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, 2021 - 2028

Report Overview

The global supply chain analytics market size was valued at USD 4.55 billion in 2020 and is expected to expand at a compound annual growth rate (CAGR) of 17.3% from 2021 to 2028. Growing awareness about the benefits offered by supply chain analytics (SCA) solutions, including forecasting accuracy, supply chain optimization, wastage minimization, and meaningful synthesis of business data, are driving the growth. Lack of visibility in supply chain operations often team to supply-demand gaps. The COVID-19 pandemic has had a lasting impact on economies worldwide and pushed business leaders to act and sustain their business activities. The pandemic reinforced the requirement of supply chain solutions for business sustainability. During these uncertain times, deployment of SCA helped businesses to identify activities that require immediate attention or products/items that are expected to run out soon, subsequently managing the demand-supply gap in a much better way than before.

Furthermore, SCA vendors in the market are working actively and offering their solutions to minimize the negative impacts of the pandemic on global supply chains. For instance, in April 2020, Blue Yonder, a supply chain platform provider expanded its offerings to help customers across the globe minimize the negative impacts of COVID-19 on their supply chains. The offerings include COVID-19 supply chain risk response, COVID-19 scenario planning, warehouse task orchestration, retail pricing, and labor optimization. The offerings allowed organizations to effectively mitigate supply chain disruptions and manage emerging challenges such as transportation disruptions, demand spikes, and inventory and labor shortages.

Supply chain analytics also helps organizations improve their decision-making capabilities in terms of technology implementation, organization infrastructure, strategic alliances, and enterprise resource management. Furthermore, SCA solutions facilitate strategic decision-making and help organizations strengthen their market position, optimize the return on investment, and accelerate growth by leveraging the procured insights. For instance, in February 2020, Accenture PLC acquired Icon Integration Pty Ltd., a technology consultancy firm that offered Business Intelligence (BI) solutions and SAP digital supply chain solutions and services in Australia and New Zealand. The acquisition is expected to help the former company expand its reach in Australia and New Zealand.

In addition to the aforementioned benefits, 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. 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 industry growth. Mobile-based solutions help companies track inefficient supplier networks, elevated warehousing costs, and incorrect forecasts, among others.

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. Unethical activities and increasing incidences of cyber threats could play a role in raising concerns among businesses and may challenge the adoption of SCA solutions to a certain extent. However, SCA solution providers have been working relentlessly on lowering the impact of these breaches by marketing secure products. These efforts could help the supply chain analytics market expand at a promising pace over the forecast years.

Solution Insights

The sales and operations analytics segment captured a market share exceeding 25% in 2020. The need to optimize resource utilization and minimize cost is the key consideration contributing to the overall segment growth in 2020. The manufacturing analytics segment is anticipated to register a promising CAGR over the forecast period. The growth can be attributed to the emergence of big data, which is enabling the use of simulation to implement and support data analytics solutions in manufacturing processes.

Logistics analytics solutions help in connecting distributed transport networks in order to estimate the market demand and identify product supply points. They also offer benefits in terms of optimizing inventories to address the demand, reducing inventory holding costs and risks, and minimizing the costs of order fulfillment, warehousing, shipping, inland transportation, and costs of business tax.

The planning and procurement segment is anticipated to register considerable growth over the forecast period. The development of supply chain planning analytics solutions for forecasting product demand is a key trend in the market. Demand forecast in supply chain planning analytics includes freight cost, production, distribution, and budgeting, among others, which help users efficiently manage their logistics operations. This is expected to drive the growth of the planning and procurement segment over the forecast period.

Service Insights

The professional service segment held the highest market share of over 60% in 2020. Organizations use different automated solutions with different deployment modes for every department. Professional services are required to ensure that the new systems are in line with the existing systems of multiple departments and to integrate the new systems with the existing ones, to avoid loss or theft of data. The growing demand for professional services for the analysis and protection of critical data and to obtain professional guidance on new technologies is expected to boost segment growth over the forecast period.

The support and maintenance segment is anticipated to register a promising CAGR over the forecast period. Third-party support helps reduce cost while providing the expertise of well-trained and experience. The implementation of supply chain analytics solutions involves several factors that need to be considered, such as understanding the technicalities of the software, maintaining and repairing the system during breakdowns, importing/exporting data seamlessly, and regularly updating the software. Lack of attention to these factors may lead to a reduction in productivity. As a result, the demand for support and maintenance services is anticipated to gain traction over the forecast period.

Deployment Insights

The cloud segment held the highest market share of more than 60% in 2020. Cloud deployment increases flexibility and allows the large-scale customization of products and services for organizations. Technological proliferation has led to large-scale adoption of IoT devices and has subsequently increased the OEM customers’ dependence on cloud-based platforms. Enhanced mobility and the ease of using cloud services have resulted in the aggressive deployment of supply chain analytics solutions on cloud-based platforms. The industry is particularly opting for big data analytics solutions owing to their benefits such as data safety and risk analysis.

The increased availability of cloud-based SCA solutions has triggered their demand across small and 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. Cloud-based deployment is also being preferred due to the vast advances in technology. Enterprises based in economies in the Middle East and Africa (MEA) and Asia Pacific, most of which are developing nations, are expected to prefer solutions deployed on the cloud. Lack of in-house IT expertise would particularly prompt these enterprises to opt for cloud-based deployment.

Enterprise Size Insights

The large enterprise segment held the highest market share of over 60% in 2020. The growing demand for robust monitoring solutions and automation capabilities for resource allocation and strategic decision-making are key considerations that contributed to the segment growth in 2020. The small and medium enterprises segment is projected to emerge as the fastest-growing segment over the forecast period. The increasing number of small and medium enterprises (SMEs) in developing economies, such as Mexico and India, and the lack of internal network architecture for data storage are driving the demand for supply chain analytics solutions in SMEs.

The increasing number of government initiatives through various digital SME campaigns throughout the globe is also expected to drive the growth of the small and medium enterprises segment over the forecast period. 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.

End-use Insights

The manufacturing segment held the highest market share of over 20% in 2020. Manufacturing companies are under pressure to ensure product availability and timely delivery while retaining their margins at a time when demand shows no signs of abating. Supply chain analytics solutions can help in improving performance as they provide access to real-time data across the value chain and also reflect the updates made to any region or any process throughout the organization in real-time.

Organizing an efficient supply chain has become imperative as the online retail industry continues to expand and retailers thrive to ensure convenience for buyers through a seamless delivery experience. The thriving e-commerce industry, coupled with the integration of big data and machine learning into supply chain analytics, is likely to drive the demand for efficient supply chains globally. This is expected to drive the retail and consumer goods segment over the forecast period.

Regional Insights

North America dominated the global market with a share of over 35% in 2020. Due to the complex nature of business operations, North American manufacturing companies are putting a higher emphasis on the visual representation of operational data. This enables companies to easily analyze the current state of their supply chain from a data perspective, allowing for improved strategic decision-making ability. Europe is anticipated to register promising growth over the forecast period. The Single Market Strategy deployed by the European Commission enables goods and services and people and capital to freely move within the region. It expands the geographical market for European companies and also provides greater scope for the adoption and implementation of SCA solutions.

The Asia Pacific regional market is estimated to witness significant growth over the forecast period. The growth can be attributed to the increasing awareness about the advantages of analytics solutions among enterprises. Moreover, the rapidly growing number of SMBs and their increasing expenditure on the implementation of the latest technologies to expand their businesses could also contribute to the growth of the regional market.

Key Companies & Market Share Insights

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. 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 making supply chains smarter using big data and predictive analytics, leveraging interactive software solutions and functional dashboards, is encouraging market players to develop advanced supply chain analytics solutions. For instance, in April 2020, International Business Machines Corporation launched a blockchain-based supplier network solution named IBM Rapid Supplier Connect. The solution would help government agencies and healthcare organizations in the U.S. and Canada to rapidly identify and onboard alternative vendors.

Furthermore, market players are pursuing various growth strategies such as new product development, mergers and acquisitions, joint ventures, and collaborations to stay competitive in the market and expand their reach in the global market. For instance, in March 2020, Capgemini SA announced the signing of an agreement to acquire WhiteSky Labs, a consultancy firm in Asia Pacific. The acquisition would help the former company to expand its operations across Australia and Asia and its digital transformation 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 2018 to 2028. 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, 2018 - 2028)

  • Logistics Analytics

  • Manufacturing Analytics

  • Planning & Procurement

  • Sales & Operations Analytics

  • Visualization & Reporting

• Service Outlook (Revenue, USD Million, 2018 - 2028)

  • Professional

  • Support & Maintenance

• Deployment Outlook (Revenue, USD Million, 2018 - 2028)

  • Cloud

  • On-premise

• Enterprise Size Outlook (Revenue, USD Million, 2018 - 2028)

  • Large Enterprise

  • Small & Medium Enterprises

• End-use Outlook (Revenue, USD Million, 2018 - 2028)

  • Retail & Consumer Goods

  • Healthcare

  • Manufacturing

  • Transportation

  • Aerospace & Defense

  • High Technology Products

  • Others

• Regional Outlook (Revenue, USD Million, 2018 - 2028)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)