Supply Chain Management Market Size, Share & Industry Analysis, By Module (Transportation Management System, Warehouse Management System, Sourcing and Procurement, Manufacturing, Inventory Management Software, and Others), By Deployment (On Premise and Cloud), By Enterprise Size (SMEs and Large Enterprise), By Industry (Discrete, Process, and Others), and Regional Forecast, 2024-2032

The global supply chain management market size was valued at USD 23.58 billion in 2023. The market is projected to grow from USD 26.25 billion in 2024 to USD 63.77 billion by 2032, exhibiting a CAGR of 11.7% during the forecast period.

SCM is the process of implementing, planning, and controlling a supply chain's operations to fulfill customer requirements. SCM includes the process that transforms raw materials into final products and encompasses a trading partner community engaged in satisfying end customers.

Pandemic-related lockdowns, labor shortages, geopolitics, and even weather significantly impacted the global supply chain, leading to supply chain bottlenecks, increasing costs, and disruption. In response, the organization started adopting different strategies, such as shoring vendors and vertically integrated supply chains. Due to this, the market witnessed growth among organizations.

However, the COVID-19 pandemic prompted companies around the world to implement IT software based on digital technologies to streamline their operations. The increasing digitization of enterprises and increasing government policies favoring the implementation of digital technology software drive the market's growth. For example, according to industry experts, investment in global digital transformation in 2020 reached USD 1.5 trillion, with investments from small businesses and large corporations surging.

Such an upsurge in the government's implementation of digital technology platforms and initiatives for digitalization during the COVID-19 pandemic slightly increases the demand for supply chain management solutions.

Supply Chain Management Market Trends

Rising Advent of E-commerce to Aid Market Growth

With the advent of e-commerce, firms have started selling their products online, which has helped reach a larger audience than ever before. This trend also increased competition among companies trying to win customers’ cores by providing them with better products and services at affordable prices.

Ecommerce made shopping more convenient and accessible for shoppers by offering multiple payment options such as debit cards, credit cards, and easy return policies to ensure customers are satisfied with their purchases.

These technologies help businesses track sales performance hourly, understand what their customers want, and how they can improve their business strategy to meet those needs. From sourcing raw materials to delivering products to customers, B2B Supply Chain Management (SCM) encompasses all levels of transactions.

Further, the growth of e-commerce is impacting SCM in many ways. First, the growing demand for just-in-time delivery sets pressure on suppliers to deliver products faster and more efficiently. Second, e-commerce will impact supply chain management by allowing shipping companies to exchange documents electronically during the fulfillment process.

Thus, the above factors in e-commerce are considered trending factors in the SCM market.

Supply Chain Management Market Growth Factors

Inclination toward Technological Advancements and Investments to Drive the Growth of the Market

AI-driven supply chains are used to drive operational efficiency and increase businesses' revenue.

These technologies are majorly leading in processes such as manufacturing, maintenance, and sales. They enable uninterrupted supply chain flow by predicting failures before they occur.

These technologies are increasingly being used to improve transparency, supply chain visibility, connectivity, and the use of SCM. Companies have taken advantage of automation to accomplish efficiencies across their supply chains for decades. This pace of change is accelerating due to technological advancements such as intelligent automation (IA). IA combines artificial intelligence and robotics to automate complex processes for machines.

Further, major players in this market are investing and integrating advanced software technologies such as cloud computing, AI, machine learning, and others in SCM. For instance,

• In December 2021, according to a Gartner survey, amongst 211 supply chain professionals, 34% of respondents 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 the key players drives the market growth.

RESTRAINING FACTORS

Outsourcing the Manufacturing Operations and Procurement Processes to Different Geographic Locations Creates SCM Challenges

To minimize costs throughout the supply chain, enterprises move manufacturing operations to countries with lower labor taxes and transport costs for raw materials. For some organizations, outsourcing production involves multiple countries for different parts of their products.

However, outsourcing and the company’s procurement network extend the production process globally. Choosing suppliers in different geographical locations complicates the supply chain. Businesses need to coordinate, communicate, and collaborate with cross-border parties about manufacturing, warehousing, and logistics.

In addition, despite the increasing complexity of the manufacturer's supply chain, these parties extend or maintain fast delivery times for customers who want to receive their products on time. Thus, there is an inherent risk of losing visibility, control, and proper management over inventory, particularly if enterprise applications are not integrated.  This requires managing diverse data structures across geographies, a major challenge for outsourcing manufacturing operations and procurement processes.

Supply Chain Management Market Segmentation Analysis

By Module Analysis

Increasing Need for Environmental Protection and Time Reduction to Augment Segmental Demand

Based on module, the global SCM market is segmented into transportation management system, warehouse management system, sourcing and procurement, manufacturing, inventory management software, and others (order management).

The transportation management system is estimated to grow with a highest CAGR of 14.2% during the forecast period. Factors, such as the need for efficient transportation due to regulations and environmental protection, cost efficiency, and time reduction, are accelerating the adoption of transportation management systems in the region. According to recent studies, about 35.0% of businesses are adopting the transportation management system for managing their transportation network.

The manufacturing segment dominated the global market, with the highest supply chain management market share in 2023, as manufacturing helps businesses capture value across the entire supply chain, identify potential issues of the supply chain, and allow for better allocation of resources.

By Deployment Analysis

Rising Inclination toward Cloud Computing Among SMEs and Enterprises Boost Cloud Adoption

By deployment, the market is categorized into on-premise and cloud.

The cloud segment held a major market share in 2023 and is expected to grow with the highest CAGR from 2024 to 2032. According to a survey by Accenture, around 21% of supply chain executives deployed cloud-enabled capabilities across their entire supply chains. The rising adoption of cloud computing among enterprises around the globe aids market growth. According to the EU, around 42.0% of European enterprises have adopted cloud computing for their businesses.

The on-premise segment is estimated to witness steady growth during the forecast period as companies have to invest significant capital in purchasing the servers and hardware to get it running. Also, if the data stored on-premises is at a greater risk, companies mostly opt for cloud solutions rather than on-premises.

By Enterprise Size Analysis

Rising Adoption of Supply Chain Management Software Among Small & Medium Scale to Boost Market

In this report, the SCM market is analyzed across large enterprises and SMEs.

Small & medium-sized enterprises (SMEs) are estimated to showcase the highest CAGR during the forecast period. This is primarily attributed to rising adoption of the supply chain management software among the small and medium scale manufacturing companies around the globe. Also, according to the World Bank Organization, SMEs accounted for the majority of the business around the globe and contributed around 50.0% of the employment.

Large enterprises held the major market share in 2023, as large enterprises are using this solution to improve inventory management, which leads to more effective demand planning. Also, the software is used to improve responsiveness to unforeseen activities, including staff absence, urgent custom orders, missing goods, machine failure, and others.

By Industry Analysis

Rising Adoption of SCM Software Among Discrete Industries to Boost the Market

Based on industry, the market is divided into discrete, process, and others.

The discrete industry dominated the global market in 2023 and is estimated to grow with the highest CAGR during the forecast period.

The demand for discrete industry is increasing due to rising adoption of SCM solutions in manufacturing. For instance,

• According to a survey by Aptean, around 64.0% of discrete manufacturers have a digital transformation roadmap in place of all the departments.


• According to NIST, discrete manufacturing accounts for 36.0% of the U.S. manufacturing. Thereby, supply chain management solution adoption is increasing in the discrete manufacturing industry.

Thus, the above facts contribute to the growth of the discrete industry in SCM.

The process industry is estimated to grow at a steady growth rate during the forecast period as it involves a complex supply chain with multiple intermediaries, suppliers, and customers, which makes it difficult to analyze and track the movement of materials and products through the supply chain.

REGIONAL INSIGHTS

Geographically, the market is divided into five key regions, North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further categorized into countries.

The North American supply chain management market growth is driven by the growing adoption of SCM solutions across this region. According to recent research, SCM solution usage in the region grew by 9.0% Y-o-Y in 2021. The logistics industry in the U.S. accounts for about 10.0% of the total GDP and is expected to reach around 175.0 trillion in 2022. As the logistics industry is witnessing growth, the demand for SCM will also increase in the coming years. According to the Bureau of Labor Statistics (BLS), there are over 5.0 million transportation and warehouse workers in the U.S. alone. Multinational corporations are investing in the U.S. logistics industry to facilitate the flow of goods in the world's largest consumer market.

Key players in the region are focusing on offering customers advanced solutions to improve efficiency and customer experience. For instance, Oracle announced a cloud analytics solution that offers oracle fusion cloud supply chain & manufacturing customers the information needed to understand, detect, and resolve problems faster throughout the supply chain.

Asia Pacific is estimated to hold the highest CAGR in the forecast period. The region's growth is mainly due to evolving industry verticals, including BFSI, manufacturing, and logistics & transportation. Several key regional vendors are focusing on developing and introducing advanced SCM solutions to cater to the rising demand for resilient supply chain operations among these verticals.

Further, players in the region are investing in developing logistics facilities among various countries. For instance, Singapore-based global warehouse operator GLP invested around USD 5.60 billion to develop logistics facilities in Japan. Development in logistics facilities is boosting the demand for supply chain solutions for better management and improved efficiency.

The Europe SCM market is driven by the substantial rise of industry 4.0 and IoT. According to the Federal Statistical Office of Germany, the increasing need for effective production process management and the early adoption of automation resulted in 82.0% of large organizations utilizing supply chain management solutions.

As e-commerce activity peaked during COVID-19, the importance of building a more consumer-centric and purpose-driven supply chain became apparent. Nearly 80.0% of customers in the United Arab Emirates and Saudi Arabia have switched to online shopping, according to Accenture’s research. As a result, European organizations are investing more in supply chains to serve their customers better.

The South American market is estimated to grow with a considerable CAGR during the forecast period. Before the COVID-19 pandemic, 37.0% of organizations used web-accessible solutions in their South American supply chain. However, during the pandemic, there was an increase in demand for SCM solutions among regional organizations.

List of Key Companies in Supply Chain Management Market

Strategic Acquisitions and Partnerships to Boost Market Expansion of Key Players

Key players operating in the market are entering into strategic partnerships and collaborations with technology providers. The key players adopt this strategy to integrate SCM with emerging technologies such as cloud, AI, and others. For instance,

• In September 2022, Accenture acquired MacGregor Partners, a supply chain technology and consultancy provider specializing in warehouse management and intelligent logistics. The acquisition developed Accenture’s supply chain network and transformation capabilities powered by Blue Yonder technology.


• In August 2022, Kinaxis acquired MPO to merge supply chain planning with real-time execution for perfect orders. Acquisition of MPO's multi-party orchestration execution and Kinaxis rapid response planning provides a real-time picture of each order throughout its lifecycle from planned commitment to final delivery.

 List of Key Companies Profiled:

• Oracle Corporation (U.S.)


• IBM Corporation (U.S.)


• Kinaxis (Canada)


• SAP SE (Germany)


• Wolters Kluwer N.V. (Netherlands)


• Blue Yonder Group, Inc. (U.S)


• Infor (U.S.)


• o9 Solutions, Inc. (Texas)


• Logility (U.S.)


• GainSystems, Inc. (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2024: Blue Yonder acquired Flexis AG, a software technology provider. The acquisition aims to expand and sharpen Blue Yonder’s offerings for industrial and automotive customers.


• December 2023: Blue Yonder introduced Blue Yonder Orchestrator, a generative AI capability that helps companies make more intelligent decisions and fast supply chain orchestration.


• August 2023: O9 Solutions entered into a strategic partnership with the Telangana Government to develop a specialized Supply Chain Skills Academy, and the company is also starting its office R&D hub in Hyderabad


• July 2023: Genpact extended its partnership with o9 Solutions for transforming planning and decision-making to help companies navigate ongoing supply chain disruption by using generative AI.


• January 2023: Oracle unveiled new logistics capabilities within Oracle Fusion Cloud Supply Chain & Manufacturing to help customers improve accuracy, enhance flexibility, reduce cost, and automate regulatory compliance


• October 2022: o9 Solutions, an enterprise AI software platform provider, launched “Supply Sensing”. This solution is designed to help businesses forecast supply disruptions by limiting the effect of macro-level blows on specific supply chains and modifying strategies to avoid any adverse impact on their businesses.


• August 2022: Wolters Kluwer, a professional information, software solutions, and services provider, participated at the 2022 North American Supply Chain Executive Summit (NASCES) in Chicago, IL. This event takes together service and solution providers and industry experts to benchmark, network, learn, and share solutions to worldwide tasks facing every supply chain professional in their daily work.


• July 2022: NTT Data and SAP Japan and Asia Pacific announced a co-innovative solution to develop supply chain insurance management. The solution, “Connected Product”, is a packaged offering cooperatively developed by IT services lead and digital businesses, SAP SE and NTT Data.


• June 2022: Infor, a cloud company, announced Mount Franklin Foods, a manufacturer of food service products, chose Infor’s CloudSuite Food & Beverage solution. This solution helps the company boost operational efficiency, manage greater supply chain transparency, and develop customer satisfaction.


• June 2022: Logility, a supply chain management provider based in Atlanta, acquired Starboard Solutions Corp., a computer program provider that builds a digital twin of the customer’s physical supply chain. This acquisition helped to boost supply chain profitability and enhance the company's product portfolio.

REPORT COVERAGE

The research report highlights leading regions across the world to offer a better understanding of the user and provides in detail supply chain management market analysis. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.

REPORT SCOPE & SEGMENTATION

ATTRIBUTE	DETAILS
Study Period	2019-2032
Base Year	2023
Estimated Year	2024
Forecast Period	2024-2032
Historical Period	2019-2022
Growth Rate	CAGR of 11.7% from 2024 to 2032
Unit	Value (USD Billion)
Segmentation	By Module Transportation Management System Warehouse Management System Sourcing and Procurement Manufacturing Inventory Management Software Others (Order Management) By Deployment On-premise Cloud By Enterprise Size Small & Medium-sized Enterprises (SMEs) Large Enterprise By Industry Discrete Process Others By Region North America (By Module, By Deployment, By Enterprise Size, By Industry, and By Country) U.S. Canada Mexico South America (By Module, By Deployment, By Enterprise Size, By Industry, and By Country) Brazil Argentina Rest of South America Europe (By Module, By Deployment, By Enterprise Size, By Industry, and By Country) U.K. Germany France Italy Russia Spain Nordics Benelux Rest of Europe Middle East & Africa (By Module, By Deployment, By Enterprise Size, By Industry, and By Country) Turkey Israel GCC North Africa South Africa Rest of Middle East & Africa Asia Pacific (By Module, By Deployment, By Enterprise Size, By Industry, and By Country) China Japan India South Korea ASEAN Oceania Rest of Asia Pacific