USD 21.13 billion
Supply Chain Management Software Market Size, Share, Growth Analysis, By Software Type (Purchasing Management Software and Inventory Management Software), By Deployment Mode (On-premises, Cloud-based), By Organisation Size (SMEs, Large Enterprises), By Industry Vertical (Healthcare & Pharmaceuticals, Manufacturing), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45A2353 |
Region:
Global |
Published Date: November, 2024
Pages:
182
|Tables:
87
|Figures:
76
Supply Chain Management Software Market Insights
Global Supply Chain Management Software Market size was valued at USD 18 billion in 2022 and is poised to grow from USD 18.76 billion in 2023 to USD 20.07 billion by 2031, growing at a CAGR of 4.20% during the forecast period (2024-2031).
Supply chain management software market growth can be attributed to increased demand and increased awareness of SCM solutions, such as logistics planning, planning & analysis, accurate forecasting, waste reduction, manufacturing execution and appropriate integration of business information. In addition, rapid adoption of information technology and technological advancements improves and supports the overall supply chain, helping market expansion. In the context of the COVID-19 pandemic, the widespread adoption of SCM has led to significant advances in forecasting and meeting demand and supply needs.
The adoption of SCM software in various industries and organizations is increasing as it can effectively monitor the collection of raw materials, goods or any materials thus improving market growth. Also, it performs inventory and warehouse tracking, order entry, distribution channels, product delivery, demand planning, supply chain management, purchasing, financial information also helps management. In addition to improving market development, these functions can work with the company’s division networks in a positive manner on, which in turn drives market expansion. Lack of IT infrastructure in developing countries and increasing security and privacy concerns are hampering the growth of the global market.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Transportation
Fastest Growth
Cloud-based
Growth Rate
11.7% CAGR
Global Supply Chain Management Software Market ($ Bn)
Country Share for North America Region (%)
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Supply Chain Management Software Market Segmental Analysis
Global Supply Chain Management Software Market is segmented by Software Type, Deployment Mode, Organisation Size, Industry Vertical, and region. Based on Software Type, the market is segmented into Purchasing Management Software and Inventory Management Software. Based on Deployment Mode, the market is segmented into On-premises, and Cloud-based. Based on Organisation Size, the market is segmented into SMEs, and Large Enterprises. Based on Industry Vertical, the market is segmented into Retail and Consumer Goods, Healthcare and Pharmaceuticals, Manufacturing, Food and Beverages, Transportation and Logistics, Automotive, and Others. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & and Africa.
Analysis by Component
The solutions segment held the largest share of 55.1% in 2023 and is expected to dominate the market during the forecast period. SCM solutions are used for the quality control, inventory management, vendor management, supplier management, and logistics management. SCM solutions provide benefits such as greater visibility, improved productivity, analytics, lower costs, greater agility, and increased compliance in a complex supply chain. Key functions such as order processing, payment and order tracking resulting in the reduced time and administrative costs. The transportation segment gained the largest share in 2023. Logistics management systems are used for logistics and help customers efficiently plan and execute logistics operations in the supply chain. The demand for TMS is growing rapidly because logistics management plays a key role in the supply chain, affecting every stage of planning and procurement. Lifecycle management and the use of intelligent wires and smart sensor technology solutions for companies to deliver accurate vehicle data is expanding.
Analysis by Enterprise Size
The large enterprises segment accounted for the largest market share at 47.3% in 2023, expected to dominate the target market over the forecast period. The growth can be attributed to the increasing demand for system delivery track trends and automation features such as the advanced shipment information management, customizable notifications, transit status updates, user-configurable dashboards, and many more visual supply chain maps in large-sized industries. SCM also allows for real-time access channelling accurate analysis and transformation into reports that enable large enterprises to make better business decisions such as supply chain management, inventory management and distribution systems, among others. The market is experiencing increasing growth in the demand for software for large enterprises to gather critical business data such as inventory levels, sales forecasts, supplier profiles, and others. The small and medium enterprises (SMEs) segment is expected to record the highest CAGR of 11.8% during the forecast period. SCM provides flexibility, scalability and cost savings in supply chain operations. The implementation of SCM solutions and applications will increase profitability and customization in SMEs and improve business performance. Startups and SMEs are in a precarious position as they were struggling to cope with fluctuating demand, inefficiencies and rising supply chain costs due to the COVID-19 pandemic e.g., global B2B in April 2019 SaaS company Locus announced QuickStart for Small Enterprises (SMEs).
Global Supply Chain Management Software Market By Components (%)
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Supply Chain Management Software Market Regional Insights
North America accounted for a market size of 39.2% in 2023 and is estimated to dominate the market during the forecast period. The large adoption rate of such software in the region, the fact that the industry is growing technologically and other major players in this sector such as IBM, Microsoft, Telus International, Infor are a factor another major contributor to the growth of the market. SCM software in the US. are numerous and contribute significantly to revenue. The supply chain management software market in the US. is growing significantly and accounts for the largest revenue share of 74.2% in 2022. Adoption of advanced technologies such as artificial intelligence, data analytics and automation to increase visibility, traceability and efficiency in the supply chain.
Asia-Pacific is expected to register the highest growth rate of 14.4% during the forecast period. The growing market in the region is attributed to the growing opportunities in the region along with various investments in SCM. The infrastructure sector in China is growing exponentially due to the growing e-commerce industry, government support for technological development and infrastructure development, especially initiatives such as the Belt and Road Initiative (BRI), which create a demand for increases in terms of sophisticated solutions in online and offline channels.
Global Supply Chain Management Software Market By Geography
- Largest
- Fastest
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Supply Chain Management Software Market Dynamics
Drivers
Cloud Supply Chain Management Increasingly being Adopted by SMEs
- Modern businesses rely heavily on technology, with larger companies having their own IT department that manages and manages business processes. SMEs don’t really have adequate IT infrastructure. due to additional cost requirements and for managing and maintaining an IT department. Therefore, most SMEs and startups are adopting cloud-based SCM systems, where they can reap the benefits of the IT department through cloud management systems without having to hire additional staff at additional cost. The storage flexibility of cloud-based SCM provides scalability, which is very important for SMEs and will help them with unexpected growth in the first year of business operations. Besides, cloud based SCM provides powerful inventory management for SMEs, in latest performance improvements It is very responsive.
Tendency towards Technological Advancement and Investment that will Drive Market Growth
- AI-driven supply chains are used to improve efficiency and increase business revenue. This technology is especially at the forefront in areas such as manufacturing, maintenance, and sales. Failure is anticipated and the supply chain is enabled to continue without interruption. These technologies are increasingly being used to improve transparency, supply chain visibility, communication, and SCM implementation. Companies have been using automation to pursue efficiency in their supply chains for decades. This emerging change is accelerated by technological advances such as intelligent automation (IA). IA integrates artificial intelligence and robotics to make machine-intensive work.
Restraints
Growing Security and Privacy Concerns in Corporations
- Companies adopting cloud-based SCM face security and privacy issues. Companies have private data that needs to be protected to avoid data breach and theft as this can affect the overall reputation of the company. Company data can be leaked over the internet and accessed by unauthorized users, which is a factor as it is increasingly affecting the industry. For example, cloud-based transportation management systems require a multitenant architecture, in which one piece of software runs on a server shared by multiple customers so the company’s customers are likely to see competitors’ data. These security issues with the use of data by unauthorized users will likely threaten enterprise data security and competitive operating conditions, as well. Thus, these issues related to security and privacy add to the growing industry concerns and restrain the growth of the market during the forecast period.
Limited Knowledge of Supply Chain Management Tools
- Awareness of supply chain management solutions and their benefits is low among healthcare professionals. With the introduction of various supporting services such as inventory-free inventory systems over the years, unlocking the full potential of SCM tools will require delivery improved training in SCM principles.
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Supply Chain Management Software Market Competitive Landscape
One notable strategy is between the Oracle and DHL supply chains. In 2023, it partnered with DHL to optimize its supply chain logistics using Oracle’s cloud-based solutions. This collaboration enabled DHL to optimize logistics and reduce transportation costs using Oracle's advanced predictive analytics, real-time tracking, and automated workflows. DHL can build route planning, warehousing management and optimized last-mile delivery through Oracle's AI-powered systems. This example illustrates how partnerships in the SCM software market can drive innovation and add value to end users through a combination of technical and business expertise.
Top Player’s Company Profiles
- International Business Machines Corporation (IBM) (US)
- Kinaxis Inc. (Canada)
- Korber AG (Germany)
- Manhattan Associates (US)
- Oracle Corporation (US)
- SAP SE (Germany)
- The Descartes Systems Group Inc. (Canada)
- Panasonic (Japan)
- Epicor Software Corporation (US)
- E2open, LLC (US)
- Körber (Germany)
- GEP Worldwide (US)
- IFS AB (Sweden)
- Logility, Inc. (US)
- RELEX Solutions (Finland)
- Basware Corporation (Finland)
- Softeon (US)
- Tecsys Inc. (Canada)
- Verizon Connect (US)
- Uber Technologies, Inc. (US)
Supply Chain Management Software Key Market Trends
- Technological Advancement Drives Growth in Supply Chain Management: Advances in information and communication technologies make the supply chain development more feasible. Technologies such as IoT, cloud computing, 5G, blockchain, AI, 3D printing, and robotics are all needed to enable the digital supply chain of the future because transparency and computation are key areas of supply chain for in-service, real-time viewing. GPS trackers can now track everything from the location of a shipment to its current temperature, delivering up-to-the-minute data. Real-time features and affordable tracking are useful in the ongoing COVID-19 pandemic.
- Growing E-commerce to Support Market Growth: With the advent of e-commerce, companies started selling their products online, helping them reach more people than ever before. This trend also led to the increased competition among companies trying to reach the core customers, offering them the best products and services at the best prices. E-commerce has made shopping easy and convenient for customers by providing multiple payment options like debit cards, credit cards, easy return policies etc. to ensure customer satisfaction with purchases. These technologies help companies track hourly sales performance, understand what their customers want, and how they can improve their business processes to meet those needs.
Supply Chain Management Software Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the market is driven by increasing concerns over road safety, stringent government regulations mandating safety features, technological advancements in sensor technologies and artificial intelligence. Geographically, North America dominates because of stringent safety policies, even as the Asia Pacific region witnesses rapid growth because of rising automobile sales and authorities' projects. Key trends include the AI integration, connectivity upgrades, personalization, and convergence with autonomous using technology, shaping the destiny of automobile protection. However, excessive implementation expenses, reliability worries, and interoperability issues act as restraints.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 18 billion |
| Market size value in 2031 | USD 20.07 billion |
| Growth Rate | 4.20% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
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| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Supply Chain Management Software Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Supply Chain Management Software Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Supply Chain Management Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Supply Chain Management Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Supply Chain Management Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Supply Chain Management Software Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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