REDDING, Calif., Sept. 11, 2024 /PRNewswire/ -- According to a new market research report titled 'AI in Supply Chain Market [https://www.meticulousresearch.com/product/ai-in-supply-chain-market-5064?utm_source=PRnewswire&utm_medium=Paid&utm_campaign=Product&utm_content=11-09-2024] by Offering (Hardware, Software, Other), Technology (ML, NLP, RPA, Other), Deployment Mode, Application (Demand Forecasting, Other), End-use Industry (Manufacturing, Retail, F&B, Other), and Geography--Global Forecast to 2031.
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The AI in supply chain market is projected to reach $58.55 billion by 2031, at a CAGR of 40.4% from 2024 to 2031.
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The increasing incorporation of Artificial Intelligence (AI) in supply chain operations and the rising need for greater visibility & transparency in supply chain processes are key factors driving the growth of the AI in supply chain market. However, the high procurement & operating costs of AI-based supply chain solutions and the lack of supporting infrastructure restrain the growth of this market.
In addition, the growing demand for AI-based business automation solutions is expected to generate market growth opportunities. However, performance issues in integrating data from multiple sources and data security & privacy concerns are major challenges impacting market growth. Additionally, the rising demand for cloud-based supply chain solutions is a prominent trend in the AI in supply chain market.
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Growing Demand for AI-Based Business Automation Solutions Generating Growth Opportunities for Market Players
Businesses are adopting automation technologies to increase efficiency, reduce manual efforts, and optimize costs and the utilization of resources and time. With advances in technologies such as Robotic Process Automation (RPA) and Artificial Intelligence (AI), businesses are transitioning from legacy practices to automated workflows to make business processes proactive, intelligent, and more effective. Artificial intelligence is increasingly being integrated into automated workflows, with supply chain processes, such as order processing, inventory management, and logistics, benefitting from reduced staffing needs and time and cost savings. The increasing focus on AI-powered business automation solutions is expected to generate growth opportunities for market players. Hence, the players in this market are launching advanced solutions to help enterprises increase business productivity and efficiency. For instance, in May 2023, ServiceNow, Inc. (U.S.), a leading digital workflow company, launched Finance and Supply Chain Workflows to help enterprises apply intelligent automation to business-critical processes. The workflows enable finance, supply chain, and procurement leaders to gain a competitive edge in today's increasingly complex business environment. Using these workflows, enterprises can deploy automated capabilities across core business functions to drive efficiency and business value at scale, all on one, easy-to-use platform.
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Furthermore, enterprises are collaborating to deploy AI-based business automation solutions. For instance, in May 2024, Wipro (India), a leading technology services and consulting company, and Kognitos Inc. (U.S.), a leader in Generative Al Automation and a portfolio company of Wipro Ventures, announced a collaboration to deploy enterprise-ready GenAI-based Business Automation Solutions.
AI in Supply Chain Market Analysis: Key Segmental Findings
-- By Offering: In 2024, the hardware segment is expected to account for
the largest share of 44.4% of the AI in supply chain market. However,
the software segment is expected to register the highest CAGR of 43.2%
during the forecast period 2024-2031.
-- By Technology: In 2024, the machine learning segment is expected to
account for the largest share of 63.0% of the AI in supply chain market.
However, the robotic process automation segment is expected to register
the highest CAGR of 42.9% during the forecast period 2024-2031.
-- By Deployment Mode: In 2024, the cloud-based deployments segment is
expected to account for the major share of the AI in supply chain
market. However, the cloud-based deployments segment is expected to
register the higher CAGR during the forecast period 2024-2031.
-- By Application: In 2024, the demand forecasting segment is expected to
account for the largest share of the AI in supply chain market. However,
the real-time supply chain visibility segment is expected to register
the highest CAGR during the forecast period 2024-2031.
-- By End-use Industry: In 2024, the manufacturing segment is expected to
account for the largest share of 23.1% of the AI in supply chain market.
However, the retail segment is expected to register the highest CAGR of
47.8% during the forecast period 2024-2031.
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GEOGRAPHIC ANALYSIS:
Based on geography, the AI in supply chain market is segmented into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 36.9% of the AI in supply chain market. This market is projected to reach $24,214.6 million by 2031.
Asia-Pacific's large share is attributed to the proliferation of advanced supply chain solutions, the rising deployment of AI tools across the region, and efforts by major market players to implement AI technology across various sectors. Developing APAC countries, including Thailand, the Philippines, and Vietnam, are formulating comprehensive national policies to promote the adoption and regulate the deployment of AI. Government strategies in countries such as Japan and Singapore are focused on fostering AI ecosystems and managing projects effectively.
Furthermore, technological advancements are encouraging businesses to adopt AI-based solutions to enable better decision-making. For instance, in March 2023, Sabre GLBL Inc. (U.S.), a leading software and technology provider, successfully implemented its Revenue Optimizer and Dynamic Availability solutions for Virgin Australia Airlines Pty Ltd (Australia). Thus, the rising adoption of AI technologies and the widespread deployment of AI across businesses are driving market growth in the region.
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In 2024, China is expected to account for the largest share of the AI in supply chain market in Asia-Pacific. China's large market share is mainly attributed to the growing use of cloud services, the increasing government focus on technology development, and rising labor costs in the country.
China has established a robust policy framework for AI development. Private investments in AI are steadily increasing, positioning China as the second-largest investor globally, following the U.S. For instance, in June 2023, the Municipal Government of China unveiled a comprehensive three-year action plan (2023-2025) aimed at fostering the development of the country's manufacturing industry [https://www.meticulousresearch.com/category/others/69]. The plan identifies semiconductors and Artificial Intelligence (AI) as preferred industries for growth. Thus, supportive government initiatives aimed at promoting technology development and adoption are anticipated to drive the growth of the AI in supply chain market in China.
The U.S. Continues to Dominate the AI in Supply Chain Market in North America
In 2024, the U.S. is expected to account for the dominant share of the AI in supply chain market in North America. Increasing initiatives to attract investments in technology and strengthen the country's supply chain, market players' increasing focus on the development of supply chain solutions, and the proliferation of small businesses across the U.S. contribute to the country's large market share.
Companies in the U.S. are investing in digital transformation, focusing specifically on supply chains, retail execution, and environmental sustainability. For instance, in February 2023, Procter & Gamble (U.S.) announced plans to launch a supply chain services platform for retail partners to enable the company to serve consumers better while streamlining its end-to-end supply chain and creating a sustainable and expanding competitive advantage. Moreover, key players in the country are focused on advancing their supply chain solutions, which is expected to further drive the growth of this market.
AI in Supply Chain Market: Competition Analysis
This report offers a competitive analysis based on an extensive assessment of the leading players' product portfolios, geographic presence, and key growth strategies adopted over the past 3-4 years. Major companies in the AI in supply chain market have implemented various strategies to expand their product offerings and global footprints and augment their market shares. The key strategies followed by leading companies in the AI in supply chain market include product launches, expansions, mergers & acquisitions, agreements, collaborations, and partnerships. The key players operating in the AI in supply chain market include IBM Corporation (U.S.), SAP SE (Germany), Microsoft Corporation (U.S.), Google LLC (U.S.), Amazon Web Services, Inc. (U.S.), Intel Corporation (U.S.), NVIDIA Corporation (U.S.), Oracle Corporation (U.S.), C3.ai, Inc. (U.S.), Samsung SDS CO., Ltd. (South Korea), Coupa Software Inc. (U.S.), Micron Technology, Inc. (U.S.), Advanced Micro Devices, Inc. (U.S.), FedEx Corporation (U.S.), and Deutsche Post DHL Group (Germany).
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AI in Supply Chain Industry Overview: Latest Developments from Key Industry Players
-- In May 2024, SAP SE (Germany) collaborated with IBM Corporation (U.S.)
to develop new generative AI capabilities and industry-specific cloud
solutions that can help clients unlock business value.
-- In January 2024, IBM Corporation (U.S.) collaborated with SAP SE
(Germany) to develop solutions and help clients in the consumer packaged
goods and retail industries enhance their supply chains, finance
operations, sales, and services using generative AI.
-- In November 2023, Amazon Web Services, Inc. (U.S.) launched four new
capabilities for its AWS Supply Chain--combining Amazon's supply chain
experience with the resilience, security, and business continuity of an
AWS-managed service to help customers optimize their supply chains.
-- In June 2023, IBM Corporation (U.S.) extended its partnership with Adobe
Inc. (U.S.) to help brands successfully accelerate their content supply
chains through the implementation of next-generation AI, including Adobe
Sensei GenAI services and Adobe Firefly (currently in beta).
-- In May 2023, SAP SE (Germany) collaborated with Accenture plc (Ireland),
a company specializing in information technology services and
consulting, to offer customers increased transparency and visibility
across assets and inventory, as well as faster value realization with
the SAP Business Network.
-- In March 2023, Microsoft Corporation (U.S.) launched Microsoft Dynamics
365 Copilot, an AI copilot for ERP and CRM applications. Copilot can
unlock ERP's potential by combining data and AI to reduce the time spent
on unfulfilling tasks and accelerate the speed of execution and business
outcomes.
-- In December 2022, NVIDIA Corporation (U.S.) launched AI Enterprise 3.0,
a GPU-powered software suite that enables businesses to drive growth and
security while cutting costs to accelerate enterprise data science
initiatives, streamline AI model deployment, and rapidly draw insights
from data analytics.
-- In November 2022, Microsoft Corporation (U.S.) launched the Microsoft
Supply Chain Platform to help organizations maximize their existing
supply chain investments with an open approach. The platform brings the
best of Microsoft AI collaboration, low-code, security, and
Software-as-a-Service (SaaS) applications to a composable platform.
-- In November 2022, Amazon Web Services, Inc. (U.S.) launched AWS Supply
Chain, a new app that helps businesses increase supply chain visibility
and make faster, more informed decisions that help mitigate risks, lower
costs, and improve customer experiences.
-- In October 2022, Google LLC (U.S.) extended its partnership with
Accenture plc (Ireland) to help retailers quickly adopt integrated
solutions that apply the best of Google Cloud technology
[https://www.meticulousresearch.com/category/information-communications-
technology-market-research/22] and deliver the benefits of AI and ML
with tools and capabilities. Retailers can run demand forecasting,
improve inventory planning, and develop strategies for supply chain
segmentation.
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Scope of the Report:
AI in Supply Chain Market Assessment--by Offering
-- Hardware
-- Processors
-- Networking
-- Storage
-- Software
-- Services
-- Deployment & Integration Services
-- Support & Maintenance Services
-- Consulting Services
-- Connectivity Services
AI in Supply Chain Market Assessment--by Technology
-- Machine Learning
-- Computer Vision
-- Natural Language Processing
-- Context-aware Computing
-- Robotic Process Automation
AI in Supply Chain Market Assessment--by Deployment Mode
-- Cloud-based Deployments
-- On-premise Deployments
AI in Supply Chain Market Assessment--by Application
-- Demand Forecasting
-- Supply Chain Planning
-- Warehouse Management
-- Fleet Management
-- Inventory Management
-- Real-time Supply Chain Visibility
-- Other Applications
AI in Supply Chain Market Assessment--by End-use Industry
-- Manufacturing
-- Food & Beverage
-- Healthcare & Pharmaceuticals
-- Automotive
-- Retail
-- Building & Construction
-- Medical Devices & Consumables
-- Aerospace & Defense
-- Other End-use Industries
AI in Supply Chain Market Assessment--by Geography
-- North America
-- U.S.
-- Canada
-- Europe
-- Germany
-- U.K.
-- France
-- Italy
-- Spain
-- Sweden
-- Rest of Europe (RoE)
-- Asia-Pacific (APAC)
-- China
-- Japan
-- India
-- South Korea
-- Singapore
-- Rest of Asia-Pacific (RoAPAC)
-- Latin America
-- Brazil
-- Mexico
-- Rest of Latin America (RoLATAM)
-- Middle East & Africa
-- UAE
-- Israel
-- Rest of Middle East & Africa
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AI in Supply Chain Market Research Summary -
Particulars Details --- Number of Pages 282 Format PDF Forecast Period 2024-2031 Base Year 2023 CAGR (Value) 40.4 % Market Size (Value) USD 58.55 Billion by 2031
Segments Covered By Offering Hardware Processors Networking Storage Software Services Deployment & Integration Services Support & Maintenance Services Consulting Services Connectivity Services By Technology Machine Learning Computer Vision Natural Language Processing Context-aware Computing Robotic Process Automation By Deployment Mode Cloud-based Deployments On-premise Deployments By Application Demand Forecasting Supply Chain Planning Warehouse Management Fleet Management Inventory Management Real-time Supply Chain Visibility Other Applications By End-use Industry Manufacturing Food and Beverage Healthcare & Pharmaceuticals Automotive Retail Building & Construction Medical Devices & Consumables Aerospace & Defense Other End-use Industries Countries Covered North America (U.S., Canada), Europe (Germany, U.K., France, Italy, Spain, Sweden, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Singapore, Rest of Asia-Pacific), Latin America (Brazil, Mexico, Rest of Latin America) Middle East & Africa (UAE, Israel, Rest of the Middle East & Africa) Key Companies IBM Corporation (U.S.), SAP SE (Germany), Microsoft Corporation (U.S.), Google LLC (U.S.), Amazon Web Services, Inc. (U.S.), Intel Corporation (U.S.), NVIDIA Corporation (U.S.), Oracle Corporation (U.S.), C3.ai, Inc. (U.S.), Samsung SDS CO., Ltd. (South Korea), Coupa Software Inc. (U.S.), Micron Technology, Inc. (U.S.), Advanced Micro Devices, Inc. (U.S.), FedEx Corporation (U.S.), and Deutsche Post DHL Group (Germany).
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