Supply Chain Management Market Statistics: 2030
The supply chain management market was valued at $18,699.45 million in 2020, and is projected to reach $52,632.37 million by 2030, registering a CAGR of 10.7%. Advancements in industrial-grade digital technology, increase in inclination toward cloud-based supply chain management software, and rise in need for improved supply chain visibility majorly contribute toward the supply chain management market growth. However, lack of IT infrastructure in the underdeveloped nations and increase in security & privacy concerns hamper the growth of the supply chain management software market.
The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. This is attributed to the rapid growth in demand for SCM software due to supply chain disruptions triggered by the COVID-19 pandemic. In addition, there is huge demand for online shopping in several areas, which requires food & beverage, manufacturing, and logistics companies to increase their investments in automation, including the automation of supply chains. Thus, fueling the growth of the SCM industry.
In 2020, the supply chain management market share was dominated by the Procurement and sourcing segment, and is expected to maintain this trend during the forecast period. The major role of procurement & sourcing is to obtain supplies at the lowest possible price. Sourcing mainly focuses on lowering prices, improving quality, and achieving efficiencies on a regional as well as global level. While procurement refers to the mechanics of purchasing, which includes making timely payments and filling out order forms. However, the transportation management system segment is expected to witness the highest growth. The digital revolution is changing the landscape of the transportation business, due to which number of transportation management system vendors and third-party providers are adopting digitized systems for supply chain management and transportation activities, which is positively impacting the growth of the SCM industry.
The on-premise segment led the supply chain management market in 2020, and is expected to continue to remain dominant in the near future. On-premise based supply chain management solution allows organizations to have control over security & other connectivity issues and improves the scalability, speed, reliability, and connectivity of organizations. However, cloud-based SCM software is expected to witness highest growth rate, due to rise in adoption of cloud-based SCM software in small- & medium-sized enterprises.
By user type, the large enterprises segment dominated the supply chain management market in 2020, and is expected to continue this trend during the forecast period, owing to increase in adoption of SCM software to integrate these software into their existing software and inventories. Furthermore, the small & medium-sized enterprises segment is expected to grow at the highest CAGR during the forecast period, owing to surge in adoption of cloud-based SCM software, as it provides cost-effective and efficient solution for SMEs.
The global supply chain management market was led by the retail & consumer goods segment in 2020, and is projected to maintain its dominance during the forecast period due to rise in adoption of SCM software among retailers to gain competitive advantage, due to rise in competition between e-commerce and Omni channel players. However, the automotive segment is expected to witness the highest growth during the forecast period.
The report focuses on the growth prospects, restraints, and global supply chain management market analysis. The study provides Porter’s five forces analysis of the global SCM market forecast to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, the threat of new entrants, threat of substitutes, and bargaining power of buyers on the global supply chain management market trends.
The supply chain management market is segmented into component, solution type, deployment model, user type, industry vertical, and region. By component, the market is bifurcated into solution and services.
By solution type, it is classified into transportation management system, warehouse management system, supply chain planning, sourcing & procurement software, and manufacturing execution system. By deployment model, the market is divided into on-premise and cloud based. By user type, it is bifurcated into small & medium-sized enterprises (SMEs) and large enterprises. Depending on industry vertical, it is fragmented into retail & consumer goods, healthcare & pharmaceuticals, manufacturing, food & beverages, transportation & logistics, automotive, and other. By region, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
COVID-19 Impact Analysis
Post COVID-19, the size of the supply chain management (SCM) market is estimated to grow from $18,699.45 million in 2020 and projected to reach $52,632.37 million by 2030, at a CAGR of 10.7%. The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. This is attributed to the rapid growth in demand for SCM software due to supply chain disruptions triggered by the COVID-19 pandemic. In addition, there is huge demand for online shopping in several areas, which requires food & beverage, manufacturing, and logistics companies to increase their investments in automation, including theautomation of supply chains. Thus, fueling the growth of the SCM industry.
Supply Chain Management Market By Component
Services segment is projected as one of the most lucrative segments.
Get more information on this report : Request Sample Pages
Due to this outbreak, number of industries are affected and maintaining the complex supply chain networks would be difficult for them, which is expected to drive the demand for SCM software. For instance, according to a survey conducted by "Institute for Supply Chain Management Organization" in March 2020, almost 75% of the companies reported global SCM disruptions in one form or other due to the corona virus related transportation restrictions and it is further expected to increase in the upcoming few weeks.
Top impacting factors
The growth of the global supply chain management market size is driven by development of industrial-grade digital technology, surge in need for improved supply chain visibility, and increase in inclination toward cloud-based supply chain management software. Moreover, surge in need of demand management solutions among enterprises and increase in adoption of SCM software in healthcare and pharmaceutical companies further boosts the growth of the market. However, high cost associated with the implementation and maintenance of SCM solution and increase in security & privacy concerns among enterprises are expected to impede the supply chain management market growth. On the contrary, upsurge in demand for transportation management systems (TMS) software and integration of blockchain technology in SCM software are expected to present major opportunities for market expansion in the near future.
Supply Chain Management Market By Solution Type
Transportation management system segment is projected as one of the most lucrative segments.
Get more information on this report : Request Sample Pages
Surge in need for improved supply chain visibility
Supply chain management allows supply chain manager to monitor exactly where their current operations performing or underperforming, so that they can be prepared for minor problems, and redirect resources for the significant outcomes. In addition, it generates data-driven, reliable solutions. Which can be used to make improvements in efficiency of business operations. , supply chain management software provides better visibility to organizations with a cross-functional access and offers exception-based process management platforms that enable staff to micro-manage steady-state processes. This fuels the adoption of supply chain management software among the end users. Moreover, Increase in need of improve supply chain visibility and the desire for better transparency of orders and shipment information further boost the growth of the market.
Upsurge in demand for transportation management systems (TMS) software
Transportation in a supply chain refers to the movement of products from one location to another, which begins at the start of the supply chain as materials make their way to the warehouse and continues all the way to the end user with the customer’s order delivered at the doorstep. Because of the importance of transportation, warehouse managers should examine transportation within their supply chains. Ultimately, this is the only way to achieve lower total costs for a model where transportation can account for as much as 60 percent of total operational costs, a significant portion of a company's supply chain costs. Transportation management system is used to plan the movement of freight and help customers to plan and execute transportation activities efficiently across the supply chain. Over a period of time, the demand for TMS software has been witnessed to increase, which is creating numerous opportunities for the supply chain management market. The use of intelligent wireless connectivity and smart sensor technology solutions to offer real-time information to organizations about transport vehicles is increasing.
Supply Chain Management Market By Region
Asia-Pacific is projected as one of the most significant region.
Get more information on this report : Request Sample Pages
Key Benefits For Stakeholders
- This study includes the global supply chain management market analysis, trends, and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and global supply chain management industry opportunity.
- The global supply chain management market size is quantitatively analyzed from 2020 to 2030 to highlight the financial competency of the industry.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in global supply chain management industry.
Supply Chain Management Market Report Highlights
|By Component|| |
|By Solution Type|| |
|BY DEPLOYMENT MODEL|| |
|By User Type|| |
|BY INDUSTRY VERTICAL|| |
|By Region|| |
|Key Market Players||EPICOR SOFTWARE CORPORATION, HIGHJUMP, INFOR, INTERNATIONAL BUSINESS MACHINES CORPORATION, JDA SOFTWARE GROUP, INC., KINAXIS INC., MANHATTAN ASSOCIATES, ORACLE CORPORATION, SAP SE, THE DESCARTES SYSTEMS GROUP INC.|
What is the market outlook for supply chain management? ›
The global supply chain management market size was valued at USD 21,129.2 million in 2022 and is expected to expand at a CAGR of 11.1% from 2023 to 2030.What is the size of supplier management market? ›
The Global Supply Chain Management Market Size was valued at USD 16.64 billion in 2021 and is expected to reach at a CAGR of 10.8% from 2021 to 2030, as per the latest research report by Spherical Insights & Consulting.What is the value of the supply chain management market? ›
Supply Chain Management Industry Size and Forecast
[341 Pages Report] The global Supply Chain Management (SCM) Market size in terms of revenue was estimated to be worth around USD 28.9 billion in 2022 and is anticipated to rise to USD 45.2 billion in 2027, exhibits a CAGR of 9.4%.
- Improving Efficiency. Efficiency refers to the minimization of waste. ...
- Improving Quality. Reducing waste isn't the only goal of supply chain management. ...
- Improving Stability. ...
Procurement, Logistics, and Supply Chain Management are some of the fastest growing fields nationwide. According to the U.S. Bureau of Labor Statistics, employment of logisticians is projected to grow 30 percent from 2020 to 2030, much faster than the average for all occupations.
Supply chain management is one of the hottest sectors to enter today. The demand for supply chain managers is at an all-time high. According to the US Bureau of Labor Statistics, the employment of logisticians will grow by 28 per cent between 2021 and 2031.What market size is big enough? ›
Market Opportunity is an important metric for estimating the long-term potential for an early stage company. Typically, we invest in companies that are going after market sizes of at least $100M. At that size, a market is large enough to support a $25M+ company.What is supplier market share? ›
Definition: Market share is the percentage of sales (counted in either revenue or units) that one supplier has in a given market. Market share is an important indication of a supplier's success within its industry and explains how competitive a supplier is relative to other companies that offer similar goods/services.Is supply chain management a good career right now? ›
Supply chain salaries remain solid, even during a global pandemic. According to ASCM's 2021 Supply Chain Salary and Career Report, the typical salary for individuals entering supply chain is $60,000. The median salary is $86,000 and $90,000 for professionals with APICS/ASCM certifications.Will supply chain improve in 2023? ›
Supply chain conditions are expected to improve in 2023 compared to 2022 and 2021, but executives in multiple industries say their companies will focus on resiliency and optimization as conditions remain fragile.
What are the future trends in supply chain? ›
Big data, advanced analytics and automation will be supply chain pillars. Artificial intelligence and machine learning will have a much greater impact, as processing huge datasets in real time demands these capabilities.Is supply chain management in demand in US? ›
As per the United States Bureau of Labor Statistics, MS in Supply Chain Management can provide vast career growth opportunities and increase base salaries by 22% in 2022. Also, the jobs for business operation specialists are expected to rise by 7%, and logistics by 5% by 2028.