**Global**: The AI market in supply chain management is expected to soar from USD 9.94 billion in 2025 to USD 192.51 billion by 2034, driven by automation and real-time monitoring, with North America leading and Asia Pacific showing the fastest growth.
The global market for artificial intelligence (AI) in supply chain management is projected to experience significant growth from USD 9.94 billion in 2025 to approximately USD 192.51 billion by 2034, achieving a compound annual growth rate (CAGR) of 39.00% over the period. This expansion is attributed to the increasing adoption of AI-driven automation and real-time monitoring solutions aimed at enhancing supply chain efficiency and resilience, as detailed in a report by Precedence Research.
In 2024, North America held the dominant position within the market, accounting for 39% of the total share, largely due to the region’s acceptance of AI-driven logistics and automation technologies. The United States market specifically recorded a size of USD 2.31 billion in 2024, with projections indicating a growth to around USD 63.37 billion by 2034, reflecting a CAGR of 39.26%. The strong technological landscape, bolstered by the presence of leading tech companies, has fostered innovations in AI solutions, particularly aimed at enhancing operational efficiency and resource distribution within logistics networks.
Conversely, the Asia Pacific region is anticipated to showcase the fastest growth during the same forecast period, buoyed by a heightened focus on industrial automation and ongoing digital transformation. Countries including China, Japan, and India are noted for substantial investments in their manufacturing sectors aiming to optimise production efficiency while managing costs. The surge in e-commerce activities within this region further accelerates the need for AI solutions across distribution and transportation networks, informing rising government initiatives designed to promote advanced technologies.
Europe, while currently exhibiting a steady rate of growth, is benefiting from supportive regulatory frameworks aimed at promoting digitalisation throughout logistics and manufacturing sectors. Major automotive companies across Germany, France, and the UK are leveraging AI technologies for supply chain planning and inventory management in response to labour shortages and efficiency demands.
The report also indicates a bifurcation in market offerings, with the software segment leading with a 42% share in 2024. This is complemented by the rapid expected growth of the services segment during the coming years, driven by the need for maintenance of AI technologies. The machine learning technology segment was the most significant contributor in 2024 due to its application in predictive analytics and inventory management.
From an application standpoint, supply chain planning constituted the largest market share (34%) in 2024. Businesses increasingly seek sophisticated AI capabilities for accurate demand forecasting and optimisation of inventory levels. The e-commerce boom is notably driving demand for these advanced solutions.
In terms of end use, the automotive industry accounted for an 18% share of the AI in supply chain market in 2024, driven by the complexities associated with electric and autonomous vehicle supply chains. Meanwhile, the retail segment is set for rapid expansion as businesses strive to enhance customer service via accurate demand forecasting and better inventory control.
Recent developments in AI technologies are also notable; for instance, in January 2025, Oracle announced new role-based AI agents aimed at automating routine tasks within Oracle Fusion Cloud Supply Chain & Manufacturing, thereby allowing organisations to focus on more strategic initiatives. Meanwhile, Flexport’s Winter Release in February 2025 introduced over 20 new AI-driven products designed to enhance global logistics.
Overall, the landscape of AI in supply chain management is evolving, characterised by rapid technological advancements, growing collaboration across sectors, and a shift towards more integrated and autonomous systems. The rising focus on efficiency, resilience, and adaptability continues to drive investment and innovation in this space.
Source: Noah Wire Services
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