Primary Catalyst Driving AI In Logistics And Supply Chain Management Market Evolution in 2025: E-commerce's Influence On The AI in Logistics And Supply Chain Management Market Driver

What Is the Future Outlook for the AI In Logistics And Supply Chain Management Market's Size and Growth Rate?
The market size for AI in logistics and supply chain management has seen an explosive growth in recent times. The market size, which was at $4.03 billion in 2024, is projected to increase to $5.75 billion in 2025, experiencing a compound annual growth rate (CAGR) of 42.6%. This growth during the historic period is a result of factors such as heightened cost pressures and increased efficiency needs, lack of adequate talent and skills gaps, the implementation of just-in-time inventory management, changes in regulations and trade agreements, and geopolitical instability.

In the coming years, the market size of AI in logistics and supply chain management is projected to expand greatly. It's anticipated to reach $23.54 billion in 2029, exhibiting a compound annual growth rate (CAGR) of 42.2%. Factors contributing to this predicted growth during the forecast period encompass the incorporation of augmented reality and virtual reality, the application of blockchain for supply chain transparency, the optimization of multi-modal transportation, utiliziation of natural language processing for gaining supply chain insights, and the collaboration within the hybrid workforce. Key trends throughout this forecast period cover the amalgamation of AI with IoT and big data, an emphasis on predictive analytics and forecasting, the surge in demand for AI solutions based in the cloud, a spotlight on sustainability and green logistics, and stepped up investments in research and development.

What Are the Primary Growth Drivers for the AI In Logistics And Supply Chain Management Market?
The increasing e-commerce sector is anticipated to fuel the progression of the AI in logistics and supply chain management market in the future. The e-commerce sector includes the business realm that encapsulates transactions of goods and services, carried out primarily via electronic mediums like the Internet, mobile applications, or other digital outlets. Factors such as convenience, expanding internet usage, and changing consumer trends towards online shopping are driving this industry. AI contributes to e-commerce logistics and supply chain administration by predicting demand, improving inventory control, streamlining delivery paths, reducing expenditures, and enhancing customer contentment. For example, in February 2024, as reported by the United States Census Bureau, a government agency based in the US, e-commerce sales totaled $1,118.7 billion in 2023, signifying an increase of 7.6% (±1.2%) from 2022. Moreover, e-commerce sales made up 15.4% of all sales in 2023, compared to 14.7% in 2022. Hence, the escalating e-commerce sector is propelling the expansion of the AI in logistics and supply chain management market.

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Which Key Market Leaders Are Driving AI In Logistics And Supply Chain Management Industry Growth?
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

What Are the Emerging Trends in the AI In Logistics And Supply Chain Management Industry?
Leaders in the field of AI implementation in logistics and supply chain management are constantly advancing their tech prowess by establishing AI-oriented supply chain management tools to boost operational effectiveness and sustainability. These innovative tools use artificial intelligence to fine-tune several elements within the supply chain, ranging from forecasting and scheduling to logistics and customer interaction. An example of this progression can be seen when Blue Yonder Group Inc., a US-based company specializing in supply chain management, launched the Blue Yonder Orchestrator in December 2023. This sophisticated tool utilizes AI to enhance decision-making and streamline supply chain operations. Its primary distinction is the ability to empower business users through immediate access to suggestions, predictive intelligence, and smart decisions, thereby securing optimal results for their supply chain. The tool achieves this through a powerful combination of extensive language models (LLMs), cloud-based data, and swift engineering to offer personalized recommendations for supply chain choices.

What Are the Main Segments in the AI In Logistics And Supply Chain Management Market?
The AI in logistics and supply chain management market covered in this report is segmented -

1) By Offering: Solution, Services
2) By Type: Artificial Intelligence (AI), Machine Learning, Robotics Process Automation (RPA), Natural Language Processing (NLP)
3) By Deployment: Cloud-Based, On-Premise
4) By Application: Warehouse Management, Transportation Management, Order Fulfillment, Demand Forecasting, Inventory Optimization, Supply Chain Planning, Other Applications
5) By End User: Automotive, Aerospace, Manufacturing, Retail, Healthcare, Other End Users

Subsegments:
1) By Solution: AI Software, AI Platforms, AI Tools For Automation, AI-Based Analytics
2) By Services: Consulting Services, Integration And Implementation Services, Managed Services, Support And Maintenance Services

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Which Geographic Area Leads the AI In Logistics And Supply Chain Management Market?
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.

What Is Covered In The AI In Logistics And Supply Chain Management Global Market Report?

- Market Size Analysis: Analyze the AI In Logistics And Supply Chain Management Market size by key regions, countries, product types, and applications.
- Market Segmentation Analysis: Identify various subsegments within the AI In Logistics And Supply Chain Management Market for effective categorization.
- Key Player Focus: Focus on key players to define their market value, share, and competitive landscape.
- Growth Trends Analysis: Examine individual growth trends and prospects in the Market.
- Market Contribution: Evaluate contributions of different segments to the overall AI In Logistics And Supply Chain Management Market growth.
- Growth Drivers: Detail key factors influencing market growth, including opportunities and drivers.
- Industry Challenges: Analyze challenges and risks affecting the AI In Logistics And Supply Chain Management Market.
- Competitive Developments: Analyze competitive developments, such as expansions, agreements, and new product launches in the market.

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