2025-2034 Generative Artificial Intelligence In Supply Chain Market Outlook: Key Drivers, Emerging Challenges, and Strategic Insights

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What Will the Generative Artificial Intelligence In Supply Chain Industry Market Size Be by 2025?
The market size for generative artificial intelligence in the supply chain sector has witnessed an extraordinary surge in recent times. The projected growth is estimated to be from $0.41 billion in 2024 to $0.58 billion in 2025, exhibiting a compound annual growth rate (CAGR) of 43.9%. The significant growth witnessed in the past period is due to a multitude of factors including the expansion of computational power, the surge in e-commerce, the escalation in the availability of big data, an intensified focus on automation, and increased investment in AI research and development.

What's the Long-Term Growth Forecast for the Generative Artificial Intelligence In Supply Chain Market Size Through 2029?
The market size of generative artificial intelligence in supply chains is projected to experience a significant rise in the coming years. The market is forecasted to increase to $2.49 billion by 2029, with a compound annual growth rate (CAGR) of 43.6%. Factors contributing to growth during the projected timeframe involve surging demand for visibility in real-time supply chain processes, increasing need for supply chain planning instruments powered by AI, rising investments in AI dedicated to supply chain innovation labs, escalating demand for predictive logistics integrated with AI, and an increase in the need for sophisticated forecasting methods. Notable trends projected for this period pertain to technological advancements, telemedicine, blockchain technology, 5G technology, and the internet of things.

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What Are the Key Growth Drivers Fueling the Generative Artificial Intelligence In Supply Chain Market Expansion?
The burgeoning e-commerce industry is anticipated to stimulate the expansion of the generative artificial intelligence market in supply chain operations. Transacting and conducting business activities online encompass the essence of e-commerce, including the acquisition and vending of goods and services through internet platforms and mobile apps. Factors such as the increasing popularity of virtual shopping, progress in digital payment methods, and the broadening of internet connectivity contribute to the proliferation of e-commerce. Generative AI is leveraged in the supply chain of e-commerce to augment inventory management, enrich prediction of demand, simplify logistics, automate the handling of orders, and tailor customer interactions, through the analysis of tremendous amounts of data to forge effectual, data-driven supply-chain tactics. For example, the International Trade Administration, which is a part of the Department of Commerce in the US, stated in November 2023 that it projected consumer e-commerce to bring about $285.60 billion in revenue by 2025, amounting to 36.3% of the UK retail market as of January 2021. Moreover, it is estimated that e-commerce turnover in the UK will witness a mean annual increase of 12.6% by 2025. Hence, the booming e-commerce industry augments the growth of generative artificial intelligence in the supply chain market.

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What Are the Key Trends Driving Generative Artificial Intelligence In Supply Chain Market Growth?
Prominent firms active in the generative artificial intelligence realm of the supply chain market are concentrating their efforts on creating revolutionary technologies, such as cognitive solutions. These innovative solutions aim to boost predictive analytics and streamline supply chain functions. Cognitive solutions utilize next-level technologies that mimic human cognitive functions in order to scrutinize, comprehend, and act on intricate data. AI, machine learning, and natural language processing are incorporated in the solutions to allow systems to comprehend and learn from data, much like the human mind does. Blue Yonder, an American supply chain management firm, for example, unveiled Blue Yonder Orchestrator in December 2023. This tool, powered by generative AI, empowers businesses to make smarter decisions and speed up supply chain operations. The added feature utilizes sophisticated AI algorithms to automate and optimize complex supply chain activities, thereby boosting efficiency and accuracy. It can effectively analyze real-time data, facilitating dynamic modifications to inventories and logistics based on immediacy and forecasts. The system is designed to smoothly integrate into existing supply chain infrastructures, offering practical insights and suggestions to elevate overall operational performance.

How Is the Generative Artificial Intelligence In Supply Chain Market Segmented?
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 Companies Are Leading the Charge in Generative Artificial Intelligence In Supply Chain Market Innovation?
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.

Which Regions Are Leading the Global Generative Artificial Intelligence In Supply Chain Market in Revenue?
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.

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