Generative Artificial Intelligence (AI) in Logistics Market Report 2025 – Strategic Data for Growth and Expansion
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What is the anticipated market size of the generative artificial intelligence (ai) in logistics industry over the next few years?
The generative artificial intelligence (AI) in logistics market size has grown exponentially in recent years. It will grow from $0.6 $ billion in 2024 to $0.8 $ billion in 2025 at a compound annual growth rate (CAGR) of 32.7%. The growth in the historic period can be attributed to increasing demand for real-time data analysis, growth in e-commerce, expansion of global supply chains, increasing industrial infrastructure, and rise of automation in warehouse management.
The generative artificial intelligence (AI) in logistics market size is expected to see exponential growth in the next few years. It will grow to $2.46 $ billion in 2029 at a compound annual growth rate (CAGR) of 32.4%. The growth in the forecast period can be attributed to increasing demand for real-time data, increasing use of IoT devices, rising investment in AI technologies, rising need for supply chain visibility, and rising demand for enhanced customer experience. Major trends in the forecast period include technological advancements, autonomous vehicles, predictive analytics, robotic process automation, and digital twins.
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What emerging drivers are expected to shape the future of the generative artificial intelligence (ai) in logistics market?
A rise in e-commerce sales is expected to propel the growth of generative artificial intelligence (AI) in logistics market going forward. E-commerce popularity is growing due to its convenience, wider product selection, and the increasing use of digital technology. Generative AI in e-commerce logistics optimizes inventory management, enhances route planning, and predicts demand, driving efficiency and cost savings. For instance, in May 2024, according to a report published by the Census Bureau of the Department of Commerce, a US-based governmental organization, e-commerce sales reached approximately $1,118.7 billion in 2023. For the first quarter of 2024, total retail sales were estimated at $1,820.0 billion. E-commerce sales during this period saw an 8.5% increase (±1.1%) from the same quarter in 2023, while total retail sales grew by 2.8% (±0.5%). Therefore, a rise in e-commerce sales is driving the growth of generative artificial intelligence (AI) in logistics market.
What emerging segments are shaping the future landscape of the generative artificial intelligence (ai) in logistics industry?
The generative artificial intelligence (AI) in logistics market covered in this report is segmented –
1) By Type: Variational Autoencoder (VAE), Generative Adversarial Networks (GANs), Recurrent Neural Networks (RNNs), Long Short-Term Memory (LSTM) networks, Other Types
2) By Component: Software, Hardware, Solution
3) By Deployment Mode: On-Premises, Cloud-Based
4) By Application: Warehouse Management, Route Optimization, Inventory Management, Supply Chain Analytics, Last-Mile Delivery Optimization, Customer Service Operations, Other Applications
5) By End-User: Retail, Healthcare, Banking And Finance, Aerospace, Telecommunication, Technology, Other End-Users
Subsegments:
1) By Variational Autoencoder (VAE): Demand Forecasting Models, Anomaly Detection In Logistics Operations, Predictive Maintenance For Fleet Management, Data Imputation For Incomplete Records, Supply Chain Optimization Solutions
2) By Generative Adversarial Networks (GANs): Synthetic Data Generation For Training Models, Route Optimization And Simulation, Image Generation For Inventory And Asset Management, Fraud Detection In Shipment And Delivery, Product Demand Forecasting Through Scenario Simulation
3) By Recurrent Neural Networks (RNNs): Time Series Analysis For Demand Prediction, Shipment Tracking And Forecasting, Customer Behavior Prediction For Delivery Services, Inventory Management Forecasting, Delivery Time Estimation Models
4) By Long Short-Term Memory (LSTM) Networks: Advanced Time Series Forecasting, Predictive Analytics For Supply Chain Performance, Transportation Optimization Models, Order Fulfillment Prediction, Capacity Planning And Resource Allocation
5) By Other Types: Reinforcement Learning For Route Optimization, Hybrid Models Combining Multiple AI Approaches, Flow-Based Models For Real-Time Data Analysis, Self-Supervised Learning Techniques, Edge AI For On-Site Decision Making.
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What are the most notable trends influencing investment in the generative artificial intelligence (ai) in logistics sector?
Major companies operating in the generative artificial intelligence (AI) in logistics market are focusing on the adoption of advanced technologies, such as natural language interfaces, to enhance operational efficiency and improve accuracy in supply chain management. A natural language interface refers to a system that allows users to interact with supply chain management software or tools using everyday language, making it easier to query data, generate reports, and manage operations without needing specialized technical knowledge. For instance, in September 2023, FourKites, Inc., a US-based supply chain visibility and logistics technology company, launched FinAI, a generative AI tool designed to enhance supply chain management. Fin AI uses a natural language interface to uncover insights, automate tasks, and optimize operations by analyzing extensive data, including 3 million shipments daily, 18 million estimated times of arrival (ETAs), and 62 billion miles tracked annually.
How are key players in the generative artificial intelligence (ai) in logistics market strengthening their market position?
Major companies operating in the generative artificial intelligence (AI) in logistics market are Microsoft Corporation, Amazon Web Services Inc., Intel Corporation, Accenture plc, International Business Machines Corporation, Oracle Corporation, Honeywell International Inc., SAP SE, NVIDIA Corporation, Cognizant Technology Solutions Corporation, Epicor Software Corporation, Blue Yonder Group Inc., Coupa Software Incorporated, Kinaxis Inc., ShipBob Inc., Project44 Inc., Vorto Inc., Logility Inc., FourKites Inc., Shippeo SAS, Freightos Ltd., Slync.io Inc., Locus | End-to-End Logistics Solution for All-Mile Excellence, ClearMetal Inc.
Which geographic areas are contributing significantly to the growth of the generative artificial intelligence (ai) in logistics sector?
North America was the largest region in the generative artificial intelligence (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 generative artificial intelligence (AI) in logistics market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
How Can Companies Use The Generative Artificial Intelligence (AI) in Logistics Market Report to Drive Business Results?
This report provides actionable insights tailored for business use—not academic analysis. Companies can leverage the data to:
• Time market entry or expansion using growth forecasts and CAGR trends.
• Develop competitive products by tracking key technology shifts and user preferences.
• Tailor regional strategies with in-depth geographic data and local market dynamics.
• Benchmark and plan partnerships using competitive landscape insights.
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