AI’s potential to solve the complexities of running a global logistics network is nudging us towards Industry 4.0 while allowing companies to track their operations, enhance supply chain management productivity, augment business strategies, and engage with customers in the digital world.
The Artificial Intelligence (AI) in the supply chain market is expected to grow at a CAGR of 45.3% from 2019 to 2027 to reach $21.8 billion by 2027.
Artificial intelligence has emerged as the most potent technologies over the past few years, that is transitioning the landscape of almost all industry verticals. Although enterprise applications based on AI and Machine Learning (ML) are still in the nascent stages of development, they are gradually beginning to drive business innovation strategies.
A new report from Meticulous Research looks at the growth of AI in the supply chain market.
The growth in the AI in the supply chain market is mainly driven by rising awareness of artificial intelligence and big data and analytics and widening implementation of computer vision in both autonomous and semi autonomous applications. In addition, consistent technological advancements in the supply chain industry, rising demand for AI-based business automation solutions, and evolving supply chain complementing growing industrial automation are further offering opportunities for vendors providing AI solutions in the supply chain industry. However, high deployment and operating costs and lack of infrastructure hinder the growth of artificial intelligence in the supply chain market.
In this study, the global artificial intelligence(AI) in the supply chain market is segmented on the basis of component, application, technology, end user, and geography.
Based on components, AI in the supply chain market is broadly segmented into hardware, software, and services. The software segment commanded the largest share of the overall AI in the supply chain market in 2019. This can be attributed to the increasing demand for AI-based platforms and solutions, as they offer supply chain visibility through software, which include inventory control, warehouse management, order procurement, and reverse logistics & tracking.
Based on technology, AI in the supply chain market is broadly segmented into machine learning, computer vision, natural language processing, and context-aware computing. In 2019, the machine learning segment commanded the largest share of the overall AI in the supply chain market. The growth in this market can be attributed to the growing demand for AI based intelligent solutions; increasing government initiatives; and the ability of AI solutions to efficiently handle and analyze big data and quickly scan, parse, and react to anomalies.
Based on application, AI in the supply chain market is broadly segmented into supply chain planning, warehouse management, fleet management, virtual assistant, risk management, inventory management, and planning and logistics. In 2019, the supply chain planning segment commanded the largest share of the overall AI in the supply chain market. The growth of this segment can be attributed to the increasing demand for enhancing factory scheduling and production planning and the evolving agility and optimization of supply chain decision-making. In addition, digitizing existing processes and workflows to reinvent the supply chain planning model is also contributing to the growth of this segment.
Based on end-user, artificial intelligence (AI) in the supply chain market is broadly segmented into manufacturing, food and beverage, healthcare, automotive, aerospace, retail, and consumer packaged goods sectors. The retail sector commanded the largest share of the overall AI in the supply chain market in 2019. This can be attributed to the increase in demand for consumer retail products.
Based on geography, the supply chain market is categorized into five major geographies: North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. In 2019, North America commanded the largest share of the global AI in the supply chain market, followed by Europe, Asia-Pacific, Latin America, and the Middle East and Africa. North America’s share is attributed to the presence of developed economies focusing on enhancing the existing solutions in the supply chain space, and the existence of major players in this market along with a high willingness to adopt advanced technologies.
On the other hand, the Asia-Pacific region is projected to grow at the fastest CAGR during the forecast period. The high growth rate is attributed to rapidly developing economies in the region; the presence of a young and tech-savvy population in this region; growing proliferation of Internet of Things (IoT); rising disposable income; increasing acceptance of modern technologies across several industries including automotive, manufacturing, and retail; and broadening implementation of computer vision technology in numerous applications. Furthermore, the growing adoption of AI-based solutions and services among supply chain operations, increasing digitalization in the region, and improving connectivity infrastructure are also playing a significant role in growth in the region.
The global artificial intelligence in the supply chain market is fragmented in nature and is characterized by the presence of several companies competing for the market share. Some of the leading companies in the AI in the supply chain market are core technology companies, including IBM, Microsoft, Google, and Amazon. These companies are leading the market owing to their strong brand recognition, diverse product portfolio, strong distribution and sales network, and strong organic and inorganic growth strategies.
The other key players operating in the global AI in the supply chain market are Intel, Nvidia, Oracle, Samsung, LLamasoft, SAP, General Electric, Deutsche Post DHL Group, Xilinx, Micron Technology, FedEx, ClearMetal, Dassault Systèmes, and JDA Software Group, among others.
Key questions answered in the report include:
- Which are the high growth market segments in terms of technology, application, end-use industry?
- What was the historical market for artificial intelligence in the supply chain across the globe?
- What are the market forecasts and estimates for the period 2019-2027?
- What are the major drivers, restraints, opportunities, and challenges in the global artificial intelligence in the supply chain market?
- Who are the major players in the global artificial intelligence in the supply chain market?
- How is the competitive landscape in the global artificial intelligence in supply chain market?
- What are the different strategies adopted by the major players in the global artificial intelligence in the supply chain market?
Source: Meticulous Market Research