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Machine Learning in Logistics Market Size - By Component, By Technique, By Organization Size, By Deployment Model, By Application, By End Use, Growth Forecast, 2026 - 2035
Report ID: GMI10157
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Published Date: December 2025
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Report Format: PDF
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Authors: Preeti Wadhwani, Satyam Jaiswal
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Base Year: 2025
Companies covered: 24
Tables & Figures: 140
Countries covered: 26
Pages: 225
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Machine Learning in Logistics Market
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Machine Learning in Logistics Market Size
The global machine learning in logistics market size was estimated at USD 4.3 billion in 2025. The market is expected to grow from USD 5.3 billion in 2026 to USD 44.5 billion in 2035, at a CAGR of 26.7% according to latest report published by Global Market Insights Inc.
Machine learning is reshaping logistics, driving data-centric decisions, predictive insights, and automation throughout the supply chain. E-commerce's meteoric rise, a pressing demand for supply chain efficiency, and swift strides in AI and IoT are propelling this market's remarkable growth.
The total addressable market encompasses multiple dimensions of ML applications in logistics, including demand forecasting, route optimization, warehouse management, inventory optimization, fleet management, and predictive maintenance.
Modern AI algorithms and machine learning boost the adaptability of autonomous mobile robots (AMRs), enabling them to learn from their environments and enhance their performance over time. More than 80% of retailers intend to ramp up AI integration in their operations, aiming to increase their workforce and elevate employee satisfaction.
Modern logistics operations increasingly rely on machine learning-based predictive analytics. Companies that have integrated AI into their supply chain management report cost reductions of 15% and inventory savings reaching as high as 35%.
In 2021, global e-commerce sales peaked at USD 5.2 trillion, with projections set to surpass USD 6.3 trillion by 2024, representing nearly 20% of the total global retail sales. This rapid expansion fuels a heightened demand for quicker, more dependable deliveries and precise estimated time arrivals (ETAs). Furthermore, e-commerce transactions are anticipated to reach over USD 4.3 trillion globally by 2025.
With consumer expectations now set on next-day and same-day deliveries, businesses are turning to ML-powered automation to streamline order processing, picking, and packing. Those who embraced warehouse automation early on boast fulfillment accuracy rates surpassing 99.5%. This technology adeptly manages a surge in smaller, frequent orders, all within tighter delivery windows, something traditional manual processes struggle to achieve efficiently
6% Market Share
Machine Learning in Logistics Market Trends
Machine learning algorithms are spearheading a transformative wave in the logistics industry, particularly in autonomous warehouse systems. Today's warehouse automation is evolving from traditional, capital-heavy setups to adaptable, scalable solutions, prominently featuring Autonomous Mobile Robots (AMRs) and AI-driven orchestration software.
Within months of deploying AMR technology, early adopters have witnessed a 2-3x increase in units picked per hour, halved walking times, and a 50% cut in order cycle times. These systems not only blend effortlessly with current operations but also enhance both tote-to-person and person-to-goods workflows. Furthermore, they offer real-time insights into picking rates and robot utilization.
Amazon's Vulcan robot, a testament to advanced robotics, employs AI-driven tactile sensors to discern and grasp items. This innovation not only boosts adaptability but also facilitates collaboration with humans, significantly minimizing repetitive tasks. Between 2018 and 2022, third-party logistics providers witnessed a surge of over 30% in their adoption of robotics, year-over-year.
ML algorithms boost robot adaptability, enabling them to learn from their environment and enhance their performance over time, thus managing a broader range of tasks. This technology empowers systems to make decisions influenced by environmental conditions, marking a shift from mere automation to true autonomy, driven by the convergence of cloud, 5G, and AI.
Logistics operations are undergoing a transformation, thanks to generative AI. This technology not only offers predictive insights and refines demand forecasting but also optimizes operations. By analyzing vast datasets, generative AI delivers real-time insights, bolstering decision-making, refining route optimization, and boosting supply chain efficiency.
For instance, in February 2024, Maersk teamed up with Microsoft, harnessing generative AI for route optimization and demand forecasting. This partnership led to a 30% reduction in shipping delays and significant fuel efficiency improvements.
Since 2016, the transportation industry has poured around USD 78 billion into IoT, catalyzing the adoption of machine learning-driven tracking and analytics. This fusion of IoT sensors and machine learning is ushering in unparalleled real-time visibility throughout the supply chain.
Edge computing processes IoT data close to its source, ensuring low latency. This capability is vital for real-time decisions in autonomous vehicles and warehouse robotics. A powerful combination of cloud technology, 5G, and AI is driving the transition from mere automation to true autonomy.
Machine Learning in Logistics Market Analysis
Based on component, the machine learning in logistics market is segmented into software and services. The software segment dominates the market with 64% share in 2025, and the segment is expected to grow at a CAGR of 25.1% from 2026 to 2035.
Based on technique, machine learning in logistics market is divided into supervised learning and unsupervised learning. The supervised learning segment dominates with 70% market share in 2025 and is growing at the fastest rate of 25.6% CAGR till 2035.
Based on organization size, the machine learning in logistics market market is segmented into large enterprises and small and medium-sized enterprises (SMEs). The large enterprises segment dominates with 66% market share in 2025.
Based on deployment model, the machine learning in logistics market is divided into cloud-based and on-premises. The cloud-based dominate with 73% market share in 2025, and with a CAGR of 27.4% during forecast period.
North America region dominated the machine learning in logistics market with a market share of 32%, which is anticipated to grow at a CAGR of 22.4% through 2035. North America's leadership stems from widespread acceptance of AI-driven logistics solutions, advanced technology infrastructure, and concentration of leading technology companies.
The machine learning in logistics market in US is expected to experience significant and promising growth from 2026 to 2035.
Asia Pacific is the fastest growing machine learning in logistics market, which is anticipated to grow at a CAGR of 31.3% during the analysis timeframe.
The China is fastest growing country in Asia Pacific machine learning in logistics market growing with a CAGR of 29.7% from 2026 to 2035.
Europe machine learning in logistics market accounted for USD 1.2 billion in 2025 and is anticipated to show growth of 24.4% CAGR over the forecast period.
Germany dominates the Europe machine learning in logistics market, showcasing strong growth potential, with a CAGR of 21.1% from 2026 to 2035.
Brazil leads the Latin American machine learning in logistics market, exhibiting remarkable growth of 26.3% during the forecast period of 2026 to 2035.
UAE to experience substantial growth in the Middle East and Africa machine learning in logistics market in 2025.
Machine Learning in Logistics Market Share
The top 7 companies in the machine learning in logistics industry are IBM, Amazon Web Services (AWS), Microsoft Azure, Google Cloud Platform (GCP), SAP SE, Manhattan Associates, and Blue Yonder contributed around 27% of the market in 2025.
Machine Learning in Logistics Market Companies
Major players operating in the machine learning in logistics industry are:
Machine Learning in Logistics Industry News
The machine learning in logistics market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue (USD Bn) from 2022 to 2035, for the following segments:
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Market, By Component
Market, By Technique
Market, By Organization Size
Market, By Deployment Model
Market, By Application
Market, By End Use
The above information is provided for the following regions and countries: