According to a research report by MarketsandMarkets, the AI in supply chain market is projected to grow from $9.15bn (£7.30bn) in 2024 and is expected to reach $40.53bn (£32.37bn) by 2030, growing at a CAGR of 28.2% from 2024 to 2030.
Called “AI in Supply Chain Market by Application (Demand Planning & Forecasting, Supply Chain Risk Management, Inventory Management, Warehouse & Transportation Management), Services (Professional, and Managed), Software – Global Forecast to 2030”, the report details how artificial intelligence is transforming the face of the supply chain industry by making it more efficient, accurate, and cost-effective in the whole supply process from procurement to delivery to customers..
AI technologies, such as machine learning, predictive analytics, and automation, are being implemented in supply chain management in order to optimise inventory levels, improve demand forecasting, and streamline logistics. Furthermore, these systems have found many applications in the business world in sectors such as retail, food & beverages, automotive, logistics & transportation. A large number of users is one of the factors contributing to growth of AI in supply chain market.
Services segment is expected to witness higher CAGR during the forecast period
Services segment is expected to witness a higher CAGR during the forecast period in the AI in supply chain market. AI-based supply chain solutions are maintained and updated on a real-time basis for efficiency. A support package offered by value-added service providers ensures proper operation of the deployed AI systems and addresses technical issues that may emerge. The end-user is now more focused on measurable benefits from their investments in AI. Service providers can help define key performance indicators and track return on investment (ROI) in AI implementations to articulate value in AI for the supply chain.
The demand planning & forecasting segment in the AI in supply chain market is expected to capture the highest share during the forecast period
Demand planning and forecasting segment is a leader primarily because of the critical function it plays in enhancing the forecast accuracy for future demands for a product, which in turn means optimized levels of inventory and reduced costs. By leveraging sophisticated algorithms and machine learning methods for analysing historical sales data, market trends, consumer behavior, and external factors such as economic changes or seasonal patterns, companies can make sound decisions regarding the production and distribution of their goods. This therefore leads to reduced overproduction and other supply chain costly shortages.
The retail segment is expected to capture the highest share in the AI in supply chain market during the forecast period
The retail segment is projected to hold the largest market share during the forecast period. AI uses historical sales data, customer trend, and external factors for better predictions of demand. This will make them carry the right amount of inventory, eliminating frustration to the customer and overstocking wastefully valued storage and this might cause possible markdowns. Also, AI lets inventory management be seamless through the online and brick-and-mortar stores, and this ensures that every order can be fulfilled crisply across every medium. Through real-time tracking of goods throughout the supply chain, this also allows for further transparency and control over their operations.
Asia Pacific is expected to witness the highest CAGR of the AI in supply chain market during the forecast period
The growth in AI adoption is rapid in the Asia Pacific region, driven by a combination of regional economic factors and technological advancements. In the world’s fastest-growing e-commerce market, the Asia Pacific region is using AI to streamline order fulfillment and delivery processes and enhance personalized customer experiences. China’s “Made in China 2025” focuses on automation and intelligent manufacturing. AI has the vital contribution to be made in efficient and optimized production processes. China has the world’s biggest e-commerce market and there is an ever-increasing demand for speed and reliability in delivery. AI solutions can be deployed in Intelligent Warehousing and Order Fulfillment.
Request sample pages, here
For more MarketsandMarkets reports news, click here
