Supply Chain management Market by Component (Solution and Services), by Deployment (On-premises and Cloud-based), by End-user (Retail & E-commerce, Healthcare, Automotive, Transportation & Logistics, Food & Beverages, Manufacturing, and Others) – Global Opportunity Analysis and Industry Forecast 2024-2030

Supply Chain Management Market Overview

The global Supply Chain Management Market size was valued at USD 29.3 billion in 2023 and is predicted to reach USD 58.7 billion by 2030 with a CAGR of 10.4% from 2024-2030. Supply chain management (SCM) refers to the process of coordinating and managing the flow of goods, services, and information from the point of origin to the point of consumption. It involves the integration of various activities such as planning, sourcing, procurement, production, logistics, and distribution to ensure that products or services are delivered to customers efficiently and effectively.

SCM involves collaboration and communication between different entities in the supply chain, such as suppliers, manufacturers, distributors, retailers, and customers. The goal is to optimize the flow of goods and reduce costs while ensuring that products are of high quality and delivered on time. This helps businesses to streamline their operations, improve customer satisfaction, and gain a competitive advantage in the marketplace.

Market Dynamics and Trends

The growing popularity of e-commerce is driving the demand for efficient logistics and fulfillment solutions, which is fueling the growth of the supply chain management (SCM) market. As per the latest report published by the United Nations, the global e-commerce sector is growing at a significant rate, reaching USD 26.7 trillion in 2021. As the number of consumers shopping online is rising at a significant rate, businesses need to have effective SCM solutions in place to ensure timely and accurate order fulfillment, reduce costs, and respond quickly to market changes & disruptions.

Moreover, the trend towards globalization as businesses expand their operations beyond their home countries is driving the need for efficient supply chain management, which is further boosting the growth of the SCM market. The growing need for streamlined processes across international networks is catalyzing the expansion of the SCM market. As companies broaden their reach, the intricacies of managing complex supply chains become more pronounced, emphasizing the essential role of effective SCM solutions. Furthermore, advancements in technology such as the adoption of blockchain technology in supply chain management to increase efficiency, transparency, and security of goods & services in transit are further accelerating the growth of the SCM market.

However, the high cost of implementation and the complexity in the management of supply chain management are the major factors restraining the growth of the SCM market. On the contrary, the integration of artificial intelligence and robotics in supply chain management to analyze large amounts of data and automate repetitive & manual tasks in the supply chain, such as picking and packing, loading and unloading, and inventory management is expected to create ample opportunities in the supply chain management market in the coming years. Numerous companies, including Walmart, Unilever, Siemens, and many others have already integrated artificial intelligence (AI) into their supply chain management processes to enhance efficiency, optimize inventory management, and streamline overall logistics.

Market Segmentations and Scope of the Study

The supply chain management market report is segmented on the basis of component, deployment, end-user, and region. On the basis of component, the market is divided into solution and services. Solutions are further classified into transportation management system, planning & analytics, warehouse & inventory management system, procurement & sourcing, and manufacturing execution system. Services are further segmented into professional services and managed services. Based on deployment, the market is classified into on-premises and cloud-based. On the basis of end-user, the market is divided into retail & e-commerce, healthcare, automotive, transportation & logistics, food & beverages, manufacturing, and others. Regional breakdown and analysis of each of the aforesaid segments include regions comprising of North America, Europe, Asia-Pacific, and Rest of the world (RoW).

Geographical Analysis

Asia-Pacific holds the dominant share of the supply chain management market and is expected to continue its dominance during the forecast period. This is attributed to the factors such as the growing e-commerce sector in Asia-Pacific which is driving the demand for efficient and reliable supply chain management solutions. According to the International Trade Administration, China is the largest e-commerce market globally as it reached USD 2.29 trillion in 2020 and is expected to reach USD 3.56 trillion by 2024. The presence of such a huge online industry requires efficient supply chain management between suppliers, warehouses, and logistics providers to ensure that products are delivered to customers on time and in good condition.

Moreover, the growth of the food and beverage industry in the Asia-Pacific region is fueling the expansion of the supply chain management (SCM) market. As of 2021, China played a significant role in the global food and beverage industry, representing more than half of the sector's revenue worldwide. The country's food production volume also experienced a notable increase, rising by 6.3% in 2021. As urbanization and population growth continue to accelerate in the region, the demand for food and beverages is also rising, boosting the need for efficient supply chain management to ensure timely procurement and distribution of goods.

On the other hand, North America is expected to show steady growth in the supply chain management market share. This is due to the well-developed healthcare sector in North America that involves managing complex supply chains that require coordination of multiple activities, including procurement of medical equipment, pharmaceuticals, and other supplies, and timely delivery to hospitals and clinics. According to the Centers for Medicare & Medicaid Services, national healthcare expenditure reached 4.3 trillion in 2021 in the U.S. as compared to 4.1 trillion in 2020, driven by the rising demand for crucial and timely delivery of pharmaceuticals, medical devices, and equipment within the US and globally. Fulfilling these demands on time requires highly efficient supply chain management, driving the growth of the SCM market in this region.

Moreover, the presence of key market players such as IBM Corporation, Oracle Corporation, and The Descartes Systems Group Inc. in this region is further driving the growth of the supply chain management market in this region. For instance, in September 2023, IBM Corporation collaborated with iFoodDS to introduce a solution aimed at aiding organizations in meeting the requirements of the FDA's FSMA (Food Safety Modernization Act) 204 Food Traceability Rule. This new solution utilizes advanced technologies such as blockchain technology, the Internet of Things (IoT), data analytics, and interoperability standards (GS1) to streamline compliance processes, providing organizations with a powerful tool to enhance food traceability within the industry, contributing to the advancement of food safety practices.

Competitive Landscape

Various market players operating in the supply chain management industry include International Business Machines Corporation (IBM), Blue Yonder Group Inc., Manhattan Associates Inc., Oracle Corporation, SAP SE, Epicor Software Corporation, The Descartes Systems Group Inc., Kinaxis Inc., Accenture plc, o9 Solutions Inc, and others. These market players are adopting various strategies such as acquisition and product launches to remain dominant in the market.

For instance, in September 2022, Accenture acquired MacGregor Partners, a consulting firm specializing in supply chain management and logistics technology. The acquisition aims to expand Accenture’s supply chain network and fulfillment capabilities, providing clients with end-to-end supply chain solutions. 

Moreover, in March 2022, Kinaxis launched PlanningAI, an artificial intelligence-powered analytics engine that provides highly accurate and actionable insights for supply chain planning. The technology can analyze large volumes of data in real time, enabling businesses to respond quickly to changing market conditions and customer demands.

Furthermore, in February 2022, Oracle announced new updates to its supply chain management solutions, including enhancements to its order management and channel revenue management applications. The new updates feature an enhanced user interface, improved order orchestration, better support for complex order fulfillment scenarios, and improved forecasting & planning capabilities, increasing businesses efficiency in their supply chain operations.

Key Benefits

• The report provides quantitative analysis and estimations of the supply chain management market from 2024 to 2030, which assists in identifying the prevailing market opportunities.

• The study comprises a deep-dive analysis of the supply chain management market including the current and future trends to depict prevalent investment pockets in the market.

• Information related to key drivers, restraints, and opportunities and their impact on the supply chain management market is provided in the report. 

• A competitive analysis of the players, along with their market share is provided in the report.

• SWOT analysis and Porters Five Forces model are elaborated in the study.

• Value chain analysis in the market study provides a clear picture of roles of stakeholders.

Supply Chain Management Market Key Segments

By Component

• Solution 

  • Transportation Management System

  • Planning & Analytics

  • Warehouse & Inventory Management System

  • Procurement & Sourcing

  • Manufacturing Execution System

• Services

  • Professional Services 

  • Managed Services

By Deployment 

• On-premises 

• Cloud-based

By End-user 

• Retail & E-commerce

• Healthcare

• Automotive

• Transportation & Logistics

• Food & Beverages

• Manufacturing

• Others

By Region

• North America    

  • The U.S.

  • Canada

  • Mexico

• Europe    

  • The U.K.

  • Germany

  • France

  • Italy

  • Spain

  • Denmark

  • Netherlands

  • Finland

  • Sweden

  • Norway

  • Russia

  • Rest of Europe

• Asia-Pacific    

  • China

  • Japan

  • India

  • South Korea

  • Australia

  • Indonesia

  • Singapore

  • Taiwan

  • Thailand

  • Rest of Asia-Pacific

• Rest of the World (RoW)    

  • Latin America

  • Middle East 

  • Africa

REPORT SCOPE AND SEGMENTATION:

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