AI In Logistics And Supply Chain Management Market In 2029

AI In Logistics And Supply Chain Management Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

AI In Logistics And Supply Chain Management Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

AI In Logistics And Supply Chain Management Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

The Business Research Company’s AI In Logistics And Supply Chain Management Global Market Report 2025 – Market Size, Trends, And Forecast 2025-2034

LONDON, GREATER LONDON, UNITED KINGDOM, December 18, 2025 /EINPresswire.com/ -- AI In Logistics And Supply Chain Management Market to Surpass $134 billion in 2029. In comparison, the Artificial Intelligence market, which is considered as its parent market, is expected to be approximately $250 billion by 2029, with AI In Logistics And Supply Chain Management to represent around 54% of the parent market. Within the broader Information Technology industry, which is expected to be $12,711 billion by 2029, the AI In Logistics And Supply Chain Management market is estimated to account for nearly 1% of the total market value.

Which Will Be the Biggest Region in the AI In Logistics And Supply Chain Management Market in 2029
North America will be the largest region in the AI in logistics and supply chain management global market in 2029, valued at $44,891 million. The market is expected to grow from $10,127 million in 2024 at a compound annual growth rate (CAGR) of 35%. The exponential growth can be attributed to the increasing technological advancements and increasing e-commerce industry.

Which Will Be The Largest Country In The Global AI In Logistics And Supply Chain Management Market In 2029?
The USA will be the largest country in the AI in logistics and supply chain management global market in 2029, valued at $40,156 million. The market is expected to grow from $8,937 million in 2024 at a compound annual growth rate (CAGR) of 35%. The exponential growth can be attributed to the expansion of the e-commerce industry, the rise in cross-border trade, rising fuel prices and transportation costs and growth in demand for real-time tracking.

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What will be Largest Segment in the AI In Logistics And Supply Chain Management Market in 2029?
The AI in logistics and supply chain management market is segmented by offering into solution and services. The solution market will be the largest segment of the AI in logistics and supply chain management market segmented by offering, accounting for 78% or $104,114 million of the total in 2029. The solution market will be supported by the optimization of inventory management, enhanced demand forecasting. The adoption of AI solutions is further supported by the rise in e-commerce activities, increasing focus on reducing operational costs, the demand for seamless supply chain visibility and growing need for real-time tracking and monitoring.

The AI in logistics and supply chain management market is segmented by type into machine learning, natural language processing (NLP), computer vision, context-aware computing and others. The machine learning market will be the largest segment of the ai in logistics and supply chain management market segmented by type, accounting for 45% or $60,261 million of the total in 2029. The machine learning market will be supported by the rising demand for predictive analytics, growing adoption of machine learning algorithms for route optimization, the need for data-driven insights to improve decision-making processes and operational efficiency further supports this segment. Additionally, advancements in big data analytics and cloud computing enable seamless machine learning integration, boosting its adoption in the logistics sector. Rising investments in AI-powered platforms to enhance operational efficiency and decision-making also contribute significantly.

The AI in logistics and supply chain management market is segmented by deployment into cloud-based and on-premise. The cloud-based market will be the largest segment of the ai in logistics and supply chain management market segmented by deployment, accounting for 70% or $94,190 million of the total in 2029. The cloud-based market will be supported by the growing need for scalable and cost-effective solutions, the ability of cloud platforms to facilitate seamless integration with existing supply chain systems, the flexibility of cloud-based solutions in handling dynamic supply chain requirements, rising demand for improved collaboration across geographically dispersed teams, enhanced data security and increase in merger and acquisition activity further supports this segment.

The AI in logistics and supply chain management market is segmented by application into warehouse management, transportation management, order fulfilment, demand forecasting, inventory optimization, supply chain planning and other applications. The supply chain planning market will be the largest segment of the ai in logistics and supply chain management market segmented by application, accounting for 35% or $46,733 million of the total in 2029. The supply chain planning market will be supported by the growing need for enhanced efficiency and agility in managing complex supply chains, to improve demand forecasting, production scheduling and inventory management, increasing focus on reducing lead times, minimizing disruptions and improving decision-making further fuels the segment’s growth. Additionally, AI enables real-time data analysis, helping businesses respond quickly to market changes, optimize production and streamline distribution processes. The segment is also supported by a rise in technological advancements.

The AI in logistics and supply chain management market is segmented by end user into automotive, aerospace, manufacturing, retail, healthcare and other end users. The automotive market will be the largest segment of the ai in logistics and supply chain management market segmented by end user, accounting for 28% or $37,973 million of the total in 2029. The automotive market will be supported by the increasing complexity of global supply chains, the need for improved production efficiency and inventory management, growing trend of electric vehicles (EVs) and autonomous vehicles further drives AI adoption in manufacturing and logistics processes. Additionally, AI helps enhance supply chain visibility, improve demand forecasting and streamline transportation logistics for automotive companies.

What is the expected CAGR for the AI In Logistics And Supply Chain Management Market leading up to 2029?
The expected CAGR for the AI in logistics and supply chain management market leading up to 2029 is 41%.

What Will Be The Growth Driving Factors In The Global AI In Logistics And Supply Chain Management Market In The Forecast Period?
The rapid growth of the global ai in logistics and supply chain management market leading up to 2029 will be driven by the following key factors that are expected to reshape supply chain transparency, operational efficiency, and risk resilience worldwide.

Rise In Cross-Border Trade - The rise in cross-border trade will become a key driver of growth in the ai in logistics and supply chain management market by 2029. Cross-border trade refers to the exchange of goods, services, or capital between businesses or individuals located in different countries, involving the movement of products across international borders. Cross-border trade is rising due to globalization, advancements in technology, improved logistics and the growing demand for diverse products from international markets. AI in logistics and supply chain management is required for cross-border trade to optimize inventory management, streamline customs processes, predict demand, enhance route planning and improve real-time tracking and risk management across complex international supply chains. As a result, the rise in cross-border trade is anticipated to contributing to annual growth in the market.

Expansion Of E-Commerce Industry – The expansion of e-commerce industry will emerge as a major factor driving the expansion of the market by 2029. E-commerce is rising due to increased internet penetration, convenience, a growing preference for online shopping and advancements in digital payment systems. AI in logistics and supply chain management is crucial for the e-commerce industry to optimize inventory management, automate order fulfilment and enhance delivery efficiency. It also helps predict demand patterns, personalize customer experiences and improve real-time tracking and route optimization, ensuring faster and more accurate services. As a result, the expansion of e-commerce industry is anticipated to contributing to annual growth in the market.

Rising Urbanization And Megacities - The rising urbanization and megacities will serve as a key growth catalyst for the market by 2029, Urbanization and megacities are rising due to economic opportunities, industrialization, improved infrastructure and better living standards attracting people from rural areas to urban centres. Urbanization and the growth of megacities drive the demand for efficient logistics and supply chain management, providing a vast amount of data for AI to analyse and optimize delivery routes, inventory management and resource allocation. The concentration of population and businesses in urban areas enables AI-powered solutions to enhance speed, reduce costs and improve last-mile delivery efficiency. As a result, the rising urbanization and megacities is anticipated to contributing to annual growth in the market.

Favourable Government Initiatives - The favourable government initiatives will become a significant driver contributing to the growth of the market by 2029. Government initiatives are strategic actions or programs launched by governments to address specific issues, promote economic growth, or improve public welfare through policy, funding and regulation. Government initiatives are rising due to the increasing need to address complex global challenges such as economic recovery, environmental sustainability, public health and technological innovation while promoting social well-being and national competitiveness. Government initiatives positively impact AI in logistics and supply chain management by providing funding, regulation and infrastructure that support the development and adoption of AI technologies. These initiatives foster innovation, ensure standardization and encourage collaboration between the public and private sectors, accelerating AI integration and improving supply chain efficiency and resilience. As a result, the rising urbanization and megacities is anticipated to contributing to annual growth in the market.

Growing Demand For Automation – The favourable government initiatives will become a significant driver contributing to the growth of the market by 2029. Automation is the use of technology and systems to perform tasks or processes with minimal human intervention, improving efficiency, accuracy and productivity. Automation is rising due to the growing demand for increased efficiency, cost reduction, improved accuracy and the ability to handle complex tasks in industries such as manufacturing, logistics and services. Automation enhances AI in logistics and supply chain management by streamlining repetitive tasks, allowing AI systems to focus on data analysis, optimization and decision-making. This synergy enables more efficient operations, faster processing times and improved accuracy in inventory management, route planning and demand forecasting. As a result, the favourable government initiatives is anticipated to contributing to annual growth in the market.

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What Are The Key Growth Opportunities In The AI In Logistics And Supply Chain Management Market in 2029?
The most significant growth opportunities are anticipated in the AI in logistics and supply chain management solutions market, the machine learning-powered AI in logistics and supply chain management market, the cloud-based AI in logistics and supply chain management market, the AI-powered logistics and supply chain management and planning market, and the AI-driven automotive logistics and supply chain management market. Collectively, these segments are projected to contribute over $284 billion in market value by 2029, driven by increased digitalization of supply networks, rising demand for predictive analytics to improve operational efficiency, and the growing need for resilient and adaptive supply chain infrastructures. This surge reflects the accelerating adoption of AI technologies that enable real-time demand forecasting, automated decision-making, and end-to-end process optimization, fuelling transformative advancements across manufacturing, retail, logistics, and automotive ecosystems.

The AI in logistics and supply chain management solutions market is projected to grow by $84,766 million, the cloud-based AI in logistics and supply chain management market by $79,092 million, the machine learning-powered AI in logistics and supply chain management market by $49,837 million, the AI-powered logistics and supply chain management and planning market by $38,869 million, and the AI-driven automotive logistics and supply chain management market by $31,371 million over the next five years from 2024 to 2029.

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