Global Artificial Intelligence in Supply Chain Management Market Size, Share & Trends Analysis Report, by Component, by Technology, by Application and by Industry Vertical, By Region Forecasts, 2024 - 2032

Global Artificial Intelligence in Supply Chain Management Market Size, Share & Trends Analysis Report, by Component, by Technology, by Application and by Industry Vertical, By Region Forecasts, 2024 - 2032

Global Artificial Intelligence in Supply Chain Management Market was valued at US $ 5.2 Billion in 2023 and is expected to reach US $ 230.6 Billion by 2032 growing at a CAGR of 52.4% during the forecast period 2024 – 2032.

The market for artificial intelligence (AI) in supply chain management includes the whole range of goods, services, and solutions that use AI technology to improve and optimise different areas of supply chain operations. In order to optimise supply chain decision-making and streamline operations like demand forecasting, inventory management, and logistics, this industry focuses on the integration of AI algorithms, machine learning, predictive analytics, and other cutting-edge technologies. Companies in this sector use AI-powered solutions to cut expenses, boost productivity, lower risks, and adjust to changing market circumstances. The market offers solutions ranging from demand planning and warehouse automation to real-time visibility and predictive maintenance, catering to a wide range of industries such as manufacturing, retail, logistics, and distribution.

The ongoing developments in AI technology are closely linked to the growing market for AI in supply chain management. These developments are essential in changing the way supply chain operations are planned and carried out because they give companies access to previously unheard-of levels of efficiency and strategic decision-making power. Production scheduling and inventory management have been completely transformed by sophisticated machine learning algorithms that provide accurate demand forecasts and predictive analytics. Supply chain workers may be more agile and sensitive to changing market conditions with the help of real-time data processing capabilities, which provide them with timely insights. AI-driven routine task automation lowers the possibility of human error while simultaneously improving operational efficiency. Real-time tracking and enhanced decision support are made possible by the supply chain's increased visibility and transparency, which is ensured by the integration of computer vision and advanced analytics.

“Software segment, by component, to be dominating market from 2023 to 2030.”

The leading subsegment is software, with a 26.2% CAGR and 58.32% market share. The AI-driven transformation of the supply chain management market is largely driven by software, which is why it is both the leading and fastest-growing segment for a number of reasons. Its ability to integrate seamlessly with current supply chain management systems, which enables businesses to improve operations without requiring significant infrastructure modifications, is the foundation of its leading position. The capacity of AI-powered software to scale up or down to suit organisations of all shapes and sizes, from startups to major conglomerates, further establishes its leadership in this space. AI software makes deployment easier and offers a holistic strategy for firms looking for integrated solutions. It covers a wide range of topics, including demand forecasting, inventory management, and predictive analytics.

“Supply Chain Planning segment, by application, to be dominating market from 2023 to 2030.”

Supply chain planning, with a 28.34% market share and 13.2% CAGR, is a major and quickly expanding application. Supply chain planning is a perfect sector for AI applications because of the complexity of planning procedures, which include demand forecasting, inventory management, production planning, and distribution logistics. AI improves operational efficiency by optimising choices in real-time, streamlining procedures, cutting lead times, and maximising resource utilisation. AI is particularly skilled at analysing large datasets. AI is also very good at demand forecasting. It uses sophisticated algorithms to examine past data and market patterns, which helps businesses match inventory and production to exact demand.

“Machine learning segment, by technology, to be dominating market from 2023 to 2030.”

With a 42.36% market share, machine learning is a key component of the AI-driven transformation of the supply chain management industry. It has emerged victorious thanks to its remarkable powers in predictive analytics, dynamic optimisation, effective data processing, and the automation of repetitive operations. Supply chain professionals can use machine learning algorithms to handle large datasets precisely, automate repetitive tasks, optimise different aspects of the supply chain dynamically, and make informed decisions based on accurate demand forecasts. This reduces errors and increases operational efficiency.

“Manufacturing segment, by end use industries, to be dominating market from 2023 to 2030.”

With a 34.5% market share, the manufacturing industry leads due to the intricacies of its supply networks and its aggressive adoption of Industry 4.0 initiatives. AI optimisation greatly improves the complex manufacturing processes, from obtaining raw materials to producing and distributing goods, resulting in increased productivity and lower costs. Leading the way in the application of AI-powered predictive maintenance techniques, the industrial sector guarantees peak performance by anticipating and fixing any equipment malfunctions. Furthermore, AI helps with quality control by spotting flaws instantly, which helps to uphold strict product standards and save waste.

“North America to be largest region in Artificial Intelligence in Supply Chain Management market.”

With a 34.62% market share, North America (NA) has emerged as the market leader in the supply chain management industry's use of artificial intelligence (AI). The region's early embrace of cutting-edge technologies, its developed technological infrastructure, and its robust ecosystem of established and startup tech enterprises are all credited with its leadership position. Significant finance and investment are now readily available, which further speeds up the development, testing, and implementation of AI solutions in supply chain operations across a range of industries.

Artificial Intelligence in Supply Chain Management Competitive Landscape

The competitive landscape of the Artificial Intelligence in Supply Chain Management market involves assessing the competitive landscape to understand the strengths, weaknesses, opportunities, and threats of the industry. Key industry players have recognized that the adoption of Artificial Intelligence in Supply Chain Management technology holds the potential for further growth. The growing desire among producers to optimize their production costs has spurred collaborative efforts among companies to scale up their production capacity. This strategic collaboration not only aims to increase revenue but also seeks to establish dominance in the market.

The Artificial Intelligence in Supply Chain Management market is highly competitive, with numerous companies vying for market share. Prominent companies in the Artificial Intelligence in Supply Chain Management Market include:

Teknowlogis, LLamasoft, Inc, Fraight AI, Cainiao Network, Google, Salesforce, Deutsche Post AG DHL, Bosch, GE Digital, SIEMENS, ABB, Honeywell, Samsung Electronics, Micron Technology, FedEx, ClearMetal, E2Open, Relex Solution Xilinx, Inc., Oracle Corporation, Logility, Splice Machine, NVIDIA Corporation, Logility, Inc., Amazon Web Services, Inc., SAP SE, IBM Corporation, Intel Corporation, Microsoft Corporation, Micron Technology, Inc., and others.

Recent Development:

To transform its supply chain operations, Ocado Group, a well-known British online grocery retailer, teams up with Intel in September 2023 to forge a strategic relationship. The partnership is focused on utilising artificial intelligence (AI) to improve delivery system efficiency overall, automate warehouse operations, and streamline inventory management.

IBM Sterling Supply Chain Insights with AI is a cutting-edge technology that the company unveils in August 2023. With the help of this cloud-based solution, supply chain data and AI are seamlessly integrated to provide real-time insights and predictive analytics. Companies that use this technology may adjust inventory levels, quickly spot possible disruptions, and improve the supply chain's overall efficiency.

When Microsoft introduced Azure Cognitive Services for Supply Chain in June 2023, the company takes the stage. This set of AI-powered products, which includes tools for inventory control, forecasting, and logistics optimisation, is intended to revolutionise supply chain dynamics. Microsoft's revolutionary package gives firms a robust toolkit to navigate the complexity of contemporary supply chain management by automating activities, increasing productivity, and reducing costs.