Primary Catalyst Driving Generative Artificial Intelligence In Supply Chain Market Evolution in 2025: Rising E-Commerce Fuels Growth Of Generative Artificial Intelligence In The Supply Chain Driver

What industry-specific factors are fueling the growth of the generative artificial intelligence in supply chain market?
The advancement of e-commerce is predicted to accelerate the expansion of the generative artificial intelligence in supply chain market. E-commerce encompasses the online buying and selling of goods and services, including all business transactions and activities carried out on digital platforms and apps. The surge in e-commerce can be attributed to the increasing preference for online shopping, advancements in digital payment methods, and widespread internet accessibility. Generative AI is utilized within the e-commerce supply chain to improve inventory handling, enrich demand prediction, simplify logistics, automate order placement, and tailor consumer experiences by assessing vast amounts of data to devise effective, data-centric supply chain practices. For example, the International Trade Administration, a Department of Commerce based in the US, noted in November 2023 that consumer eCommerce was estimated to bring in a revenue of $285.60 billion by 2025, making up 36.3% of the UK retail market as of January 2021. Moreover, eCommerce earnings in the UK are forecasted to grow at an average annual speed of 12.6% by 2025. Consequently, the surge in e-commerce is propelling the expansion of generative artificial intelligence in the supply chain market.

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What Is the projected market size and growth rate for the generative artificial intelligence in supply chain market?
The market for generative artificial intelligence in the supply chain sector has seen a significant increase in size in the past few years. The market, valued at $0.41 billion in 2024, is projected to reach $0.58 billion in 2025, with an impressive compound annual growth rate (CAGR) of 43.9%. Factors like advances in computational capabilities, the rise of e-commerce, the widespread accessibility of big data, a heightened emphasis on automation, and increased investment in AI research and development have all contributed to the historical growth of this market.

The market size for generative artificial intelligence in supply chains is anticipated to experience a fast-paced expansion in the upcoming years. It is projected to reach a value of $2.49 billion in 2029, with a compound annual growth rate (CAGR) of 43.6%. The surge during the predicted period can be associated with the growing call for real-time visibility in supply chains, augmented demand for AI-powered tools to plan the supply chain, increasing investments in AI for innovation labs in supply chains, greater requirement for AI in predictive logistics, and the escalating need for advanced forecasting methods. Some significant trends to watch out for in the speculated period are technological evolutions, telemedicine, blockchain technology, 5G technology, and the internet of things.

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What new trends are reshaping the generative artificial intelligence in supply chain market and its opportunities?
Leading firms in the generative artificial intelligence for supply chain market are concentrating on creating groundbreaking technologies such as cognitive solutions, to boost predictive analytics and streamline supply chain activities. Cognitive solutions are sophisticated technologies that mimic human cognitive functions to evaluate, decipher, and respond to intricate data. They utilize artificial intelligence (AI), machine learning, and natural language processing to equip systems with the ability to comprehend, rationalize, and learn from data, mirroring human brain functions. For example, in December 2023, Blue Yonder, a supply chain management company from the US, introduced Blue Yonder Orchestrator, a generative AI device that facilitates smarter business decision-making and expedites supply chain orchestration. This innovative feature uses superior AI algorithms to automate and optimize intricate supply chain operations, improving efficiency and precision. It offers real-time data analysis, allowing for fluid adjustments to inventory and logistics based on present conditions and projections. The system effortlessly integrates with existing supply chain systems, offering viable insights and suggestions to enhance overall operational effectiveness.

What major market segments define the scope and growth of the generative artificial intelligence in supply chain market?
The generative artificial intelligence in supply chainmarket covered in this report is segmented -

1) By Component: Solutions, Software
2) By Deployment Mode: Cloud-Based, On-Premise
3) By End-User: Retail, Manufacturing, Healthcare, Other End-Users

Subsegments:
1) By Solutions: Supply Chain Optimization Solutions, Demand Forecasting Solutions, Inventory Management Solutions, Logistics And Transportation Solutions, Supplier Risk Management Solutions, End-to-End Visibility Solutions
2) By Software: Predictive Analytics Software, Machine Learning Platforms, Robotics Process Automation (RPA) Software, Artificial Intelligence For Supply Chain Management (AI-SCM), Collaboration And Communication Software, Data Analytics Tools

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Which region dominates the generative artificial intelligence in supply chain market?
North America was the largest region in the generative artificial intelligence in supply chain market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative artificial intelligence in supply chain market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

Which key market leaders are driving the generative artificial intelligence in supply chain industry growth?
Major companies operating in the generative artificial intelligence in supply chain market are Amazon.com Inc., Microsoft Corporation, Deutsche Post AG, Intel Corporation, accenture* plc, International Business Machines Corporation, Cisco Systems Inc., Oracle Corporation, SAP SE, NVIDIA Corporation, Infosys Limited, Dematic Inc., Zebra Technologies Corporation, PTC Inc., Teradata Corporation, Blue Yonder Inc., L&T Technology Services Limited, Manhattan Associates Inc., Nitor Infotech Private Limited, Logility Inc., LLamasoft Inc., Covariant Inc., FourKites Inc., Kanerika Inc., ClearMetal Inc.

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What Is Covered In The Generative Artificial Intelligence In Supply Chain Global Market Report?

•Market Size Forecast: Examine the generative artificial intelligence in supply chain market size across key regions, countries, product categories, and applications.
•Segmentation Insights: Identify and classify subsegments within the generative artificial intelligence in supply chain market for a structured understanding.
•Key Players Overview: Analyze major players in the generative artificial intelligence in supply chain market, including their market value, share, and competitive positioning.
•Growth Trends Exploration: Assess individual growth patterns and future opportunities in the generative artificial intelligence in supply chain market.
•Segment Contributions: Evaluate how different segments drive overall growth in the generative artificial intelligence in supply chain market.
•Growth Factors: Highlight key drivers and opportunities influencing the expansion of the generative artificial intelligence in supply chain market.
•Industry Challenges: Identify potential risks and obstacles affecting the generative artificial intelligence in supply chain market.
•Competitive Landscape: Review strategic developments in the generative artificial intelligence in supply chain market, including expansions, agreements, and new product launches.

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