Artificial Intelligence (AI) In Supply Chain Market Size, Share, Growth Report 2032

Artificial Intelligence (AI) In Supply Chain Market: Industry Prospective

The global Artificial Intelligence (AI) In Supply Chain market was worth around USD 1594.50 billion in 2021 and is estimated to grow to about USD 12798.62 billion by 2028, with a compound annual growth rate (CAGR) of approximately 41.50 percent over the forecast period. The report analyzes the Artificial Intelligence (AI) In Supply Chain market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the Artificial Intelligence (AI) In Supply Chain market.

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Artificial Intelligence (AI) In Supply Chain Market: Overview

Artificial intelligence (AI) is a technology that allows machines, software, and systems to compete in some ways with human intelligence and behaviour. The heart of AI is a system that analyses data and performs various jobs using complex algorithms. Data extraction, data analysis, supply and demand forecasting, and the operation of autonomous vehicles are just a few of the applications it has in the supply chain. It can also gain access to warehouse procedures in order to optimise product shipping, receiving, storing, picking, and management. The improvement of logistics is accomplished through optimising warehousing and distribution processes.

By employing cognitive predictions and recommendations on optimal actions, artificial intelligence in supply chain helps to improve overall supply chain performance. The increasing digitization of economies, particularly emerging nations, will emerge as a major market development driver. The the increasing generation of large amounts of data and information for greater visibility and transparency in supply chain and logistics data, rising adoption by small and medium-sized businesses, and the strengthening IT industry in developing economies such as India and China, will exacerbate the market's growth. Other factors boosting the market's growth include the rapid prevalence of cloud-based services and an ever-growing set of favourable government laws.

COVID-19 Impact:

COVID -19 has wreaked havoc on the supply chain, as businesses have been unable to adapt to fast rising consumer demand, limited product availability, and changes in working norms. The fight against COVID-19 has forced us to think of new ways to combat the virus. The use of artificial intelligence in supply chain tasks has a lot of potential for increasing top line and bottom line value. Even at the enterprise level, companies have begun to incorporate AI technology into day-to-day supply chain processes. It's a bad moment for businesses to start exploring, but AI can help them get started. Supply chain might become a green business in no time if more industries incorporate technology in their operations. In these uncertain times, AI will assist in precisely forecasting demand and meeting those demands. This epidemic has showed us that combining artificial intelligence and supply chain management tools may help automate decision-making, improve efficiencies, and maximise human resource usage.

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Artificial Intelligence (AI) In Supply Chain Market: Growth Drivers

Computer vision is ready to create an impact on global artificial intelligence  to drive global market growth

The use of computer vision technology in supply chain activities across several industrial verticals is fast rising. During the 2022-2028, this category is expected to increase at the fastest rate. Many end-use industries throughout the world have begun to incorporate computer vision as a revolutionary technology into their operations. Soaring labour costs, more awareness of the benefits of AI solutions, increased demand for anti-theft solutions, and the availability of affordable robotics/automation are some of the primary factors driving the computer vision technologies segment's quickest growth.

Artificial Intelligence (AI) In Supply Chain Market: Restraints

System Complexities will act as growth to hamper the market growth

AI systems are typically cloud-based, which necessitates a large amount of bandwidth to fuel the system. Operators may also require specialized gear to access AI capabilities, and the cost of AI-specific technology can be too expensive for many supply chain partners.

Artificial Intelligence (AI) In Supply Chain Market: Challenges

The operational costs involved may give rise to challenges for its growth

Each of the various processors in an AI-controlled machine needs maintenance and replacement from time to time. The problem is that the operating investment could be rather large due to the prospective cost and energy involved. Manufacturers would also have to replace these, which would raise utility bills and have a direct influence on operating costs.

Report Scope:

Global Artificial Intelligence (AI) In Supply Chain Market: Segmentation

The global Artificial Intelligence (AI) In Supply Chain market is segregated based on category, hospital capacity, location, and region.

The AI in supply chain market is divided into four categories based on technology: machine learning, computer vision, natural language processing, and context-aware computing. Machine learning accounted for the largest share of the overall AI in supply chain market. This expansion can be due to rising demand for AI-based intelligent solutions, increased government initiatives, and AI solutions' capacity to efficiently handle and analyse huge data, as well as quickly scan, parse, and react to anomalies.

The AI in the supply chain market is divided into supply chain planning, warehouse management, fleet management, virtual assistant, risk management, inventory management, and planning & logistics, based on application. Supply chain planning is having the greatest proportion of the overall AI in supply chain market. The growing demand for improved production planning and factory scheduling, as well as the expanding agility and optimization of supply chain decision-making is  contributed to the expansion of the AI industry.

Recent Developments

• November 2021- Microsoft will launch new supply chain and manufacturing technologies. The Microsoft Cloud for Manufacturing combines Microsoft and our partners' greatest outcome-driven solutions and capabilities to help our customers speed time-to-value in a comprehensive, scalable approach. We're creating a flywheel of innovation by connecting the Microsoft stack's intelligent, integrated cloud, and edge capabilities to the highest-value manufacturing scenarios, allowing businesses to increase asset and frontline worker productivity in safe and secure factories, enable remote selling and always-on service, and unlock cloud-based innovation—all while maintaining the highest levels of trust, compliance, privacy, and transparency.

Artificial Intelligence (AI) In Supply Chain Market: Regional Landscape

During the 2022-2028, the market in APAC is expected to develop at the fastest CAGR. Increased adoption of deep learning and natural language processing (NLP) technology for automotive, retail, and manufacturing applications in APAC is driving market expansion. Furthermore, the presence of important participants in the artificial intelligence ecosystem in the supply chain ecosystem leads to an increase in artificial intelligence adoption in APAC. The other reason for growing demand is This is due to the region's large population of young, tech-savvy people and the growing prevalence of the internet of things (IoT).

Artificial Intelligence (AI) In Supply Chain Market: Competitive Landscape

Some of the main competitors dominating the global Artificial Intelligence (AI) In Supply Chain market include - Intel (US), NVIDIA (US), Xilinx (US), Samsung Electronics (South Korea), Micron Technology (US), IBM (US), Microsoft (US), and Amazon (US).

Global Artificial Intelligence (AI) In the Supply Chain market is segmented as follows:

By Offering

• Hardware
• Software
• Services

By Technology

• Machine Learning
• Natural Language Processing
• Context-aware Computing
• Computer Vision

By Application

• Fleet Management
• Supply Chain Planning
• Warehouse Management
• Virtual Assistant
• Risk Management
• Freight Brokerage
• Others 

By End-user Industry

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

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa