The global supply chain management market size accounted for USD 25.74 billion in 2022 and is projected to hit around USD 72.1 billion by 2032, poised to grow at a CAGR of 10.9% during the forecast period from 2023 to 2032.
Access our Premium Real Time Data Intelligence Tool, Visit: Precedence Statistics
The rise in demand and greater understanding of the advantages of SCM solutions, such as logistics management, transportation planning and analytics, predicting future accuracy, warehouse and inventory management, supply chain optimization, acquisition and sourcing, minimization of waste, manufacturing execution, and pertinent synthesis of business data, can be attributed to the growth of the SCM market. Also, the fast-expanding use of information systems and technological advancements supports and improves the entire supply chain, which helps the industry thrive.
The COVID-19 outbreak had a favourable effect on the intended audience. Due to the increased use of SCM to forecast and fulfil supply and demand requirements during the COVID-19 pandemic, a considerable increase has been seen.
A supply chain is the collection of activities that include developing new goods or services, acquiring raw materials, processing those materials into semi-finished or finished goods, transporting those goods, and distributing or distributing them to customers. Supply chain management refers to the group of applications used to coordinate and integrate all the aforementioned actions in a seamless manner as well as to offer customer care after the sale (SCM). It is simply the coordinated oversight of the movement of commodities from the supplier to the user stage.
The links and connections in this chain connect each of the partners, including information technology vendors, vendors, independent contractors, carriers, and others. The global SCM market is expanding as a result of increased technical development, investments, and demand for supply chain administration services and software across various businesses and industries. Also, a rise in the use of SCM software by pharmaceutical and healthcare organisations has a beneficial effect on the expansion of the supply chain management market. However a lack of knowledge about supply chain management technology and a rise in privacy and security worries among companies are impeding the market's expansion.
On the other hand, it is anticipated that throughout the projected period, an increase in modern technology for communication and information would present lucrative chances for the advancement of the SCM market.
Report Scope of the Supply Chain Management Market:
|Market Size in 2023||USD 28.42 Billion|
|Market Size by 2032||USD 72.1 Billion|
|Growth Rate from 2023 to 2032||CAGR of 10.9%|
|Largest Market||North America|
|Forecast Period||2023 to 2032|
|Segments Covered||By Component, By Solution Type, By Deployment Mode, By Enterprise Size, and By Industry Vertical|
|Regions Covered||North America, Europe, Asia-Pacific, Latin America and Middle East & Africa|
Increasing adoption of cloud supply chain management among SMEs
Contemporary organizations are heavily reliant on technology. While most startups and SMEs lack a functional IT department system on their own, large corporations have a dedicated IT department for managing and sustaining business processes. The rationale is that managing and sustaining an IT department is more expensive. Therefore, the majority of SMEs and startups choose to use a cloud-based SCM system so they may benefit from an IT department's services without having to hire additional people or incurring additional expenses. This enables internal staff to concentrate on ongoing business operations.
The scalability provided by the cloud-based SCM's flexibility in storage is crucial for SMEs and will aid them in coping with unforeseen growth during the first year of operation. Moreover, cloud-based SCM provides SMEs with strong inventory management that is very responsive to current business trends. When purchasing goods, for instance, the cloud-based SCM offers cost savings and an alluring pay-as-you-go model, such as real-time payment over the cloud, allowing SMEs to position themselves as effective and competitive competitors among other firms. The cloud-based SCM system can also be used by SMEs to create business initiatives that increase sales and profits.
Growing security and privacy concerns among enterprises
Businesses using cloud-based SCM must deal with security and privacy concerns. Businesses have sensitive information that must be kept secure to prevent theft and data breaches, which could damage the companies' overall brand. Data leakage via the Internet and access by unauthorized users are concerned businesses are becoming more and more concerned about.
For instance, a multitenant architecture is required for the cloud-based transportation management system, which runs a single instance of the software on a server that is shared by several clients. Thus, there is a chance that customers of a business could see information about rivals. The enterprise's security of data and competitive market position will likely be threatened by these security issues involving unauthorized persons accessing the data. Due to the increased concern among businesses about security and privacy, the cloud SCM market's growth is being constrained over the projected period.
Advances in technologies are making evolution to the supply chain industry
The evolution of the supply chain is becoming increasingly feasible thanks to developments in technology for communication and information. Cloud computing, IoT, 5G, 3D printing, blockchain, AI, and robotics are just a few of the technologies that will be essential to the development of the future digital supply network. For instance, a functional distribution network must include critical components that enable real-time tracking, such as openness and accountability. Today's GPS monitors can track everything about a shipment, including its location and temperature, giving logistics professionals real-time information that helps them completely comprehend how their supply chains work.
For high-value products and items during the ongoing COVID-19 outbreak, real-time tracking is helpful. With IoT data and device check-ins, the whole chain of custody for a cargo can be shown and confirmed. One example of how IoT devices might help safeguard clients from ruined goods is by automatically flagging shipments that have left a proper temperature zone.
Impact of Covid19:
The evolution of the supply chain is becoming increasingly feasible thanks to developments in technology for communication and information. Cloud computing, IoT, 5G, 3D printing, blockchain, AI, and robotics are just a few of the technologies that will be essential to the development of the future digital supply network. For instance, a functional distribution network must include critical components that enable real-time tracking, such as openness and accountability.
Today's GPS monitors can track everything about a shipment, including its location and temperature, giving logistics professionals real-time information that helps them completely comprehend how their supply chains work. For high-value products and items during the ongoing COVID-19 outbreak, real-time tracking is helpful. With IoT data and device check-ins, the whole chain of custody for a cargo can be shown and confirmed.
The global market is divided into services and solutions based on components. The solution category is further broken down into the following subcategories: planning and analytics, warehousing and inventory management system, procurement and sourcing, and factory execution system. Over the forecast period, the solution segment, which had the biggest share in 2022, is anticipated to rule the market. Quality control, supplier management, and logistics management are all handled by SCM solutions. SCM solutions offer advantages including improved visibility, efficiency, analytics, cost savings, increased agility, and increased compliance throughout the intricate supply chain. It helps automate complicated processes like order processing, billing, and order tracking, which saves time and money on administrative costs.
In 2022, the segment for transportation management systems had the biggest share. Freight movement is planned using a transportation management system, which also helps clients effectively plan and carry out transportation-related tasks throughout the supply chain. Because TMS have a significant impact on every stage of the supply chain, from planning and procurement to logistics and lifecycle management, demand for TMS has been growing quickly. Solutions for smart sensor technology and intelligent wireless communication are being used to give businesses precise information about automobiles. With the use of this technology, businesses can give customers real-time tracking information such as the delivery route, present location, and anticipated time of arrival, improving the supply chain process.
The target market is anticipated to be dominated by the large enterprise segment, which had the greatest market share in 2022. Increased demand for automation features and continuous monitoring systems, including advanced shipment notification administration, customizable updates, in-transit newsfeeds, user-configurable visualisations, and visual supply chain maps, can be attributed to the growth in a number of significant industries. Large organisations can improve their business decisions, including supply planning, stock management, and distribution planning, by using SCM's access to precise significant freight analytics and flexibility in producing reports.
The market is expanding as a result of a significant growth in the demand for software in major businesses to gather crucial business data such inventory levels, anticipated sales data, supplier details, and others. For instance, Microsoft announced the debut of its supply chain platform in November 2022 and provided a demonstration of the platform through its supply chain centre.
The apps and data used in supply chains are compatible with Microsoft's supply chain centre. Agility and stability of the supply chain are directly correlated with how efficiently businesses integrate and coordinate their data across all major platforms. The Azure, Microsoft Teams, Power Platform, and Microsoft Azure supply chain platform lay the basis for large enterprises to create or independently adopt solutions for particular supply chain needs.
In terms of SCM vendor presence, North America is the most developed technological region in the globe. SCM services and solutions are widely used in North America. Her SCM market is dominated by the United States in North America. Several sectors in the region, including BFSI, healthcare, retail, manufacturing, and retail, have embraced SCM services. The need for his SCM in the area has grown as a result of the expanding IoT trend and emphasis on improving the efficiency of supply chain operations such as logistics, warehousing, fulfilment, production, and transportation management.
Huge investments in infrastructure by governments and private companies, especially in India and Indonesia, to facilitate mobility and improve infrastructure, are expected to boost the demand for SCM in the Asia-Pacific region. The latest trends in trucking, containerization, and computerization are increasing the scale of shipments and deliveries of raw materials, work-in-progress (WIP), and finished goods around the world, effectively controlling supply chain cost, quality, and delivery. Improving. For SCM software and services.
Key Market Players:
Segment Covered in the Report:
By Solution Type
By Deployment Mode
By Enterprise Size
By Industry Vertical
PROCEED TO BUY :
ASK FOR SAMPLE
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client