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, 2022 - 2030

Report Overview

The global supply chain management market size was valued at USD 18,446 million in 2021 and is expected to expand at a CAGR of 10.9% from 2022 to 2030. The growth of the 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 &supply requirements, 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.

Component Insights

Based on component, the global market is bifurcated into solutions and services. The solution 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 in 2021 and is expected to dominate the market during the forecast period. SCM solutions are used for quality assurance, 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 2021. 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-premises segment accounted for the largest market share in 2021. 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 in 2021 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 11.5% during the forecast.t 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

The manufacturing segment accounted for 23.4% of the market share in 2021 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, Logility, Inc. announced software advancements to enhance planning capabilities across the product lifecycle. Manufacturing clients of Logility'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 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 in 2021 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.

Asia Pacific is anticipated to register the highest growth 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. 

Key Companies & Market Share Insights

To broaden their product offering, industry companies utilize a variety of inorganic growth tactics, such as partnerships, regular mergers, and acquisitions. For instance, in August 2021, With this strategic acquisition, A.P. Moller - Maersk's integrated logistics service gained a new level of e-commerce experience. Clients in the business-to-consumer segment of Maersk will be able to reach 75% of the U.S. direct-to-customer market in 24 hours and 95% of the U.S. in 48 hours. Clients of Maersk can now boost supply chain speed and service coverage to keep up with the e-commerce trend of U.S. consumers for faster delivery to households at a cheaper cost. The operating model and brand value of Visible SCM will boost Maersk's customers' e-commerce Logistics, allowing them to sell through any distribution platform, deliver in any method, and manage their supply chain operations efficiently. Some prominent players in the supply chain management market include:

• SAP SE

• Oracle

• Blue Yonder Group, Inc.

• Infor

• Manhattan Associates

• Coupa Software Inc.

• IBM

• Logility, Inc.

• Korber AG

• Epicor Software Corporation

Supply Chain Management Market Report Scope

Global Supply Chain Management Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For 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-premises

  • Cloud-based

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

  • Small and 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

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • South America

    • Brazil

  • Middle East & Africa