Generative AI in Fulfillment & Logistics Market Research Report Information By offerings (Solution and Services), Type (VAE, GANs, RNNs, and LSTM Networks), Application (Warehouse Operations, Optimization and Management, Supply Chain Operations, Predictive Maintenance, Logistics Network Design, Inventory Management, Fraud Detection, Autonomous Robotics, Data Analytics & Reporting), Industrial vertical (Automotive, Pharmaceutical & Healthcare, Semiconductors & Electronics, Retail & E-Commerce, Food), By Regions Forecast Till 2032

Generative AI in Fulfillment & Logistics Market Overview

Generative AI in Fulfillment & Logistics Market Size was valued at USD 180,000.08 million in 2022. The Generative AI in Fulfillment & Logistics market industry is projected to grow from USD 241,368.19 Million in 2023 to USD 6,272,040.55 million by 2032, exhibiting a compound annual growth rate (CAGR) of 43.6% during the forecast period (2023 - 2032). growing benefits of generative AI for logistics industry and growing potential of generative AI across end-to-end supply chain optimization are the key market drivers boosting the growth of the Generative AI in Fulfillment & Logistics market.

As per Analyst at MRFR, “Integrated generative AI speeds up intuitive communications between supply chain decision makers and virtual assistants, enabling quick and fact-based actions. These advancements allow supply chain specialists to focus on difficult issue solving, ongoing development of process designs, and supplementing AI models.”

FIGURE 1: GENERATIVE AI IN FULFILLMENT & LOGISTICS MARKET SIZE 2019-2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Generative AI in Fulfillment & Logistics Market Trends

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  Autonomous Vehicles and Robotics is expected to drive market growth.

  
  

With the advancement of self-driving cars and drones, generative AI has the potential to play a critical role in optimising routing algorithms and navigation systems. This will allow self-driving cars to travel more efficiently, lowering transportation costs and carbon emissions. Additionally, AI-powered drones can be utilised for last-mile delivery, particularly in distant or difficult-to-reach places, enhancing accessibility and overall consumer happiness.

The automotive environment is being reshaped by generative AI, which is instilling intelligence in vehicles and producing personalised driving experiences that adapt to individual tastes and demands. The era of rigid and standardised interfaces is over; these vehicles may now change their looks, displays, and controls, providing a fully customisable driving experience that seamlessly matches with the user's choices.

Through technology such as computer vision and LiDAR, generative AI supports vehicles in comprehending their surroundings. AI systems can produce detailed 3D maps of the surroundings, allowing vehicles to spot obstacles, pedestrians, and other vehicles with greater accuracy. Generative AI assists autonomous vehicles in making real-time decisions. These systems may simulate numerous driving circumstances and create optimal reactions, such as whether to brake, accelerate, or change lanes, to ensure safe navigation.

Generative AI in Fulfillment & Logistics Market offering Segment Insights

Generative AI in Fulfillment & Logistics offering Insights

Based on offering, the Generative AI in Fulfillment & Logistics Market segmentation includes Solution and Services. Solution held the majority share in 2022, contributing around ~44.7% to the market revenue. The solution segment in the generative AI in fulfillment and logistics market can be used to trains models on labeled data to make predictions or classifications, identifies patterns and relationships in unlabeled data. It can also solves complex problems by optimizing resources or planning sequences of actions. These solution systems are designed to learn and mimic patterns from large datasets and then generate new, similar content autonomously to enhance and maximize revenue generation in the logistics industry.

FIGURE 2: GENERATIVE AI IN FULFILLMENT & LOGISTICS MARKET, BY OFFERINGS, 2022 VS 2032 (USD MILLION)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Generative AI in Fulfillment & Logistics Type Insights

Based on type, the Generative AI in Fulfillment & Logistics Market segmentation includes Variational Autoencoder (VAE), Generative Adversarial Networks (GANs), Recurrent Neural Networks (RNNs), and Long Short-Term Memory (LSTM) Networks. Variational Autoencoder (VAE) held the majority share in 2022. Variational Autoencoder (VAE) are a type of generative model that learns a probabilistic mapping between the input data and a latent space. They are often used for generating new samples that resemble the training data. VAE is a type of generative model in the field of machine learning and artificial intelligence. It belongs to the broader family of autoencoders, which are neural network architectures designed for unsupervised learning and dimensionality reduction. The objective function for VAE consists of two components a reconstruction loss and a regularization term.

Generative AI in Fulfillment & Logistics Application Insights

Based on application, the Generative AI in Fulfillment & Logistics Market segmentation includes Warehouse Operations, Optimization and Management, Supply Chain Operations, Predictive Maintenance, Logistics Network Design, Inventory Management, Fraud Detection, Customer Service Operations, Autonomous Robotics, Data Analytics & Reporting, and Others. Data Analytics & Reporting held the majority share in 2022. Generative AI use large enhance data quality by identifying and correcting errors, outliers, and missing values. It also flag potential issues, errors, or fraud by automatically detecting deviations from expected norms. It identify patterns and segments within the data that may not be immediately apparent and enable users to quickly and intuitively discover insights without extensive data science expertise.

Generative AI in Fulfillment & Logistics Industry Vertical Insights

Based on industrial vertical, the Generative AI in Fulfillment & Logistics Market segmentation includes Automotive, Pharmaceutical & Healthcare, Semiconductors & Electronics, Retail & E-Commerce, Food & Beverages, and Others. Automotive held the majority share in 2022. Generative AI algorithms can analyse real-time traffic data, weather conditions, and other variables to dynamically optimize delivery routes. This helps in reducing transportation costs, minimizing delivery times, and improving overall efficiency. Generative AI can be used to monitor the health of vehicles and logistics equipment. By analysing sensor data, the system can predict when maintenance is required, reducing the risk of unexpected breakdowns and improving overall fleet reliability.

Generative AI in Fulfillment & Logistics Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the South America. The North America Generative AI in Fulfillment & Logistics market accounted for ~54.0% in 2022. the region's large Generative AI in Fulfillment & Logistics industries, as well as the growing popularity of Generative AI in Fulfillment & Logistics. The use of Generative AI in Fulfillment & Logistics is expected to grow significantly in the coming years as companies seek to improve efficiency, productivity, and safety in their material handling and transportation operations.

The US, Canada, and Mexico make up the three country segments that comprise the North American market for generative AI in fulfillment and logistics. Using artificial intelligence to produce original material and solutions is known as "generative AI. In the context of fulfillment and logistics in the United States, generative AI can be used in several ways. For example, it can be used to optimize routing and delivery schedules, automate order processing and payment, improve inventory management, and predict demand patterns. Technology can also help companies reduce errors, increase efficiency, and improve customer experience. Overall, generative AI has the potential to revolutionize the fulfillment and logistics industry in the US and beyond. Generative AI has been gaining popularity due to its ability to automate and streamline various tasks. Utilizing AI, companies can optimize fulfillment and logistics for improved efficiency and reduced costs. With the implementation of AI, businesses can better predict delivery times, manage inventory, and enhance customer experiences

FIGURE 3: GENERATIVE AI IN FULFILLMENT & LOGISTICS MARKET SIZE BY REGION 2022 VS 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Further, the major countries studied in the market report are the U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

The European Generative AI in Fulfillment and Logistics market has been divided, by country, into Germany, the UK, France, Spain, Italy, Nordics, Balkans, and the rest of Europe. Generative AI has emerged as a key tool in optimizing fulfillment and logistics in Europe. The technology can help automate and streamline processes, reduce human error, and improve overall operational efficiency. This can lead to faster delivery times, increased productivity, and reduced costs. Additionally, generative AI can be used to analyze data and make predictions, helping businesses make data-driven decisions about inventory management, demand forecasting, and route optimization. Overall, generative AI has the potential to transform the way we approach fulfillment and logistics in Europe, helping businesses stay competitive and agile in the face of rapidly changing market conditions.

Generative AI in Fulfillment & Logistics Key Market Players & Competitive Insights

With a strong presence across different verticals and geographies, the Generative AI in Fulfillment & Logistics market is highly competitive and dominated by established, pure-play vendors. Over 20 vendors cater to this market, and they continually innovate their solutions to meet the evolving needs of businesses by adopting new technologies. These vendors have a robust geographic footprint and partner ecosystem to cater to diverse customer segments. The Generative AI in Fulfillment & Logistics market is highly competitive, with many vendors offering similar products and services.

The major players in the market include Microsoft Corporation, Secondmind, Waredock Estonia LLC, SAP SE, and DHL Group Industries Corporation constantly takes on new challenges to ensure the stability of its management foundation by extending its reach into business fields such as engine production, vehicle assembly, and the development and production of lift trucks and car air-conditioning compressors. It concentrates on broadening its product offerings to reach new audiences in the global market.

The Generative AI in Fulfillment & Logistics Market is consolidated, increasing competition, acquisitions, mergers, and other strategic market developments and decisions to improve operational effectiveness.

Key Companies in the Generative AI in Fulfillment & Logistics market include

• Microsoft Corporation


• Secondmind


• Waredock Estonia LLC


• SAP SE


• DHL Group


• ai, Inc.


• Blue Yonder.


• OSA Commerce


• DAT Solutions LLC


• IBM Corporation


• Oracle Corporation


• ITRex Group


• Accenture


• LEEWAYHERTZ

Generative AI in Fulfillment & Logistics Industry Developments

• In May 2023, SAP launched AI solutions to future-proof supply chains, addressing the need for increased productivity and reduced waste in the FreightTech industry. While AI can enhance current logistics systems, it's also critical to consider disruptive global shipping changes that would be impossible without AI support, according to FreightTech providers.


• In November 2023, SAP SE introduced a range of generative AI solutions to simplify logistics applications, enabling developers to create AI-driven apps and enhance business operations. These advancements aimed to empower developers of varying skill levels to capitalize on the potential of AI and drive success in their respective industries.

Generative AI in Fulfillment & Logistics Market Segmentation

Generative AI in Fulfillment & Logistics offering Outlook

• Solution


• Services

Generative AI in Fulfillment & Logistics Type Outlook

• Solution


• Services

Generative AI in Fulfillment & Logistics Application Outlook

• Warehouse Operations, Optimization and Management


• Supply Chain Operations


• Predictive Maintenance


• Logistics Network Design


• Inventory Management


• Fraud Detection


• Customer Service Operations


• Autonomous Robotics


• Data Analytics & Reporting


• Others

Generative AI in Fulfillment & Logistics Industry Vertical Outlook

• Automotive


• Pharmaceutical & Healthcare


• Semiconductors & Electronics


• Retail & E-Commerce


• Food & Beverages


• Others

Generative AI in Fulfillment & Logistics Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • UK
  
  
  • Germany
  
  
  • France
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Middle East & Africa
  
  
  
  • Saudi Arabia
  
  
  • UAE
  
  
  • South Africa
  
  
  • Rest of MEA
  
  
  
  


• South America
  
  
  
  • Brazil
  
  
  • Argentina
  
  
  • Rest of South America