AI in Supply Chain Market on the Rise with Growing Adoption of Computer Vision & IoT

nikitapawar nikitapawar
Mar 13, 2025 - 10:09
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The global AI in Supply Chain Market was valued at USD 6,136.3 million in 2023 and is projected to grow from USD 8,493.9 million in 2024 to USD 89,179.9 million by 2031, exhibiting a CAGR of 39.92% during the forecast period. The rapid adoption of artificial intelligence (AI) in supply chain management is driven by the increasing need for automation, real-time analytics, and predictive insights to optimize operations.

Read Complete Report Details: https://www.kingsresearch.com/ai-in-supply-chain-market-860

Key Market Growth Drivers

  1. Automation and Efficiency Enhancement

    • AI-powered automation helps businesses optimize inventory management, reduce operational costs, and improve decision-making.

  2. Growing Demand for Predictive Analytics

    • AI-driven predictive analytics enables companies to forecast demand, minimize disruptions, and enhance logistics efficiency.

  3. Rising Adoption of Machine Learning and Natural Language Processing

    • AI technologies such as machine learning (ML) and natural language processing (NLP) are being integrated into supply chain solutions to enhance process efficiency and improve demand forecasting.

  4. Expanding E-commerce Sector

    • The growth of online retail and omnichannel logistics has increased the need for AI-driven supply chain optimization to improve delivery times and order fulfillment.

  5. Advancements in AI-Powered Robotics

    • Robotics powered by AI is improving warehouse automation, order picking, and sorting, enhancing productivity across supply chain operations.

Market Segmentation

By Offering:

  • Hardware

  • Software

  • Services

By Technology:

  • Machine Learning

  • Computer Vision

  • Natural Language Processing

  • Others

By Deployment Mode:

  • Cloud-based

  • On-premises

By Application:

  • Inventory Management

  • Supply Chain Planning

  • Warehouse Management

  • Risk Management

  • Fleet Management

  • Others

By Industry Vertical:

  • Retail & E-commerce

  • Healthcare

  • Automotive

  • Manufacturing

  • Food & Beverage

  • Logistics & Transportation

  • Others

Regional Insights

  • North America – Dominates the market due to early AI adoption, strong technological infrastructure, and major AI solution providers.

  • Europe – Rapid growth fueled by increasing investments in AI-driven automation and logistics optimization.

  • Asia-Pacific – Fastest-growing region due to the booming e-commerce sector, rising adoption of AI, and increasing industrial automation in countries like China, Japan, and India.

  • Latin America & Middle East & Africa – Emerging regions with growing investments in AI for logistics and supply chain improvements.

Future Opportunities & Challenges

Opportunities:

  • Development of AI-driven autonomous logistics and supply chain solutions.

  • Expansion of AI-powered blockchain applications for improved supply chain transparency.

Challenges:

  • High implementation costs for small and mid-sized enterprises.

  • Data privacy and cybersecurity risks in AI-driven supply chain networks.

The AI in Supply Chain Market is set for exponential growth, driven by continuous technological advancements, increasing demand for automation, and the need for enhanced efficiency in global supply chain operations.