Market Excerpt

The global supply chain management market was valued at US$ 12.96 Bn in 2017 and expected to expand at a CAGR of 12.3% during the forecast period from 2018 to 2026. Over the last few years, there has been a rise in both intra-regional and cross-border trades due to liberalization and consequent proliferation of e-commerce. Effective planning, management, and timely delivery of products to end-consumers has become crucial for the success of e-commerce business. With the increase in range of offerings by manufacturers, reliable logistic service has become necessity for firms of all sizes and across varied industry verticals. This has triggered need for efficient supply chain management solutions that not only enable shippers to control freight costs and offer supply chain visibility, but also handle different logistics operations effectively, enabling them to make quick decisions.  

Demand for SaaS (Software-as-a-Service) solutions to Drive Market Demand

Based on component, the global supply chain management market is categorized in to two major categories, namely: software and services. In 2017, collective value contribution of on-demand and SaaS software deployments was greater than contribution from services like maintenance, upgrades, and support. The software segment accounted for around 60% of the global supply chain management market value in 2017. The majority of this contribution came from on-premise deployments. Benefits offered by on-premise deployments in terms of security and control over data have somehow convinced businesses, especially in emerging economies to delay shift towards SaaS deployments. On the contrary, faster implementations, cost savings, and ability to leverage new technologies will eventually compel businesses around the globe to adopt cloud-based deployments. With business organizations becoming more convinced over cloud security and aware about the capabilities of SaaS solutions, the cloud-based deployments will surge in the coming years. Rise in cloud-based deployments will result in reduced maintenance cost, leading to steady decline in the value share of services segment during the forecast period.

North America to Dominate; Asia Pacific to Experience Fastest Growth

In 2017, North America was the largest supply chain management market worldwide followed by Europe and Asia Pacific respectively. North America accounted for over one-third of the global market value in 2017 and presumed to remain the largest value contributor throughout the forecast period. The U.S. represents the largest supply chain management market in North America and worldwide. With the growing trend towards near shoring and re-shoring, manufacturers are relocating their manufacturing facilities back to the U.S. This has resulted in increased volumes of freight and related inflation in the country. To address these challenges and optimally manage freight, manufacturers are increasingly deploying state-of-the-art supply chain management solutions that offer better supply chain visibility. The prevailing trend towards omni-channel distribution due to advances in e-commerce industry, especially in Asia Pacific has been instrumental in encouraging shippers to streamline their operations, thereby augmenting demand for supply management solutions.

Transportation & Logistics Segment to Dominate; Retail Sector to Witness Maximum Adoption

In 2017, the adoption of supply chain management solutions was highest in transportation & logistics segment. The value contribution from transportation & logistics segment stood at 58.3% in the same year. Since profit margins for transportation & logistics companies are low, companies are constantly seeking new solutions for reducing overheads without compromising on fleet performance. With transportation networks becoming more complex, demand for solutions that are capable of effectively managing and executing operations linked with transportation and delivery will surge in the coming years. Thus, transportation & logistics segment expected to remain highest value contributing segment throughout the forecast period from 2018 to 2026. On the other hand, with the proliferation of e-commerce and growing preference for omni-channel distribution among retailers, the demand for supply chain management solutions is expected to witness an upsurge in the retail sector.

Key companies profiled in the research study include SAP SE, Oracle Corporation, JDA Software Group, Inc., Vanguard Software, Comarch, IBM Corporation, Aspen Technology, Inc., Infor, Inc., Kinaxis, Plex Systems, QAD, Inc., and Sage Group Plc among others.

Historical & Forecast Period

This study report represents analysis of each segment from 2022 to 2032 considering 2023 as the base year. Compounded Annual Growth Rate (CAGR) for each of the respective segments estimated for the forecast period of 2024 to 2032.

The current report comprises of quantitative market estimations for each micro market for every geographical region and qualitative market analysis such as micro and macro environment analysis, market trends, competitive intelligence, segment analysis, porters five force model, top winning strategies, top investment markets, emerging trends and technological analysis, case studies, strategic conclusions and recommendations and other key market insights.

Research Methodology

The complete research study was conducted in three phases, namely: secondary research, primary research, and expert panel review. key data point that enables the estimation of Supply Chain Management market are as follows:

• Research and development budgets of manufacturers and government spending
• Revenues of key companies in the market segment
• Number of end users and consumption volume, price and value.
• Geographical revenues generate by countries considered in the report
• Micro and macro environment factors that are currently influencing the Supply Chain Management market and their expected impact during the forecast period.

Market forecast was performed through proprietary software that analyzes various qualitative and quantitative factors. Growth rate and CAGR were estimated through intensive secondary and primary research. Data triangulation across various data points provides accuracy across various analyzed market segments in the report. Application of both top down and bottom-up approach for validation of market estimation assures logical, methodical and mathematical consistency of the quantitative data.

Key questions answered in this report

• What are the key micro and macro environmental factors that are impacting the growth of Supply Chain Management market?
• What are the key investment pockets with respect to product segments and geographies currently and during the forecast period?
• Estimated forecast and market projections up to 2032.
• Which segment accounts for the fastest CAGR during the forecast period?
• Which market segment holds a larger market share and why?
• Are low and middle-income economies investing in the Supply Chain Management market?
• Which is the largest regional market for Supply Chain Management market?
• What are the market trends and dynamics in emerging markets such as Asia Pacific, Latin America, and Middle East & Africa?
• Which are the key trends driving Supply Chain Management market growth?
• Who are the key competitors and what are their key strategies to enhance their market presence in the Supply Chain Management market worldwide?