Supply Chain Management Market Size, Share & Trends Analysis Report By Component (Solution, Services), By Deployment, By Enterprise Size, By Vertical, By Region, And Segment Forecasts, 2024 - 2030

Supply Chain Management Market Trends

The global supply chain management market size was valued at USD 23,265.4 million in 2023 and is expected to register a compound annual growth rate (CAGR) of 11.2% from 2024 to 2030. The growth of the supply chain management (SCM) market can be attributed to the rising demand and increased awareness of the benefits of SCM solutions, such as transportation management systems, planning & analytics, forecasting accuracy, warehouse & inventory management, supply chain optimization, procurement & sourcing, waste minimization, manufacturing execution and relevant synthesis of business data. Additionally, the rapidly growing adoption of information technology and technical breakthroughs improves and supports the overall supply chain, contributing to market expansion. The COVID-19 outbreak had a positive impact on the target market. A significant surge has been observed due to the increased usage of SCM during the COVID-19 pandemic to predict and meet the demand and supply requirements.

The set of things, including designing a new service or product, obtaining raw materials, converting them into a semi-finished or finished product, their transportation, and distributing or delivering them to the end-users, is known as a supply chain. The set of software used for seamless integration and coordination of all the fore-mentioned events, along with providing support after the sale, is known as supply chain management (SCM). Simply, it is the management of the flow of goods from the source to the user stage in a synchronized manner. All the partners, such as information system providers, vendors, third-party companies, carriers, and others, are linked and connected in this chain.

Adoption of SCM software among various firms and organizations is increasing as it allows them to efficiently manage the sourcing of the raw material, manufacturing, and assembling of any goods or products hence driving the market growth. Moreover, it also assists in tracking inventory and warehouse, managing the order entry, distribution channels, product delivery, demand planning, supply planning, procurement, and financial information, further surging the market growth. In addition, it allows management to work strategically with the company's distribution network, which is again driving the market expansion. A lack of IT infrastructure in developing countries and a rise in security and privacy concerns hampers the growth of the global market.

In terms of technology deployment, organization infrastructure, strategic partnerships, and enterprise resource management, SCM solution and services enable companies to improve their decision-making skills. Furthermore, by exploiting the acquired insights and data, SCM solutions promote strategic decision-making and assist enterprises in optimizing return on investment, strengthening their market position, and accelerating growth. Advancements in industrial-grade digital technology, a shift toward cloud-based SCM software, and a growing need for greater supply chain visibility fuel SCM market growth.

The COVID-19 pandemic had a significant positive impact on the target market. Lockdown was imposed in all the countries across the globe to stop the further spread of SARS-CoV-2. Owing to this, the supply chain across the world was disrupted along with a shortage of raw materials and failed to meet the requirements for supply and demand for goods and products. As a result of this, various businesses have observed a huge surge in the adoption of SCM to meet consumer demand, hence broadening its usage across the globe. The digital revolution is transforming every facet of industries, with a growing number of enterprise vendors and third-party providers embracing digitized systems for SCM, boosting the global industry.

Market Concentration & Characteristics

The supply chain management industry's growth stage is high. The industry is experiencing a significant degree of innovation, driven by advancements in technology such as artificial intelligence, machine learning, and data analytics. These innovations have revolutionized traditional supply chain processes, enabling companies to enhance efficiency, visibility, and responsiveness. Integration of real-time data and predictive analytics has allowed businesses to make informed decisions, optimize inventory levels, and streamline logistics. Automation of routine tasks, such as order processing and inventory tracking, has reduced operational costs and increased overall agility. The adoption of cloud-based solutions has further facilitated collaboration and connectivity across the supply chain ecosystem, fostering seamless communication among suppliers, manufacturers, and distributors. As a result, the evolving landscape of innovative solutions in Supply Chain Management is profoundly impacting businesses, enabling them to adapt to dynamic market conditions and gain a competitive edge.

The level of mergers & acquisitions in the supply chain management market is significant. The SCM companies are seeking to capitalize on complementary strengths to create more robust and integrated solutions. This trend is fueled by the rapid evolution of technology and the need for comprehensive, end-to-end supply chain capabilities. Additionally, market consolidation allows for the expansion of global footprints and the creation of economies of scale, enabling companies to optimize operational efficiency. Furthermore, strategic acquisitions provide companies with access to niche expertise and innovative technologies, enhancing their competitive edge. However, this consolidation also raises concerns about potential monopolies and reduced competition, which could impact pricing dynamics and limit choices for end-users.

The impact of regulation on the industry is significant, with stringent data protection standards and environmental regulations driving the demand for compliant and sustainable solutions. Compliance requirements, such as environmental standards and safety regulations, influence the design and execution of supply chain strategies, compelling companies to adopt sustainable and responsible practices. Additionally, trade regulations and tariffs have a direct impact on international supply chains, influencing sourcing decisions and logistics strategies. Stringent data protection and privacy regulations also affect the management and sharing of information within supply chain networks. Furthermore, regulatory changes, such as customs procedures and import/export restrictions, can disrupt established supply chain flows, requiring companies to adapt and ensure compliance. Non-compliance with regulations may result in legal repercussions, fines, and damage to a company's reputation, underscoring the importance of staying abreast of and adhering to evolving regulatory landscapes.

The availability of substitutes in the market is relatively high. This is primarily due to the diversity of solutions and services offered by numerous providers, ranging from traditional ERP systems to emerging technologies like blockchain and artificial intelligence. The market exhibits a wide array of options for businesses seeking to optimize their supply chain operations, fostering competition and innovation. Additionally, the constant evolution of technology and the entrance of new players contribute to the abundant choices available to organizations. As a result, companies have the flexibility to explore alternative solutions that align better with their specific needs and industry requirements.

The end-user concentration in the industry tends to be high. This is because a limited number of major corporations and large enterprises typically dominate the demand for comprehensive supply chain solutions. These key players often have complex and extensive supply chain networks, driving a concentrated market demand for sophisticated management tools. The purchasing power and requirements of these large end-users heavily influence market dynamics, creating a scenario where a relatively small number of customers hold significant sway. As a result, suppliers in the supply chain management market often focus on catering to the specific needs and demands of these major end-users, leading to a high degree of concentration in terms of customer influence and market share.

Component Insights

Based on component, the global market is bifurcated into solutions and services. Thesolution segment is further classified into the transportation management system (TMS), planning & analytics, warehouse & inventory management system, procurement & sourcing, and manufacturing execution system. The solution segment accounted for the largest share of 55.1% in 2023 and is expected to dominate the market during the forecast period. SCM solutions are used for quality assurance, inventory management, vendor management, supplier management, and logistics management. SCM solutions provide benefits such as higher visibility, increased efficiency, analytics, lower costs, greater agility, and increased compliance over the complex supply chain. It assists in automating major procedures like processing orders, billing, and order tracking resulting in reducing time and administration expenses. SCM systems also identify excess materials and costs connected with shipping, warehousing, and manufacturing, which helps reduce excess inventory.

The transportation management system segment held the largest share in 2023. A transportation management system is used to plan freight movement and assist clients in efficiently planning and executing transportation activities across the supply chain. The demand for TMS has been rising rapidly because transportation management systems play a major role in supply chains, impacting every phase of the process, from planning and procurement to logistics and lifecycle management. The usage of intelligent wireless connectivity and smart sensor technology solutions to provide accurate data about vehicles to companies is expanding. With the help of this technology, the companies can provide real-time tracking data such as delivery route, current location, and the estimated time of arrival to the consumers, thus enhancing the supply chain process.

The service segment is further bifurcated into professional services and managed services. The service segment is expected to experience significant growth at CAGR during the forecast period. SCM services provide data-driven insights to companies and improve their supply chain operations. The services offer real-time predictive production cost assessment services to identify process inefficiencies and opportunities. It effectively executes data-driven sales and operations planning and inventory management to assist in cost reduction. SCM services enable the monitoring of manufacturing activities to optimize performance and reduce risk.

Deployment Insights

The on-premise segment accounted for the largest market share of 49.3% in 2023. The cloud-based segment is expected to experience significant growth at CAGR during the forecast period. Companies are adopting cloud-based solutions for greater adaptability and flexibility in the supply chain process. It also offers various benefits, such as increased processing capabilities, storage, cost-effective pricing structures, and a reduction in operational overhead. These benefits are fueling market growth.

In February 2019, Blue Yonder partnered with Microsoft to deploy its SCM software on Microsoft Azure Cloud. Blue Yonder offered enhanced flexibility and security to commercial customers. By integrating Machine Learning (ML) and Artificial Intelligence (AI) technology into the company’s SCM platform, Blue Yonder focused on developing cutting-edge applications for customers and partners on the SCM platform. Blue Yonder enterprise customers can enhance and analyze datasets across their supply chain by connecting their digital assets. This enables them to make smarter, more effective AI and ML-based decisions.

Enterprise Size Insights

The large enterprise segment accounted for the highest market share of 47.3% in 2023 and is expected to dominate the target market during the forecast period. The growth can be attributed to increased demand for constant monitoring systems and automation features such as advanced shipment notification management, customizable notifications, in-transit status updates, user-configurable dashboards, and visual supply chain maps in numerous large-sized industries. SCM also provides access to precise real-time freight analytics and the flexibility to generate reports enabling large enterprises to make better business decisions such as supply planning, inventory planning, and distribution planning, among others. The market is growing due to a considerable increase in the requirement for software in large enterprises to collect essential business data such as inventory volumes, expected sales data, supplier details, and others. For instance, in November 2022, Microsoft announced the Microsoft supply chain platform launch and offered a demonstration of the platform via Microsoft Supply Chain Center. Microsoft's supply chain center is designed to be compatible with an organization's supply chain applications and data. Supply chain agility and stability are closely related to how well enterprises integrate and coordinate their data across all key platforms. The Microsoft supply chain platform lays the groundwork for major organizations to design or independently adopt solutions for specific supply chain needs spanning Azure, Microsoft Teams, Power Platform, and Dynamics 365.

The small and medium-sized enterprise (SMEs) segment is expected to experience the highest CAGR of 11.8% during the forecast period. SCM offers flexibility, scalability, and cost savings in supply chain operations. Implementing SCM solutions and services would increase SMEs' profitability and intended outcomes and improve operational efficiencies. Startups and SMEs were in a precarious situation as they struggled to control fluctuating demand, resource efficiency, and growing costs in the supply chain due to the COVID-19 pandemic. For instance, in April 2019, Locus, a global B2B SaaS company, announced the launch of QuickStart for small-scale enterprises (SMEs). QuickStart is a self-service version of the product suite designed to assist SMEs in enhancing their supply chain efficiency in the wake of the COVID-19 pandemic. With QuickStart, the company aims to provide customers with tools to improve and evaluate the situation.

Vertical Insights

Based on vertical, the global market has been segmented into retail & e-commerce, healthcare, automotive, transportation & logistics, food & beverages, manufacturing, and others. The manufacturing segment accounted for 20.6% of the market share in 2023 and is expected to dominate the target market during the forecast period owing to increase demand for automation in the supply chain process in the manufacturing industry. Manufacturers can improve their product manufacturing processes and lower operating costs by implementing a dependable SCM system. For instance, in March 2022, American Software, Inc. announced software advancements to enhance planning capabilities across the product lifecycle. Manufacturing clients of the company’s digital platform can analyze the global relationships of their integrated supply chain via supply chain network maps.

The retail and e-commerce segment is expected to experience the highest CAGR of 14.2% during the forecast period. E-commerce SCM focuses on purchasing raw materials, manufacturing, and distributing the product at the right moment. It includes managing supply and demand, warehousing, inventory monitoring, order processing, and client delivery. SCM increases network transparency and helps monitor the performance of all activities in production, warehousing, and distribution. This enables even more comprehensive control and tracking of all operations, from procurement to final goods shipment to the end user. Furthermore, effective SCM assures on-time deliveries, which has a direct impact on customer interactions. E-commerce-based SCM can drastically cut manufacturing, and distribution costs, resulting in increased profitability.

Regional Insights

North America accounted for the major market revenue share of 39.2% in 2023 and is estimated to dominate the market during the forecast period. The presence of a huge number of adopters of such software in the region and the fact that the region is advancing technologically contribute to the market growth. The presence of major key players such as IBM, Microsoft, Telus International, and Infor, among others operating in the region, is another key factor contributing to market growth. Therefore, due to the factors mentioned above, the usage of SCM software in North America is high and contributes more to revenue generation.

U.S. Supply Chain Management Market Trends

The supply chain management market in U.S. has been growing significantly and held the largest revenue share of 74.2% in 2022. The adoption of advanced technologies such as artificial intelligence, data analytics, and automation to enhance visibility, traceability, and collaboration within the supply chain further propels the robust expansion of the SCM market in the U.S.

Asia Pacific Supply Chain Management Market Trends

Asia Pacific is anticipated to register the highest growth rate of 14.4% during the forecast period. The growth of the market in the region is attributed to growing opportunities in the region along with various investments made in SCM.

The supply chain management industry in China has been growing significantly due to the booming e-commerce industry, government support for technological advancements, and infrastructure development, particularly through initiatives like the Belt and Road Initiative (BRI), leading to increased demand for sophisticated solutions that integrate online and offline channels and optimize end-to-end supply chain processes.

Japan supply chain management industry has been growing significantly due to the country's robust economic activities, particularly in exports, supported by government initiatives promoting digital transformation and innovation, leading to increased adoption of advanced technologies like AI, IoT, and blockchain to enhance operational efficiency and address evolving business needs.

The supply chain management industry in India has been growing significantly due to the country's growing manufacturing sector, expanding consumer base, and rapid growth in e-commerce, leading to a heightened demand for advanced solutions that optimize logistics operations, enhance warehouse management functionalities, and integrate technologies such as cloud computing, AI, and IoT for real-time visibility and data-driven decision-making, with notable players such as Flipkart and Amazon.com, Inc. leveraging such solutions to handle increasing online orders and ensure efficient supply chain processes.

Europe Supply Chain Management Market Trends

The supply chain management market in Europe has been growing significantly due to the transformative impact of e-commerce, leading to increased demand for warehousing, last-mile delivery solutions, and order fulfillment services, while concurrently witnessing a pronounced emphasis on sustainability and environmental responsibility, as evidenced by the introduction of the Corporate Sustainability Due Diligence Directive (CSDD) and the implementation of a supply chain law, highlighting the region's commitment to mandatory measures for effective management of social and environmental impacts in supply chains.

UK supply chain management market is growing due to the increasing adoption of technologies for efficiency improvement, cost reduction, and enhanced visibility, driven by the growth of e-commerce, with a notable shift from traditional just-in-time to a just-in-case supply chain model as businesses aim to address uncertainties, such as the COVID-19 pandemic, and ensure resilience by holding higher inventory levels and diversifying sourcing strategies.

The supply chain management market in Germany is growing due to the increasing demand for visibility, efficiency, and flexibility, driven by a highly competitive landscape with numerous players offering diverse services, notable trends such as the growing use of cloud-based solutions, data analytics, and artificial intelligence, and the implementation of the German Supply Chain Act, which promotes responsible business practices, transparency, risk mitigation, and sustainability, thereby fostering industry innovation and contributing to an overall improvement in supply chain practices.

Middle East & Africa Industry Trends

The Middle East & Africa (MEA) industry is growing due to the region's strategic location, acting as a pivotal hub for global trade, leading to increased demand for solutions that optimize operations and streamline logistics activities, supported by a business-friendly environment with favorable policies, including initiatives like the African Continental Free Trade Area (AfCFTA), promoting economic integration and facilitating the establishment of regional distribution and logistics hubs.

Saudi Arabia supply chain management market is growing due to the country's commitment to Vision 2030, which emphasizes economic diversification and increased investment in logistics infrastructure, exemplified by initiatives like the King Salman Energy Park, contributing to the expansion of supply chain capabilities and efficiency in the region.

Key Supply Chain Management Company Insights

Some of the key companies operating in the supply chain management market include Manhattan Associates, SAP SE, Blue Yonder, Inc., Infor, and IBM, among others.

• Manhattan Associates specializes in delivering technology-driven solutions aimed at enhancing efficiency in supply chain management. The company is engaged in the development, deployment, servicing, and maintenance of software solutions that effectively oversee supply chain, inventory, and omnichannel operations. These solutions are strategically crafted to facilitate the seamless flow of goods throughout the supply chain, optimizing key processes such as the receipt, storage, and distribution of inventory.

• Blue Yonder, Inc., formerly known as JDA Software, is a global software company specializing in supply chain management and retail solutions. The company offers a comprehensive suite of cloud-based solutions, encompassing supply chain planning, transportation management, warehouse management, retail planning, and workforce management. These solutions harness advanced technologies, including artificial intelligence (AI), machine learning (ML), and data analytics, to furnish businesses with actionable insights and predictive capabilities, facilitating improved decision-making. The company serves a diverse customer base spanning industries such as retail, manufacturing, logistics, and distribution, and provides innovative software solutions for enhanced operational efficiency across various industries.

American Software, Inc. and Korber AG are some of the emerging companies in the global Supply Chain Management Market.

• American Software, Inc. delivers inventive software solutions with a focus on supply chain management, enterprise resource planning, and cutting-edge technologies like AI and machine learning. The company caters to various industries, including manufacturing, retail, healthcare, and logistics, providing comprehensive solutions and services. American Software, Inc. specifically specializes in streamlining the planning, production, management, and distribution of goods through its supply chain management systems. The company offers services such as collaborative planning, transportation planning, strategic sourcing, and warehouse management to meet the dynamic and ever-changing needs of its clientele.

• Korber AG, a German corporation, specializes in delivering supply chain management systems. The company offers warehouse management systems tailored to aid large organizations in their transformation and continuous improvement initiatives. Additionally, Korber Supply Chain provides solutions for supply chain labor engagement, safety, and efficiency. These comprehensive supply chain solutions are strategically designed to support businesses in enhancing their operational efficiency, production processes, and overall profitability.

Recent Developments

• In May 2023, Accenture and Blue Yonder, Inc. announced the expansion of their strategic partnership to enhance organizations' supply chains by leveraging Accenture's technology and industry expertise. Accenture's cloud-native platform engineers and industry experts will collaborate with Blue Yonder to develop new solutions on the Blue Yonder Luminate Platform, offering end-to-end supply chain synchronization. The partnership aimed to help clients achieve a more modular, digitized, and agile supply chain of the future through co-innovation and the Vertical  of emerging technologies such as generative artificial intelligence and robotics process automation.

• In April 2023, Oracle introduced advanced artificial intelligence (AI) and automation capabilities designed to assist customers in optimizing their supply chain management processes. These new features leveraged AI and automation technologies to enhance efficiency, streamline operations, and enable better decision-making within supply chain management for its customers. The updates included improved quote-to-cash procedures in Oracle Fusion Vertical s and new planning, usage-based pricing, and rebate management features in Oracle Fusion Cloud Supply Chain & Manufacturing (SCM).

Supply Chain Management Market Report Scope

Global Supply Chain Management Market Report Segmentation

This report forecasts revenue growths at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2017 to 2030. For the purpose of this study, Grand View Research has segmented the global supply chain management market report based on component, deployment, enterprise size, vertical, and region:

• Component Outlook (Revenue, USD Million; 2017 - 2030)

  • Solution

    • Transportation Management System

    • Planning & Analytics

    • Warehouse & Inventory Management System

    • Procurement & Sourcing

    • Manufacturing Execution System

  • Services

    • Professional Services

    • Managed Services

• Deployment Outlook (Revenue, USD Million; 2017 - 2030)

  • On-premise

  • Cloud-based

• Enterprise Size Outlook (Revenue, USD Million; 2017 - 2030)

  • Small & Medium Sized Enterprises

  • Large Enterprises

• Vertical Outlook (Revenue, USD Million; 2017 - 2030)

  • Retail & e-Commerce

  • Healthcare

  • Automotive

  • Transportation & Logistics

  • Food & Beverages

  • Manufacturing

  • Others

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

  • North America

    • U.S.

    • Canada

  • Mexico

    • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • India

    • China

    • Japan

    • South Korea

    • Australia

  • South America

    • Brazil

  • Middle East & Africa

    • Kingdom of Saudi Arabia (KSA)

    • UAE

    • South Africa