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Leading Element Driving Change in the AI In Logistics Market in 2025: The Rapid Growth Of AI In Logistics Fueled By E-Commerce Expansion Driver
AI In Logistics Market
The expansion of the e-commerce industry is anticipated to drive the AI in logistics market's growth. E-commerce involves online purchase and sale of goods or services, and the exchange of data and funds to finalize these deals. Implementing artificial intelligence in logistics lets e-commerce firms make their operations more streamlined and efficient. This results in better route and supply chain management, and individualized shopping recommendations. For example, U.S. Census Bureau, a government agency in the U.S., reported that retail e-commerce sales in the U.S. for the second quarter of 2024 were $291.6 billion. This was an increase of 1.3% from the first quarter and a rise of 6.7% compared to the previous year. Total retail sales were worth $1,826.9 billion, marking a 0.5% increase from the first quarter and a 2.1% increase from the second quarter of 2023. Thus, the surging e-commerce industry growth is fueling the advance of the AI in logistics market.
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What growth opportunities are expected to drive the ai in logistics market's CAGR through 2034?
In recent years, the market size of AI in logistics has seen a significant increase. The forecast suggests that it will expand from $18.01 billion in 2024 to $26.34 billion in 2025, growing at a compound annual growth rate (CAGR) of 46.2%. Factors such as increasing intricacies in supply chain networks, the escalating need for real-time logistics solutions, advancements in AI and machine learning technologies, an expanding e-commerce sector and the necessity of efficiency and cost optimization in logistics operations are responsible for this growth in the historic period.
The market size for AI in logistics is predicted to experience significant expansion in the coming years, eventually reaching a valuation of $122.51 billion in 2029 with a CAGR of 46.9%. This growth in the predicted period is attributed to various factors, among them the rise of autonomous vehicles and drones in logistics, increasing need for predictive analytics in the domain of supply chain management, development of smart warehouses and fulfillment centers, incorporation of blockchain technology to ensure secure and transparent transactions, and an enhanced focus on environmental sustainability and green logistics. The forecast period also sees major trends like the increased use of AI in route optimization for delivery fleets, development of AI-powered chatbots for superior customer service and support, prevalence of predictive maintenance solutions for logistics assets, the use of AI in demand forecasting and inventory management, and the instigation of AI-backed risk management systems for fortified supply chain resilience.
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What are the emerging trends shaping the future of the ai in logistics market?
Leading businesses in the AI in logistics market are concentrating on bringing advanced technologies to the table, such as AI-enabled solutions for supply chain management and orchestration, in order to enhance their market profitability. These solutions harness the power of artificial intelligence to improve various aspects of the supply chain. For example, Blue Yonder, an Indian company specializing in digital supply chain management solutions, released Blue Yonder Orchestrator in December 2023. This innovative AI tool eases the management and orchestration of supply chains by integrating large language models, cloud-based data, and prompt engineering, offering recommendations for supply chain decisions. This AI-driven solution provides immediate access for business users to expert advice, accurate forecasts, and informed decisions, thereby enabling them to make optimal choices that positively impact their supply chain operations. Given the challenge faced by many professionals in keeping up with the rapidly evolving supply chain sector, Blue Yonder Orchestrator can serve as an invaluable assistant, aiding businesses in enhancing their intuition through data-driven decision making for rapid and effective outcomes.
Which growth-oriented segments of the ai in logistics market are leading the industry's development?
The AI in logistics market covered in this report is segmented -
1) By Offering: Software, Services
2) By Technology: Machine Learning, Natural Language Processing, Context Awareness Computing, Computer Vision
3) By Application: Self-driving Vehicles And Forklifts, Planning And Forecasting, Machine And Human Collaboration, Automation Of Ordering And Processing
4) By Industry Vertical: Automotive, Food And Beverages, Manufacturing, Healthcare, Retail
Subsegments:
1) By Software: Predictive Analytics Software, Route Optimization Software, Inventory Management Software, Warehouse Management Software
2) By Services: AI Integration Services, Consulting Services, Support And Maintenance Services
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What regions are leading the charge in the ai in logistics market?
North America was the largest region in the AI in logistics market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the ai in logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
What companies are at the forefront of innovation in the ai in logistics market?
Major companies operating in the AI in logistics market report are Amazon.com Inc., Alphabet Inc., Microsoft Corporation, DHL International GmbH, United Parcel Service, Inc., FedEx Corporation, CEVA Logistics AG, Intel Corporation, IBM Corporation, Oracle Corporation, Kuehne + Nagel International AG, NVIDIA Corporation, XPO Logistics, Inc., Zebra Technologies, HAVI, Infor, Echo Global Logistics, Symbotic, C3 AI, Turvo Inc., project44 Inc., Wise Systems, Inc., Covariant, Cognitivescale Inc., Slync.io Inc., Transportation Applied Intelligence LLC
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What Is Covered In The AI In Logistics Global Market Report?
• Market Size Forecast: Examine the ai in logistics market size across key regions, countries, product categories, and applications.
• Segmentation Insights: Identify and classify subsegments within the ai in logistics market for a structured understanding.
• Key Players Overview: Analyze major players in the ai in logistics market, including their market value, share, and competitive positioning.
• Growth Trends Exploration: Assess individual growth patterns and future opportunities in the ai in logistics market.
• Segment Contributions: Evaluate how different segments drive overall growth in the ai in logistics market.
• Growth Factors: Highlight key drivers and opportunities influencing the expansion of the ai in logistics market.
• Industry Challenges: Identify potential risks and obstacles affecting the ai in logistics market.
• Competitive Landscape: Review strategic developments in the ai in logistics market, including expansions, agreements, and new product launches.
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