Global Artificial Intelligence (AI) in Logistics and Supply Chain market size was USD 5 billion in 2023 and the market is projected to reach roughly USD 90 billion by 2032, at a CAGR of 38% during the forecast period.
The rapid growth of e-commerce has heightened the need for more efficient and streamlined supply chains, as consumers increasingly demand fast and reliable delivery. AI-powered solutions have become essential for optimizing demand forecasting, inventory management, and logistics. These technologies allow businesses to adapt to real-time conditions, addressing the vulnerabilities that supply chains face from factors such as sudden market shifts or global disruptions. AI's ability to analyze large volumes of data and suggest proactive solutions helps companies anticipate challenges and mitigate risks, ensuring smooth operations and enhanced customer satisfaction.
Technological advancements, such as the integration of AI with Internet of Things (IoT) sensors and cloud computing, have further revolutionized supply chain management. These tools enable real-time data collection, processing, and analysis, allowing AI to make more informed and agile decisions. This leads to improved transportation planning, optimized store-level assortments, and the automation of order settlements. As a result, companies across various industries, including retail and consumer packaged goods (CPG), are investing in AI-driven solutions to drive market growth and improve operational efficiency.
Global Artificial Intelligence (AI) in Logistics and Supply Chain Market report scope and segmentation.
Report Attribute |
Details |
Base Year |
2023 |
Forecast Years |
2024 – 2032 |
Estimated Market Value (2023) |
USD 5 Billion |
Projected Market Value (2032) |
USD 90 Billion |
Segments Covered |
By Technology, By End-Use, By Distribution Channel, & By Region. |
Forecast Units |
Value (USD Million or Billion) |
Quantitative Units |
Revenue in USD million/billion and CAGR from 2024 to 2032. |
Regions Covered |
North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. |
Countries Covered |
U.S., Canada, Mexico, U.K., Germany, France, Italy, Spain, China, India, Japan, South Korea, Australia, Brazil, Argentina, GCC Countries, and South Africa, among others. |
Global Artificial Intelligence (AI) in Logistics and Supply Chain Market dynamics
Due to the sensitive nature of data involved in supply chains, stringent regulations are in place to protect customer, supplier, and logistics information. Companies must implement robust security measures to safeguard this data throughout the AI lifecycle. The European Union's proposed AI Act underscores the importance of transparency, accountability, and risk management for high-risk AI applications.
While traditional methods can suffice for simpler supply chains, AI is crucial for managing intricate global operations. AI's ability to process vast datasets and analyze complex relationships is indispensable in such scenarios. For well-defined, repetitive tasks, traditional automation methods can be effective. These methods rely on pre-established rules and logic to automate processes and decision-making. Although less sophisticated than AI, traditional automation can be a viable option for companies with limited resources or technical expertise. They are generally easier to implement and maintain compared to AI solutions.
Global Artificial Intelligence (AI) in Logistics and Supply Chain Market drivers
Surging economic digitization in developing nations
Rising economic digitization, especially in emerging markets, is a key driver of growth in the AI-based supply chain market. Countries like India and China are seeing increased demand for visibility and transparency in logistics and supply chain data, along with a surge in data generation. The adoption of AI by small and medium-sized businesses and the strengthening of IT industries further accelerate market growth. AI, powered by complex algorithms, can be applied to numerous supply chain functions, such as data extraction, analysis, supply-demand planning, and autonomous vehicle management. It enhances warehouse operations by optimizing shipping, receiving, storing, and product handling, while AI-based solutions improve overall supply-chain management, providing end-to-end visibility, demand forecasting, and dynamic planning. However, market growth faces challenges, such as a lack of technological expertise in underdeveloped regions, rising labor costs, and insufficient infrastructure in developing economies. Complexities in AI coding also present hurdles, slowing down adoption rates in some areas. Despite these challenges, the proliferation of cloud-based services and the growing adoption of AI in logistics offer significant benefits, positioning AI as a crucial enabler of future supply chain efficiencies.
Opportunities:
The convergence of AI and IoT is revolutionizing predictive maintenance. By leveraging sensor data and AI analytics, companies can anticipate equipment failures and implement proactive maintenance strategies, thereby minimizing downtime and ensuring operational continuity. The strategic importance of AI in supply chain management has fueled a wave of M&A activity among industry leaders. Recognizing the competitive advantages offered by AI-powered solutions, companies are actively seeking to acquire startups or established players with expertise in AI and its applications. This strategic approach enables them to enhance efficiency, reduce costs, and mitigate risks, solidifying their market position.
Segment Overview
By End-Use, the Artificial Intelligence (AI) in Logistics and Supply Chain market is segmented into Automotive, Retail, Manufacturing, and Others. The automotive industry remains the dominant force in the AI-powered supply chain market, accounting for a substantial share of the revenue share in 2023. The burgeoning demand for electric and autonomous vehicles has introduced new complexities into the supply chain. AI-driven solutions are instrumental in managing the intricate networks of suppliers involved in EV and AV production, ensuring the timely delivery of specialized components. Additionally, AI-enabled quality control systems play a critical role in guaranteeing that these advanced vehicles meet the stringent safety and performance standards required for their operation.
Global Artificial Intelligence (AI) in Logistics and Supply Chain Market Overview by Region
The Artificial Intelligence (AI) in supply chain market in the Asia Pacific is expected to register the fastest compound annual growth rate (CAGR) during the forecast period. This rapid growth is driven by the region's unique economic factors and advancements in technology. As the Asia Pacific boasts the fastest-growing e-commerce market in the world, AI is becoming increasingly essential for improving order fulfillment, delivery efficiency, and providing personalized customer experiences.
In 2023, India held a significant share of the AI in supply chain market in the Asia Pacific. With its rapidly expanding economy and complex supply chains, India faces challenges like congestion, unpredictable demand, and inefficient logistics management. AI is being utilized to address these issues by optimizing routes, improving traffic management, and enhancing demand forecasting and inventory management. Similarly, China also held a prominent market share in 2023, driven by its "Made in China 2025" initiative, which emphasizes automation and smart manufacturing. In addition, China's massive e-commerce market continues to fuel demand for faster, more reliable deliveries, with AI offering solutions in intelligent warehousing and order fulfillment.
Global Artificial Intelligence (AI) in Logistics and Supply Chain market competitive landscape
Major players in the Global Artificial Intelligence (AI) in Logistics and Supply Chain market are Advanced Micro Devices, Inc., Alibaba.com, Amazon.com, Inc., Deutsche Post DHL Group, FedEx, Intel Corporation, Microsoft Corporation, NVIDIA Corporation, Oracle Corporation, and Samsung.
Global Artificial Intelligence (AI) in Logistics and Supply Chain report market segmentation
ATTRIBUTE |
DETAILS |
By Technology |
|
By End-Use |
|
By Distribution Channel |
|
Customization Scope |
|
Pricing |
|
Table of Contents
Our reports with in-depth insights will equip you to succeed in your business plans.
Get instant access to the information you need to make the right decision.
Explore where opportunities lie for you and mitigate the risks.
We are one of the most trusted brands setting benchmarks of excellence.