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Rising Number Of Retail Stores Drives Growth In The AI Inventory Management Market: The Driving Engine Behind AI in Inventory Management Market Evolution in 2025
AI in Inventory Management
AI in Inventory Management Market Size Growth Forecast: What to Expect by 2025?
The market for AI in inventory management has seen considerable growth in recent years. It's projected to expand from a market size of $7.38 billion in 2024 to $9.54 billion in 2025, with a compound annual growth rate (CAGR) of 29.2%. Factors contributing to growth during the historic period include improved customer experiences, data-informed decisions, greater adoption of digital solutions, heightened productivity and adaptive reorder point modifications.
How Will the AI in Inventory Management Market Size Evolve and Grow by 2029?
Expectations are high for the AI in inventory management market in the coming years, with predicted exponential growth leading to a market size of $24.96 billion in 2029. This growth, with a compound annual growth rate (CAGR) of 27.2%, can be attributed to various factors. These include an increase in retail stores, the growing relevance and potential of AI and evolving business requirements. Other contributors include heightened supply chain complexity and volatility, as well as the increased availability of data. The forecast period is also set to witness significant trends like technological advancements, integration of blockchain and augmented reality, increased demand for AI-driven robots in warehouses and AI-based forecasting for inventory.
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What Drivers Are Propelling the Growth of AI in Inventory Management Market Forward?
As the number of retail stores continues to surge, the AI in inventory management market is anticipated to experience steady growth. Retail stores, which typically sell goods in smaller quantities for direct consumption by consumers, have been seeing an increase in numbers due to factors such as online and offline shopping, consumer preferences, economic conditions, and strategic business decisions. By employing Artificial Intelligence in inventory management, retail stores can significantly amplify operational efficiency, curtail costs, and improve the overall customer shopping experience. For example, the National Association of Convenience Stores, a trade association based in the United States, reported in January 2024 that the count of convenience stores in operation across the country until that year had risen to 152,396, marking a 1.5% growth compared to the preceding year. Thus, the escalating number of retail stores is fueling the rise of the AI in inventory management market.
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Which Emerging Trends Are Transforming the AI in Inventory Management Market in 2025?
Leading businesses in the AI inventory management market are striving for a competitive advantage by developing sophisticated systems like cloud-native AI-powered inventory management systems. These are software solutions engineered to function efficiently in a cloud ecosystem using serverless computing technology of the cloud, thus offering real-time access to inventory specifics. For instance, in January of 2024, Predian, a US-established AI-powered inventory management solutions company, initiated a cloud-native AI-powered inventory management solution. This solution aims to simplify inventory control and enhance operational productivity, thereby marking a major progress in the AI-powered inventory management sector. These solutions can swiftly and precisely process large volumes of data without exhaustion, making them indispensable assets for businesses aiming to upgrade their inventory management procedures.
What Are the Key Segments in the AI in Inventory Management Market?
The ai in inventory managementmarket covered in this report is segmented -
1) By Offering: Solutions, Services
2) By Deployment: Cloud, On-premise
3) By Technology: Machine Learning, Natural Language Processing, Context Awareness, Computer Vision, Other Technologies
4) By Application: Intelligent Robotic Sorting Or Visual Inspection, Warehouse Management, Supply Chain Planning, Risk Management Or Network Management, Freight Brokerage, Fleet Management, Intelligent Route Optimization, Predictive Demand And Capacity Planning, Other Applications
5) By End-User Industries: Retail, Healthcare, Automotive, Oil And Gas, Aerospace And Defense, Other End-Use Industries
Subsegments:
1) By Solutions: AI-Based Inventory Forecasting, AI-Based Demand Planning, AI-Based Stock Replenishment, AI-Based Warehouse Management
2) By Services: Consulting Services, Integration Services, Support And Maintenance Services
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Who Are the Key Players Shaping the AI in Inventory Management Market's Competitive Landscape?
Major companies operating in the AI in inventory management market report are Walmart Inc.; Amazon.com Inc.; Microsoft Corporation; United Parcel Service Inc.; FedEx Corporation; A.P. Moller-Maersk Group; Siemens AG; Hitachi Ltd.; Intel Corporation; accenture* Plc; International Business Machines Corporation; Cisco Systems Inc.; Deloitte Touche Tohmatsu Limited; Oracle Corporation; PricewaterhouseCoopers International Limited; Schneider Electric SE; Honeywell International Inc.; KPMG International Cooperative; SAP SE; Tata Consultancy Services Limited; NVIDIA Corporation; Capgemini SE; Cognizant Technology Solutions Corporation; Infosys Limited; Wipro Limited
What Geographic Markets Are Powering Growth in the AI in Inventory Management Market?
North America was the largest region in the AI in inventory management market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the AI in inventory management market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
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