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The supply chain management (SCM) software market size is forecast to increase by USD 17.30 billion at a CAGR of 12.98% between 2022 and 2027.
The growth of the market depends on several factors, including the emergence of supply chain visibility and event management, increasing investment in warehouses by e-commerce service providers, and a rise in the number of strategic partnerships. These developments underscore the importance of effective supply chain management software in addressing the complexities of modern business operations. By leveraging such software solutions, businesses can optimize logistics and inventory processes, leading to enhanced efficiency and cost savings in the face of growing demand and competition.
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The market plays a pivotal role in driving efficiency and optimizing operations across industries. The market for such software is witnessing significant growth, fueled by emerging trends and industry analysis. Key players in this sector are continuously innovating to meet the evolving demands of businesses worldwide. One of the primary drivers of this growth is the increasing adoption of solutions by organizations looking to streamline their operations and enhance productivity. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing investment in warehouses by e-commerce service providers is notably driving the supply chain management software market growth. E-commerce service providers have set up warehouses to manage inventory and shipping. The WMS software, helps end users save time and improve the process of checking inventory and new shipments on a daily and monthly basis. E-commerce service providers need inventory management to improve the accuracy of incoming and outgoing inventory calculations.
Increased warehouse construction by e-commerce service providers will drive WMS adoption. Some examples related to investing in storage facilities include Walmart investing USD 1.2 billion in its Chinese supply chain to modernize its logistics. Growth in the global e-commerce market will increase investment in warehouses and drive the growth of the SCM market during the forecast period.
The adoption of big data analytics and IoT is a key trend influencing the market growth. IoT and big data help end-user industries such as healthcare, retail, manufacturing, financial services, banking and insurance, education, transportation, SCM, logistics, and agriculture to analyze and improve operational efficiency. IoT devices and connected sensors are increasingly being implemented in the supply chain and logistics industries to enable operational efficiency and real-time tracking. Big data analytics can manage the large amount of information generated by IoT devices in the SCM system. Massive amounts of data collected by sensors can be analyzed in real-time to make informed decisions and derive solutions that help in improving operations. IoT, in conjunction with big data analytics, can help companies improve operational efficiency.
Several logistics service providers have implemented big data and IoT in their SCM systems. Integrating digital twins and supply chain solutions minimizes human interaction with systems through machine-to-machine communication, enabling efficient monitoring and management of warehouse operations. Increasing integration of IoT and big data will have a positive impact on the growth of the market during the forecast period.
The high initial cost and availability of open-source aaplications are challenging the supply chain market growth. The rising costs can be attributed to software licensing, installation, maintenance, hardware, customization, and training costs. Controlling and monitoring ongoing transportation and logistics activities outweighs the high cost of installing data collection devices in transportation vehicles and IT infrastructure. Because of this, problems are faced by various stakeholders. For example, implementing SCM software requires IT staff to be trained with skills related to administration and staff dedicated to operations. Once implemented, the SCM solution needs to be updated regularly to keep up with current market trends and integrate with advanced technologies such as big data and blockchain. These factors increase the cost of implementing and maintaining SCM solutions. The availability of open-source solutions such as Odoo, OpenBoxes, xTuple, OpenLMIS, and Sellsy pose challenges to the various vendors operating in the global SCM software market.
The majority of end users use SCM software solution which is open source as it does not require a large investment. However, such solutions have only basic functions and cannot cope with complex tasks, so they are suitable for small and medium-sized enterprises that do not have a heavy task load. Such factors will limit the growth of the market during the forecast period.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the market research report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth market growth and forecasting strategies.
Global Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
American Software Inc: The company provides demand-driven supply chain management and enterprise software solutions built on over 40 years of industry experience to drive business value regardless of market conditions. It also develops, markets, and supports a portfolio of software that provide enterprise management and collaborative supply chain solutions to the global market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
This market report extensively covers market segmentation by application (SCP, procurement, WMS, and TMS), deployment (on-premise and cloud-based), and geography (North America, Europe, APAC, Middle East and Africa, and South America).
The market share growth by the SCP segment will be significant during the forecast period. SCP includes processes such as sales and operations planning, demand planning, demand gathering, strategic supply network design, and long-term and strategic planning. SCP is an integrated business management process and the software helps senior management and leadership teams keep all functions in the organization in sync. It manages and provides data on sales plans, production plans, inventory plans, and financial plans.
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The SCP segment was valued at USD 5,907.93 million in 2017 and continued to grow until 2021. Companies around the world are implementing SCP software solutions to balance supply and demand by effectively managing inventory using sales data and demand forecasts. SCP software solutions provide insight to supply chain managers by analyzing trends in sales and operational plans. Vendors in the market offer SCP software solutions to effectively manage sales and demand forecasts. To achieve operational efficiencies, manage sales data, and effectively forecast demand for products and services, the end-user implements SCP software into the operational processes of its supply chain.
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North America is estimated to contribute 34% to the growth of the software market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America offers the greatest growth opportunity for SCM providers due to the increasing implementation of automation scm technologies in logistics and supply chains. The availability of advanced network communication infrastructure and a well-developed ecosystem of connected devices facilitates the implementation of automation technologies in this region. Some end-users in the logistics and supply chain industry in the region have already adopted advanced supply chain technologies such as IoT, machine learning, predictive analytics, and artificial intelligence that enable the effective implementation of intelligent solutions. The region has seen large vehicle movements across a variety of industries, including retail, oil and gas, and construction. In addition, growth in cross-border trade between the United States and Canada and between the United States and Mexico has also increased fleet movements. For this reason, fleet managers and owners can focus on implementing a fleet management system to optimization of their operational cycles. As fleet management system adoption grows, buyers will integrate their IoT devices, wireless connectivity solutions, and software supply chain to efficiently manage operations.
In today's rapidly evolving business landscape, effective SCM is crucial for companies to remain competitive and meet the demands of customers and suppliers. With the advent of cloud computing and Software as a Service (SaaS) solutions, SCM software has become an essential tool for manufacturers, retailers, and logistics providers alike. These platforms offer scalability and flexibility, allowing enterprises to optimize their supply chain processes and adapt to changing market conditions.
Key players in the SCM market are investing heavily in technology, including machine learning and data analytics, to enhance supply chain visibility and streamline operations. From planning and transportation to logistics and inventory management, SCM software provides comprehensive solutions for enterprises across various industries, including healthcare and manufacturing.
The adoption of SCM software continues to grow as companies recognize the benefits of improved efficiency, reduced costs, and better inventory management. However, competition in the SCM software market is fierce, with vendors continually innovating to offer the most advanced solutions to their customers.Overall, SCM software plays a vital role in modern supply chains, enabling companies to optimize their operations, enhance customer satisfaction, and stay ahead of the competition in today's fast-paced business environment.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Supply Chain Management Software Market Scope |
|
Report Coverage |
Details |
Page number |
176 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 12.98% |
Market growth 2023-2027 |
USD 17309.36 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
10.61 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 34% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
3M Co., American Software Inc., Coupa Software Inc., Cybozu Inc., Descartes Systems Group Inc., E2open Parent Holdings Inc., Epicor Software Corp., Infor Inc., International Business Machines Corp., Kinaxis Inc., Magaya Corp., Manhattan Associates Inc., Microsoft Corp., Oracle Corp., Panasonic Holdings Corp., SAP SE, Sonata Software Ltd., Solvoyo, StockIQ Technologies Inc., and Webgility Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market research and growth report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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