According to newly released data by Future Market Insights (FMI), the supply chain management market will grow at a CAGR of 11.4% from 2021-2031, with revenue totaling ~US$ 21.2 Bn by the end of 2021.
Owing to rapid technological advancements in transportation and logistics sector, there is an increase in demand for supply chain management solutions. Also, advanced technologies have become essential in improving economic competitiveness, thereby propelling the market growth.
Chief factors fueling the demand for supply chain management solutions include high growth in eCommerce, need for greater transparency and visibility in supply chain processes and data, enhancing business continuity by minimizing potential failures, and rising adoption of cloud supply chain management among SMEs.
In addition to this, integration of AI capabilities with supply chain management (SCM) offerings is projected to create lucrative opportunities for SCM vendors in the long run.
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Key Takeaways: Supply Chain Management Market
- By software solution segment, the integrated SCM platform/suite is anticipated to account for the leading market share. The segment is estimated to grow at a robust CAGR of 13.5% through 2031.
- Based on deployment, the on-premises segment is estimated to account for more than half of the software solution segment in 2021.
- The demand for supply chain management in large enterprises is expected to grow at the highest rate.
- Demand for supply chain management in transportation & logistics and manufacturing sector is estimated to grow at an impressive CAGRs. However, retail & consumer goods segment is estimated to continue to hold dominant market share in the global supply chain management market during the forecast period.
- Among the regions, North America is estimated to hold highest market share followed by Europe in 2021. South Asia & Pacific is anticipated to emerge as the fastest growing region between 2021 & 2031.
- The market in Japan is expected to progress at a noteworthy CAGR of more than 14% through 2031.
- In the U.K., sales are expected to increase tremendously at a CAGR of 11.4% over the next ten years.
“Supply chain management solutions enable organizations to efficiently manage potential challenges such as demand spikes, inventory and labor shortages, and transportation disruptions, along with effectively mitigating supply chain disturbances. In addition to this, agility and omnichannel supply chains are becoming the norm, while the increasing availability of Big Data means organizations are now able to close the loop with prescriptive analytics and make informed supply chain decisions,” says FMI analyst.
COVID-19 Impact Analysis on Supply Chain Management Market
The COVID–19 pandemic has compelled several industries and organizations to revamp their global supply chain model. The lockdown implemented to contain the spread of the virus across various countries has shut down economies and is impacting every aspect of the supply chain around the world.
This also has caused various industries to move their normal manufacturing processes to manufacture PPE kits and other essential medical supplies. Technologies such as Machine Learning (ML) and AI are beginning to drive innovation strategies of the businesses, in order to successfully operate during this period, which is further estimated to increase the adoption of cloud-based SCM solutions across various sectors.
The global pandemic affected almost all aspects of the global economy over the past few months. One industry that has seen remarkable changes is e-commerce. There is a huge pressure on the supply chain logistics industry to keep up with the ever-rising demand, as self-isolated consumers are shifting towards online shopping platforms. Accordingly, logistics companies are stepping up with innovative strategies to respond to these rapidly shifting logistics trends in 2021.
Thus, the supply chain management market is estimated to showcase a slight decline, temporarily, from around 9.1% to 8.7% Y-o-Y from 2019 to 2021.
Integration of Blockchain Technology to Propel the Sales
The demand for blockchain technology is increasing for supply chain management solutions as it increases the efficiency and transparency of the supply chain and positively affect the logistics processes, from delivery to storage and payment. Due to transparency and security achieved by blockchain, the speed of physical flow of goods is increased.
Blockchain records every single asset from product to containers as it flows through the supply chain nodes. It also helps to track information regarding orders, receipt, invoice, payments and digital assets like copyrights, certifications, barcodes and other things.
Blockchain integration with supply chain management systems results in increased sustainability, reduced errors and delays, minimized transportation cost, faster identification of errors, and improved product transport and inventory management.
More Valuable Insights on Supply Chain Management Market
FMI’s report on the Supply chain management market is segmented into four major sections – solution (integrated SCM platform/suite, standalone solutions (supply chain planning, warehouse management software, transportation management software, sourcing & procurement, order management, and others), and services (outsource supply chain management services and professional services), deployment (cloud-based and on-premises), enterprise size (small and medium enterprises (SMEs) and large enterprises), industry (retail & consumer goods, manufacturing, automotive, healthcare & pharma, food & beverages, transportation & logistics, and others), and region (North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa), to help readers understand and evaluate lucrative opportunities in the supply chain management market.