AI in Supply Chain Industry worth USD 50.41 billion by 2032

The report “AI in Supply Chain Industry by Offering (Software, Services), Deployment (Cloud, On-premises, Hybrid), Application (Demand Planning & Forecasting, Warehouse & Transportation Management, Supply Chain Risk Management) – Global Forecast to 2032” The global AI in supply chain market is projected to grow from USD 13.93 billion in 2025 to USD 50.41 billion by 2032 at a CAGR of 20.2%. The market for AI in supply chains is steadily growing as companies focus on agility, visibility, and resilience in complex global networks. The use of AI for demand forecasting, inventory optimization, and logistics analytics is improving efficiency and service levels. This growth is also driven by cloud-based de ployment, real-time data integration, and the need to address disruptions from demand fluctuations, labor issues, and transportation problems. AI plays a key role in transforming supply chains with data.

By offering, the software segment is expected to dominate the AI in supply chain market.

The software segment is expected to hold the largest market share in the AI in supply chain market. This is driven by strong demand for analytics, planning, and decision-support platforms. AI-powered software solutions help organizations improve demand forecasting, optimize inventory, plan production, and coordinate logistics in complex supply networks. These platforms are widely used because they scale well, integrate easily with existing ERP and logistics systems, and provide ongoing insights through cloud deployment. Software offerings also benefit from subscription models and regular feature updates. This allows businesses to respond quickly to changing market conditions. As companies focus more on data-driven operations and complete transparency, AI-based supply chain software continues to lead in market adoption.

By end-use industry, automotive is projected to grow at the highest rate during the forecast period.

The automotive industry is projected to grow at the fastest rate for the AI in supply chain market. This growth is supported by increasing production complexity, electrification, and global sourcing issues. Automotive manufacturers and suppliers are using AI to manage multi-tier supplier networks, optimize just-in-time inventory, and enhance the accuracy of demand and production planning. AI solutions also assist with risk monitoring, quality management, and logistics optimization across operations spread out geographically. The shift toward electric vehicles and connected mobility adds to data volumes and supply chain complexity, which speeds up AI adoption. As automakers concentrate on resilience, cost control, and faster market entry, AI-enabled supply chain solutions are becoming crucial across the automotive value chain.

The AI in supply chain market in North America is projected to account for the largest market share during the forecast period.

The North American AI in supply chain market has the largest share during the forecast period. This is due to the early use of digital technologies and high spending on IT within the region. Companies in retail, manufacturing, logistics, and consumer goods are actively using AI solutions to improve demand forecasting, optimize inventory, and plan transportation. The presence of large enterprises, complex distribution networks, and established cloud infrastructure speeds up the adoption of AI. This allows for real-time visibility and data-driven decisions across supply chains. Additionally, the rapid growth of e-commerce and omnichannel retail in the region is driving the need for smarter warehouse and logistics management solutions.

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Leading providers in North America, such as Oracle, Blue Yonder Group, Inc., Manhattan Associates, Kinaxis Inc., IBM, and Microsoft, are continuously expanding their AI supply chain offerings. They focus on predictive analytics, machine learning models, and cloud-based platforms. Strong innovation networks, partnerships with cloud providers, and ongoing investments in digital transformation projects are fueling market growth. Supportive government policies that promote digitalization, advanced analytics, and resilient supply chains further strengthen North America’s role as a key hub for AI in supply chain operations.