The supply chain management market is predicted to grow at a CAGR of 11.8% over the forecast period, according to FMI’s analysis. The industry’s value is anticipated to increase from US$ 25.7 Billion in 2023 to US$ 78.5 Billion by 2033 end.
The market for supply chain management is witnessing an upward market direction as the adoption of this software is surging among multiple firms and organizations. This could be ascribed to the growing cognizance pertaining to efficiency-promoting attributes of SCM software while sourcing raw materials, assembling, and manufacturing of goods or products. Supply chain management solutions also assist with financial information, tracking inventory and warehouse, product delivery, managing order entry, etc. All these benefits of using SCM solutions are projected to push the market forward in the forthcoming years.
Further on, SCM solution allows strategic management of work with the firm’s distribution network, thus promoting market growth. Supply chain management is witnessing increased adoption among SMEs and startups. The system offers benefits of an IT department via cloud management system sans any employment of additional staff at additional costs. This allows in-house employees to concentrate on daily business operations. The flexibility of cloud-based SCM storage provides scalability, which is significant for SMEs.
Key Takeaways from the Supply Chain Management Market:
- The United States is projected to sustain its dominant market position in the forecast period by attaining US$ 16.6 Billion by 2033 end. The market is projected to grow at a CAGR of 9.6% in the meantime. The market growth can be attributed to the huge presence of adopters of such software in the region.
- The fastest growing market for SCM software and services in China. The country is predicted to witness blistering growth rate of 11.8% CAGR over the forecast period. Growing opportunities and investments in SCM solutions are anticipated to drive market growth.
- Japan is forecast to arrive at a market valuation of US$ 6.7 Billion by 2033, growing at a CAGR of 14.9% between 2023-2033. Surging investments by Japan to reduce its supply chain insecurity is expected to propel the market growth.
- On the basis of solution, the software segment is estimated to witness rapid growth over the forecast period, in comparison to its counterpart. The segment is forecast to exhibit 12.8% CAGR during the stipulated time-frame.
- On the basis of enterprise size, large enterprises are projected to lead with the largest market share. Over the forecast period, large enterprises segment is predicted to grow at a CAGR of 11.6%. Rising adoption of SCM solutions by large enterprises to integrate into the existing inventory and software is propelling segment growth.
- North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. According to the study, the U.S. is expected to account for more than 79% of the North America market share through 2033. By 2033 end, the supply chain management market is estimated to reach market valuation of US$ 16.6 Bn. The market is projected to grow at a CAGR of 9.6% in the forecast period. This growth can be attributed to the rise in spending on logistics & transportation, which is boosting the automation of supply chain management in these industries. The transportation & logistic sector is huge as well as competitive in the U.S. and consists of distinct industries such as railroads, air services, and shipping.
- Demand for supply chain management platforms in Germany is expected to account for a revenue share of more than 22.2% by 2023 end. As Europe’s largest economy, Germany has a well-established industrial sector and is a dominant producer of chemicals, machinery, and automobiles. The country also is recognized for its high-tech manufacturing potential and superior quality of products, due to considerable investments within educational, and research and development avenues.
- The demand in India is estimated to exhibit tremendous growth between 2023 and 2033. India’s supply chain and logistics sector is one of the largest globally. The sector has the potential to grow multifold. One of the biggest revelations of the pandemic for this sector is the urgent need to leverage disruptive technologies for greater resilience. In 2023 and beyond, the supply chain management industry is expected to evolve in order to survive. New technology like cloud computing, Robotic Process Automation (RPA), and Artificial Intelligence (AI) are projected to replace the weaker link and transform the supply chain management market at large.
- Demand for supply chain management solutions in Japan is estimated to account for a total sale of US$ 6.7 Bn by the end of 2033. Japan is trying to improve its supply chain security, while maintaining a positive economic engagement with China, as China is also a large market for Japanese firms. Even before the coronavirus pandemic, Japanese companies had started shifting their production away from China due to the impacts of the U.S.-China trade war.
News Featuring Market Developments by Companies Providing Supply Chain Management Solutions:
- In February 2022, Oracle launched Supplier Rebate Management, which is a new solution under the category of Oracle Fusion Cloud Channel Revenue Management.
- In February 2022, Oracle revealed that Bharti Airtel opted for Oracle Fusion Cloud SCM and Oracle Fusion Cloud ERP to simplify and digitize its planning, finance, and supply chain processes.