A recent push from the European Union to fight back against human rights violations in overseas manufacturing could drive billions in new spending on supply chain visibility technology by the end of the decade. 

Research firm Verdantix points to a series of EU regulations passed over the last five years as the catalyst, including a conflict minerals measure that took effect in 2021, 2022's sustainable textile strategy, and 2024's forced labor regulations. Those all were part of a larger initiative to promote ethical labor practices, responsible sourcing of everything from precious metals to clothing, and the use of sustainable materials. 

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In order to realize that goal, Verdantix predicts a $7 billion market for supply chain sustainability software globally by 2029, with EU manufacturing and retail firms expected to drive the bulk of that spending. That will include large-scale investments in artificial intelligence to collect data from overseas suppliers, and assess whether those suppliers are at risk of using forced labor at any point in the future. 

"We expect future supply chains to be smart and resilient, leveraging AI to enhance data quality and predictive risk management," Verdantix sustainability analyst Jessie Wilson said. "These advancements will provide deeper insights, helping companies identify and mitigate risks such as forced labor and sourcing from conflict-affected areas or sanctioned regions."