AI in Logistics And Supply Chain Management Market Landscape 2025: Forecast Data and Growth Strategy Insights

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What Is the Expected CAGR for the AI in Logistics And Supply Chain Management Market Through 2025?
The market size of AI in logistics and supply chain management has seen a tremendous growth in the past few years. The market which was worth $4.03 billion in 2024 is expected to rise to $5.75 billion in 2025, indicating a compound annual growth rate (CAGR) of 42.6%. The expansion during the historical phase is credited to aspects like pressure on costs and demands for efficiency, shortage of talent and skill gap, a surge in just-in-time inventory management, regulatory modifications and trade deals as well as geopolitical instability.

What's the Projected Size of the Global AI in Logistics And Supply Chain Management Market by 2029?
Spectacular expansion is anticipated in the AI in logistics and supply chain management market in the approaching years, with forecasts projecting it to surge to $23.54 billion by 2029 at a compound annual growth rate (CAGR) of 42.2%. The predicted growth during the forecasting period is mainly due to the incorporation of augmented and virtual reality, the use of blockchain for improved supply chain transparency, optimization of multi-modal transportation, application of natural language processing for supply chain insights, and collaboration in a hybrid workforce. The forecast period also sees key trends such as the fusion of AI with IoT and big data, an emphasis on predictive analytics and forecasting, the call for cloud-based AI solutions, a focus on sustainability and green logistics, and substantial investments in research and development.

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Top Growth Drivers in the AI in Logistics And Supply Chain Management Industry: What's Accelerating the Market?
The expansion of the e-commerce sector is anticipated to spur the advancement of the AI in logistics and supply chain management market. E-commerce, which entails the commercial processes of purchasing and selling commodities and facilities done mainly via electronic means such as the internet, mobile applications, or other digital channels, is instrumental in driving this growth. Aspects like consumer convenience, growing internet availability, and a shift in consumer inclination towards e-shopping are major contributors. The e-commerce strategies are bolstered by AI through demand forecasting, inventory management precision, delivery routes optimization, cost reduction, and enhancement of customer satisfaction. For example, the e-commerce sales in February 2024, as reported by the United States Census Bureau, a government agency in the US, escalated to $1,118.7 billion in 2023, reporting a 7.6% (±1.2%) growth compared to 2022. Additionally, the proportion of e-commerce sales in 2023 accounted for 15.4% of the total sales, a rise from 14.7% in 2022. Therefore, it's clear that the burgeoning e-commerce industry is a significant propellant for the AI in logistics and supply chain management market.

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What Trends Will Shape the AI in Logistics And Supply Chain Management Market Through 2029 and Beyond?
Leading enterprises in the AI in logistics and supply chain management markets are pioneering cutting-edge products, including AI-powered supply chain management systems, to boost operation effectiveness and sustainability. These AI-enabled supply chain management tools use artificial intelligence in fine-tuning various facets of the supply chain, encompassing planning and forecasting, through to logistics and customer service. For example, Blue Yonder Group Inc., a US-based supply chain management firm, introduced the Blue Yonder Orchestrator in December 2023. This pioneering tool applies artificial intelligence in enhancing decision-making procedures and boosting supply chain management. Its notable functionality is providing business users with immediate access to suggestions, predictive analytics, and smart choices, which assures optimal outcomes for their supply chain. This distinctive capability merges large language models (LLMs), cloud-based data, and swift engineering to provide bespoke 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 Top Companies are Driving Growth in the AI in Logistics And Supply Chain Management Market?
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

Which Regions Will Dominate the AI in Logistics And Supply Chain Management Market Through 2029?
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.

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