USD 21.13 billion
Report ID:
SQMIG45A2353 |
Region:
Global |
Published Date: September, 2024
Pages:
182
|Tables:
87
|Figures:
76
Global Supply Chain Management Software Market size was valued at USD 21.13 billion in 2022 and is poised to grow from USD 23.58 billion in 2023 to USD 54.49 billion by 2031, growing at a CAGR of 11.7% in 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.
Global Market Size
USD 21.13 billion
Largest Segment
Transportation
Fastest Growth
Cloud-based
Growth Rate
11.7% CAGR
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The global supply chain management software market is segmented based on Component, Deployment, Enterprise Size, Vertical, and Region. In terms of Components, the market is segmented into Solutions, and Services, Transportation. Based on deployment, the market is segmented into On-premises and Cloud-based. With respect to segmentation by Enterprise Size, the market is bifurcated into Small and Medium Sized Enterprises, and Large Enterprises. By Vertical, the market is grouped into Retail & E-commerce, Healthcare, Automotive, Transportation & Logistics, Food & Beverages, Manufacturing. Regionwise, the global supply chain management market is segmented into North America, Europe, Asia-Pacific, South America, and MEA.
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).
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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.
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Drivers
Cloud Supply Chain Management Increasingly being Adopted by SMEs
Tendency towards Technological Advancement and Investment that will Drive Market Growth
Restraints
Growing Security and Privacy Concerns in Corporations
Limited Knowledge of Supply Chain Management Tools
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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
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 21.13 billion |
Market size value in 2031 | USD 54.49 billion |
Growth Rate | 11.7% |
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 |
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Customization scope | Free report customization with purchase. Customization includes:-
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Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
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.
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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Report ID: SQMIG45A2353