The Artificial Intelligence (AI) in supply chain market is growing at a CAGR of 37% for the forecast period of 2018 to 2023. A technological shift in the recent market has propelled the growth of the Artificial Intelligence market over the last few years. Several multinational corporations are making remarkable advancements in the field that is expected to boost the market further in the coming years as well. Several important market factors increase the demand for AI technology in the supply chain and logistics market.
Artificial Intelligence in Supply Chain Market technology enables machines to learn, record, mimic, the knowledge provided by humans and create activities and options based on the available information. AI technology is well suited for replacing human efforts and run machines on their own without a human operator. This functionality is a major pusher for the Artificial Intelligence in Supply Chain Market in the logistics industry. In the supply chain and logistics market, huge amounts of data need to be dealt with. Advanced computing and coding facilities have improved the machines to learn the data processing in a transparent and accessible manner that enhances the workflow.
Artificial Intelligence in Supply Chain Market COVID-19 Analysis:
The deadly infectious disease that fell upon the human race, has been one of the greatest global crises of all time. The extraordinary situation of lockdowns in almost every nation has come along with the disease. For months, the stagnancy in global businesses, cross-border transportation, manufacturing, and distribution has a brutal effect on emerging businesses. Artificial Intelligence in Supply Chain Market has faced prominent impacts due to the lockdowns. The massive disruptions in the distribution and logistics market have lowered the demands for AI technology.
Also, the lockdowns have put the global economies in a disastrous phase. There is a shortage of investment capital in several core industries of the market. Hence, there is a lowering of investments in the development of AI solutions as well. Plus, the lack of trained staff in the workforce has been a primary reason that the Artificial Intelligence in Supply Chain Market Industry sales have reduced in the due process of time. Although, it is expected that the social distancing measures are going to increase the opportunities for AI devices to get in use more than ever in the future.
Artificial Intelligence in Supply Chain Market Dynamics:
One of the primary market drivers for the market is the demand for transparent and visible work procedures in the supply chain industry. The emergence of Artificial Intelligence in Supply Chain Market technology has created awareness about big data and analytics systems. In the logistics market, there is a huge application of AI autonomous data processing in warehouse stocks, management of inventory, product safety, delivery on time, etc. These are some of the many important features that drive Artificial Intelligence (AI) in supply chain market growth.
Also, increased Governmental guidelines and initiatives in promoting machine automation and AI computing is giving the market push Artificial Intelligence in Supply Chain Market solutions reduce the need for human efforts so it gives relaxation of time and money both. This operational benefit of using AI technology in the supply chain industry is a steady pusher of the market as well. Big corporations are coming forward in the machine automation field to reduce operational costs in future industries. Various Artificial Intelligence (AR) in supply chain market segments are reliant on several end-user industries and the recent trends associated with them. The market is expanding based on these recent trends as well.
Based on current market trends it is not wrong to say that the future for the AI technology market is glorious. Especially in the supply chain industry, important innovations are going on in the market. All current projections suggest that in the coming years the demand for automation systems and solutions for commercial and business purposes is going to gain significant height. Advancements in the 5G network infrastructure in several countries of the world will have positive reflections on Artificial Intelligence (AI) in supply chain market size. Innovations in machine learning (ML), natural language processing (NLP), computer vision, context-aware computing, etc are going to present tremendous growth opportunities for the market.
The increasing demand for internet of things (IoT) devices and cloud computing services have the potential to revolutionize data processing operations. In the logistics and supply chain market, big data technology is widely implemented. Especially Artificial intelligence (AI) in supply chain market trends suggest that the demand for supply chain automation will evolve the business workflow forever. 5G networks and IoT will increase the efficiency of machine automation, which will increase the demand for AI-based data processing solutions.
Any new technology faces an obvious obstacle due to unprepared infrastructure in the initial phases. The AI in supply chain market is facing similar restraints due to the lack of suitable infrastructure in several countries. A large section of the global supply chain market still operates in manual mode. Converting the whole system replacing existing systems is a very expensive endeavor. Also, the installation and procurement costing is very high in the case of AI technology. The maintenance and operations require a large investment of time, energy, and money which increases the overhead costs as well. This costing pattern is unsuitable for small and medium enterprises to enter AI-based technology.
AI technology in the supply chain industry is completely reliant on trained developers and coding professionals to improvise, maintain, and manage the system. There is a questionable lack in the availability of these trained staff in the field. This factor restricts the growth of Artificial Intelligence (AI) in supply chain business.
There is a challenging aspect in the advancement of technology. The systems and solutions require constant maintenance and upgrades. The data processing system in the supply chain industry uses multiple resources to integrate the data. These various resources are troublesome for the existing technology. The AI market faces a challenge due to the non-uniformity in data integration structure. Also, there is concern over data privacy in the case of Ai-run solutions. There is a chance of data manipulation, theft, and forgery in the case of automated supply chain devices. In developing countries, the majority of the distribution channels run via manual methods. Repealing a huge workforce and organize alternative employment for them is going to pose another challenging aspect in front of the market.
According to Artificial Intelligence (AI) in supply chain market analysis, the global market is going to witness tremendous growth in the coming years. The latest projections show that the market will grow at a CAGR of 37% for the forecast period of 2018 to 2023. In 2017, the global market recorded a net worth of USD 545 billion. But according to the estimates, the global market share will reach USD 3 to 4 billion by the end of 2023. The rise in big data technology adaption is going to be the leading force behind the phenomenal growth of the AI industry.
The distribution of the technology is depended on the end-users. Huge application in various logistic and logistical purposes, the market relies on service providers and developing companies to get the technology close to the users. Various contractual partnerships, acquisitions, mergers are stable procedures in the distribution of AI technology in the market.
Artificial Intelligence in Supply Chain Market Segments Overview:
Based on various factors, there are different Artificial Intelligence (AI) in supply chain market segments. These segments are divided based on components, technology, end-users, deployment, application, region, etc.
Segments based on component:
Segments Based on End-Users:
Segments Based on Application:
Segments Based on Region:
Artificial Intelligence in Supply Chain Market Regional Analysis:
Majorly the global Artificial Intelligence (AI) in Supply Chain Market is classified into three major regions of the world, i.e., the North American region, European region, and Asia Pacific region. The North American region is the global leader in the market share of AI technology in supply chains networks. The economic prosperity and advancements of technology in the US, Canada, Mexico, Germany, France, etc occupy the largest markets globally.
The Artificial Intelligence (AI) in supply chain market top leaders are –
Recent reports from World Economic Forum suggest that every day 2.5 quintillion bytes of data are generating in the world. By this pace, there will be 1 trillion sensors connected in the global sphere by the end of 2022.
Artificial Intelligence in Supply Chain Market Report Overview:
This report discusses Artificial Intelligence (AI) in supply chain market growth, trends, obstacles, analysis, etc in detail.
|Market Size||USD 3-4 Billion (2023)|
|CAGR||37 % (2018-2023)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||By Component, by Technology|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||Nvidia Corporation, IBM corporation, Intel Corporation, Xilinx, Inc., Samsung Electronics, Microsoft Corporation, Micron Technology, SAP SE, Oracle Corporation, Logility, Inc., Amazon, and LLamasoft, Inc.|
|Key Market Opportunities||Increasing adoption of cloud-based software modules by supply chain industry, rising trend of deploying automation solutions by industries into their operations, and growth in industry 4.0 are some of the trends which are creating high potential opportunities for the market in coming years.|
|Key Market Drivers||The prime driving factors for the market. However, lack of technical expertise is expected to restraint the market growth of AI in supply chain in the coming years.|
Frequently Asked Questions (FAQ) :
The global artificial intelligence in supply chain market is expected to record a substantial market valuation of up to USD 4 billion by 2022.
The global AI in supply chain market is projected to register a moderate 37% CAGR in the forecast period.
The manufacturing and retail segments are slated to expand as the fastest-growing segment.
The hybrid cloud deployment segment is expected to witness substantial growth.
A few major market players operating in the global AI in supply chain market are SAP SE, Logility, Inc., Amazon, Oracle Corporation, and LLamasoft, Inc., among others.