Supply Chain Management Market

The global supply chain management market size was valued at USD 23.1 billion in 2020 and is projected to surpass USD 41.6 billion by 2028, expanding at a CAGR of 10.2% during the forecast period, 2021–2028. The growth of the market is attributed to the increasing adoption of cloud supply chain management among SMEs and rising business continuity by reducing the risk of failure.

Supply chain management includes the management of services and products. It refers to the entire production flow, from raw materials to distribution of the final product to the client. A business includes a network of distributers to deliver the product from raw material suppliers to organizations and finally to customers. Logistics services determine efficient supply chain management, which control merchandise costs and allows transporters to offer supply chain visibility. Cloud-based deployments are estimated to be cost effective, easy to implement, and positively affect businesses around the globe. Cloud-based deployments in supply chain management are expected to grow in the coming years, due to the capabilities of SaaS solutions and the convenience of cloud security.

Lockdowns imposed due to the COVID-19 outbreak are affecting the global supply chain. Therefore, several industries shifted their typical manufacturing processes to produce PPE kits, necessary medical supplies, and other objects. COVID-19 compelled several businesses and industries to reconsider their global supply chain models. For instance, according to the Economist Intelligence Unit (EIU), over-reliance on suppliers in Asia, particularly China, already posed a major concern for businesses in MEA prior to the COVID-19 disruption in 2020, and following the outbreak, businesses in MEA plan to diversify supply chains and refocus on local production.

Market Trends, Drivers, Restraints, and Opportunities

• Rising cloud-based deployments are anticipated to drive the market during the forecast period.
• Integration of new digital technologies including machine learning and IoT propel the market.
• Increasing demand for high transparency and visibility in supply chain data and processes boost the market.
• Lack of awareness regarding advanced supply chain management tools is expected to hinder the market during the forecast period.
• Rising privacy and security concerns is expected to hamper the market growth.
• Advances in technology are anticipated to create lucrative opportunities for the market players during the forecast period.

Scope of the Report

The report on the supply chain management market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Sourcing & Procurement software segment to grow at a rapid pace

Based on solution types, the supply chain management market is segregated into warehouse management system, supply chain planning, sourcing & procurement software, transportation management system, and manufacturing execution system. The sourcing & procurement software segment is expected to grow at a rapid pace during the forecast period, due to increasing demand for production, distribution, and budgeting, which helps users manage their logistics operations efficiently. However, the transportation management system segment is anticipated to hold a key share of the market in the coming years, owing to digital revolution. Digital revolution is transforming the landscape of the transportation business; hence a large number of transportation management system suppliers and third-party providers are embracing digitized systems for supply chain management and transportation services.

On-premise segment to expand at a considerable CAGR

On the basis of deployment models, the market is bifurcated into cloud-based and on-premise. The on-premise segment is projected to expand at a considerable CAGR during the forecast period, owing to the speed, reliability, connectivity, and security offered to companies in this segment. The cloud-based segment is anticipated to account for a major market share during the forecast period, due to rising adoption of cloud-based SCM software among small & medium enterprises.

Services segment to register significant market share

In terms of components, the market is divided into services and solutions. The services segment is expected to register significant market share in the coming years, owing to increasing demand for professional services for the analysis and preservation of important data and professional assistance on emerging technologies. The solutions segment is anticipated to constitute a key market share during the forecast period, to provide improved productivity, efficiency, and customer satisfaction with optimized cost.

Large enterprises segment to register substantial CAGR

Based on end-users, the market is segmented into small & medium enterprises and large enterprises. The large enterprises segment is projected to register substantial CAGR during the forecast period, due to increasing demand for strict monitoring solutions and automation capabilities for resource allocation and strategic decision-making. The small & medium enterprises segment is anticipated to grow at a rapid pace during the forecast period, owing to the pay-as-you-go approach adopted by small & medium enterprises to flexibly manage their IT infrastructure according to their needs.

North America is anticipated to constitute a key market share

In terms of regions, the supply chain management market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the forecast period, due to technological advancements in the region. However, the market in Asia Pacific is anticipated to expand at a rapid pace during the forecast period, owing to rising investments in infrastructure by governments and private enterprises.

Segments

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

• Cloud-Based
• On-Premise

• Services
• Solutions

• Small & Medium Enterprises
• Large Enterprises

• Asia Pacific
• North America
• Latin America
• Europe
• Middle East & Africa

• Manhattan Associates
• Logility
• SAP SE
• Oracle
• The Descartes Systems Group
• Infor
• IBM

Competitive Landscape

Key players competing in the market are Manhattan Associates; Logility; SAP SE; Oracle; The Descartes Systems Group; Infor; and IBM.

Oracle Corporation deals with hardware, databases, software, cloud applications, and various data infrastructure platforms. The organization provides useful supply chain management solutions. Oracle incorporates IoT, AI, and machine learning into supply chain management systems in order to create an accurate, convenient, and efficient system. Oracle Corporation restructured SaaS tools including Enterprise Resource Planning, Human Capital Management Cloud, Enterprise Performance Management Clouds, and Supply Chain Management Cloud with industrial features and AI.

IBM released a supply chain suit that includes IBM block-chain and Watson AI. It has the ability to make supply chains smart, efficient, and capable of making decisions in difficult situations.