with IoT and big data, a heightened focus on predictive analytics and forecasting, increased demand for cloud-based AI solutions, emphasis on sustainability and green logistics, and investments in research and development.
The burgeoning e-commerce sector is poised to drive the future growth of the AI in logistics and supply chain management market. E-commerce, encompassing transactions primarily conducted through electronic platforms such as the Internet and mobile apps, thrives on convenience, expanding internet accessibility, and evolving consumer preferences towards online shopping. AI revolutionizes e-commerce logistics and supply chain management by predicting demand, optimizing inventory management, streamlining delivery routes, reducing costs, and enhancing customer satisfaction. For example, as per data from the United States Census Bureau, e-commerce sales surged to $1,118.7 billion in 2023, reflecting a 7.6% (+-1.2%) uptick from 2022. Additionally, e-commerce sales constituted 15.4% of total sales in 2023, compared to 14.7% in 2022. Hence, the burgeoning e-commerce industry is fueling the expansion of the AI in logistics and supply chain management market.
Key players in the AI in logistics and supply chain management arena are innovating technologically advanced solutions, such as AI-powered supply chain management tools, to enhance operational efficiency and sustainability. These tools harness artificial intelligence to optimize diverse supply chain facets, spanning planning, forecasting, logistics, and customer service. For instance, in December 2023, Blue Yonder Group Inc., a US-based supply chain management company, introduced the Blue Yonder Orchestrator, a cutting-edge tool leveraging AI to streamline decision-making and enhance supply chain orchestration. A standout feature of this tool is its capability to empower business users with instant access to recommendations, predictive insights, and intelligent decisions, ensuring optimal supply chain outcomes. This innovative capability integrates large language models (LLMs), cloud data, and rapid engineering to deliver personalized recommendations for supply chain decision-making.
In September 2021, Panasonic Holdings Corporation, a Japan-based electronics conglomerate, acquired Blue Yonder for $7.1 billion. Through this acquisition, Panasonic aims to bolster its presence in the software industry, particularly in AI-driven supply chain management solutions. Furthermore, Panasonic seeks to leverage Blue Yonder's autonomous supply chain software to develop collaborative products merging AI capabilities with its proprietary technologies, such as voice response and object recognition. Blue Yonder Group Inc. stands as a prominent provider of AI solutions in logistics and supply chain management.
Major companies operating in the AI in logistics and supply chain management market are Google LLC, Microsoft Corporation, Amazon Web Services Inc., General Electric Company, International Business Machines Corporation, Oracle Corporation, SAP SE, Zebra Technologies Corp., Databricks Inc., Manhattan Associates Inc., o9 Solutions Inc., Locus, Trax Technologies Ltd., SenseTime, Project44, FourKites Inc., Turvo Inc., Everstream Analytics, GreyOrange Pte. Ltd., Elementum Ltd., Ambi Robotics, ClearMetal Inc., Aurrigo International Plc, Nexocode.
North America was the largest region in the AI in logistics and supply chain management market in 2023. The regions covered in the AI in logistics and supply chain management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the AI in logistics and supply chain management market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.
The AI in logistics and supply chain management market consists of revenues earned by entities by providing services such as real-time traffic updates and re-routing, predictive analytics, supplier selection and relationship management and resource management. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in logistics and supply chain management market also includes sales of AI-based supply chain visibility tools, AI-based quality control systems and risk management systems. 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.
AI In Logistics And Supply Chain Management 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 AI in logistics and supply chain management 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 AI in logistics and supply chain management? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The AI in logistics and supply chain management 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.