Supply Chain Management Market Research, 2033
The global supply chain management market was valued at $27.2 billion in 2022, and is projected to reach $85.3 billion by 2033, growing at a CAGR of 11.1% from 2023 to 2033. Supply chain management focuses on the development and delivery of goods with higher efficiency and greater speed. Industry players have developed digital SCM systems to improve efficiency in material handling and delivery. The use of supply chain software enables suppliers, manufacturers, logistics providers, and retailers to efficiently manage product creation, order fulfillment, and information tracking. 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 management industry.
Key Takeaways:
- By component, the solution segment held the largest share in the supply chain management market for 2022.
- By solution type, the procurement and sourcing segment held the largest share in the supply chain management market for 2022.
- By deployment mode, the on-demand/cloud-based segment is expected to show the fastest market growth during the forecast period.
- By enterprise size, the small and medium-sized enterprise segment is expected to show the fastest market growth during the forecast period.
- By industry vertical, the retail and consumer goods segment held the largest share in the supply chain management market for 2022.
- Region-wise, North America held largest market share in 2022. However, Asia-Pacific is expected to witness the highest CAGR during the forecast period.
In addition, rise in technological advancement & 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, increase 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 increasing security and privacy concerns among businesses hamper the supply chain management market growth. On the contrary, increase in advanced information and communications technology and increasing growth of e-commerce sector is expected to offer remunerative opportunities for expansion of the supply chain management market during the forecast period.
The report focuses on growth prospects, restraints, and analysis of the global supply chain management industry. The study provides Porter's five forces analysis to understand the impact of various factors, such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, threat of substitutes, and bargaining power of buyers on the global supply chain management market share.
Segment Review
The supply chain management market is segmented on the basis of by component, solution type, deployment model, enterprise size, industry vertical, and region. By component, the market is bifurcated into solution and services. By solution type, it is classified into transportation management system, warehouse management system, supply chain planning, sourcing & procurement software, and manufacturing execution system. By deployment model, the market is divided into on-premise and cloud based. By enterprise size, it is bifurcated into small & medium-sized enterprises (Small and medium-sized enterprise (SMEs)) and large enterprises. Depending on industry vertical, it is fragmented into retail & consumer goods, healthcare & pharmaceuticals, manufacturing, food & beverages, transportation & logistics, automotive, and other. By region, the market is analyzed across North America (U.S. and Canada), Europe (UK, Germany, France, Italy, Spain, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, and Rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
On the basis of component, solution segment dominated the supply chain management market size in 2022 and is expected to maintain its dominance in the upcoming years owing to help the management team to make crucial decisions about business strategies to adopt cost-effective measures and improve operational efficiency the solution segment is further classified into the transportation management system (TMS), planning & analytics, warehouse & inventory management system, procurement & sourcing, and manufacturing execution system. However, the services segment is expected to witness the highest growth, owing to the adoption of supply chain management services across different industry verticals, as it assures effective functioning of platforms and software.
Region wise, 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.
Competitive Analysis
On November 2023, Epicor, a global leader of industry-specific enterprise software designed to promote business growth, acquired Elite EXTRA, a leading provider of cloud-based last mile delivery solutions. The acquisition expands Epicor's ability to help its customers across the make, move, and sell industries simplify last mile logistics and compete in a hyper-competitive market more effectively.
On October 2023, LSQ, a leading provider of working capital finance and payments solutions, partnered with Infor Nexus, the leading global supply chain platform and a division of Infor. This partnership intends to provide network of suppliers access early payments through an LSQ FastTrack supply chain finance program.
On October 2023, IBM partnered with Amazon Web Services (AWS) to enhance its offerings with generative AI capabilities, enabling clients to integrate AI quickly into their business and IT operations on AWS.
On February 2024, Blue Yonder, a leading supply chain solutions provider, acquired Flexis AG, a flexible, innovative software technology provider specializing in production optimization and transportation planning and execution. Through this acquisition it intends to help companies with highly configurable products and expansive suppliers to plan and optimize their complex production facilities and network structures.
On April 2023, Oracle launched AI and Automation capabilities Oracle Fusion Cloud Applications Suite that help customers accelerate supply chain planning, increase operational efficiency, and improve financial accuracy. The updates include new planning, usage based pricing, and rebate management capabilities within Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) and enhanced quote-to-cash processes in Oracle Fusion Applications.
Top Impacting Factors
Rise in technological advancement and investments
Surge in technological advancement and investments drive the operational efficiency and help to increase the business revenue. In addition, these technologies are being used to improve transparency, supply chain visibility, connectivity, and the use of supply chain management. Furthermore, many companies have taken advantage of automation to accomplish efficiencies across their supply chains for decades. This pace of change has accelerated due to technological advancements such as cloud based SCM and intelligent automation (IA) which combine with artificial intelligence (AI) and robotic to automate complicated machine processes. Moreover, major players in this market are investing and integrating advanced software technologies such as cloud computing, AI, machine learning, and other technologies in SCM. For instance, in December 2021, according to Gartner survey, among 211 supply chain professionals, 34% of respondent said that adapting new technology is the most important strategic change in supply chain organizations, such an increase in the adoption and integration of AI-based and cloud based SCM software among key players drives the growth of the market.
Increase in adoption of SCM software in healthcare and pharmaceutical companies
The healthcare supply chain is an extensive network of systems, components, and processes that collectively work to ensure medicines and other healthcare supplies are manufactured, distributed, and provided to patients. The Supply Chain can be visualized as a back-end program running, which is necessary to integrate all the different processes together. The supply chain implemented ensures availability of medicine/product at right time, minimizing inventory wastage, maximizing patient care, coordination in all departments, and minimizing human error/medication errors.
This can be accomplished by using possible measures i.e., integrating subsystems, streamlining workflow & use of RFID technologies, standard product code, and Global Identification number. Rise in pressure faced by healthcare providers to improve operational efficiency and profitability drive the adoption of SCM software in the healthcare industry. In the current scenario, the healthcare market across the globe is characterized by increase in healthcare costs and national healthcare expenditures.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the supply chain management market analysis from 2022 to 2033 to identify the prevailing supply chain management market size.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the supply chain management market forecast assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the supply chain technology.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of supply chain management industry.
- The report includes the analysis of the regional as well as global supply chain management market trends, key players, market segments, application areas, and market growth strategies
Supply Chain Management Market Report Highlights
| Aspects | Details |
 Market Size By 2033 | USD 85.3 billion |
 Growth Rate | CAGR of 11.1% |
 Forecast period | 2022 - 2033 |
 Report Pages | 374 |
 By Industry Vertical |
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 By Component |
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 By Solution Type |
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 By Deployment Mode |
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 By Enterprise Size |
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 By Region |
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 Key Market Players | IBM Corporation, THE DESCARTES SYSTEMS GROUP INC, Manhattan Associates, Inc., Oracle Corporation, Blue Yonder Group, Inc., EPICOR SOFTWARE CORPORATION, Infor, Kinaxis, SAP SE, körber ag |
Analyst Review
Supply chain management is the management of the flow of goods & services and SCM manages all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace. Moreover, supply chain management (SCM) represents an effort by suppliers to develop and implement supply chains that are as efficient and economical as possible. Supply chains cover everything from production to product development to the information systems needed to direct these undertakings.
The global supply chain management market is expected to register high growth due to the rise in demand and increase in awareness of the benefits of SCM solutions, such as transportation management systems, planning & analytics, forecasting accuracy, warehouse & inventory management, supply chain optimization, procurement & sourcing, waste minimization, manufacturing execution and relevant synthesis of business data. In addition, the rapidly growing adoption of information technology and technical breakthroughs improves and supports the overall supply chain, contributing to market expansion. With surge in demand for supply chain management, various companies have established alliances to increase their capabilities.
In addition, with further growth in investment across the globe and the rise in demand for supply chain management, various companies have expanded their current product portfolio with increased diversification among customers. For instance, in March 2022, Logility, Inc., introduced upgrades to its software for improved planning capabilities across the product lifecycle. The new upgrade offers visualization of the global relationships of users with their interconnected network through supply chain network maps. The software also exhibits new Product Lifecycle Management (PLM) dashboards for improved analysis of product performance and speed-to-market.
Moreover, with the increase in competition, major market players have started acquisition of companies to expand their market penetration and reach. For instance, September 2021, Accenture acquired MacGregor Partners, a leading supply chain consultancy and technology provider specializing in intelligent logistics and warehouse management to expand Accenture’s supply chain network and fulfillment transformation capabilities powered by Blue Yonder technology.
The Supply Chain Management Market valued at $27,230.48 million in 2022 and is estimated to reach $75,557.78 million by 2032, exhibiting a CAGR of 10.9% from 2023 to 2032.
North America is the largest regional market for Supply Chain Management
The key players that operate in the supply chain management market 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 such as collaboration, partnership, and product development to increase their market penetration and strengthen their position in the industry.
Increase in advanced information and communications technology is the leading application of Supply Chain Management Market
Rise in technological advancement & investments and surge in demand & usage of supply chain management services & software by various enterprises and industries are the upcoming trends of Supply Chain Management Market in the world
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