AI in Supply Chain Market to be Worth $58.55 Billion by 2031
Meticulous Research®—a
leading global market research company, published a research report titled, ‘AI
in Supply Chain Market by Offering (Hardware, Software, Other), Technology (ML,
NLP, RPA, Other), Deployment Mode, Application (Demand Forecasting, Other),
End-use Industry (Manufacturing, Retail, F&B, Other) & Geography -
Global Forecast to 2031’
According to this
latest publication from Meticulous Research®, the AI in supply chain
market is projected to reach $58.55
billion by 2031, at a CAGR of 40.4% from 2024 to 2031. The growth of the AI in supply chain market
is driven by the increasing incorporation of artificial intelligence in supply
chain operations and the rising need for greater visibility & transparency
in supply chain processes. However, the high procurement & operating costs
of AI-based supply chain solutions and the lack of supporting infrastructure
restrain the growth of this market.Furthermore, the growing demand for AI-based
business automation solutions is expected to generate growth opportunities for
the players operating in this market. However, performance issues in
integrating data from multiple sources and data security & privacy concerns
are major challenges impacting market growth. Additionally, the rising demand
for cloud-based supply chain solutions is a prominent trend in the AI in supply
chain market.
Key Players:
Some of the key
players operating in the AI in supply chain market are IBM Corporation (U.S.),
SAP SE (Germany), Microsoft Corporation (U.S.), Google LLC (U.S.), Amazon Web
Services, Inc. (U.S.), Intel Corporation (U.S.), NVIDIA Corporation (U.S.),
Oracle Corporation (U.S.), C3.ai, Inc. (U.S.), Samsung SDS CO., Ltd. (South
Korea), Coupa Software Inc. (U.S.), Micron Technology, Inc. (U.S.),
Advanced Micro Devices, Inc. (U.S.), FedEx Corporation (U.S.), and Deutsche
Post DHL Group (Germany).
AI’s
Market Growth Will Transform Supply Chain Management Globally:
AI’s rapid market
growth is changing the operating rhythm of supply
chains from monthly planning cycles to continuous, signal‑driven
decisioning. Demand forecasting models now learn from POS,
promotions, weather, macro indicators, and channel shifts to
sense demand earlier, correct bias, and rebalance
inventory automatically. In practice, planners shift from
spreadsheet firefighting to exception management, while
replenishment, safety stock tuning, and reorder points are
increasingly machine‑driven. The result is fewer stockouts,
less obsolescence, and tighter working capital.
On the execution
side, logistics teams benefit from AI‑powered ETA accuracy,
dynamic routing, carrier selection, and cost‑to‑serve analysis.
Real‑time visibility platforms fuse order, IoT, and network
data to anticipate disruptions and recommend
corrective actions before service levels are threatened. This
move from descriptive dashboards to prescriptive and autonomous
workflows reduces dwell times, expedites, and carbon intensity.
In short, AI becomes the control layer that
connects planning and execution—turning insight into action
at the speed of the network.
Challenges
Companies Face When Implementing AI in Supply Chain Processes:
Adoption isn’t plug‑and‑play.
The biggest early hurdle is data fragmentation: inconsistent taxonomies, master
data issues, and siloed records across ERPs, WMS, TMS, and partner systems
erode model accuracy. Without disciplined data engineering, governance, and
harmonization, even strong algorithms underperform. Legacy infrastructure
complicates matters further, raising questions about interoperability,
security, and compliance—especially in regulated industries and cross‑border
operations where data residency and privacy rules apply.
Cost and change
management also loom large. Standing up robust pipelines, MLOps, and monitoring
requires upfront investment and clear ownership of business outcomes. Teams
need training, role redesign, and transparent performance metrics to trust and
operationalize AI recommendations. Governance is a board‑level imperative: bias
mitigation, explainability, human‑in‑the‑loop controls, and auditability must
be baked in from day one. Organizations that address people, process, and
policy alongside technology scale faster and with fewer setbacks.
Sustainability and
Environmental Impact of AI in Supply Chain Operations:
AI is proving to be a
practical lever for sustainability by aligning greener operations with economic
performance. Better demand sensing limits overproduction and reduces markdowns
and waste, cutting embedded emissions upstream. AI‑optimized routing and mode
selection improve load factors, shrink empty miles, and lower fuel
burn—delivering both cost savings and emissions reductions without compromising
service levels. Predictive maintenance decreases energy waste and prevents
equipment failures, stabilizing throughput in warehouses and fleets.
At the network and
supplier level, AI helps monitor ESG risk, detect anomalies, and promote
responsible sourcing practices more proactively. As workloads migrate to the
cloud, organizations can benefit from hyperscalers’ renewable energy
commitments, which often reduce the carbon intensity of compute compared to
traditional on‑premise environments. Over time, combining AI‑driven decisioning
with science‑based targets and automated reporting can help companies move from
sustainability intent to measurable, auditable results embedded in daily
operations.
Download Sample
Report Here @ https://www.meticulousresearch.com/download-sample-report/cp_id=5064
Key questions
answered in the report:
- Which are the high-growth market segments
based on offering, technology, deployment mode, application, and end-use
industry?
- What was the historical market for AI in
supply chain?
- What are the market forecasts and
estimates for the period 2024–2031?
- What are the major drivers, restraints,
and opportunities in the AI in supply chain market?
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