PUBLISHER: The Business Research Company | PRODUCT CODE: 1849172
 
				PUBLISHER: The Business Research Company | PRODUCT CODE: 1849172
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.
Note that the outlook for this market is being affected by rapid changes in trade relations and tariffs globally. The report will be updated prior to delivery to reflect the latest status, including revised forecasts and quantified impact analysis. The report's Recommendations and Conclusions sections will be updated to give strategies for entities dealing with the fast-moving international environment.
The sharp rise in U.S. tariffs and the ensuing trade tensions in spring 2025 are having a significant impact on the information technology sector, especially in hardware manufacturing, data infrastructure, and software deployment. Increased duties on imported semiconductors, circuit boards, and networking equipment have driven up production and operating costs for tech companies, cloud service providers, and data centers. Firms that depend on globally sourced components for laptops, servers, and consumer electronics are grappling with extended lead times and mounting pricing pressures. At the same time, tariffs on specialized software and retaliatory actions by key international markets have disrupted global IT supply chains and dampened foreign demand for U.S.-made technologies. In response, the sector is ramping up investments in domestic chip production, broadening its supplier network, and leveraging AI-powered automation to improve resilience and manage costs more effectively.
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 $4.03 billion in 2024 to $5.72 billion in 2025 at a compound annual growth rate (CAGR) of 41.7%. The growth in the historic period can be attributed to cost pressures and efficiency demands, talent shortages and skills gaps, the rise of just-in-time inventory management, regulatory changes, and 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 $21.06 billion in 2029 at a compound annual growth rate (CAGR) of 38.5%. The growth in the forecast period can be attributed to augmented reality and virtual reality integration, blockchain for supply chain transparency, multi-modal transportation optimization, natural language processing for supply chain insights, and hybrid workforce collaboration. Major trends in the forecast period include integration of AI with IoT and big data, focus on predictive analytics and forecasting, demand for cloud-based AI solutions, focus on sustainability and green logistics, and investments in research and development.
The forecast of 38.5% growth over the next five years reflects a modest reduction of 0.7% from the previous estimate for this market. This reduction is primarily due to the impact of tariffs between the US and other countries. This is likely to directly affect the US by raising expenses for AI route optimization software, dependent on IoT sensors and processors from China and Mexico, increasing freight costs. The effect will also be felt more widely due to reciprocal tariffs and the negative effect on the global economy and trade due to increased trade tensions and restrictions.
The expanding e-commerce sector is expected to drive the growth of the AI in logistics and supply chain management market in the coming years. The e-commerce industry involves the buying and selling of goods and services primarily through digital channels such as the Internet, mobile apps, and other online platforms. This industry is fueled by the increasing demand for convenience, wider internet access, and changing consumer preferences toward online shopping. AI improves e-commerce logistics and supply chain management by predicting demand, optimizing inventory management, refining delivery routes, reducing operational costs, and enhancing customer satisfaction. For example, in February 2024, the United States Census Bureau reported that e-commerce sales in 2023 totaled $1,118.7 billion, reflecting a 7.6% (+-1.2%) increase from 2022. Moreover, e-commerce sales made up 15.4% of total retail sales in 2023, compared to 14.7% in 2022. Consequently, the growth of the e-commerce industry is fueling the expansion of AI in logistics and supply chain management.
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 August 2024, Blue Yonder, a US-based supply chain management company, acquired One Network Enterprises for $0.839 billion. This acquisition is in line with Blue Yonder's strategy to improve its real-time, AI-powered supply chain solutions, further solidifying its industry position. Through One Network's technology, Blue Yonder's customers can now collaborate seamlessly across all stages of their supply chain, connecting with trading partners both upstream and downstream. One Network Enterprises is a US-based provider of real-time collaboration and AI solutions for 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 2024. 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 2025 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, including technological disruption, regulatory shifts, and changing consumer preferences? 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 forecasts are made after considering the major factors currently impacting the market. These include the technological advancements such as AI and automation, Russia-Ukraine war, trade tariffs (government-imposed import/export duties), elevated inflation and interest rates.
 
                 
                 
                