Supply Chain Management Software Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 30.47 Billion |
| Market Size (2029) | USD 48.14 Billion |
| CAGR (2024 - 2029) | 9.58 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Supply Chain Management Software Market Analysis
The Supply Chain Management Software Market size is estimated at USD 30.47 billion in 2024, and is expected to reach USD 48.14 billion by 2029, at a CAGR of 9.58% during the forecast period (2024-2029).
- Driven by the growing complexity of supply chains, technological advancements, and an escalating demand for operational efficiency and visibility, the supply chain management (SCM) software market is witnessing robust growth.
- According to Fictiv Technology, in 2023, 49% of companies across the board prioritized speeding up new product innovation, marking a significant jump from just 11% the previous year. Consequently, 55% of businesses in manufacturing have identified enhancing supply chain visibility as their foremost priority.
- Inventory tracking tools are set to see a surge in demand. Wasp Barcode Technologies highlights that approximately 43% of small businesses still rely on outdated inventory tracking methods. Specifically, 14% use traditional pen and paper, 21% depend on spreadsheets like Excel, and only 33% have transitioned to inventory management software or directly manage inventory through their accounting software.
- The global shift towards cloud-based business operations has ushered in a digital transformation for the supply chain industry. This transition not only addresses market volatility but also enhances responsiveness to disruptions. For instance, Descartes' Global Logistics Network (GLN), a cloud-based logistics messaging system, boasts connections with over 13,000 customers spanning approximately 160 countries.
- Supply chain risks predominantly stem from market volatility. Factors such as fluctuating consumer demand, trade wars, raw material shortages, climate change, stringent environmental regulations, economic uncertainties, policy shifts, and industrial unrest all pose challenges to supply chain management.
- In light of the COVID-19 scenario, about 75% of companies in the supply chain are adjusting their practices based on insights gained from the pandemic. Data from Fictiv Technology reveals that 41% of logistics firms are implementing moderate changes, while 34% are making significant adjustments to their supply chain management strategies, underscoring the growing demand for supply chain software.
Supply Chain Management Software Market Trends
Retail to Hold Significant Share
- As retailers strive to boost operational efficiency, refine inventory management, and elevate customer satisfaction, the demand for retail supply chain software continues to surge. With retail sales witnessing consistent annual growth, the necessity for robust supply chain tools becomes increasingly evident.
- Small and medium-sized enterprises (SMEs) are increasingly gravitating towards cloud-based supply chain management solutions, seeking cost-effective tools to streamline their operations. This growing trend is poised to further propel the adoption of retail supply chain software. In June 2024, Bigbasket, a TATA Enterprise, unveiled BB Matrix, a comprehensive SaaS-based supply chain platform. Designed for end-to-end visibility, BB Matrix promises real-time updates, swift bottleneck tracking, and data-driven decision-making to fortify supply chains.
- Artificial Intelligence (AI) in the retail sector is adept at analyzing market dynamics, competitor pricing, and consumer behavior, allowing for real-time adjustments in pricing strategies. This capability empowers retailers to set optimal prices, ensuring maximum profitability and competitiveness. Key applications of AI in the retail supply chain encompass demand forecasting, inventory optimization, route planning, and customer behavior analysis. According to Buuuk, by 2026, over 75% of companies developing supply chain management software are set to integrate advanced analytics and AI.
- Moreover, automation tools are revolutionizing distribution and inventory management. By digitizing inventory data and leveraging analytics with visual reporting, these tools facilitate a seamless supply chain process. From managing inbound carriers to distributing inventory and reconciling at the store level, automation leads to reduced operational costs, expedited invoice reconciliation, and enhanced fill rates through shortened reorder times.
North America Holds Largest Market Share
- North America is poised for significant market growth, primarily driven by the adoption of GS1 standards. These standards aim to enhance the safety, efficiency, and visibility of supply chains across both physical and digital channels in 25 sectors throughout the United States.
- As the value and importance of inventory and warehouse management rise, the U.S. has seen a 6.8% increase in the number of warehouses over the past five years (Source: Bureau of Labor Statistics). Additionally, approximately 44% of U.S. shoppers engage in omni-channel shopping, blending online and in-person purchases across 15 product and service categories. This trend is anticipated to grow substantially each year, fueling a heightened demand for supply management tools.
- In 2023, large enterprises accounted for over half of the revenue share, driven by their intricate supply chains that necessitate robust management solutions. In contrast, small and medium-sized enterprises (SMEs) are on the brink of significant growth. The infusion of advanced technologies like cloud computing, Artificial Intelligence (AI), Machine Learning (ML), and the Internet of Things (IoT) is revolutionizing Supply Chain Management (SCM). These technologies facilitate enhanced real-time tracking, data analytics, and overall operational efficiency.
- Providers like Oracle Fusion Cloud International Trade Management and Oracle Fusion Cloud Transportation Management offer upgrades that empower subscribers to reduce costs and risks, adapt more readily to business challenges, and elevate customer experiences.
- Furthermore, the Government of Canada has adopted a "cloud-first" strategy. This means that when embarking on IT investments, initiatives, strategies, and projects, cloud services are prioritized as the primary delivery option. This approach not only streamlines the government's IT processes but also leverages private-sector innovations for enhanced agility. Such forward-thinking initiatives are set to create abundant opportunities for cloud-based supply chain management solutions.
Supply Chain Management Software Industry Overview
The SCM sofwtare market is highly competitive and fragmented, primarily driven by the presence of major players. These key players employ strategies such as mergers, acquisitions, and product innovations to maintain a competitive edge and broaden their global footprint. Key player include Blue Yonder Group Inc., Epicor Software Corporation, Infor Inc. and others.
The demand for supply chain management software is poised for significant growth as organizations recognize the importance of optimizing their supply chain processes through technology. With projections indicating substantial increases in market size driven by e-commerce growth, technological advancements, and a focus on visibility and compliance, stakeholders must navigate challenges such as integration complexity while capitalizing on emerging opportunities within this dynamic market landscape. The future looks promising for SCM software as it continues to evolve to meet the needs of modern businesses globally.
Supply Chain Management Software Market Leaders
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Blue Yonder Group Inc.
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Epicor Software Corporation
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Infor Inc.
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IBM Corporation
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Kinaxis Inc.
*Disclaimer: Major Players sorted in no particular order
Supply Chain Management Software Market News
- July 2024: Logistics software startup Alvys raises USD 20.5 million to become the de facto operating system for supply chain management. The company says it wants to become the de facto operating platform for organization’s logistics and supply chain management operations. To do this, it has created an innovative, cloud-based platform that’s designed to serve as the nerve center of businesses’s logistics operations, with hundreds of third-party software integrations that enable them to aggregate all of their supply chain data into a single hub.
- April 2024: SAP SE announced AI advancements in its supply chain solutions that will unleash a transformative wave of productivity, efficiency and precision in manufacturing. AI-driven insights from real-time data will help companies use their own data to make better decisions across supply chains, streamline product development and improve manufacturing efficiency.
Supply Chain Management Software Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Industry Value Chain Analysis
4.4 Assessment of Impact of macroeconomic trends
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increasing Adoption of Cloud Supply Chain Management Among SMEs
5.1.2 High Growth in E-commerce
5.2 Market Restraints
5.2.1 Growing Security and Privacy Concerns Among Enterprises
6. MARKET SEGMENTATION
6.1 By Type
6.1.1 Solution
6.1.2 Services
6.2 By Deployment
6.2.1 Cloud
6.2.2 On-Premises
6.3 By Enterprises
6.3.1 SMEs
6.3.2 Large Enterprises
6.4 By End-user Vertical
6.4.1 Retail and Consumer Goods
6.4.2 Healthcare
6.4.3 Manufacturing
6.4.4 Automotive
6.4.5 Other End-user Verticals
6.5 By Geography***
6.5.1 North America
6.5.2 Europe
6.5.3 Asia
6.5.4 Latin America
6.5.5 Middle East and Africa
6.5.6 Australia and New Zealand
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 Blue Yonder Group Inc.
7.1.2 Epicor Software Corporation
7.1.3 Infor Inc.
7.1.4 IBM Corporation
7.1.5 Kinaxis Inc.
7.1.6 Körber AG
7.1.7 Manhattan Associates
7.1.8 Oracle Corporation
7.1.9 SAP SE
7.1.10 The Descartes Systems Group Inc.
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OUTLOOK OF THE MARKET
Supply Chain Management Software Industry Segmentation
Supply chain management (SCM) software solutions manage the flow of goods, data, and finances from their origin to the final destination. Supply chain activities span procurement, product lifecycle management, supply chain planning (including inventory planning and the maintenance of enterprise assets and production lines), logistics (including transportation and fleet management), and order management.
The supply chain management software market is segmented by type (solution, services), by deployment (cloud, on-premises), by enterprises (smes, large enterprises), end-user verticals (retail and consumer goods, healthcare, manufacturing, automotive, other end-user verticals), geography (North America, Europe, Asia-Pacific, Latin America, Middle East and Africa). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Type | |
| Solution | |
| Services |
| By Deployment | |
| Cloud | |
| On-Premises |
| By Enterprises | |
| SMEs | |
| Large Enterprises |
| By End-user Vertical | |
| Retail and Consumer Goods | |
| Healthcare | |
| Manufacturing | |
| Automotive | |
| Other End-user Verticals |
| By Geography*** | |
| North America | |
| Europe | |
| Asia | |
| Latin America | |
| Middle East and Africa | |
| Australia and New Zealand |
Supply Chain Management Software Market Research Faqs
How big is the Supply Chain Management Software Market?
The Supply Chain Management Software Market size is expected to reach USD 30.47 billion in 2024 and grow at a CAGR of 9.58% to reach USD 48.14 billion by 2029.
What is the current Supply Chain Management Software Market size?
In 2024, the Supply Chain Management Software Market size is expected to reach USD 30.47 billion.
Who are the key players in Supply Chain Management Software Market?
Blue Yonder Group Inc., Epicor Software Corporation, Infor Inc., IBM Corporation and Kinaxis Inc. are the major companies operating in the Supply Chain Management Software Market.
Which is the fastest growing region in Supply Chain Management Software Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in Supply Chain Management Software Market?
In 2024, the North America accounts for the largest market share in Supply Chain Management Software Market.
What years does this Supply Chain Management Software Market cover, and what was the market size in 2023?
In 2023, the Supply Chain Management Software Market size was estimated at USD 27.55 billion. The report covers the Supply Chain Management Software Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Supply Chain Management Software Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Supply Chain Management Software Industry Report
Statistics for the 2024 Supply Chain Management Software market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Supply Chain Management Software analysis includes a market forecast outlook for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
