Supply chain management has significantly transformed in the past few decades. The integration of artificial intelligence in these supply chain systems was a watershed moment for this sector. Various supply chain management (SCM) software have flooded the marketplace. As a result, the valuation of the cognitive supply chain market is estimated staggering USD 10.40 billion as of 2024.
Cognitive supply chain platforms and services also allow dynamic inventory optimization by considering factors such as demand variability, lead times, and service level requirements. Their demand in the SCM sector is proof of their efficient, reliable, and cost-effective capabilities. The market is slated to grow at a CAGR of 15.60% through 2034.
With companies leveraging cognitive technologies to optimize their supply chains, the market valuation is poised to surpass USD 44.50 billion by the end of 2034.
| Attributes | Details |
|---|---|
| Market Value for 2024 | USD 10.40 billion |
| Projected Market Value for 2034 | USD 44.50 billion |
| Value-based CAGR of the Market for 2024 to 2034 | 15.60% |
Don't pay for what you don't need
Customize your report by selecting specific countries or regions and save 30%!
Companies in the market provide their offerings through solutions, services, and other means. Among these, the solutions segment is anticipated to hold the largest market share of 62% as of 2024.
| Attributes | Details |
|---|---|
| Offerings | Solutions |
| Market Share (2024) | 62.00% |
The demand for cognitive supply chain solutions has touched the skies. This is because they offer sophisticated and advanced predictive analytics, demand forecasting, and risk management recommendations to businesses. Using this, organizations proactively address challenges and capitalize on opportunities in their supply chain operations.
These solutions can also leverage data from Internet of Things (IoT) devices and big data analytics, to gain deeper insights into supply chain operations which improves the overall decision-making across the supply chain.
Cognitive supply chain solutions are mainly deployed in two main ways, cloud-based and on-premise. Among these, the on-premise deployment takes the majority share, 66.0% of the overall market as estimated for 2024.
| Attributes | Details |
|---|---|
| Deployment | On-premise |
| Market Share (2024) | 66.0% |
The main reason why companies involved in highly regulated industries like healthcare and finance prefer on-premise deployment over cloud-based is their concern for security and privacy. On-premise deployment provides greater security and compliance as compared to the alternative.
On-premise deployment also provides organizations with greater customization options and control over their SCM software. This has also increased their adoption rates in the past few years.
| Countries | CAGR (2024 to 2034) |
|---|---|
| South Korea | 18.00% |
| Japan | 17.40% |
| The United Kingdom | 17.00% |
| China | 16.50% |
| The United States | 16.00% |
South Korea is one of the leading markets in the world when it comes to cognitive supply chains. The South Korean market is estimated to grow at a CAGR of 18.00% through 2034.
South Korea is well known for its technological innovation and advanced manufacturing capabilities. The country, in the last few years, has been increasingly investing in Industry 4.0 technologies, including AI and machine learning to optimize their supply chain operations and gain a competitive edge.
This has surged the prominence of cognitive supply chain solutions in the country. Besides this, South Korean reliance on these solutions for the international trade of electronics and automotive parts has also positively affected the market.
The Japanese market is also a lucrative one. It is anticipated to expand at a CAGR of 17.40% through 2034.
Japan, as of 2024, is facing the problem of a growing aging population. One in every three Japanese adult persons is above the age of sixty-five. This has resulted in acute shortages of labor in the country. The manufacturing sector has to thus rely on cognitive supply chain solutions for their day-to-day operations.
These applications and platforms efficiently streamline processes by automating tasks such as inventory management, production scheduling, and logistics optimization. Apart from this, the pandemic also brought before the world, the importance of resilient supply chain networks. Japanese companies are thus investing heavily in these solutions to strengthen their supply chain capabilities.
The market in the United Kingdom is also predicted to flourish in the coming future. It is in line to progress at a CAGR of 17.00% for the forecast period in the United Kingdom.
Over the past few years, thanks to the rising disposable incomes and the preference for comfort and convenience among the middle class, the United Kingdom’s e-commerce sector has experienced significant growth. This has put tremendous pressure on companies involved in supply chain management to provide efficient and reliable solutions.
Logistics companies in the United Kingdom are also generating huge demand for cognitive supply chain solutions. They help optimize inventory management, order fulfillment, and last-mile delivery processes to meet the demands of online shoppers effectively and compete in the fast-paced e-commerce market.
China is one of the prominent countries in this market. The market is slated to progress at an outstanding CAGR of 16.50% through 2034.
China is considered a notable manufacturing economy. The country also hosts a vast network of suppliers, manufacturers, and logistics providers. This has created a conducive environment for cognitive supply chain solutions.
They enable Chinese companies to optimize production processes, improve supply chain visibility, and enhance operational efficiency to maintain their competitive edge in markets.
Besides this, the country is also going through a phase of digital transformation across industries and these solutions play a crucial role in this transformation.
The United States market is also a promising one. It is anticipated to progress at a CAGR of 16.00% through 2034.
The United States is blessed with a multitude of tech companies and start-ups that are well-versed in artificial intelligence and machine learning algorithms.
This environment has benefitted the companies present in the logistics sector as they leverage cognitive supply chain solutions to enhance their operations and gain a competitive edge. Also, the market is gaining traction in the United States due to the country’s tendency to harness the potential of advanced and sophisticated technologies in its industrial operations.
Principal Consultant
The market is still in its nascent stages as there is still a lot of room for improvement. The market is still dominated by a few tech giants, making entry of new start-ups seem very difficult. These companies already have a well-established consumer base due to their prolonged presence in the industry. These players are tapping the markets in emerging economies to effectively expand their consumer base.
Recent Developments
Get the data you need at a Fraction of the cost
Personalize your report by choosing insights you need
and save 40%!
The cognitive supply chain market is expected to be worth USD 10.40 billion by 2024.
The cognitive supply chain market is expected to reach USD 44.50 billion by 2034.
The cognitive supply chain market is set to display a CAGR of 15.60% from 2024 to 2034.
IBM Corporation, Oracle, Amazon.com, Accenture plc, and Intel Corporation, are some of the major players in the the cognitive supply chain market.
The valuation for the cognitive supply chain market in 2023 was USD 8.70 billion.
Explore Technology Insights
View Reports
Cognitive Supply Chain Market
