Future of the Generative Artificial Intelligence (AI) in Logistics Market: Strategic Analysis and Forecast to 2034

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Generative Artificial Intelligence (AI) in Logistics Market Size Valuation Forecast: What Will the Market Be Worth by 2025?
The expansion of the generative artificial intelligence (AI) in the logistics market size has been remarkable in the past few years. The market, which was valued at $0.6 billion in 2024, is predicted to surge to $0.8 billion in 2025, boasting a compound annual growth rate (CAGR) of 32.7%. The previously observed growth patterns were driven by factors such as the soaring demand for real-time data analytics, the boom in e-commerce, expansion of international supply chains, the escalating development of industrial infrastructure, and the emerging trend of automation in warehouse management.

Generative Artificial Intelligence (AI) in Logistics Market Size Forecast: What's the Projected Valuation by 2029?
In the coming years, the market size of generative artificial intelligence (AI) in logistics is predicted to witness substantial growth, reaching $2.46 billion by 2029 with a compound annual growth rate (CAGR) of 32.4%. The anticipated growth during the forecast period can be ascribed to factors such as the growing requirement for real-time data, increased usage of IoT devices, surging investments in AI technology, an imperative need for supply chain transparency, and increasing demand for an improved customer experience. Notable trends for the forecast period include technological evolutions, self-driving vehicles, predictive analytics, robotic process automation, and digital twins.

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What Are the Drivers Transforming the Generative Artificial Intelligence (AI) in Logistics Market?
The anticipated increase in e-commerce sales is set to spearhead the expansion of the generative artificial intelligence (AI) within the logistics market. The burgeoning popularity of e-commerce, attributed to its convenience, a broader array of products, and increased digital technology usage, enhances generative AI's role in streamlining inventory management, improving route planning, and forecasting demand, all of which heightens proficiency and cost-effectiveness. For example, in May 2024, the Census Bureau of the Department of Commerce, an American governmental organization, detailed in a report that e-commerce sales in 2023 amounted to roughly $1,118.7 billion. The overall retail sales for the opening quarter of 2024 were gauged to be around $1,820.0 billion. During this period, e-commerce sales observed an augmentation of 8.5% (±1.1%) from the analogous quarter in 2023, and total retail sales observed a growth of 2.8% (±0.5%). Therefore, e-commerce sales escalation fuels the expansion of generative artificial intelligence (AI) within the logistics market.

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What Long-Term Trends Will Define the Future of the Generative Artificial Intelligence (AI) in Logistics Market?
Leading firms in the generative artificial intelligence (AI) in logistics market are shifting their focus towards the incorporation of advanced technologies like natural language interfaces to boost their operational efficiency and increase accuracy in managing supply chains. A natural language interface is a system that enables users to engage with supply chain management software or tools using common language, simplifying the extraction of data, generation of reports, and management of operations, bypassing the necessity for specialized expertise. For example, FourKites, Inc., an American firm specializing in supply chain visibility and logistics technology, rolled out FinAI, a generative AI tool, in September 2023 with the goal of enhancing supply chain management. FinAI employs a natural language interface to derive insights, automate tasks, and streamline operations by evaluating comprehensive data, which includes 3 million daily shipments, 18 million projected arrival times (ETAs), and tracking of 62 billion miles each year.

Which Segments in the Generative Artificial Intelligence (AI) in Logistics Market Offer the Most Profit Potential?
The generative artificial intelligence (AI) in logistics market covered in this report is segmented -

1) By Type: Variational Autoencoder (VAE), Generative Adversarial Networks (GANs), Recurrent Neural Networks (RNNs), Long Short-Term Memory (LSTM) networks, Other Types
2) By Component: Software, Hardware, Solution
3) By Deployment Mode: On-Premises, Cloud-Based
4) By Application: Warehouse Management, Route Optimization, Inventory Management, Supply Chain Analytics, Last-Mile Delivery Optimization, Customer Service Operations, Other Applications
5) By End-User: Retail, Healthcare, Banking And Finance, Aerospace, Telecommunication, Technology, Other End-Users

Subsegments:
1) By Variational Autoencoder (VAE): Demand Forecasting Models, Anomaly Detection In Logistics Operations, Predictive Maintenance For Fleet Management, Data Imputation For Incomplete Records, Supply Chain Optimization Solutions
2) By Generative Adversarial Networks (GANs): Synthetic Data Generation For Training Models, Route Optimization And Simulation, Image Generation For Inventory And Asset Management, Fraud Detection In Shipment And Delivery, Product Demand Forecasting Through Scenario Simulation
3) By Recurrent Neural Networks (RNNs): Time Series Analysis For Demand Prediction, Shipment Tracking And Forecasting, Customer Behavior Prediction For Delivery Services, Inventory Management Forecasting, Delivery Time Estimation Models
4) By Long Short-Term Memory (LSTM) Networks: Advanced Time Series Forecasting, Predictive Analytics For Supply Chain Performance, Transportation Optimization Models, Order Fulfillment Prediction, Capacity Planning And Resource Allocation
5) By Other Types: Reinforcement Learning For Route Optimization, Hybrid Models Combining Multiple AI Approaches, Flow-Based Models For Real-Time Data Analysis, Self-Supervised Learning Techniques, Edge AI For On-Site Decision Making.

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Which Firms Dominate the Generative Artificial Intelligence (AI) in Logistics Market by Market Share and Revenue in 2025?
Major companies operating in the generative artificial intelligence (AI) in logistics market are Microsoft Corporation, Amazon Web Services Inc., Intel Corporation, plc, International Business Machines Corporation, Oracle Corporation, Honeywell International Inc., SAP SE, NVIDIA Corporation, Cognizant Technology Solutions Corporation, Epicor Software Corporation, Blue Yonder Group Inc., Coupa Software Incorporated, Kinaxis Inc., ShipBob Inc., Project44 Inc., Vorto Inc., Logility Inc., FourKites Inc., Shippeo SAS, Freightos Ltd., Slync.io Inc., Locus.sh, ClearMetal Inc.

Which Regions Offer the Highest Growth Potential in the Generative Artificial Intelligence (AI) in Logistics Market?
North America was the largest region in the generative artificial intelligence (AI) in logistics 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 (AI) in logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

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