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 $75.6 billion by 2032, growing at a CAGR of 10.9% from 2023 to 2032.
Supply chain management gives manufacturers more control over their operations, resulting in better products, fewer product recalls, and stronger customer brands. Additionally, it helps to keep shipping practices under control so that better customer service can be provided and shortages or inventory oversupplies may be addressed. Effective supply chain management provides businesses with the chance to expand their large-scale, global operations.
Furthermore, increase in implementation of technological advancement and investments and surge in demand and usage of supply chain management services and software by various enterprises and industries is boosting the growth of the global supply chain management market. In addition, increase in adoption of SCM software in healthcare and pharmaceutical companies is positively impacts growth of the supply chain management market. However, Lack of awareness about supply chain management software and increasing security concerns is hampering the supply chain management market growth. On the contrary, increase in advanced information and communications technology is expected to offer remunerative opportunities for expansion during the supply chain management market forecast period
Depending on enterprise size, the large enterprise segment holds the largest supply chain management market share as a result of the amount of data and resources, as well as the increased need to build a strong network and brand identity. However, the SMEs segment is expected to grow at the highest rate during the forecast period, owing to increase adoption of cloud-based SCM systems among small and medium-sized organizations because to their flexibility and affordability.
Region-wise, the supply chain management market size was dominated by North America in 2021, and is expected to retain its position during the forecast period, owing to, the presence of major key players such as IBM, Microsoft, Telus International, and Infor, among others operating in the region. However, Asia-Pacific is expected to witness significant growth during the forecast period, owing to growing opportunities in the region along with various investments made in SCM.
The COVID-19 outbreak negatively impacts the growth of the market, the industry is expected to recover by the third quarter of 2022. This is attributed to significant investment in advanced technologies such as IoT and smart technologies and various government initiatives, such as smart cities, across Asia-Pacific countries, including China and India. Furthermore, adopting technologies such as cloud, Artificial Intelligence (AI), and IoT. With the considerable control achieved over the pandemic, various sectors such as retail, manufacturing, and automotive, are expected to witness rising investments as supply chain management solutions grow in prominence across different business functions offered several opportunities to digitize and expand the business across regions. Moreover, various public and private entities are expected to come together to create ecosystems to share data for multiple use cases under a common regulatory and cybersecurity framework, which, in turn, is expected to provide lucrative opportunity for the growth of the SCM market.
The integration of advanced technologies such as AI and big data is helping the industries to improve various aspects of a company such as perception, reasoning, learning, and problem solving of the human mind for detecting and predicting risks, which, in turn, is driving the growth of the SCM market.
In addition, to mitigate the impact on business activities from COVID-19, players in the logistics, transport and supply chain industries have deployed innovative measures in inventory management and distribution, engage in strategic initiatives with players and intermediaries across the value-chain. For instance, in August 2021, with this strategic acquisition, A.P. Moller - Maersk's acquired Visible SCM integrated logistics service that gained a new level of e-commerce experience. Clients in the business-to-consumer segment of Maersk are anticipated to be able to reach 75% of the U.S. direct-to-customer market in 24 hours and 95% of the U.S. in 48 hours.
Clients of Maersk can now boost supply chain speed and service coverage to keep up with the e-commerce trend of U.S. consumers for faster delivery to households at a cheaper cost. The operating model and brand value of Visible SCM is anticipated to boost Maersk's customers' e-commerce Logistics, allowing them to sell through any distribution platform, deliver in any method, and manage their supply chain operations efficiently, which, in turn, is expected to provide lucrative opportunity for the growth of the supply chain management industry.
KEY FINDINGS OF THE STUDY
Region wise, North America generated highest revenue in 2021.
Depending on industry vertical, the retail and consumer goods generated the highest revenue in 2021.
The key players profiled in the supply chain management market 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.