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E-commerce Growth Fuels Expansion Of The Cognitive Supply Chain Market: A Key Factor Shaping the Future of the Cognitive Supply Chain Market in 2025
What combination of drivers is leading to accelerated growth in the cognitive supply chain market?The cognitive supply chain market is set to benefit from the expanding e-commerce sector. E-commerce, which involves the electronic transaction of goods and services, primarily through the internet or digital platforms, is on a growth trajectory. This is due to the widespread use of smartphones, enhanced internet access, and the growing demand for smooth payment and delivery methods. The cognitive supply chain boosts the efficiency and decision-making capability of the e-commerce sector through the use of advanced technologies such as artificial intelligence (AI) and machine learning for smart data analysis and optimization. As an example, the United States Census Bureau, a government agency in the US, reported that the e-commerce sales for the last quarter of 2023 stood at $285.2 billion, marking a 0.8% growth from the previous quarter. The estimated e-commerce sales for the same quarter had risen by 7.5% (±1.2%) compared to the final quarter of 2022. E-commerce sales were also responsible for 15.6% of the total sales in the final quarter of 2023. Hence, the burgeoning e-commerce sector is fueling the expansion of the cognitive supply chain market.
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What is the projected compound annual growth rate (CAGR) of the cognitive supply chain market from 2025 to 2034, and what factors influence it?
In the past few years, there has been a significant increase in the market size of the cognitive supply chain. It is projected to escalate from a valuation of $8.64 billion in 2024 to approximately $10.05 billion in 2025, representing a compound annual growth rate (CAGR) of 16.3%. The expansion observed in the historical phase is due to the advent of the just-in-time (JIT) and lean manufacturing approach, growth of global commerce, the requirement for quicker delivery periods, advancements in e-commerce, and the rising complexity of supply chains.
In the upcoming years, the cognitive supply chain market size is projected to witness swift expansion. The market is likely to reach $16.89 billion by 2029, with a compound annual growth rate (CAGR) of 13.9%. The predicted growth during the forecast period can be linked to the swift expansion of e-commerce, initiatives for sustainability, resilient supply chains, the blending of edge computing and analytics, and progress in information technology. Key trends during the forecast period consist of a quick amalgamation of AI-enabled technologies, growth of advanced analytics and machine learning, enhanced cooperation between humans and AI, application of blockchain for securing supply chains, and the use of edge computing to enable real-time decision making.
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What are the emerging trends shaping the future of the cognitive supply chain market?
In the cognitive supply chain market, leading enterprises are shifting their emphasis on the creation of innovative solutions like AI-controlled supply chain management instruments, to stand apart from their competitors. These AI-based tools employ artificial intelligence technologies to simplify and refine many aspects of the supply chain. For instance, in December 2023, Blue Yonder, a company based in the US that specializes in supply chain management, introduced a novel AI supply chain management tool called Blue Yonder Orchestrator as part of its Luminate Cognitive Platform. This tool integrates extensive language models, cloud data, and prompt engineering to make supply chain suggestions. Blue Yonder Orchestrator lets businesses extract value from their data, allowing for prompt access to recommendations, predictive insights, and informed decisions to guarantee the best outcomes for their supply chain.
What are the major segments of the cognitive supply chain market and their role in driving growth?
The cognitive supply chain market covered in this report is segmented -
1) By Offering: Solutions, Forecasting, Analytics, Inventory Management, Risk Management, Other Offerings
2) By Deployment: Cloud, On-Premise
3) By Enterprise Size: Large Enterprises, Small And Medium Enterprises (SMEs)
4) By End Use: Healthcare, Food And Beverages, Transportation And Logistics, Retail And E-commerce, Other End-uses
Subsegments:
1) By Solutions: Supply Chain Optimization, Intelligent Automation
2) By Forecasting: Demand Forecasting, Supply Forecasting
3) By Analytics: Descriptive Analytics, Predictive Analytics, Prescriptive Analytics
4) By Inventory Management: Inventory Optimization, Stock Replenishment
5) By Risk Management: Risk Assessment, Risk Mitigation
6) By Other Offerings: Blockchain Integration, Artificial Intelligence (AI) Integration, Machine Learning Solutions
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Which regions are key players in the growth of the cognitive supply chain market?
North America was the largest region in the cognitive supply chain market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the cognitive supply chain market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
Who are the key firms paving the way for growth in the cognitive supply chain market?
Major companies operating in the cognitive supply chain market are Amazon.com Inc., Microsoft Corporation, Siemens AG, Intel Corporation, accenture* plc, International Business Machines Corporation, Oracle Corporation, Honeywell International Inc., SAP SE, NVIDIA Corporation, C.H. Robinson Worldwide Inc., SAS Institute Inc., Panasonic Corporation, Coupa Software Inc., JDA Software Group Inc., WiseTech Global Limited, E2open LLC, Kinaxis Inc., Relex Solutions Ltd., Logility Inc., FourKites Inc., Savi Technology Inc., TransVoyant LLC, Terra Technology LLC, ClearMetal Inc., Llamasoft Inc.
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What Is Covered In The Cognitive Supply Chain Global Market Report?
• Market Size Forecast: Examine the cognitive supply chain market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the cognitive supply chain market for a structured understanding.
• Key Players Overview: Analyze major players in the cognitive supply chain market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the cognitive supply chain market.
• Segment Contributions: Evaluate how different segments drive overall growth in the cognitive supply chain market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the cognitive supply chain market.
• Industry Challenges: Identify potential risks and obstacles affecting the cognitive supply chain market.
• Competitive Landscape: Review strategic developments in the cognitive supply chain market, including expansions, agreements, and new product launches.
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