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Artificial intelligence in logistics encompasses the application of machine learning (ML) and algorithms to automate and optimize different facets of the logistics sector. Its purpose is to streamline routine tasks, enhance efficiency, lower costs, and facilitate intelligent decision-making.
The primary offerings of AI in logistics consist of software and services. Software entails the provision of automation, data analysis, and decision-making support. Various technologies, including machine learning, natural language processing, context awareness computing, and computer vision, are employed across various applications such as self-driving vehicles and forklifts, planning and forecasting, human-machine collaboration, and automation of ordering and processing. These solutions find application in diverse industry verticals including automotive, food and beverages, manufacturing, healthcare, and retail.
The AI in logistics market research report is one of a series of new reports from The Business Research Company that provides AI in logistics market statistics, including AI in logistics industry global market size, regional shares, competitors with a AI in logistics market share, detailed AI in logistics market segments, market trends and opportunities, and any further data you may need to thrive in the AI in logistics industry. This AI in logistics market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The AI in logistics market size has grown exponentially in recent years. It will grow from $18.01 billion in 2024 to $26.34 billion in 2025 at a compound annual growth rate (CAGR) of 46.2%. The growth in the historic period can be attributed to increasing complexity in supply chain networks, rising demand for real-time logistics solutions, advancements in AI and machine learning technologies, growing e-commerce sector, need for efficiency and cost optimization in logistics operations.
The AI in logistics market size is expected to see exponential growth in the next few years. It will grow to $122.51 billion in 2029 at a compound annual growth rate (CAGR) of 46.9%. The growth in the forecast period can be attributed to expansion of autonomous vehicles and drones in logistics, rising demand for predictive analytics in supply chain management, growth of smart warehouses and fulfillment centers, integration of blockchain technology for transparent and secure transactions, increasing focus on sustainability and green logistics. Major trends in the forecast period include adoption of AI-powered route optimization for delivery fleets, development of AI chatbots for customer service and support, emergence of predictive maintenance solutions for logistics assets, utilization of AI for demand forecasting and inventory management, implementation of AI-enabled risk management systems for supply chain resilience.
The rapid growth of the e-commerce sector is expected to fuel the expansion of the AI in logistics market. E-commerce involves the buying and selling of goods or services online, as well as the transfer of data and funds to complete transactions. The integration of AI in logistics enables e-commerce businesses to optimize their operations, improving efficiency through benefits like route optimization, supply chain management, and personalized shopping recommendations. For example, in August 2024, the U.S. Census Bureau, a US-based government agency, reported that retail e-commerce sales in the U.S. reached $291.6 billion in Q2 2024, a 1.3% increase from Q1 and a 6.7% rise year-over-year. Total retail sales amounted to $1,826.9 billion, up 0.5% from Q1 and 2.1% from Q2 2023. As such, the continued growth of e-commerce is driving the demand for AI in logistics.
Key players in the AI in logistics market are focusing on introducing advanced solutions, such as AI-powered supply chain management and orchestration solutions, to enhance their competitiveness in the market. These solutions leverage artificial intelligence to streamline and optimize various aspects of the supply chain. For instance, in December 2023, Blue Yonder, an India-based digital supply chain management solutions company, launched Blue Yonder Orchestrator, a generative AI tool that simplifies supply chain management and orchestration. This innovative feature utilizes large language models (LLMs), cloud data, and prompt engineering to recommend supply chain decisions, providing business users with instant access to advice, forecasts, and intelligent decisions to improve supply chain operations.
In October 2022, Dachser Group SE & Co. KG, a Germany-based logistics company, acquired Kasasi GmbH, a German software company specializing in developing and applying AI solutions to optimize transport and logistics operations. This strategic acquisition aims to expand Dachser's capabilities in rail transportation monitoring and analysis solutions, particularly in sectors such as rail, retail, food, and pharmaceuticals. Kasasi GmbH will continue serving its existing clientele while focusing on future expansion in rail transportation monitoring and analysis solutions.
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
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.
The countries covered in the AI in the Logistics market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain
The AI in the Logistics market includes revenues earned by entities by providing route optimization, predictive analytics, warehouse automation, demand forecasting, inventory control and planning, and fleet performance. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
AI In Logistics Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on ai in logistics market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
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Where is the largest and fastest growing market for ai in logistics ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The ai in logistics market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The market characteristics section of the report defines and explains the market.
The market size section gives the market size ($b) covering both the historic growth of the market, and forecasting its development.
The forecasts are made after considering the major factors currently impacting the market. These include:
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.
Market segmentations break down the market into sub markets.
The regional and country breakdowns section gives an analysis of the market in each geography and the size of the market by geography and compares their historic and forecast growth. It covers the growth trajectory of COVID-19 for all regions, key developed countries and major emerging markets.
The competitive landscape chapter gives a description of the competitive nature of the market, market shares, and a description of the leading companies. Key financial deals which have shaped the market in recent years are identified.
The trends and strategies section analyses the shape of the market as it emerges from the crisis and suggests how companies can grow as the market recovers.
Scope
Markets Covered: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