AI in Logistics and Supply Chain to Cross $196.58B by 2034

The AI in logistics and supply chain market is set to grow from its current market value of more than $20.1 billion to over $196.58 billion by 2034, as reported in the latest study by Global Market Insights, Inc.

The increasing need for real-time supply chain visibility, optimized route planning, accurate demand forecasting, and automation in warehouses fused with companies increasingly incorporating AI into their operations continues to prompt growth in AI adoption.

“The growing intricacy of global supply chains has created a need for predictive analytics and real-time data, allowing businesses to analyze massive amounts of data from sensors, GPS, and enterprise resource planning (ERP) systems to optimize inventory management and reduce costs. AI helps companies adapt quickly to shifts in market conditions, prevent disruptions, and improve customer satisfaction. The expansion of e-commerce and omnichannel retail further emphasizes the need for speed, accuracy, and flexibility, where AI technologies help streamline order processing, automate delivery schedules, and forecast customer behavior,” the study says.

Key takeaways:

·        In 2024, the software sector led the market with a share of 56%, anticipated to grow at a CAGR of 26% through 2034.

·        The machine learning (ML) segment held a 47% share in 2024.

·        The United States held an 85% share and generated $6.2 billion in 2024 due to its advanced digital infrastructure and widespread adoption of emerging technologies. U.S.-based logistics firms are among the first to integrate AI for solutions such as route optimization, demand forecasting, warehouse automation, and predictive maintenance.