**London**: The AI in Supply Chain Market is projected to reach USD 51.12 billion by 2030, growing at a CAGR of 38.9% due to advances in automation, smarter workflows, and strategic partnerships, with significant contributions from major tech firms like Microsoft and Accenture.
The global Artificial Intelligence (AI) in Supply Chain Market is poised for significant expansion, with projections indicating it could reach a valuation of USD 51.12 billion by 2030. This growth is notably marked by a compound annual growth rate (CAGR) of 38.9% between 2024 and 2030, as detailed in a recent report released by Grand View Research, Inc.
Key to this market’s development are advances in intelligent automation and smarter workflows, which provide actionable insights designed to enhance agility and bolster supply chain resiliency. The increasing integration of automation technologies such as business process management (BPM) and AI is helping organisations to scale operations and streamline decision-making.
AI is increasingly being utilised to automate lower-level tasks across various supply chain functions, aimed at improving operational efficiencies, liberating resources, and simplifying processes. These improvements are expected to significantly propel market growth, particularly as next-generation supply chain control tower technologies become more prevalent. These technologies enable organisations to identify and rectify critical supply chain issues rapidly, utilising actionable workflows, advanced analytics, and comprehensive visibility.
Notably, several initiatives from both public and private sectors are contributing to the acceleration of market expansion. In November 2022, Microsoft launched its Supply Chain Platform, a versatile system designed to optimise supply chain database investments. This platform combines several best practices in Software as a Service (SaaS), security, low-code applications, and Microsoft AI within a scalable framework.
Organizations are also increasingly pursuing partnerships, acquisitions, and mergers to secure a competitive edge within the market. A prominent example is the collaboration between Accenture and Planet Labs PBC, which was announced in December 2022. Accenture, a consulting and information technology services provider, is joining forces with the U.S.-based earth imaging company to deliver valuable insights across several sectors including government & forestry, energy, consumer packaged goods, and agriculture. This collaboration will focus on initiatives aimed at climate risk assessments and supply chain strategies, leveraging Accenture’s expertise in technology alongside Planet Labs PBC’s satellite imagery data capabilities.
According to the report, the segmentation of the AI in Supply Chain Market reveals that the software segment dominated in 2023, capturing 41.8% of the market share. The growth of e-commerce and omnichannel retail has resulted in a heightened demand for flexible and efficient supply chains, which is well-supported by AI-powered software solutions.
Machine learning has emerged as the leading technology segment within the market, accounting for a revenue share of 36.3% in 2023. Machine learning algorithms are capable of managing complex tasks, automating processes, and making swift, data-driven decisions that surpass the capabilities of traditional approaches.
In application terms, the supply chain planning sector led the market with a 32.5% revenue share in 2023. Due to the complexities of modern supply chains, which often span global networks, AI planning tools play a crucial role in optimising inventory levels, production schedules, and transportation routes, enhancing overall efficiency.
The automotive industry emerged as the largest end-use segment within the market, holding 17.7% of market revenue in 2023. This sector relies heavily on Just-In-Time (JIT) manufacturing, enabling components to arrive exactly when needed on assembly lines. AI applications in supply chain logistics support optimising delivery schedules and managing inventory, thus reducing costs associated with surplus parts.
Regionally, North America held the highest revenue share at 38.4% in 2023. Supply chain enterprises in this region are increasingly seeking greater visibility and transparency in their operational processes, with AI technologies offering real-time insights into key metrics such as inventory levels and transportation schedules.
The detailed segmentation provided by Grand View Research includes various aspects of the market, including offerings (hardware, software, and services), technologies (such as machine learning and natural language processing), applications (ranging from warehouse management to risk management), and end-use sectors (including manufacturing, healthcare, and retail). The report also encompasses regional outlooks, highlighting market dynamics across North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa.
Source: Noah Wire Services
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