Supply Chain Analytics Market Size, Share & Trends Analysis Report By Solution, By Service, By Deployment, By Enterprise Size, By End Use, By Region, And Segment Forecasts, 2022 - 2030

Report Overview

The global supply chain analytics market size was valued at USD 5.26 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 17.6% from 2022 to 2030. The market for supply chain analytics (SCA) is witnessing a rise in demand due to increased awareness of the benefits of SCA solutions, such as forecasting accuracy, supply chain optimization, waste minimization, and meaningful synthesis of business data. The increasing number of small & medium enterprises and their increasing expenditure on implementing analytics to hold a strong position in the market and compete against other market players are expected to boost the growth of the market over the forecast period.

The COVID-19 pandemic has had a long-term influence on economies worldwide, forcing corporate leaders to act and continue their operations. The epidemic underscored the importance of supply chain solutions for long-term economic viability. During these uncertain times, supply chain analytics-enabled organizations to identify processes that needed immediate attention or products/items that were likely to run out soon, allowing them to manage the demand-supply gap better than before. Furthermore, SCA vendors in the market are working actively and offering solutions to minimize the negative impacts of the pandemic on global supply chains.

For instance, in June 2020, Infosys Limited launched a personalized medicine solution for the pharmaceutical industry. The solution leverages SAP C/4HANA suite, SAP S/4HANA, SCI platform, and SAP Analytics Cloud solutions to help pharmaceutical companies address regulatory and business requirements while delivering personalized experiences to patients. Also, in April 2020, SAP SE announced additional offerings and access to the company’s technologies to help enterprises confront and navigate the COVID-19 pandemic. The offerings are available free of cost and include Qualtrics Supply Continuity Pulse solution and Planning as a Service with the SAP Integrated Business Planning for Supply Chain solution.

In terms of technology deployment, organization infrastructure, strategic partnerships, and enterprise resource management, supply chain analytics also assists firms in improving their decision-making capabilities. Furthermore, by exploiting the acquired insights, SCA solutions promote strategic decision-making and assist enterprises in strengthening their market position, optimizing return on investment, and accelerating growth. For instance, in July 2020, Kinaxis acquired Rubikloud, a provider of AI solutions in retail and Consumer Packaged Goods (CPG) industries. The acquisition is expected to help the former company enhance its offerings for CPG customers.

SCA helps organizations get a broader view of supply chain activities, allowing them to efficiently manage any issues that may impact the profitability or sustainability of the business. Mobile-based solutions help companies track inefficient supplier networks, elevated warehousing costs, and incorrect forecasts, among others. Analytics solutions also play a pivotal role in analyzing business operations that may help improve inventory management and subsequently help reduce associated cost components that may hinder business growth. In recent times, a surge in the adoption of mobile-based solutions is expected to create avenues for the growth of the industry.

Unethical activities and increasing incidences of cyber threats could raise concerns among businesses and may challenge the adoption of SCA solutions to a certain extent. Although the prospects of tech inclusion in supply chain operations look bright, industry incumbents are still concerned about possible security/data breaches. These concerns may be unfavorable for future growth. However, by selling secure products, SCA solution providers have been working tirelessly to reduce the effect of these breaches. These initiatives may help the supply chain analytics market grow at a healthy rate in the coming years.

Solution Insights

The sales & operations analytics segment captured a market share exceeding 29% in 2021. The need to optimize resource utilization and cost are vital considerations contributing to the overall segment growth in 2021. The client benefits from a flexible and customized supply chain analytics solution that adapts to dynamic requirements while cost-efficiency. This is expected to aid the growth of the sales & operations segment over the forecast period.

Logistics analytics solutions assist in connecting transportation networks to forecast market demand and locate product supply points. The utilization of big data in supply chain analytics helps improve supply chain and logistics operations, effectively address customer requirements, and enhance customer satisfaction and loyalty. This is expected to drive the growth of the logistics analytics segment over the forecast period.

The planning & procurement segment is anticipated to register considerable growth over the forecast period. Demand forecast in supply chain planning analytics includes freight cost, production, distribution, and budgeting, which help users efficiently manage their logistics operations. This is expected to drive the growth of the planning & procurement segment over the forecast period.

Service Insights

The professional service segment held the highest market share of over 61.5% in 2021. To avoid data loss or theft, professional services must ensure that the new systems are compatible with the existing systems of numerous departments and integrate the new systems with the existing ones, increasing segment growth. Increased demand for professional services for the analysis and preservation of important data and professional assistance on emerging technologies. However, data scientist teams need specific abilities to identify and uncover trends that help marketers make better decisions; therefore, the supply chain business lacks skilled or professional services and individuals.

The support & maintenance segment is anticipated to register a promising CAGR over the forecast period. Third-party support can help you save money while also providing you with the expertise of well-trained and experienced professionals. Understanding the technicalities of the software, maintaining & fixing the system during breakdowns, smoothly importing/exporting data, and routinely updating the software are all issues to consider while implementing supply chain analytics solutions. Lack of attention to these elements may result in a decrease in production. As a result, over the forecast period, demand for support and maintenance services is expected to grow.

Deployment Insights

The cloud segment held the highest market share of more than 62% in 2021. Technological proliferation has led to large-scale adoption of IoT devices and has subsequently increased the OEM customers’ dependence on cloud-based platforms. Cloud deployment increases flexibility and allows the large-scale customization of products and services for organizations. The industry is particularly opting for big data analytics solutions due to their benefits in data safety and risk analysis. Enhanced mobility and the ease of using cloud services have resulted in the aggressive deployment of supply chain analytics solutions on cloud-based platforms.

Cloud-based deployment is also being preferred due to the vast advances in technology. Enterprises based in economies in the Middle East & Africa (MEA) and the Asia Pacific, most developing nations, are expected to prefer solutions deployed on the cloud. Lack of in-house IT expertise would prompt these enterprises to opt for cloud-based deployment. The increased availability of cloud-based SCA solutions has triggered their demand across small & medium business enterprises owing to benefits such as easy deployment, shorter implementation window, effective use of IT resources, and the flexibility and mobility offered by these solutions.

Enterprise Size Insights

The large enterprise segment led the market with the highest revenue share of over 60% in 2021. The increased demand for strong monitoring solutions and automation capabilities for resource allocation and strategic decision-making boosted the growth of the segment. The small & medium enterprises segment is projected to emerge as the fastest-growing segment over the forecast period owing to the increasing number of small and medium enterprises (SMEs) in developing economies, such as Mexico and India. The lack of internal network architecture for data storage is expected to drive the demand for supply chain analytics solutions.

The growing adoption of information technology infrastructure by SMEs to enable digital services across different business channels in SMEs is also expected to drive the growth of the segment over the forecast period. The increasing number of government initiatives through various digital SME campaigns throughout the globe is also expected to drive the growth of the small & medium enterprises segment over the forecast period.  

End-use Insights

The manufacturing segment held the highest market share of over 24% in 2021. Supply chain analytics solutions can help in improving performance as they provide access to real-time data across the value chain and reflect the updates made to any region or any process throughout the organization in real-time. Moreover, growing customer demand, as well as the requirement to ensure product availability and timely delivery, are driving demand for supply chain efficiency improvements. Over the projection term, this is expected to drive manufacturing segment growth.

As the online retail business grows and retailers compete to provide a seamless delivery experience for customers, organizing an efficient supply chain has become increasingly important. The global demand for efficient supply networks is going to be driven by the expanding e-commerce industry, as well as the integration of big data and machine learning into supply chain analytics. Over the forecast period, this is expected to drive the retail & consumer goods segment.

Regional Insights

North America dominated the global market for supply chain analytics with a share of over 38% in 2021. Due to the complexity of corporate processes, industrial organizations in North America are putting a greater focus on the visual display of operational data. This allows businesses to quickly assess the current health of their supply chain from a data standpoint, allowing for better strategic decision-making. Over the forecast period, the European regional market is expected to rise at a promising rate. The European Commission's Single Market Strategy allows commodities, services, people, and capital to travel freely within the region. It broadens the geographical market for European businesses and expands the possibilities for SCA solutions acceptance and deployment.

Over the forecast period, the Asia Pacific regional market is expected to increase significantly. The increase might be ascribed to a growing awareness of the benefits of analytics solutions among businesses. Furthermore, the constantly expanding number of small and medium-sized businesses (SMBs) and their increasing expenditure on the deployment of cutting-edge technology to expand their enterprises may add to the growth of the regional market for supply chain analytics.

Key Companies & Market Share Insights

SAP SE, Oracle Corporation, Accenture PLC, and Aera Technology are some of the leading vendors offering unified software solutions that cater to the various needs of a supply chain. The trend of optimizing the delivery mechanism from the point of production to the point of consumption has prompted enterprises to adopt unified advanced analytics software. The enhancement of supply chain solutions using big data and predictive analytics, leveraging interactive software solutions and functional dashboards, encourages market players to develop advanced supply chain analytics solutions.

For instance, in January 2020, Infosys Limited partnered with GEFCO, a provider of multimodal supply-chain solutions in Europe, to support the latter in digital transformation over the next five years. The partnership envisages Infosys Limited helping GEFCO adopt new supply chain capabilities to extract and process information in real-time, obtain meaningful insights with very low latency, and respond intelligently and effectively across the value chain.

Furthermore, market players are pursuing various growth strategies such as new product development, mergers & acquisitions, joint ventures, and collaborations to stay competitive and expand their reach in the global market. In July 2020, Blue Yonder partnered with Uber Freight to help businesses build efficient and transparent global supply chains. Through this partnership, Uber Freight integrated with Blue Yonder’s LuminateTM Platform to power the dynamic pricing discovery solution for quoting real-time market-based prices and immediate booking capabilities. Some of the prominent players operating in the global supply chain analytics market are:

• Accenture PLC

• Aera Technology

• Birst, Inc.

• Capgemini SA

• Genpact Limited

• International Business Machines Corporation

• JDA Software Group, Inc.

• Kinaxis

• Lockheed Martin Corporation

• Maersk Group

• Manhattan Associates, Inc.

Supply Chain Analytics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at 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 supply chain analytics market report based on solution, service, deployment, enterprise size, end use, and region:

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

  • Logistics Analytics

  • Manufacturing Analytics

  • Planning & Procurement

  • Sales & Operations Analytics

  • Visualization & Reporting

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

  • Professional

  • Support & Maintenance

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

  • Cloud

  • On-premise

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

  • Large Enterprise

  • Small & Medium Enterprises

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

  • Retail & Consumer Goods

  • Healthcare

  • Manufacturing

  • Transportation

  • Aerospace & Defense

  • High Technology Products

  • Others

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

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)