Artificial intelligence in supply chain market to reach $21.8 billion by 2027
According to a new market research report published by Meticulous Research, the artificial intelligence (AI) in supply chain market is expected to grow at a CAGR of 39.4% from 2019 to reach $21.8 billion by 2027.
As supply chain networks become more complex, firms across the globe are increasingly struggling with rising operational costs, increased customer demands and enhanced competition. According to the report, organizations are aggressively adopting AI-based solutions to solve these challenges. The adoption of artificial intelligence technologies creates new opportunities by leveraging new supply chain possibilities, speeding processes, and making organizations more adaptable to changes in the future.
Rapid adoption of AI technology across the supply chain operations, rising awareness about the benefits of AI and widening implementation of computer vision technologies across several end-use industries are the key factors this growth.
Based on component, the software segment is estimated to account for the largest share of the overall AI in supply chain market in 2019; and is slated to grow at the fastest CAGR during the forecast period. The large share of this segment is attributed to the supply chain visibility offered by software, including inventory control, warehouse management, order procurement, and reverse logistics and tracking.
Based on technology, the machine learning segment is estimated to account for the largest share of the overall AI in supply chain market, in 2019. This is mainly attributed to the growing demand for AI-based intelligent solutions, increasing government initiatives, and ability of AI solutions to efficiently handle and analyze big data and quickly scan, parse, and react to anomalies. On the other hand, computer vision technology is slated to grow at the fastest CAGR during the forecast period, due to widening implementation of computer vision across several end-use industries for monitoring operations, spotting suspicious behavior, and preventing thefts.
Based on the application, supply chain planning is estimated to hold the largest share of the overall AI market in supply chain, in 2019. This is mainly attributed to the ability of AI solutions to optimize supply chain operations and digitize existing processes and workflows by reinventing the supply chain planning. On the other hand, the demand for AI solutions for warehouse management applications is slated to grow at a fastest CAGR during the forecast period, mainly due to benefits offered by AI solutions in the form of optimizing the logistics, spotting & detecting abnormalities and automated sorting.
Based on end-user, the consumer-packaged-goods (CPG) segment is estimated to hold the largest share of the overall AI in supply chain market in 2019, due to expanding e-commerce sector and ability of AI solutions to provide profitable drop-shipping with features like product tracking, inventory management, and warehouse management. On the other hand, the retail segment is slated to grow at the fastest CAGR during the forecast period, mainly due to benefits of AI in the form of addressing issues with stocking inefficiencies, complexity of operations and high product lead times in supply chain operations of the retail industry.
To learn more about AI in supply chains, make plans now to attend MODEX 2020 at Atlanta’s Georgia World Congress Center from March 9-11. MODEX is the largest supply chain expo in 2020 and multiple exhibitors and educational sessions will be showcasing the latest AI technologies and trends.