Supply Chain Security Market Expected to Reach $6.3 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Supply Chain Security Market," The supply chain security market size was valued at $2 billion in 2021, and is estimated to reach $6.3 billion by 2031, growing at a CAGR of 12.6% from 2022 to 2031.

Supply chain security is the management of the supply chain that focuses on risk management of external suppliers, vendors, logistics, and transportation. It identifies, analyzes, and mitigates risks associated with working with outside organizations as part of your supply chain. It can include both physical security and cybersecurity for software and devices. Though there are no established one-size-fits-all guidelines for supply chain security, a complete strategy requires combining risk management principles with cyber defense while also taking governmental protocols into account.

Companies are highly adopting supply chain security solutions as it has become imperative to prevent their company from any cyber-attacks. To address these issues, companies are adopting supply chain security solutions. An increase in supply chain attacks, rise in ransoms, demands for better risk prediction and mitigation, growing number of IoT devices in the supply chain, and excessive adoption of automation technology are some of the factors that are increasing the demand for the supply chain security market.

Furthermore, major market players have undertaken various strategies to increase the competition and offer enhanced services to their customers. For instance, in September 2022, Accenture acquired MacGregor Partners, a leading supply chain consultancy and technology provider specializing in intelligent logistics and warehouse management. The acquisition expands Accenture’s supply chain network and fulfillment transformation capabilities powered by Blue Yonder technology. Therefore, such a strategy helps to grow the supply chain security market in the upcoming years.

On the basis of component, the software segment is the highest growing segment. This is attributed to the fact that, as software segment of the supply chain security market provides various software solutions that help organizations protect their supply chain from cyber threats and other security risks. However, the service segment is considered to be the fastest growing segment during the forecast period. This is because there is an increasing demand for cloud-based solutions, which offer greater scalability, flexibility, and cost-effectiveness compared to on-premises solutions, which is one of the key trends of the market. Moreover, the growing adoption of advanced analytics and machine learning techniques to better predict and prevent supply chain disruptions, helps to boost the market in the upcoming years.

By region, North America attained the highest growth in 2021. This is attributed to the fact that, the supply chain security market in North America is expected to continue its growth trajectory due to the increasing demand for secure and reliable supply chains, government regulations and initiatives, and the adoption of advanced technologies. However, the Asia-Pacific region is considered to be the fastest growing region during the forecast period. This is because of the region's expanding economies, increasing trade volumes, and growing demand for secure and efficient supply chain operations. Thus, these factors propel the growth of the market in the Asia Pacific region.

The COVID-19 pandemic has had a moderate impact on the supply chain security market, both in terms of demand for solutions and changes in the market landscape. One major impact of the pandemic has been an increase in demand for supply chain security solutions, as companies have had to adapt to disruptions in global supply chains caused by lockdowns, travel restrictions, and other pandemic-related factors. This has led to an increased focus on supply chain visibility, risk management, and resilience, with many companies investing in technologies such as IoT sensors, blockchain, and artificial intelligence to improve their supply chain security. At the same time, the pandemic has also led to changes in the competitive landscape of the supply chain security market. For instance, some established vendors have struggled as a result of disruptions to their own supply chains, while others have seen increased demand for their services. In addition, new players have entered the market, offering innovative solutions to address emerging supply chain security challenges. Overall, the pandemic has highlighted the importance of supply chain security market and has led to increased investment in solutions that can help companies to mitigate risks and ensure the continuity of their operations. Therefore, the COVID-19 moderately impacted the supply chain security market.

Key findings of the study

• By security type, the data protection segment generated the highest revenue in supply chain security market share in 2021.
• By enterprise size, the small and medium-sized enterprises segment is expected to register the highest growth rate during the supply chain security market forecast.
• By end user, the retail and e-commerce segment led the supply chain security market in terms of revenue in 2021.  
• By region, North America generated the highest revenue in 2021.

The key players profiled in the supply chain security market analysis are Accenture, Check Point Software Technologies Ltd., Cold Chain Technologies, Controlant, Emerson Electric Co., IBM, NXP Semiconductors, Omega Compliance, SailPoint Technologies, Inc., and Tagbox. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.