PUBLISHER: Orion Market Research | PRODUCT CODE: 1755426
PUBLISHER: Orion Market Research | PRODUCT CODE: 1755426
Global AI in Supply Chain Market Size, Share & Trends Analysis Report by Technology (Machine Learning (ML), Natural Language Processing (NLP), Context-Aware Computing, and Computer Vision), by Application (Fleet Management, Supply Chain Planning, Warehouse Management, Virtual Assistant, Risk Management, Freight Brokerage, and Others), and by End-User (Automotive, Aerospace, Manufacturing, Retail, Healthcare, Consumer-packaged Goods, Food and Beverages, and Others), Forecast Period (2025-2035)
Artificial intelligence in the supply chain market is projected to grow at a CAGR of 12.4% during the forecast period (2025-2035). The market growth is attributed to the increasing adoption of automation, real-time data analytics, and future decisions that increase operating efficiency and cost-effectiveness. The demand for AI-operated solutions such as automated inventory management, smart logistics, and demand forecasting aims to optimize supply chain operations by reducing human intervention and errors. Similarly, machine learning-based predictive maintenance, AI-operated warehouse robotics, and blockchain-enabled supply chain transparency are reshaping the industry. This helps to solve major challenges, including interruption of the supply chain innovations, the ups and downs of demand patterns, and permanent logistics solutions.
The global AI in the supply chain market is segmented by technology, application, and end-user. Based on the technology, the market is sub-segmented into ML, NLP, context-aware computing, and computer vision. Based on the application, the market is sub-segmented into fleet management, supply chain planning, warehouse management, virtual assistant, risk management, freight brokerage, and others. Furthermore, based on end-users, the market is sub-segmented into automotive, aerospace, manufacturing, retail, healthcare, consumer-packaged goods, food and beverages, and others. Among the technologies, the machine-learning sub-segment is estimated to have a significant share of the market owing to various benefits introduced by supply chain organizations, including cost savings, risk reduction, increased forecasting, more rapid delivery, and better customer service.
The AI-driven supply chain industry estimates that global artificial intelligence technologies play an important part in the growth of the market for the forecast period. AI-powered solutions such as demand forecasting, automated inventory management, and real-time supply chain visibility play an important role in increasing operational efficiency by enabling data-driven decisions. This progress in AI technology helps to monitor the fluctuations of the supply chain and change the demand pattern, improving overall logistics and cost efficiency. Increasing integration of automation and IoT-based solutions in supply chain management has increased the demand for AI-based supply chain techniques. For instance, in January 2025, during the Consumer Electronics Show (CES) in Las Vegas, many leading logistics and technology companies unveiled AI-driven innovations designed to eliminate challenges such as supply chain disturbances and increasing operational costs. This progress includes intelligent warehouse robotics, AI-powered route optimization, and a predictive analytical platform that enhances supply chain elasticity and efficiency without human intervention.
The global AI in supply chain market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, Russia, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, ASEAN Countries, Australia & New Zealand and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). In the regional outlook, North America is expected to dominate the market for global agriculture technologies owing to the wide adoption of advanced solutions such as RFID, biometrics, and GPS for real-time livestock monitoring, where these technologies enable farmers to efficiently track and manage livestock data, enhancing productivity and decision-making.
The Asia-Pacific region is expected to see sufficient growth with the highest CAGR among other regional segments for the forecast period. The regional expansion is driven by increasing supply chain automation and efficiency, the growing adoption of AI-powered logistics, smart warehousing, and predictive analytics solutions. The rising focus on digital transformation and intelligent inventory management in emerging economies such as China, India, and Japan are further enhancing the demand for advanced AI in supply chain technologies. Additionally, supportive government policies and increasing investments in AI-driven supply chain innovations are accelerating market growth. For instance, in November 2023, Toll Group partnered with Republic Polytechnic and the Singapore University of Technology and Design (SUTD) to advance warehouse automation technologies. This collaboration focuses on developing digital twin technology to optimize supply chain operations, thereby enhancing efficiency and productivity.
The major companies serving the AI in supply chain market include Amazon Web Services, Inc., FedEx Corp., General Electric Co., Google, IBM Corp., and others. These market players are considerably contributing to the market growth by the adoption of various strategies including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market. For instance, in November 2023, IBM Corp. expanded its relationship with AWS to deepen generative AI innovation and launched an Innovation Lab in India. This initiative aims to help clients integrate AI into business and IT operations, accelerating cloud transformation processes.
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