Supply Chain Management Market (By Component: Solution, Service; By Solution Type: Transportation Management System, Warehouse Management System, Supply Chain Planning, Procurement And Sourcing, Manufacturing Execution System; By Deployment Mode: On-premise, On-Demand/Cloud-Based; By Enterprise Size: Large Enterprise, SMEs; By Industry Vertical) - Global Industry Analysis, Size, Share, Growth, Trends, Regional Outlook, and Forecast 2023-2032

The global supply chain management market size was exhibited at USD 22.79 billion in 2022 and is projected to hit around USD 70.22 billion by 2032, growing at a CAGR of 11.91% during the forecast period 2023 to 2032.

Key Pointers:

• North America generated the largest market share in 2022.
• By Component, the solution segment recorded the maximum market share in 2022.
• By Enterprise Size, the large enterprise segment contributed the highest market share in 2022.
• By Deployment Mode, the on-premises segment generated the largest market share in 2022.

The key factors driving the market include demand for greater visibility and transparency of supply chain data and processes, and blistering growth in retail and e-commerce. Additionally, technological advancements in the supply chain industry are evolving, and the capabilities of AI and its integration with SCM products offer lucrative opportunities for SCM vendors.

Supply Chain Management Market Report Scope

COVID 19 IMPACT

Following the severe disruption caused by the COVID-19 pandemic, businesses across the United States are planning to reassess their supply chain strategies to become more resilient, work together, and connect with customers, suppliers, and other stakeholders. To do so, it will invest more in supply chain technologies such as AI and robotic process automation and reskill its workforce. The demand and supply shocks caused by the US-China trade war and the Covid-19 crisis are forcing manufacturers around the world to reassess their supply chains. Soon, they will be under pressure to increase domestic production, increase employment in their home countries, reduce reliance on unsafe sources of supply, and rethink strategies for lean inventory and just-in-time replenishment.

Supply Chain Management Market Growth Dynamics

Driver: Increasing adoption of cloud supply chain management among SMEs

Modern businesses are mostly dependent on technology, in which large enterprises have their own IT department for managing and maintaining business processes, whereas, most startups and SMEs do not have a proper IT department system on their own. The reason being, it requires extra cost for managing and maintaining an IT department. So, most of the SMEs and startups adopt the cloud based SCM system, where they can reap the benefits of an IT department through a cloud management system without needing to employ extra staff at extra costs. This facilitates in-house employees to focus on day-to-day business operations. The flexibility in storage of the cloud based SCM offers scalability, which is very important for SMEs and will help them with unpredictable growth during the first year of the business operation. In addition, cloud based SCM offers powerful inventory management to SMEs, which is very responsive to the latest business trends. For example, the cloud-based SCM offers cost savings and an attractive pay-as-you-go model, such as real-time payment through the cloud, while buying products that enable SMEs to establish themselves as efficient and competitive players among other enterprises. SMEs can also use the cloud based SCM system to drive corporate strategies that enhance revenue and profits. Hence, the cloud SCM market is estimated to grow during the forecast period, and there are huge opportunities for the cloud supply chain providers due to the high adoption rate by SMEs.

Restraint: Growing security and privacy concerns among enterprises

The enterprises adopting cloud based SCM face security and privacy issues. The enterprises possess confidential data that needs to be protected to avoid data breaches and theft as it may affect the overall reputation of enterprises. The enterprises’ data may leak over the Internet and can be accessed by unauthorized users, which is a growing concern among the enterprises. For example, the cloud-based transportation management system needs multitenant architecture, in which a single version of the software runs on a server that is shared by multiple customers. Hence, there is a possibility that subscribers of an enterprise can view the data of competitors. These security issues relating to the data access by unauthorized users will likely threaten the enterprise data security and competitive business position, as well. Hence, these issues relating to security and privacy increase the growing concern among the enterprises and are restraining the growth of the cloud SCM market during the forecast period.

Opportunity: Advances in technologies are making evolution to the supply chain industry

Advances in information and communications technology are making the evolution of the supply chain more possible. Technologies such as IoT, cloud computing, 5G, blockchain, AI, 3D printing, and robotics are all critical to enabling the digital supply network of the future. For instance, transparency and accountability are key areas of a functional supply chain, enabling real-time tracking. GPS monitors can now track everything from a shipment’s location to its current temperature, providing up-to-the-minute facts that allow logistics professionals to fully understand how their supply chains operate. During the ongoing COVID-19 pandemic, real-time tracking is useful for high-value items and goods. All stages of a shipment’s chain of custody can be mapped and verified using IoT data and device check-ins. As just one example, IoT devices can automatically flag shipments that have left a safe temperature zone and help protect customers from spoiled goods

Challenge: Limited awareness of supply chain management tools

Awareness regarding supply chain management solutions and their benefits is low among healthcare providers. While various supportive initiatives, such as Just-In-Time (JIT) approaches and stockless inventory systems, have been introduced in the market over the years, unlocking the full potential of SCM tools will require increased training on SCM principles, such as improved information and communication within internal departments, information and measurement systems, and enhanced executive support.

Some of the prominent players in the Supply Chain Management Market include:

• SAP
• Oracle
• Infor
• Descartes
• Manhattan Associates
• IBM
• Logility
• Kinaxis
• Blue Yonder
• Körber
• Coupa
• Epicor
• BluJay
• OMP
• E2open
• JAGGAER
• Zycus
• GEP
• Tive
• Calista
• MOST
• Freightify
• 4TiGo
• Trukky
• Lobb

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2032. For this study, Nova one advisor, Inc. has segmented the global Supply Chain Management market.

By Component

• Solution
• Service

By Solution Type

• Transportation Management System
• Warehouse Management System
• Supply Chain Planning
• Procurement And Sourcing
• Manufacturing Execution System

By Deployment Mode

• On-premise
• On-Demand/Cloud-Based

By Enterprise Size

• Large Enterprise
• SMEs

By Industry Vertical

• Retail and Consumer Goods
• Healthcare and Pharmaceuticals
• Manufacturing
• Food and Beverages
• Transportation and Logistics
• Automotive
• Others

By Region

• North America
• Europe
• Asia-Pacific
• Latin America
• Middle East & Africa (MEA)