(Entertainment-NewsWire.com, January 15, 2020 ) According to a new market research report “Artificial Intelligence in Supply Chain Market by Component (Platforms, Solutions), Technology (Machine Learning, Computer Vision, Natural Language Processing), Application (Warehouse, Fleet, Inventory Management), & End User - Global Forecast to 2027”,
A Report published by Meticulous Research®, the AI in Supply Chain Market is expected to grow at a CAGR of 39.4% from 2019 to reach $21.8 billion by 2027.
Today supply chain networks are becoming more and more complex owing to progressive globalization. Various well-established supply chain organizations across the globe are increasingly struggling with rising cost of operations, dissatisfied customers, declining sales, and unidentified competition. Therefore, the adoption of artificial intelligence technologies in supply chain operations is on the rise in order to create new opportunities & enhance operational capabilities by leveraging new possibilities, fastening processes, and making organizations adaptable to changes in the future.
Realizing the fact, various end-use industries are investing heavily in order to reap the profits in highly dynamic and competitive market environments. Organizations are aggressively adopting AI-based solutions for supply chain operations to reshape their business processes and increase profitability. Rapid adoption of AI technology across the supply chain operations, rising awareness about artificial intelligence, and widening implementation of computer vision technologies across several end-use industries are the key factors driving steady growth in the global artificial intelligence in supply chain market.
In recent years, the funding for development and implementation of artificial intelligence solutions for supply chain industry has increased significantly. For instance, in 2018, the Government of Québec invested $60 million in order to support AI-Powered Supply Chains Supercluster (SCALE.AI). Similar investments were also made by the Government of Canada investing up to nearly $230 million for the AI-Powered Supply Chains Supercluster in 2018. Such initiatives are bringing the manufacturing, retail, and information & communications technology sectors on the same platform, to develop intelligent solutions for supply chain management through incorporation of robotics and AI technologies.
Based on component, the software segment is estimated to account for the largest share of the overall artificial intelligence 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.
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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 artificial intelligence 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.
Manufacturing Food and Beverages Healthcare Automotive Aerospace Retail Consumer-Packaged Goods
AI in Supply Chain Market, by Geography
North America U.S. Canada Europe Germany France U.K. Italy Spain Rest of Europe (RoE) Asia-Pacific (APAC) Japan China India Rest of APAC (RoAPAC) Latin America Middle East & Africa
The global artificial intelligence in supply chain market is highly fragmented with the presence of key players, such as Intel Corporation (U.S.), Amazon.com, Inc. (U.S.), Google LLC (U.S.), Microsoft Corporation (U.S.), Nvidia Corporation (U.S.), Oracle Corporation (U.S.), IBM Corporation (U.S.), Samsung (South Korea), LLamasoft Inc. (U.S.), SAP (Germany), General Electric (U.S.), Deutsche Post AG DHL (Germany), Xilinx (U.S.), Micron Technology, Inc. (U.S.), FedEx (U.S.), and ClearMetal, Inc. (U.S.) along with several local and regional players.
The report also includes an extensive assessment of the key strategic developments adopted by leading market participants in the AI in supply chain industry over the past 4 years (2016-2019). The artificial intelligence in supply chain market has witnessed number of partnerships & agreements in the recent years. For instance, in December 2018, Google announced a strategic partnership with Iguazio to provide real-time supply chain and inventory management services for the retail sector.
