AI in Supply Chain Market

The report "Al in Supply Chain Market by Application (Demand Planning & Forecasting, Supply Chain Risk Management, Inventory Management, Warehouse & Transportation Management), Services (Professional, Managed), Software - Global Forecast to 2031" The global AI in supply chain market is expected to be valued at 14.49 billion in 2025 and reach 50.01 billion by 2031, growing at a CAGR of 22.9% from 2025 to 2031. Increased e-commerce, omnichannel, and complexity in global trade compel organizations to implement AI to enable more intelligent fulfillment and inventory alignment. AI also facilitates enhanced supplier collaboration by simplifying communication and automating contract and compliance management. With the increasing danger of disruptions, supply chain resilience has emerged as a strategic priority, and AI provides scenario modeling and real-time contingency planning. Moreover, AI helps bridge gaps by freeing up repetitive work and decision-making tasks. Greater availability of data from IoT and smart sensors further drives AI adoption, transforming raw data into actionable intelligence throughout the supply chain ecosystem.

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The global AI in supply chain market is expected to be valued at 14.49 billion in 2025 and reach 50.01 billion by 2031, growing at a CAGR of 22.9% from 2025 to 2031. Increased e-commerce, omnichannel, and complexity in global trade compel organizations to implement AI to enable more intelligent fulfillment and inventory alignment. AI also facilitates enhanced supplier collaboration by simplifying communication and automating contract and compliance management. With the increasing danger of disruptions, supply chain resilience has emerged as a strategic priority, and AI provides scenario modeling and real-time contingency planning. Moreover, AI helps bridge gaps by freeing up repetitive work and decision-making tasks. Greater availability of data from IoT and smart sensors further drives AI adoption, transforming raw data into actionable intelligence throughout the supply chain ecosystem.

Services segment is expected to grow at the highest CAGR during the forecast period.

The services segment is expected to grow at the highest CAGR in the AI supply chain market during the forecast period due to a growing need for customized implementation, integration, and support services. As businesses implement AI technologies, they must customize solutions to their distinct business processes and legacy systems. Professional services, such as consulting, system integration, and training, ensure smooth deployment and maximum performance. Furthermore, as AI systems become increasingly sophisticated, organizations turn to managed services for ongoing monitoring, updates, and maintenance, freeing them up to engage in core business practices. Small- and medium-sized businesses, especially, adopt outsourced services to leverage sophisticated capabilities at a lower cost of developing internal expertise. Additionally, the increased use of cloud-based AI platforms drives the urgency for providers with the ability to manage data migration, scalability planning, and regulatory demands. Such increased use of professional assistance and multi-year service alliances is driving the fast expansion of the services segment.

Demand planning & forecasting segment is projected to dominate the AI in the supply chain market during the forecast period.

Demand planning and forecasting lead the AI in the supply chain market due to its disruptive impact on operational effectiveness and decision-making. These software tools leverage advanced algorithms and current data from historical sales to external influences, such as market conditions, weather, and events, to deliver highly accurate demand forecasts. This facilitates businesses in reducing their inventory cost, avoiding stockouts, and optimizing production and procurement activities. AI can dynamically respond to shifting patterns, ensuring agility and responsiveness in a volatile market. The demand for end-to-end supply chain visibility and data-based strategic decision-making also drives its increased application. As companies compete more intensely, artificial demand forecasting intelligence is essential for long-term resilience and customer satisfaction.

Asia Pacific is likely to witness the highest CAGR in the AI in supply chain market during the forecast period.

Asia Pacific is expected to be the fastest-growing market during the forecast period due to accelerated digitalization, strong manufacturing centers, and government encouragement for AI and intelligent logistics. China, Japan, South Korea, and India are investing significantly in AI technologies to enhance supply chain efficiency, reduce costs, and enhance competitiveness in global trade. The region also hosts some of the largest e-commerce markets worldwide, which need agile, AI-driven supply chain networks for real-time fulfillment and delivery. In addition, the growing adoption of IoT, robotics, and cloud computing across automotive, electronics, retail, and pharmaceutical industries fuels AI integration. Government plans, such as China’s “New Generation AI Development Plan” and India’s “Digital India,” also drive infrastructure and policy support further. The availability of large consumer markets, emerging SME industries, and increasing foreign direct investment also fuel the region’s rapid growth trajectory.

Key Players

The AI in supply chain market includes significant Tier I and II players, such as SAP SE (Germany), Oracle (US), Blue Yonder Group, Inc. (US), Kinaxis Inc. (Canada), Manhattan Associates (US), IBM (US), Microsoft (US), Anaplan, Inc. (US), ServiceNow (US), and e2open, LLC (US).

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