The generative AI market in logistics is poised for rapid growth, with its value expected to surge from over $1.3 billion currently to more than $23.1 billion by 2034, according to a recent study by Global Market Insights, Inc. The study highlights how this technology is transforming supply chain operations by providing real-time intelligence and long-term strategic forecasting. By simulating thousands of delivery routes and transport scenarios, logistics providers can optimize inventory planning, reduce freight costs, and prepare for unforeseen disruptions. AI-powered demand forecasting is also helping firms streamline resource use, while dynamic routing tools improve delivery timelines. As operational efficiency and cost control become increasingly critical, generative AI is emerging as a key driver of change in the sector.
In 2024, the software segment accounted for 66% of the market and is projected to grow at a CAGR of 32% through 2034. AI-driven predictive tools are helping logistics teams anticipate stock shortages, delivery delays, and sudden demand spikes, allowing firms to adjust operations proactively for better efficiency and cost outcomes. These modern solutions deliver faster results than traditional models and integrate seamlessly with legacy systems, making them more appealing than time-consuming, custom-built alternatives.
Cloud deployment also held a 67% share in 2024 and is expected to maintain robust growth at a 32% CAGR over the next decade. As logistics operations become more global, firms are adopting flexible, cloud-based AI solutions that can scale quickly to meet fluctuating business needs. Unlike conventional server setups, cloud platforms provide real-time computing power and data storage, particularly useful during seasonal peaks or sudden market shifts, reinforcing their role in global supply chains.
North America dominates the market, holding an 85% share and generating $355.2 million in 2024. The region has become a hub for advanced AI adoption in supply chains, supported by major technology firms that provide enterprise-ready AI infrastructure, enabling logistics providers to rapidly develop and deploy sophisticated algorithms. Leading players in generative AI for logistics are increasingly focusing on strategic cloud partnerships, scalable AI models, industry-specific machine learning tools, and modular AI solutions that can adapt quickly to regional and sector-specific challenges.
