Supply Chain Management Market Expected to Reach $85.3 Billion by 2033

According to a new report published by Allied Market Research, titled, “Supply Chain Management Market," The supply chain management market was valued at $27.2 billion in 2022, and is estimated to reach $85.3 billion by 2033, growing at a CAGR of 11.1% from 2023 to 2033.

Supply chain management is the handling of the entire production flow of a good or service starting from the raw components all the way to delivering the final product to the consumer. A company creates a network of suppliers (“links” in the chain) that move the product along from the suppliers of raw materials to those organizations that deal directly with users. In addition, effective supply chain management systems minimize cost, waste, and time in the production cycle. Moreover, an efficient supply chain can reduce the need to maintain inventory, therefore cutting overhead costs associated with storage and security. Furthermore, rise in technological advancements & investments and surge in demand & usage of supply chain management services & software by various enterprises and industries boost the growth of the global supply chain technology. In addition, the rise in adoption of SCM software in healthcare and pharmaceutical companies positively impacts growth of the supply chain management market. However, lack of awareness about supply chain management software and increase in security and privacy concerns among businesses hamper the supply chain management market growth. On the contrary, an upsurge in advanced information and communications technology is expected to offer remunerative opportunities for expansion of the supply chain management market during the forecast period. 

On the basis of deployment mode, on-premise segment dominated the supply chain management market size in 2022 and is expected to maintain its dominance in the upcoming years, owing to collect, display, and organize important data from customer communication by means of e-mails, calls, and Chabot’s using the company’s own IT infrastructure. However, the cloud segment is expected to witness the highest growth, owing to the development of sophisticated applications for efficient data management and service delivery is projected to be facilitated by improvements in information-sharing technologies and the rising use of mobile devices.

By region, the supply chain management market share was dominated by North America in 2022 and is expected to retain its position during the forecast period, owing to increasing technological advancements such as using business intelligence for targeting regular customers, and introduction of digital technologies has boosted the growth of the market in this region. However, Asia Pacific is expected to witness significant growth during the forecast period, owing to increasing requirement for enhanced supply chain visibility, development of industrial-grade digital technology, and shifting inclination of the suppliers towards cloud-based supply chain management software are acting as growth catalysts for the overall market which drives the growth of the market.

The Russia-Ukraine conflict has significant impact on global supply chain management market forecast on every level. The warehouse capacity and disruption of transportation routes availability had started fading and impacted the industry. The war impeded the flow of goods, fueled cost increases and product shortages, and created crisis food shortages around the globe. In addition, the war has disrupted the trade flows between Russia, Ukraine, and other countries. This has affected supply chain management companies to find alternative sources for raw material and finished goods. The disruption also led to delays in shipment, which leads to an increase in costs and reduced customer satisfaction.

Furthermore, the conflict has created uncertainty and risk for businesses operating in the region, companies deal with the risk of sanctions the potential for supply chain disruptions and the risk of doing business in a politically unstable environment. Moreover, the conflict has led to regulatory changes such as government-imposed sanctions and trade restrictions. This has made it more difficult for companies to do business in the region and also increased the complexity of supply chain technology. Moreover, the Russia and Ukraine are major suppliers of fertilizer and the land destruction and commercial constraints due to the war have brought a major export concern for the fertilizers and in turn food and grains. For instance, according to Dun & Bradstreet (DNB) report stated that nearly more than 600,000 businesses worldwide rely on Russian and Ukraine suppliers, with just over 90% based in the US. Those high numbers are partly due to the oil, gas, wheat, corn, sunflower seed, semi-finished iron products, and other staples of American life exported from Russia and Ukraine.

Key findings of the study

• By component, the solution segment led the supply chain management market size in terms of revenue in 2022.
• By solution type, the procurement and sourcing led the supply chain management market share in terms of revenue in 2022.
• By deployment mode, the on-demand/cloud-based segment is anticipated to have the fastest growth for supply chain management market growth.
• By enterprise size, the large enterprise segment dominated the supply chain management market in terms of revenue in 2022.
• By industry vertical, the retail and consumer goods led the supply chain management market analysis in terms of revenue in 2022.
• By region, North America generated the highest revenue for supply chain management industry in 2022.

The key players profiled in the supply chain management industry analysis are IBM Corporation, Blue Yonder Group, Inc., Kinaxis, Manhattan Associates, Inc., Oracle Corporation, SAP SE, Epicor Software Corporation, HighJump., Infor, THE DESCARTES SYSTEMS GROUP INC. These players have adopted various strategies to increase their market penetration and strengthen their position in the supply chain management industry.