AI set to drive global supply chain technology market to $440 billion by 2023
Supply chain will generate more than $4 trillion in 2023. Source: shutterstock.com
Over the next 5 years, revenues generated by technology in the global supply chain will increase at a compound annual growth rate (CAGR) of 11%, reaching $440 billion by 2023. Suppliers, manufacturers, retailers, and logistics service providers will continue to adopt increasingly sophisticated and impactful digital technology strategies to deliver value along the entire logistics value chain. Combining both technologies and services, the supply chain will generate $4.6 trillion in 2023, an increase of 29% from 2018, according to ABI Research.
AI has emerged as a major driving force behind the digital transformation of the supply chain. It offers the ability to improve the way they forecast demand, optimize planning, mitigate risks, transport goods, serve customers, and much more. The entire value chain will benefit from AI as it facilitates greater levels of automation and smarter decision making, enabling production, distribution, and retail to become synchronized for the benefit of operating companies and customers.
The growth of e-commerce is driving new approaches to digital technologies in the supply chain too. Warehouse automation and the digitization of last-mile delivery operations stand out as areas targeted for technology spending.
The sharing economy is also making a mark on the supply chain, with transportation and storage both key sectors which face potential disruption.
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