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A04292 | Pages: 374 | Charts: 83 | Tables: 179 |
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.
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.
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).
[COMPONENTGRAPH]
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.
[REGIONGRAPH]
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. Â
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.
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.
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 Market Segments
Key Market Players