The intricate dance of global supply chains is increasingly orchestrated by artificial intelligence. Valued at USD 5.05 billion in 2023, Artificial Intelligence in Supply Chain Market is poised for a dramatic 38.9% CAGR surge from 2024 to 2030. Businesses, driven by the imperative to streamline operations, slash costs, and achieve unprecedented visibility, are turning to AI's prowess. It offers the keys to unlocking automated tasks, deciphering vast data streams, and generating insights that sharpen efficiency and transparency.

The e-commerce boom has amplified the demand for flawlessly efficient supply networks. Today's consumers expect lightning-fast, dependable deliveries, a demand that necessitates AI-powered solutions for predicting demand, managing inventory with precision, and optimizing the intricate web of logistics. Moreover, supply chains, vulnerable to a myriad of disruptions, find a powerful ally in AI. By analyzing real-time data, AI can anticipate potential crises and suggest proactive countermeasures. Technological advancements further empower end-use companies to capitalize on this market growth. The sheer volume of data generated within supply chains demands intelligent analytical tools, a domain where AI truly shines, transforming raw data into actionable strategies. The synergy of AI with IoT sensors and cloud platforms enables continuous data collection, processing, and analysis, allowing for smarter decisions and enhanced agility within the supply chain, thus propelling market expansion.

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AI's influence is felt in optimizing transportation and execution, fine-tuning store assortments, and automating order settlement. Industry giants are forging new paths to empower clients across sectors like retail and consumer packaged goods. For instance, in January 2024, IBM, a leader in AI-powered supply chain solutions, joined forces with SAP to craft innovative AI solutions for these industries. By integrating IBM's enterprise-grade AI and data platform, complete with AI assistants, into SAP solutions, this collaboration aims to simplify the complexities of direct store delivery and product portfolio management. Currently, IBM Consulting and SAP are collaborating with CPG clients globally to pinpoint specific needs for secure and scalable AI solutions that will seamlessly integrate with SAP's Direct Distribution solution. The ultimate goal: to equip CPG companies, wholesale distributors, and retailers with the tools to optimize store-level assortments, enhance product distribution, and unlock new revenue streams.

Detailed Segmentation

Offering Insights

Based on offering, the software segment led the market with the largest revenue share of 41.8% in 2023. AI software offers a wide range of functionalities within the supply chain, from demand forecasting and inventory optimization to predictive maintenance and automated decision-making. This versatility allows businesses to address various challenges and customize solutions to their specific needs. In addition, AI software can be easily scaled up or down depending on the size and complexity of the supply chain.

Application Insights

Based on application, the supply chain planning segment led the market with the largest revenue share of 32.5% in 2023. AI algorithms analyze historical data, sales trends, and external factors to accurately forecast demand. This allows businesses to maintain optimal inventory levels, avoiding stockouts and overstocking, which can be both costly and inefficient. Moreover, AI considers factors such as, traffic patterns, fuel costs, and delivery deadlines to optimize transportation routes, reducing transportation costs and improving delivery times.

End Use Insights

Based on end use, the automotive segment led the market with the largest revenue share of 17.7% in 2023. The growing demand for Electric Vehicles (EVs) and Autonomous Vehicles (AVs) challenges the supply chain due to the complexity of these vehicles. Thus, AI in supply chain solutions can handle the intricate networks of suppliers involved in EV and AV production, ensuring timely delivery of specialized parts. Moreover, AI-powered quality control systems ensure these advanced vehicles meet stringent safety and performance standards.

Regional Insights

North America dominated with the artificial intelligence in supply chain market with a revenue share of 38.4% in 2023. North American companies face intense competition and pressure to reduce costs while maintaining high levels of customer service. AI supply chain solutions for automating tasks, analyzing vast amounts of data, and generating actionable insights that improve efficiency, transparency, and agility within the supply chain.

Key Artificial Intelligence In Supply Chain Company Insights

Key companies included in this market are Advanced Micro Devices, Inc., Alibaba.com, and Amazon.com, Inc. The active companies in the global market are focusing aggressively on expanding their customer base and gaining a competitive edge over their rivals. Hence, they pursue various strategic initiatives, including partnerships, mergers & acquisitions, collaborations, and new product/ technology development. For instance, in December 2023, Blue Yonder Group, Inc., a provider of supply chain platforms, introduced a new generative AI feature called Blue Yonder Orchestrator as part of its Luminate Cognitive Platform. The latest feature integrates large language models (LLMs), cloud data, and prompts engineering to suggest decisions for supply chain management. Businesses can leverage Blue Yonder Orchestrator as a reliable supply chain aide, enhancing intuition with data value to enable smarter and quicker decision-making.

Key Artificial Intelligence in Supply Chain Companies:

The following are the leading companies in the Artificial Intelligence in Supply Chain market. These companies collectively hold the largest market share and dictate industry trends.

• Advanced Micro Devices, Inc.
• Alibaba.com
• Amazon.com, Inc.
• Deutsche Post DHL Group
• FedEx
• International Business Machines Corporation
• Intel Corporation
• Microsoft Corporation
• NVIDIA Corporation
• Oracle Corporation
• Samsung
• SAP SE

Artificial Intelligence in Supply Chain Market Segmentation

Grand View Research has segmented the Artificial Intelligence in Supply Chain market report based on product, site, application, grade, and distribution channel.

Offering Outlook (Revenue, USD Billion, 2017 - 2030)

• Hardware
• Software
• Services

Technology Outlook (Revenue, USD Billion, 2017 - 2030)

• Machine Learning
• Computer Vision
• Natural Language Processing
• Context-Aware Computing
• Others

Application Outlook (Revenue, USD Billion, 2017 - 2030)

• Supply Chain Planning
• Warehouse Management
• Fleet Management
• Virtual Assistant
• Risk Management
• Inventory Management
• Planning & Logistics

End Use Outlook (Revenue, USD Billion, 2017 - 2030)

• Manufacturing
• Food and Beverages
• Healthcare
• Automotive
• Aerospace
• Retail
• Consumer-Packaged Goods
• Others

Regional Outlook (Revenue, USD Billion, 2017 - 2030)

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
• Asia Pacific
  • China
  • India
  • Japan
  • Australia
  • South Korea
• Latin America
  • Brazil
• Middle East & Africa
  • UAE
  • South Africa
  • KSA

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Recent Developments

• In April 2024, SAP SE introduced significant AI enhancements within its supply chain solutions, set to drive a revolutionary surge in productivity, efficiency, and accuracy within manufacturing sectors. Leveraging AI to analyze real-time data, these advancements would empower businesses to harness their data for improved decision-making throughout the supply chain, streamline product development processes, and enhance manufacturing efficiency
• In April 2024, Vitesco Technologies GmbH, an automotive supplier, partnered with DHL Group to enhance the resilience and robustness of supply chains within the automotive sector. DHL Supply Chain acting as the principal logistics partner, consolidating cargo volumes from various major corporations to create synergies and unlock new optimization opportunities. The logistics specialists tap into the full spectrum of freight carriers and forwarding agents, ensuring the delivery of transport solutions are the most eco-friendly, and cost-efficient. This partnership would be beneficial for Vitesco Technologies’ customers, leading to supply chains that are durable
• In January 2024, Lenovo, a provider of IT products, developed Supply Chain Intelligence (SCI), a solution powered by AI that constantly examines data from the supply chain to detect and address issues as they occur. This solution consolidates all the company's supply chain transactions and management systems into one unified platform, which is managed by smart tools