AI is set to impact a number of industries, but one area where it is predicted to see particularly astounding growth is in the supply chain. As such, the global AI in supply chain market is set to reach a value of more than $6.5bn in 2024, according to a report by Zion Market Research.
This marked a significant growth from the value of $491m it reached in 2017, registering a CAGR of almost 45% between the forecast period of 2018–24.
"The increased popularity of AI across industries can be attributed to the development of computing power and storage, advancements in the algorithm, and the emergence of big data and IoT," the report noted.
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"Increasing use of smart robotics for autonomous vehicles is benefiting supply chain planning.
"AI improves the supply chain visibility and risk to trace and predict the possible supply chain interference based on correlations and inputs across multiple data sources, including social media news and weather forecasts," Zion Market Research added.
Additionally, another significant factor propelling the growth is predicted to be the use of computer vision to reduce the time spent on repetitive tasks. In supply chain processes, a lot of time is wasted on manual checking for quality control – a task AI can perform more effectively and efficiently than a human counterpart.
The North American market is expected to have the largest share of the growth, followed by Europe, however the APAC region is expected to grow at the highest CAGR during the forecast period. This progress in APAC is due to the high number of patents filed in that area and the heavy emphasis on AI adoption the Chinese government has pushed in recent years.