AI in Logistics and Supply Chain Management Market to Grow at 38.5% CAGR Through 2029: Industry Report

The Business Research Company

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

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

— The Business Research Company

LONDON, GREATER LONDON, UNITED KINGDOM, January 9, 2026 /EINPresswire.com/ -- The rapid advancement of artificial intelligence is reshaping how logistics and supply chains are managed worldwide. As companies seek smarter, more efficient ways to handle everything from sourcing to delivery, AI technologies are becoming central to streamlining operations and meeting evolving market demands. Let’s explore the current size, growth drivers, leading regions, and future trends in the AI in logistics and supply chain management market.

Projected Market Size and Expansion for AI in Logistics and Supply Chain Management
The AI in logistics and supply chain management market has experienced remarkable growth recently. It is anticipated to increase from $4.03 billion in 2024 to $5.72 billion in 2025, representing a compound annual growth rate (CAGR) of 41.7%. This historical growth has been fueled by factors such as mounting cost pressures, the need for improved operational efficiency, shortages of skilled talent, the rise of just-in-time inventory methods, evolving regulatory environments, trade agreements, and geopolitical challenges.

Looking further ahead, the market is expected to surge to $21.06 billion by 2029, with a strong CAGR of 38.5%. The forecasted expansion is driven by innovations including augmented reality (AR) and virtual reality (VR) adoption, blockchain technology enhancing supply chain transparency, optimization of multi-modal transport, natural language processing (NLP) for better insight generation, and hybrid workforce models. Key trends also highlight AI’s integration with the Internet of Things (IoT) and big data analytics, increasing use of predictive analytics, rising demand for cloud-based AI solutions, a stronger emphasis on sustainability and green logistics practices, and ongoing investment in research and development.

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Understanding AI’s Role in Logistics and Supply Chain Management
AI in this sector involves leveraging advanced technologies to automate and optimize tasks across the entire supply chain — from procurement of raw materials to the delivery of finished products. These AI applications aim to boost operational efficiency, enhance customer experience, lower costs, and manage risks more effectively. By analyzing vast amounts of data and providing predictive insights, AI helps businesses make smarter decisions and respond dynamically to market fluctuations.

The E-Commerce Industry as a Catalyst for AI Market Growth
One of the primary forces driving the AI logistics and supply chain market is the booming e-commerce sector. E-commerce, defined as the buying and selling of goods and services primarily through online platforms like websites and mobile apps, thrives on convenience, wider internet access, and changing consumer behavior favoring online purchases. AI technologies support e-commerce logistics by improving demand forecasting, refining inventory control, optimizing delivery routes, reducing operational costs, and boosting customer satisfaction. For example, in February 2024, the United States Census Bureau reported that U.S. e-commerce sales reached $1,118.7 billion in 2023, marking a 7.6% increase from 2022. Furthermore, e-commerce accounted for 15.4% of total retail sales in 2023, up from 14.7% the year before. This growth clearly illustrates how e-commerce expansion is propelling the adoption of AI within logistics and supply chain management.

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https://www.thebusinessresearchcompany.com/report/ai-in-logistics-and-supply-chain-management-global-market-report

North America’s Position as a Market Leader in AI Logistics and Supply Chain Solutions
In 2024, North America held the largest share of the AI in logistics and supply chain management market. The analysis covers several key regions worldwide, including Asia-Pacific, Western Europe, Eastern Europe, South America, the Middle East, and Africa. While North America currently leads, other regions are expected to grow rapidly as they adopt AI-driven logistics technologies to enhance their supply chains.

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