Cognitive Supply Chain Market Analysis

Cognitive Supply Chain Market Analysis

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Based on offering, the solution accounted for 40% of the market share in 2022, owing to the increasing demand for AI-driven tools and platforms. Businesses are seeking comprehensive solutions that can address their supply chain complexities, optimize operations, and enhance decision-making. These solutions encompass predictive analytics, demand forecasting, inventory management, and real-time visibility. Furthermore, the integration of ML and data analytics into supply chain solutions is augmenting efficiency and performance improvements. This trend is expected to continue as companies prioritize digital transformation and seek end-to-end cognitive supply chain solutions to gain a competitive edge.
 

Based on deployment model, the on-premises segment held around 66% of the cognitive supply chain market share in 2022. Firstly, industries with sensitive data and regulatory constraints, like healthcare and finance, prefer on-premises solutions to maintain control over their data. Secondly, legacy systems and existing infrastructure often make it easier and more cost-effective to deploy solutions on-premises. Additionally, some companies opt for on-premises deployment to ensure low-latency processing and better integration with existing technologies, leading to a preference for this model in cognitive supply chain implementations.

North America cognitive supply chain market size dominated around USD 3 billion in 2022, attributed to several factors including the region's robust technological infrastructure, a strong presence of key industry players, and a growing emphasis on supply chain optimization. The increasing adoption of AI and ML solutions to enhance supply chain visibility, demand forecasting, and inventory management is fueling market growth.
 

For instance, in November 2022, Microsoft launched the Supply Chain Platform, a transformative solution designed to create agile, automated, and sustainable supply chains. By leveraging advanced technology and data-driven insights, it enhances efficiency and responsiveness in the market. North American organizations are recognizing the value of cognitive technologies in improving operational efficiency, reducing costs, and responding to market dynamics swiftly, contributing to the region's prominence in the cognitive supply chain sector.