Supply Chain Analytics Market Analysis Report By Enterprise Size, By Service, By Deployment, By Solution, By End-use (High Technology Products, Manufacturing, Healthcare), And Segment Forecasts, 2018 - 2025

Industry Insights

The global supply chain analytics market size was valued at USD 3.05 billion in 2017. It is expected to progress at a CAGR of 16.2% during the forecast period. Growing awareness of various benefits, such as forecasting accuracy and meaningful synthesis of business data, offered by supply chain analytics solutions are augmenting the market.

Rapid increase in volumes of business data being generated across various industries, such as manufacturing, transportation, retail & consumer, and healthcare, are prompting enterprises to adopt analytics solutions for converting raw data into meaningful insights. Rising awareness about advantages offered by supply chain analytics is encouraging the adoption of these solutions across many industries.

Organizations are particularly adopting these solutions owing to their enhanced decision-making capabilities for technology, organizational infrastructure, strategic alliances, and enterprise resource management. The adoption is remarkably high among small and medium enterprises.

Supply chain analytics solutions facilitate better and strategic decision making and help organizations in strengthening their market position, optimizing return on investment, and accelerating the growth by leveraging procured insights. They also present a broader view of supply chain and facilitate profitability, sustainability, and inventory cost reduction.

Moreover, growing adoption of mobile-based solutions is likely to open new growth opportunities for the market. Factors such as inefficient supplier networks, elevated warehousing costs, and incorrect forecasts are stoking the growth of the market.

On the flip side, concerns over data security are poised to restrict the growth of the market over the forecast period. Some of the common cyber threats are Man-in-the-Middle (MITM) attacks and unethical hacking activities. Nevertheless, vendors are increasingly focusing on data prevention by secluding critical machines from external networks in order to counter threats from hackers and unauthorized entities.

Solution Insights

The manufacturing analytics segment is attained a size of USD 333.1 million in 2017. Soaring need for optimal utilization of resources and minimizing overall costs is playing a vital role in the growth of the segment. Supply chain analytics solutions facilitate growth by enhancing capabilities for managing inventory, sourcing products, and distributing finished goods in a timely and cost-effective manner and thereby, maximizing the profitability. They also help in estimating ideal location and number of distribution facilities.

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

Service Insights

The demand for professional service providers is growing across the globe. Professional service providers tend to have specific information about niche areas of interest, such as marketing, law, and accounting, thereby permitting enterprises to focus on their core business concerns. As a result, the professional segment is lead the market throughout the forecast horizon.

Surging demand for professional services for analysis and protection of critical data and obtain professional guidance on new technologies are also expected to bolster the growth of the segment during the forecast period. In addition, requirements regarding supply chain analytics vary from organization to organization. This, in turn, is projected to supplement the growth of the segment.

The support & maintenance segment is anticipated to post the highest CAGR during the forecast period owing to growing demand for well-trained and experienced technicians and for third-party support & maintenance to realize benefits such as cost-effectiveness. Furthermore, development of predictive maintenance service that detect and fix issues related to product quality is anticipated to spur the growth of the segment over the forecast period.

Deployment Insights

Cloud deployment is likely to remain the most preferred method of deploying supply chain analytics solutions throughout the forecast horizon. Cloud deployment increases flexibility and allows large-scale customization of products and services for organizations.

Cloud-based deployments help in improving cost structures and setting up a control center for coordinating and arranging various components of supply chain. A control tower system can capture transportation data, process it to provide improved visibility, and facilitate better decision-making, efficiency, and enhanced services.

Rapid advancements in the technology related to cloud-based deployment are benefiting the growth of the overall supply chain analytics market. Enterprises based in nations in the Middle East & Africa (MEA) and Asia Pacific are poised to prefer solutions deployed on the cloud. Lack of in-house IT expertise would particularly prompt these enterprises to opt for cloud-based deployment and realize benefits such as easy installation and cost saving.

Enterprise Size Insights

Small & medium enterprises are projected to emerge as the most promising enterprise size segment, which is anticipated to register a CAGR of 17.8% over the forecast period. The number of small and medium enterprises (SMEs) in developing economies, such as China, India, and Japan is growing and these SMEs are increasingly implementing robust supply chain analytics solutions in order to optimize their business capabilities.

Increasing number of government initiatives across the globe to support SMEs is also contributing to the growth of the segment. Growing implementation of information technology infrastructure by SMEs to enable digital services across different business channels is also estimated to keep the demand high for supply chain analytics.

End-use Insights

Organizing an efficient supply chain is turning out to be imperative as online retail industry continues to expand and retailers pay more attention to ensure seamless convenience for buyers. This is poised to propel the market over the forecast period. Flourishing e-commerce industry coupled with integration of big data and machine learning into supply chain analytics is boosting the efficiency of supply chain. This is expected to boost the growth of the retail & consumer goods segment over the forecast period.

Manufacturing companies are under pressure to ensure product availability and timely delivery, while retaining their margins. Supply chain analytics solutions can help in improving performance as they provide access to real-time data across the value chain and also reflect updates made to any region or any process throughout the organization in real time.

Regional Insights

North America dominated the market in terms of revenue in 2017 and was valued at USD 1.28 billion. Several providers of supply chain analytics solutions are headquartered in the region, which makes it edge over other regions. Besides this, as the nature of business operations continues to get complex, manufacturing companies are preferring a visual representation of supply chain data in order to analyze current state of supply chain, thereby fueling the demand for supply chain analytics in the region.

However, Asia Pacific is estimated to witness significant growth during the forecast period. The growth of the region can be attributed to increase in awareness among enterprises about advantages of analytics solutions. Moreover, rapidly growing number of small & mid-size businesses (SMBs) and their increasing expenditure on implementation of latest technologies in order to expand their businesses is likely to provide a tremendous push during the forecast period.

Supply Chain Analytics Market Share Insights

Accenture PLC; Aera Technology; Birst, Inc.; Capgemini SA; Genpact Limited; IBM; JDA Software Group, Inc., Kinaxis; Lockheed Martin Corporation; Maersk Group; and Manhattan Associates, Inc. are some of the leading incumbents of the market. In May 2018, JDA Software Group, Inc. launched its JDA Luminate solution. The new portfolio of solutions is designed to help establish a connected supply chain and allow users to make actionable decisions.

Industry players are investing in sales channels to enhance their existing market shares. Moreover, practice of entering into partnerships with industry vendors is helping them attain a competitive edge. Key players in the market are also investing aggressively in research and development activities to develop and offer cost-effective and secured supply chain analytics solutions.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global supply chain analytics market report based on solution, service, deployment, enterprise size, end use, and regions:

• Solution Scope (Revenue, USD Million, 2014 - 2025)

  • Logistics Analytics

  • Manufacturing Analytics

  • Planning & Procurement

  • Sales & Operations Analytics

  • Visualization & Reporting

• Service Scope (Revenue, USD Million, 2014 - 2025)

  • Professional

  • Support & Maintenance

• Deployment Scope (Revenue, USD Million, 2014 - 2025)

  • Cloud

  • On-premise

• Enterprise Size Scope (Revenue, USD Million, 2014 - 2025)

  • Large Enterprise

  • Small & Medium Enterprises

• End-use Scope (Revenue, USD Million, 2014 - 2025)

  • Retail & Consumer Goods

  • Healthcare

  • Manufacturing

  • Transportation

  • Aerospace & Defense

  • High Technology Products

  • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

  • Middle East & Africa (MEA)