Supply Chain Management Market Research Report Information By Component (Solution, Service), by Solution Type (Transportation Management System, Warehouse Management System, Supply Chain Planning, Procurement and Sourcing, Manufacturing Execution System), by Deployment Mode (On-premise, On-Demand), by Enterprise Size (Large Enterprise, SMEs) and by Industry Vertical (Retail and Consumer Goods, Healthcare and Pharmaceuticals, Manufacturing, Food and beverages, Transportation and Logistics, Automotive, Others) –Market Forecast Till 2032

Supply Chain Management Market Overview

Supply Chain Management Market Size was valued at USD 27.8 Billion in 2022. The Supply Chain Management Market industry is projected to grow from USD 30.9 Billion in 2023 to USD 72.2 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 11.20% during the forecast period (2023 - 2032).

Increase in implementation of technological advancement and investments and growing demand for SCM from multiple industry verticals are the key market drivers enhancing the market growth.

Figure 1: Supply Chain Management Market Size, 2022-2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Supply Chain Management Market Trends

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  Adoption of advanced technologies is driving the market growth

  
  

The Supply Chain Management Market is witnessing a significant trend towards the integration and adoption of advanced technologies. Technologies such as artificial intelligence (AI), machine learning (ML), Internet of Things (IoT), and blockchain are being increasingly leveraged to enhance the efficiency, transparency, and responsiveness of supply chain processes. AI and ML help in predictive analytics, demand forecasting, and optimization, while IoT enables real-time tracking and monitoring of goods. Blockchain ensures secure and transparent transactions across the supply chain. Companies are investing in these technologies to streamline operations, reduce costs, and gain a competitive edge in an evolving global market. This factor drives the market CAGR.

Additionally, Sustainability has become a central theme in the Supply Chain Management landscape. Companies are recognizing the importance of environmentally and socially responsible practices in their supply chain operations. This trend includes the adoption of eco-friendly packaging, reduction of carbon emissions through optimized logistics, and responsible sourcing practices. Environmental, Social, and Governance (ESG) criteria are increasingly influencing decision-making in Supply Chain Management.

The COVID-19 pandemic has underscored the need for resilient and agile supply chain networks. The ongoing trend in the Supply Chain Management Market involves a strategic shift towards building more flexible and responsive supply chains. Companies are reevaluating their sourcing strategies, diversifying suppliers, and investing in digital technologies to create adaptive and agile supply chain networks. This includes the implementation of demand-driven supply chains, dynamic inventory management, and the use of data analytics to identify potential disruptions. For instance, in March 2022, Descartes revealed that the company’s ShipRush less-than-truckload (LTL) and multi-carrier parcel shipping solution has been incorporated with its set of e-commerce Warehouse Management Systems (WMS). With this incorporation, the customers will now be able to enhance their shipping and warehouse performance via a unified solution. Thus, driving the Supply Chain Management Market revenue.

Supply Chain Management Market Segment Insights

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  Supply Chain Management Component Insights

  
  

The Supply Chain Management Market segmentation, based on Component includes Solution, Service. The dominating component is solution. A wide range of software and technological solutions, including as inventory management, demand forecasting, and logistics, are included in this category. These solutions are intended to optimise and streamline different areas of supply chain activities. Services are the component that is increasing the quickest at the same time. The need for services like installation, support, and advising is driven by the need for specialised knowledge and the increasing complexity of supply chain networks.

Figure 2: Supply Chain Management Market, by Component, 2022&2032 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Supply Chain Management Solution Type Insights

The Supply Chain Management Market segmentation, based on solution type, includes transportation management system, warehouse management system, supply chain planning, procurement and sourcing, manufacturing execution system. The dominating solution type is warehouse management system. WMS is essential to optimising order fulfilment, inventory monitoring, and general logistics management in warehouse operations. WMS is a leading solution that helps organisations increases the effectiveness of their supply chains and customer satisfaction due to the growing emphasis on efficient warehouse operations and the requirement for real-time inventory visibility. Transportation Management System is the solution type that is expanding the fastest at the same time. The need for TMS is driven by the increasing complexity of global supply chains and the emphasis on efficient and timely transportation solutions.

Supply Chain Management Deployment Mode Insights

The Supply Chain Management Market segmentation, based on Deployment Mode, includes On-premise, On-Demand. The dominating deployment mode is on-demand. Cloud-based deployment is a favoured option for enterprises because to its scalability, flexibility, and affordability. On-premise solutions are the deployment method that is expanding the quickest at the same time. For direct control over their infrastructure, some businesses, especially those with strict security and compliance needs, choose on-premise implementation.

Supply Chain Management Enterprise Size Insights

The Supply Chain Management Market segmentation, based on Enterprise Size, includes Large Enterprise, SMEs. Large Enterprises dominate the landscape due to their extensive and complex supply chain operations. Greater product volume, a variety of international activities, and complex logistical networks are common among large organisations. SMEs, or small and medium-sized enterprises, are the category with the fastest rate of growth at the moment. To remain competitive and adaptable to changing market conditions, SMEs are realising more and more how important effective Supply Chain Management is. With no significant initial costs, SMEs may now use cutting-edge supply chain solutions.

Supply Chain Management Industry Vertical Insights

The Supply Chain Management Market segmentation, based on Industry Vertical, includes Retail and consumer goods, Healthcare and pharmaceuticals, Manufacturing, Food and beverages, Transportation and logistics, Automotive Others. The complex supply chain networks and requirement for real-time visibility to satisfy customer demands have made the retail and consumer products business vertical the dominant one. The Healthcare and Pharmaceuticals industrial vertical is the category with the quickest rate of growth concurrently. Adoption of sophisticated Supply Chain Management systems is influenced by the growing complexity of pharmaceutical supply chains, strict regulatory constraints, and the need for product integrity and traceability.

Supply Chain Management Regional Insights

By region, the study provides the market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American Supply Chain Management Market area will dominate this market, owing to technology adoption, economic strength, consumer dynamics will boost market growth in this region.

Further, the major countries studied in the market report are The US, Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 3: SUPPLY CHAIN MANAGEMENT MARKET SHARE BY REGION 2022 (USD Billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe Supply Chain Management Market accounts for the second-largest market share due to the strong industrial base, regulatory framework. Further, the German Supply Chain Management Market held the largest market share, and the UK Supply Chain Management Market was the fastest growing market in the European region

The Asia-Pacific Supply Chain Management Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to robust economic expansion, vibrant manufacturing landscape, booming e-commerce sector, strategic infrastructure development. Moreover, China’s Supply Chain Management Market held the largest market share, and the Indian Supply Chain Management Market was the fastest growing market in the Asia-Pacific region.

Supply Chain Management Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Supply Chain Management Market, grow even more. Market participants are also undertaking a variety of strategic activities to expand their global footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, Supply Chain Management industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Supply Chain Management industry to benefit clients and increase the market sector. In recent years, the Supply Chain Management industry has offered some of the most significant advantages. Major players in the Supply Chain Management Market, including IBM Corporation, Oracle Corporation, SAP SE, Manhattan Associates, Descartes Systems Group Inc., Kinaxis, E2open, LLC., and others, are attempting to increase market demand by investing in research and development operations.

Kinaxis is a Canadian software company that specializes in providing cloud-based solutions for Supply Chain Management and concurrent planning. The company's flagship product is Rapid Response, a platform designed to help organizations in various industries manage and optimize their end-to-end supply chain processes. Rapid Response enables real-time visibility into the supply chain, facilitating agile decision-making and response to changes in demand, supply, and other factors affecting the supply chain. In May 2022, Kinaxis announced a breakthrough in advanced analytics for supply chain planning by introducing its new Planning. Al analytical approach at Kinexions, 2022, its annual supply chain innovators conference. Part of the Kinaxis Rapid Response platform, Planning.

Descartes is a Canadian technology company specializing in providing logistics and Supply Chain Management solutions. Founded in 1981, Descartes has grown to become a leading player in the industry. The company's solutions are designed to help businesses manage and optimize their logistics and supply chain operations. Descartes offers a wide range of software solutions, including transportation management, customs and regulatory compliance, route planning, and visibility tools. In March 2022, Descartes announced that its Descartes ShipRush multi-carrier parcel and less-than-truckload (LTL) shipping solution has been integrated with its suite of e-commerce warehouse management systems (WMS). This integration allows customers to improve their warehouse and shipping performance through a unified solution.

Key Companies in the Supply Chain Management Market include

• IBM Corporation


• Manhattan Associates


• Descartes Systems Group Inc.


• Kinaxis


• Oracle Corporation


• E2open, LLC


• Basware Corporation


• SAP SE


• WiseTech Global


• Infor


• Blue Yonder Group, Inc. (JDA Software)


• Epicor Software Corporation


• Logility, Inc.

Supply Chain Management Industry Developments

• In May 2023, the companies Accenture and Blue Yonder, Inc., through a press release, announced the strengthening of their cooperation with the aim of optimizing the supply chains in their organizations through the use of Accenture’s technology and industry. The engineers on Accenture's cloud-native platform and industry experts will work with Blue Yonder towards creating new offerings on the Blue Yonder Luminate Platform in view of the delivery of comprehensive integrated supply chain management. The intensive partnership and the co-innovation are designed towards this aim and the outlook is a more modular, more digitized, more flexible supply chain of the future that the verticals of Generative AI and Robotics can help bring about.

• In April 2023, oracle brought into existence a more sophisticated AI and automation technology believed to help customers streamline their supply chain management processes. It experienced operation improvement thanks to the deployment of new features that utilized both AI and automation technologies, which improved the customer’s supply chain management activities overall. These upgrades featured better quote-to-cash cycles in Fusion Verticals by Oracle and off planning, usage-based pricing and rebate management and new requiem Oracle Fusion Cloud Supply Chain and Manufacturing (SCM).

• February 2024: Blue Yonder has taken over software technology company Flexis AG. The acquisition is intended to improve and focus further portfolio of Blue Yonder in sectors, such as industrial and automotive.

• December 2023: Blue Yonder was elected as part of to release of Blue Yonder Orchestrator, a generative AI capability that enhances decision-making and accelerates supply chain processes in organizations.

• August 2023: O9 Solutions signed a 'Scientific Collaboration Agreement' with the Government of Telangana for setting up a Supply Chain Skills Academy Foundation & also the Company has commenced its office R&D center in Hyderabad.

• July 2023: Genpact strengthens the relationship with o9 Solutions for transforming the planning strategies and decision processes of businesses with the help of AI in order to assist in overcoming the challenges that the companies are experiencing in the supply chains.

• January 2023: Oracle announced the introduction of new logistics capabilities in the Oracle Fusion Cloud Supply Chain & Manufacturing to better the performance of customers by enhancing accuracy, cost management, improving flexibility and automating the compliance processes.

• October 2022: enterprise AI software platform developer o9 Solutions has launched "Supply Sensing". The purpose of this advance provision is to mitigate the impacts caused by macro-level shocks on particular supply chains by helping with the strategic reconfiguration of certain operational activities around the business to prevent any unnecessary harm to the business.

• August 2022: Wolters Kluwer, which is involved in providing professional information software and services, attended the North American Supply Chain Executive Summit (NASCES 2022), held in Chicago, Illinois. This event helps benchmark, network, learn and share solutions to international challenges that each supply chain expert deals with on a day-to-day basis. Some of the service and solutions providers and industry experts were present at the event.

• July 2022: NTT Data with SAP Japan and Asia Pacific announced supply chain insurance management as a new co-innovation. In this solution, IT services lead & digital businesses SAP SE and NTT Data have jointly developed an attractive solution named “Connected Product”.

• June 2022: Infor, which focuses on the cloud, reported that Mount Franklin Foods, a food service products manufacturer, selected Infor’s CloudSuite Food & Beverage. This solution helps the company increase operational efficiency, achieve higher degrees of supply chain visibility and enhance customer satisfaction.

Supply Chain Management Market Segmentation

Supply Chain Management Component Outlook (USD Billion, 2018-2032)

• Solution


• Service

Supply Chain Management Solution Type Outlook (USD Billion, 2018-2032)

• Transportation management system


• Warehouse management system


• Supply chain planning


• Procurement and sourcing


• Manufacturing execution system

Supply Chain Management Deployment Mode Outlook (USD Billion, 2018-2032)

• On-premise


• On-Demand

Supply Chain Management Enterprise Size Outlook (USD Billion, 2018-2032)

• Large Enterprise


• SMEs

Supply Chain Management Industry Vertical Outlook (USD Billion, 2018-2032)

• Retail and consumer goods


• Healthcare and pharmaceuticals


• Manufacturing


• Food and beverages


• Transportation and logistics


• ·Automotive


• Others

Supply Chain Management Regional Outlook (USD Billion, 2018-2032)

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• ·Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  


• ·Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America