Control Towers Market Size, Share & Trends Analysis Report By Type (Analytical, Operational), By Application (Supply Chain, Transportation), By End-use, By Region, And Segment Forecasts, 2023 - 2030

Report Overview

The global control towers market size was valued at USD 7.31 billion in 2022 and is expected to expand at a compound annual growth rate (CAGR) of 21.3% from 2023 to 2030. The growth can be attributed to the increased business needs of retailers, contract manufacturers, and logistics providers to digitalize their supply chain processes. This is because supply chain control tower software solution offer businesses enhanced visibility and enable them to make better decisions. Control towers are becoming more common in the supply chain and transportation ecosystems as it makes it easier for businesses to track deliveries in real-time and improve delivery efficiency.

The control towers market is growing because of the increasing popularity and adoption of control towers worldwide. The growing popularity can be attributed to the integration of control towers with enterprise resource planning (ERP), transportation management systems (TMS), and warehouse management systems (WMS) that provide operational control to businesses across their entire supply chain network.

Furthermore, control towers benefit businesses by allowing employees to analyze & optimize decisions, identify process breakdowns, and better control orders based on cycle times. Such added benefits from control towers are expected to drive market growth over the forecast period.

Technological advancements and the rapid globalization of business result in supply chains becoming increasingly challenging to be managed by businesses. Therefore, companies are looking for solutions to manage complexity in supply chains by avoiding risks and uncertainty.

The control towers can be a perfect solution for all such problems, as they provide enhanced visibility between trade partners, including businesses, countries, and modes of transportation. These solutions also help enterprises and organizations identify business growth opportunities and determine areas for cost-saving. Moreover, organizations across the globe are also embracing control towers to create a multi-enterprise supply chain that can deliver in-app control for fast delivery processes.

The technological capabilities of the control tower, such as continuous intelligence, advanced analytics, artificial intelligence, and scenario modeling, enable businesses to better plan, manage proactive events, and reduce inventory. This thereby creates the demand for technologically enhanced control towers among businesses.

At the same time, the growing advancement in technologies and the increasing adoption of IoT, cloud computing, and AI in various industry verticals are also expected to increase the adoption of control towers. The demand for AI-enabled supply chain control tower solutions is growing among businesses as it helps them to predict disruptions, improve resiliency, manage exceptions, and respond to unplanned events.

Though the control towers offer several benefits to the organization, the data quality issues might lead to poor visibility that can hinder the market's growth. Another major problem faced by the enterprises implementing the control tower is data security. Control tower requires an exchange of data and sensitive information among companies and their partners operating at different levels.

Such data transfer can endanger the company information to be leaked, and hence it is required to ensure data security and protect sensitive information from unauthorized individuals. Moreover, the shortage of trained professionals to generate accurate insights is one of the factors responsible for hindering the growth of the control tower industry.

COVID-19 Impact Analysis

The COVID-19 pandemic has taken its toll on businesses stifling innovation, drying up cash flows & financial reserves, and suppressing profitability. Numerous companies are equally affected by the COVID-19 outbreak, and the market is also likely to be impacted in due course. Nevertheless, the COVID-19 pandemic acted as a catalyst for the development of better distribution and production networks to better cater to global demand.

To bring in these changes, companies are focusing on the adoption of these solutions to better predict and respond and even forecast supply chain issues. According to Blue Yonder’s research in February 2022, over the last 12 months, 83% of the surveyed organizations have increased their investment in the supply chain, and 1 in 10 organizations (11%) invested more than USD 25 million.

Type Insights

The operational segment dominated the market in 2022 and accounted for more than 83.0% share of the global revenue. Operational control towers are used for both analysis and implementation purposes. They provide alerts about any problems as and when they arise, allowing the authorized operators to resolve the problem in real time.

Operational control towers also offer end-to-end supply chain visibility and control through the control tower system. Moreover, an operational control tower also provides transparent control of business processes with predictive, analytical, and real-time applications and can help companies in making better operational decisions.

The analytical segment is anticipated to register the fastest CAGR over the forecast period. The ability of the analytical control tower to offer real-time analytics information is a major factor driving the growth of the segment. It can help manage and monitor decisions and implementation across functions and companies to optimize the entire network. Analytical control towers collect and analyze large amounts of data and use predictive analytics to automate decision-making.

Application Insights

The supply chain dominated the market in 2022 and accounted for more than 61.0% share of the global revenue. Numerous companies are focusing on adopting the control towers to have strong control over their supply chain so that they can plan out the disruptions in the inventory flow and provide their customers online with what they want and when they want it. Furthermore, control towers in the supply chain offer numerous benefits, such as real-time monitoring, shipment deliveries, cost analysis, and efficient warehouse management. Such factors bode well for segment growth.

The transportation segment is anticipated to register a significant CAGR over the forecast period. Control towers primarily provide insight into inbound and outbound shipments, along with visibility into deliveries, ASN, on-time delivery, track, and trace, freight spend, and other similar details. Automotive companies are adopting cloud-based control tower technologies to deliver proper information to their suppliers and smoothly execute supply chain activities.

For instance, in March 2020, a U.S. automotive parts manufacturer leveraged Siemens Logistics LLCs, a cloud-based control tower solution that helped to improve the truck order forecasting based on the inbound and outbound demand and improve the supply chain process.

End-use Insights

The healthcare dominated the market in 2022 and accounted for more than 21.0% share of the global revenue. Numerous players are leveraging advanced technologies such as machine learning and artificial intelligence to eliminate the manual process, access real-time insights, and allow autonomous decision-making. This further prompts the demand for control towers in the healthcare sector to improve the quality of patient care and manage medical consumables & supplies such as hand sanitizers, moisturizers, disposable syringes, needles, cleaning wipes, medical drugs, and surface disinfectants. These factors are expected to fuel the segment’s growth.

The high technology products segment is anticipated to witness significant growth over the forecast period. High technology products include computers, telecommunication, aerospace, and military equipment. The supply chain of high technology products includes entities such as contractors, equipment providers, service providers, and consumers. As a result, to enhance the visibility of the supply chain, companies establish a centralized infrastructure to deliver enhanced security, maintain a competitive edge in the market, and ensure the efficiency of supply chain activities.

Regional Insights

The North American regional market dominated in 2022 and accounted for a revenue share of over 39.0%. Organizations in North America are increasingly adopting control towers in logistics to analyze their supply chain data effectively and efficiently. Intense competition and a rise in operations costs encourage the adoption of control towers in the retail sector as companies look at ways to control costs and enhance profitability. At the same time, the presence of major control tower providers in the region is also accentuating regional growth.

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period registering a CAGR of 26.1%. Businesses in the region are gradually adopting digitization and advanced technologies, which is creating new opportunities for market growth in the region. At the same time, the retail and e-commerce industries are thriving in the region, which is one of the largest contributors to the supply chain industry. The retail industry in Asia Pacific demands control towers to seamlessly monitor their supply chain processes.

Key Companies & Market Share Insights

Prominent players are focusing on offering control towers that can help organizations improve operational efficiency and enhance work environments. Most players are focused on strategies such as partnerships to enhance their product offerings. For instance, in March 2022, Blue Yonder Group, Inc. announced its partnership with Snowflake, a data cloud company.

The partnership aimed to transform access to disparate data for supply chain management. Snowflake-powered, Luminate Platform from Blue Yonder allows manufacturers, retailers, and third-party logistics providers to predict, and resolve disruptions within their businesses to lower the risk and tackle supply chain challenges.

The companies operating in the control tower space are trying to integrate enhanced technologies such as AI, blockchain, and others in their control towers. This integration of enhanced technologies enables companies to improve their competitive edge and customer experience. The integration of blockchain technology in control towers offers a faster, reliable, and highly agile supply chain network. Some prominent players in the global control towers market include:

• Blue Yonder Group, Inc.

• E2open, LLC

• Elementum

• Infor

• Kinaxis

• Coupa Software Inc.

• One Network Enterprises

• PearlChain

• SAP

• Viewlocity Technologies Pty Ltd.

Control Towers Market Report Scope

Global Control Towers Market Segmentation

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global control towers market report based on type, application, end-use, and region:

• Type Outlook (Revenue, USD Million, 2017 - 2030)

  • Analytical

  • Operational

• Application Outlook (Revenue, USD Million, 2017 - 2030)

  • Supply Chain

  • Transportation

• End-use Outlook (Revenue, USD Million, 2017 - 2030)

  • Aerospace & Defense

  • Chemicals

  • Retail & Consumer Goods

  • Healthcare

  • Manufacturing

  • High Technology Products

  • Others

• Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • MEA