The Generative AI in logistics market is set to grow from its current market value of more than $1.3 billion to over $23.1 billion by 2034, as reported in the latest study by Global Market Insights, Inc.
“This technology is fundamentally transforming supply chain operations by delivering both real-time intelligence and long-term strategic forecasting. By simulating thousands of delivery routes and transport scenarios, logistics providers can fine-tune inventory planning, lower freight expenses, and stay prepared for unexpected disruptions,” the Global Market Insights study says. “AI-powered demand forecasting also streamlines resource use, while dynamic routing tools improve delivery timelines. As operational efficiency and cost control become more important, the integration of generative AI has emerged as a key force shaping the market's future.”
Key takeaways:
· In 2024, the software segment held a 66% share and is set to grow at a CAGR of 32% through 2034. Logistics teams have prioritized AI-driven predictive tools that simulate numerous supply chain disruptions like stock shortages, delivery hold-ups, or sudden demand spikes. These tools help firms adjust operations proactively, improving both efficiency and cost outcomes. These modern solutions offer faster results than older models and integrate easily with legacy systems, making them more attractive than time-consuming, custom-built options.
· The cloud deployment segment held a 67% share in 2024 and is expected to maintain strong growth at a CAGR of 32% through 2034. As logistics operations become more geographically dispersed, firms are choosing flexible, cloud-based AI solutions that scale instantly based on fluctuating business needs. Unlike traditional server setups, cloud platforms provide real-time computing power and data storage as demand surges, especially during seasonal peaks or unexpected market shifts. This adaptability makes cloud systems critical for global supply chains, reinforcing their dominance in the sector.
· North America generative AI in logistics market held 85% share and generated $355.2 million in 2024. The country has emerged as a central hub for advanced AI adoption in supply chains, backed by major tech firms. These companies offer enterprise-ready AI infrastructure, giving logistics providers immediate access to cutting-edge capabilities that accelerate algorithm development and deployment.
· Leading firms in the Generative AI in logistics are also doubling down on strategic cloud partnerships, scalable AI models, and industry-specific machine learning tools and focusing on modular AI solutions that adapt quickly to regional and sector-specific logistics challenges.
