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US Artificial Intelligence in Supply Chain Market

ID: MRFR/ICT/14974-HCR
100 Pages
Garvit Vyas
October 2025

US Artificial Intelligence in Supply Chain Market Research Report: By Component (Software, Network, Hardware, FPGA, GPU, ASIC), By End-users (Automotive, Retail, Manufacturing) and By Technology (Machine Learning, Natural Language Processing) - Forecast to 2035

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US Artificial Intelligence in Supply Chain Market Summary

As per MRFR analysis, the US artificial intelligence-in-supply-chain market size was estimated at 11.55 USD Billion in 2024.. The US artificial intelligence-in-supply-chain market is projected to grow from 12.45 USD Billion in 2025 to 26.39 USD Billion by 2035, exhibiting a compound annual growth rate (CAGR) of 7.8% during the forecast period 2025 - 2035.

Key Market Trends & Highlights

The US artificial intelligence-in-supply-chain market is poised for substantial growth driven by technological advancements and increasing demand for efficiency.

  • Enhanced predictive analytics are transforming decision-making processes within supply chains.
  • Automation of supply chain processes is becoming a critical focus for companies aiming to reduce operational costs.
  • The integration of AI with IoT is facilitating real-time data analysis, thereby improving supply chain responsiveness.
  • Rising demand for efficiency and advancements in machine learning are key drivers propelling market growth.

Market Size & Forecast

2024 Market Size 11.55 (USD Billion)
2035 Market Size 26.39 (USD Billion)
CAGR (2025 - 2035) 7.8%

Major Players

IBM (US), SAP (DE), Oracle (US), Microsoft (US), Siemens (DE), Blue Yonder (US), C3.ai (US), Kinaxis (CA), Llamasoft (US)

US Artificial Intelligence in Supply Chain Market Trends

The artificial intelligence-in-supply-chain market is currently experiencing a transformative phase. This transformation is driven by advancements in technology and the increasing need for efficiency in logistics and operations. Companies are increasingly adopting AI solutions to enhance decision-making processes, optimize inventory management, and improve demand forecasting. This shift appears to be fueled by the desire to reduce operational costs and improve service levels, as organizations seek to remain competitive in a rapidly evolving landscape. Furthermore, the integration of AI with existing supply chain systems is becoming more seamless, allowing for real-time data analysis and predictive analytics, which are essential for proactive management. In addition, the regulatory environment in the US is evolving to support the adoption of AI technologies. Government initiatives aimed at promoting innovation and digital transformation are likely to bolster the growth of the artificial intelligence-in-supply-chain market. As businesses continue to recognize the potential of AI to drive efficiency and enhance customer satisfaction, investment in these technologies is expected to rise. This trend suggests a promising future for the market, as organizations leverage AI to navigate complexities and improve overall supply chain performance.

Enhanced Predictive Analytics

The artificial intelligence-in-supply-chain market is witnessing a surge in the use of predictive analytics tools. These tools enable companies to forecast demand more accurately, thereby optimizing inventory levels and reducing waste. By analyzing historical data and market trends, businesses can make informed decisions that align with consumer behavior, ultimately leading to improved operational efficiency.

Automation of Supply Chain Processes

Automation is becoming a key focus within the artificial intelligence-in-supply-chain market. Companies are increasingly implementing AI-driven automation solutions to streamline various processes, such as order fulfillment and logistics management. This trend not only reduces manual errors but also accelerates operations, allowing businesses to respond swiftly to market changes.

Integration of AI with IoT

The convergence of artificial intelligence and the Internet of Things (IoT) is shaping the future of the artificial intelligence-in-supply-chain market. By integrating AI with IoT devices, companies can gain real-time insights into their supply chain operations. This synergy enhances visibility and control, enabling organizations to make data-driven decisions that enhance overall performance.

US Artificial Intelligence in Supply Chain Market Drivers

Rising Demand for Efficiency

The artificial intelligence-in-supply-chain market is experiencing a notable surge in demand for enhanced operational efficiency. Companies are increasingly seeking to streamline their supply chain processes to reduce costs and improve service delivery. According to recent data, organizations that implement AI-driven solutions can achieve up to 30% reductions in operational costs. This drive towards efficiency is compelling businesses to adopt AI technologies that optimize inventory management, demand forecasting, and logistics. As a result, The US artificial intelligence-in-supply-chain market is projected to grow significantly, with estimates suggesting a compound annual growth rate (CAGR) of over 20% in the coming years. The focus on efficiency not only enhances profitability but also improves customer satisfaction, making it a critical driver in the artificial intelligence-in-supply-chain market.

Advancements in Machine Learning

Recent advancements in machine learning technologies are playing a pivotal role in shaping the artificial intelligence-in-supply-chain market. These innovations enable more accurate data analysis and predictive modeling, which are essential for effective supply chain management. Machine learning algorithms can analyze vast amounts of data to identify patterns and trends, allowing companies to make informed decisions. For instance, businesses utilizing machine learning for demand forecasting have reported accuracy improvements of up to 25%. This capability to predict market fluctuations and consumer behavior is increasingly vital in a competitive landscape, driving the adoption of AI solutions. As machine learning continues to evolve, its integration into supply chain operations is expected to enhance efficiency and responsiveness, further propelling the growth of the artificial intelligence-in-supply-chain market.

Increased Investment in Technology

Investment in technology is a significant driver of growth in the artificial intelligence-in-supply-chain market. Companies are allocating substantial budgets to integrate AI solutions into their supply chain operations. Recent reports indicate that businesses in the US are expected to invest over $15 billion in AI technologies by 2026, reflecting a strong commitment to digital transformation. This influx of capital is facilitating the development of innovative AI applications that enhance supply chain visibility, optimize logistics, and improve inventory management. As organizations recognize the potential return on investment from AI-driven solutions, the trend of increased technology investment is likely to continue, fostering further advancements in the artificial intelligence-in-supply-chain market.

Growing Need for Real-Time Data Analysis

The growing need for real-time data analysis is emerging as a crucial driver in the artificial intelligence-in-supply-chain market. In an era where consumer expectations are rapidly evolving, businesses require immediate insights to make timely decisions. AI technologies enable organizations to process and analyze data in real-time, facilitating quicker responses to market changes. This capability is particularly important for managing supply chain disruptions and optimizing inventory levels. Companies leveraging real-time analytics can enhance their operational agility, leading to improved customer satisfaction and reduced costs. As the demand for real-time insights continues to rise, the artificial intelligence-in-supply-chain market is likely to expand, driven by the need for responsive and adaptive supply chain strategies.

Regulatory Compliance and Risk Management

Regulatory compliance and risk management are increasingly influencing the artificial intelligence-in-supply-chain market. As supply chains become more complex, organizations face heightened scrutiny regarding compliance with various regulations. AI technologies can assist in monitoring compliance and identifying potential risks within the supply chain. By automating compliance checks and risk assessments, companies can mitigate potential disruptions and avoid costly penalties. The market is witnessing a growing trend where businesses invest in AI solutions to enhance their compliance frameworks and risk management strategies. This focus on regulatory adherence not only protects organizations but also fosters trust among stakeholders, thereby driving the growth of the artificial intelligence-in-supply-chain market.

Market Segment Insights

By Component: Software (Largest) vs. GPU (Fastest-Growing)

In the US artificial intelligence-in-supply-chain market, the component segment reveals a keen distribution in market share among software, network, hardware, FPGA, GPU, and ASIC. Software holds the largest share, driven by its essential role in enhancing supply chain efficiency and decision-making processes. Conversely, GPU, while not leading in share, is noted for its rapid growth as businesses increasingly leverage parallel processing power for AI applications, reflecting shifts in optimization methods and technology adoption. Looking towards growth trends, software is anticipated to maintain its dominance, fueled by the need for improved supply chain visibility and automation. Meanwhile, the GPU segment is characterized by its emergence, spurred by advancements in AI capabilities that demand high computing performance. This trend aligns with industries adopting machine learning algorithms to refine their logistics and inventory management, thus enhancing overall supply chain performance.

Software (Dominant) vs. FPGA (Emerging)

In the US artificial intelligence-in-supply-chain market, software serves as the dominant force, delivering various functionalities like real-time analytics, predictive insights, and automation capabilities. Its established presence enables companies to streamline operations and reduce costs significantly. As businesses look for comprehensive solutions that integrate seamlessly with existing systems, software solutions stand out. On the other hand, FPGA is an emerging segment that presents unique opportunities. FPGAs offer flexibility and high performance, ideal for specific computing tasks within AI applications, catering to niche markets needing programmable hardware for customized solutions. While still under the shadow of more established components, FPGA technology holds promise for innovative applications and growing adoption as firms explore bespoke AI systems.

By End-users: Automotive (Largest) vs. Retail (Fastest-Growing)

In the US artificial intelligence-in-supply-chain market, the distribution of market share among the end-user segments reveals that the automotive sector holds the largest share. This is primarily due to the industry's substantial investment in AI technologies aimed at enhancing supply chain efficiencies and reducing operational costs. Retail is emerging as an increasingly significant player, capturing a noticeable portion through the integration of AI-driven analytics for inventory management and consumer behavior insights. The growth trends in these segments are driven by the ongoing digital transformation across industries. The automotive segment benefits from a robust push towards automation and smart manufacturing practices, leading to optimized logistics and supply chain operations. Meanwhile, retail is capitalizing on shifting consumer demands and the need for personalized shopping experiences, making it the fastest-growing segment as businesses leverage AI to streamline their supply chains and improve customer engagement.

Automotive: Dominant vs. Retail: Emerging

The automotive sector remains the dominant force within the end-user segments, leveraging AI to enhance supply chain agility and improve decision-making processes. Through the adoption of AI technologies, automotive companies are achieving remarkable improvements in production planning and logistics management. On the other hand, retail is emerging as a significant competitor in the market, driven by the rapid adoption of AI tools that help streamline inventory practices and enhance customer personalization. Retailers are increasingly utilizing machine learning algorithms to forecast demand and optimize stock levels, marking a crucial turn towards data-driven supply chain optimizations. Both sectors are characterized by their commitment to innovation, but while automotive enjoys dominance, retail is rapidly advancing to challenge for a more substantial market position.

By Technology: Machine Learning (Largest) vs. Natural Language Processing (Fastest-Growing)

In the US artificial intelligence-in-supply-chain market, Machine Learning currently maintains a substantial share, leading as the most utilized technological approach among organizations. Natural Language Processing, while smaller in market share, is rapidly gaining traction due to its effectiveness in enhancing communication and decision-making processes within supply chains. The growth trends in this segment are driven by the increasing complexity of supply chains, coupled with the demand for real-time insights. Machine Learning benefits from its ability to analyze vast amounts of data for improved forecasting, while Natural Language Processing is emerging as a key player in automating customer interactions and supply chain communications, thus positioning itself as the fastest-growing technology in the sector.

Technology: Machine Learning (Dominant) vs. Natural Language Processing (Emerging)

Machine Learning is recognized as the dominant force in the US artificial intelligence-in-supply-chain market due to its proven effectiveness in predictive analytics and optimization. It empowers companies to harness large datasets, leading to enhanced operational efficiency and cost savings. On the other hand, Natural Language Processing is considered an emerging technology that is increasingly being adopted for its unique capability to process and understand human language, facilitating improved stakeholder interactions. Its applications in chatbots and automated reporting are becoming indispensable in modern supply chains, creating a robust demand surge. The synergy between these technologies presents opportunities for innovation and competitive advantages in the evolving market landscape.

Get more detailed insights about US Artificial Intelligence in Supply Chain Market

Key Players and Competitive Insights

The artificial intelligence-in-supply-chain market is currently characterized by intense competition and rapid innovation. This is driven by the increasing demand for efficiency and transparency in supply chain operations. Major players such as IBM (US), Oracle (US), and Microsoft (US) are strategically positioning themselves through a combination of technological advancements and strategic partnerships. IBM (US) focuses on integrating AI with blockchain technology to enhance traceability and security in supply chains, while Oracle (US) emphasizes cloud-based solutions that leverage AI for predictive analytics and demand forecasting. Microsoft (US) is enhancing its Azure platform to support AI-driven supply chain applications, thereby fostering a robust ecosystem for developers and businesses alike. Collectively, these strategies contribute to a dynamic competitive environment where innovation and technological integration are paramount.

Key business tactics within this market include localizing manufacturing and optimizing supply chain processes to reduce costs and improve responsiveness. The competitive structure appears moderately fragmented, with numerous players vying for market share, yet dominated by a few key companies that wield substantial influence. This fragmentation allows for niche players to emerge, focusing on specialized solutions that cater to specific industry needs, thereby enriching the overall market landscape.

In October 2025, IBM (US) announced a partnership with a leading logistics firm to develop AI-driven solutions aimed at optimizing last-mile delivery. This strategic move is significant as it underscores IBM's commitment to enhancing operational efficiency and customer satisfaction in supply chains, particularly in the e-commerce sector, which is experiencing unprecedented growth. By leveraging AI, IBM (US) aims to streamline logistics operations, reduce delivery times, and ultimately improve the customer experience.

In September 2025, Oracle (US) launched a new AI-powered supply chain management tool designed to provide real-time insights and predictive analytics. This tool is expected to revolutionize how businesses manage their supply chains by enabling them to anticipate disruptions and respond proactively. The introduction of this tool reflects Oracle's strategy to remain at the forefront of technological innovation, catering to the evolving needs of businesses seeking agility and resilience in their supply chain operations.

In August 2025, Microsoft (US) expanded its Azure AI capabilities by integrating advanced machine learning algorithms specifically tailored for supply chain optimization. This enhancement is crucial as it allows businesses to harness the power of AI to analyze vast amounts of data, leading to more informed decision-making. Microsoft's focus on AI integration within its cloud services positions it as a leader in providing comprehensive solutions that address the complexities of modern supply chains.

As of November 2025, current competitive trends in the artificial intelligence-in-supply-chain market are heavily influenced by digitalization, sustainability, and the integration of AI technologies. Strategic alliances among key players are shaping the landscape, fostering innovation and collaboration. The shift from price-based competition to a focus on technological advancement and supply chain reliability is evident, suggesting that future competitive differentiation will hinge on the ability to innovate and adapt to changing market demands.

Key Companies in the US Artificial Intelligence in Supply Chain Market market include

Industry Developments

In recent months, the US Artificial Intelligence in Supply Chain Market has witnessed significant developments as companies strive to leverage AI for enhanced operational efficiency. Notably, in October 2023, IBM announced new AI-driven capabilities to its supply chain solutions, aiming to increase resilience and agility for businesses facing ongoing supply chain disruptions. Meanwhile, Oracle in September 2023 launched a cloud-based AI service designed to optimize logistics and inventory management, positioning itself as a leader in supply chain innovation.

In the realm of mergers and acquisitions, SAP acquired a small AI firm in August 2023, signaling a strategic move to strengthen its AI offerings within supply chain management. The market is experiencing robust growth, with analysts projecting a valuation increase driven by advancements in machine learning and analytics. Companies like NVIDIA and Microsoft are integrating AI technologies to enhance data analytics capabilities, thereby improving forecasting and decision-making processes. Furthermore, government initiatives to support AI research and development in supply chains are fostering a favorable environment for innovation.

Overall, these developments highlight the dynamic landscape of the US Artificial Intelligence in Supply Chain Market, reinforcing its importance in contemporary business strategies.

Future Outlook

US Artificial Intelligence in Supply Chain Market Future Outlook

The Artificial Intelligence in Supply Chain Market is projected to grow at a 7.8% CAGR from 2024 to 2035, driven by automation, data analytics, and enhanced decision-making capabilities.

New opportunities lie in:

  • Integration of AI-driven predictive analytics for inventory management.
  • Development of autonomous delivery systems using AI technology.
  • Implementation of AI-based demand forecasting tools for supply chain optimization.

By 2035, the market is expected to achieve substantial growth, driven by innovative AI applications.

Market Segmentation

US Artificial Intelligence in Supply Chain Market Component Outlook

  • Software
  • Network
  • Hardware
  • FPGA
  • GPU
  • ASIC

US Artificial Intelligence in Supply Chain Market End-users Outlook

  • Automotive
  • Retail
  • Manufacturing

US Artificial Intelligence in Supply Chain Market Technology Outlook

  • Machine Learning
  • Natural Language Processing

Report Scope

MARKET SIZE 2024 11.55(USD Billion)
MARKET SIZE 2025 12.45(USD Billion)
MARKET SIZE 2035 26.39(USD Billion)
COMPOUND ANNUAL GROWTH RATE (CAGR) 7.8% (2024 - 2035)
REPORT COVERAGE Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
BASE YEAR 2024
Market Forecast Period 2025 - 2035
Historical Data 2019 - 2024
Market Forecast Units USD Billion
Key Companies Profiled IBM (US), SAP (DE), Oracle (US), Microsoft (US), Siemens (DE), Blue Yonder (US), C3.ai (US), Kinaxis (CA), Llamasoft (US)
Segments Covered Component, End-users, Technology
Key Market Opportunities Integration of advanced analytics and machine learning enhances efficiency in the artificial intelligence-in-supply-chain market.
Key Market Dynamics Rising adoption of artificial intelligence enhances supply chain efficiency amid evolving regulatory and competitive landscapes.
Countries Covered US

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FAQs

What is the expected market size of the US Artificial Intelligence in Supply Chain Market in 2024?

The US Artificial Intelligence in Supply Chain Market is expected to be valued at 12.0 USD Billion in 2024.

What is the projected market size for the US Artificial Intelligence in Supply Chain Market by 2035?

By 2035, the market is projected to reach a valuation of 25.0 USD Billion.

What is the expected CAGR for the US Artificial Intelligence in Supply Chain Market from 2025 to 2035?

The expected compound annual growth rate (CAGR) for the market from 2025 to 2035 is 6.9%.

Which segment of the market will see the highest growth in terms of software by 2035?

The software segment is expected to grow from 4.5 USD Billion in 2024 to 10.0 USD Billion by 2035.

What is the projected value of the network component in the market for 2035?

The network component is projected to be valued at 5.5 USD Billion by 2035.

Who are the major players operating in the US Artificial Intelligence in Supply Chain Market?

Key players in the market include SAP, Oracle, NVIDIA, IBM, and Amazon among others.

How much is the hardware segment expected to grow by 2035?

The hardware segment is expected to increase from 3.0 USD Billion in 2024 to 6.0 USD Billion by 2035.

What are some key applications driving growth in the US Artificial Intelligence in Supply Chain Market?

Key applications include supply chain optimization, demand forecasting, and inventory management.

What is the market size for FPGA and GPU components in 2035?

By 2035, the FPGA component is expected to reach 1.0 USD Billion, while the GPU component is anticipated to reach 2.5 USD Billion.

What current global trends might influence the US Artificial Intelligence in Supply Chain Market?

Emerging trends include increased automation, demand for efficiency, and advancements in AI technology.

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