Generative AI shapes the future of logistics
According to global research, the generative AI logistics market will grow from USD 412 million to USD 13,948 million by 2032, a CAGR of 43.5%. North America is expected to lead the shift, with a current share of 43%. The potential of generative AI lies in reducing stockouts, optimising delivery routes, identifying risk and improving resource allocation — a promise of transformative impact on productivity.
Applying generative AI brings improvements in real-time communication through chatbots and virtual assistants. The technology can forecast supply-chain disruption, helping with problems such as route deviation, unusual weather or a breach of service-level agreements. With generative AI applications such as control towers and real-time fleet monitoring, businesses can identify likely delays early and reduce risk before it hits revenue.
The quick-commerce revolution
The global rise of an e-commerce model that prioritises ultra-fast delivery within an hour is gaining real traction. In the United States, large companies such as Gopuff, Instacart and Getir are investing heavily in the trend, with revenue forecast to rise to USD 30.8 billion in 2024. The phenomenon is also spreading across regions such as the Middle East and Indonesia.
India is seeing rapid adoption of quick commerce. Forecasts point to annual growth of 49.5%, which could push market volume to USD 7.88 billion by 2027. This rapid rise in quick commerce is reshaping the logistics landscape, driven by changing consumer behaviour and higher expectations of ultra-fast delivery.
The growth of asset-light logistics
The asset-light logistics model is steadily gaining favour. It lets businesses put the emphasis on the customer experience while reducing their dependence on physical assets, which lowers operating costs.
About 67.5% of companies globally use third-party logistics providers (3PL) to handle transport operations, and 63.5% outsource their warehousing. Specialists point to transport costs — more than two thirds of a business’s total logistics cost — as the main driver behind the growing shift to an asset-light approach.
Cloud solutions transform logistics operations
Cloud-based solutions are driving digital transformation in logistics operations. Wide adoption of cloud-based solutions brings advantages in speed, cost efficiency, control, scalability and security.
Within the next five years, 86% of supply-chain-based companies will bring cloud computing into their operations. The global cloud supply-chain management market is forecast to grow from USD 21.79 billion in 2022 to USD 71.93 billion in 2030, a CAGR of 16.10%.
As businesses look to navigate a logistics market towards flexibility, efficiency and cost saving, the cloud-based revolution will be central to reshaping the industry. Whether to build on-premises or to choose a cloud-based solution is an important decision for each business, with advantages and drawbacks on both sides.
Cutting carbon emissions becomes a priority
Cutting carbon emissions has become a top priority for many global logistics businesses. In 2024 the industry is focused on cost, capacity, service and — importantly — carbon emissions.
The United States, a major contributor to transport emissions, is expected to take stronger action to cut carbon emissions in 2024. Indonesia is making progress on the back of consumer demand for sustainability. The Middle East, a region central to global fuel production, is investing in technology to cut carbon emissions. India, by contrast, faces sustainability challenges, but its logistics businesses are investing actively in solutions that address carbon emissions.
Source: collected (Tue Anh, after The Times of India)
