Dublin, May 12, 2023 (GLOBE NEWSWIRE) -- The "Global Supply Chain Management Software Market: Analysis By Deployment, By Enterprise Size, By Solution, By Industry Vertical, By Region, Size and Trends with Impact of COVID-19 and Forecast up to 2028" report has been added to ResearchAndMarkets.com's offering.
The global supply chain management software market in 2022 was valued at US$21.65 billion. The market value is anticipated to grow to US$39.69 billion by 2028.
Supply chain management (SCM) has become an essential component of business operations. It has enabled industries all over the world to streamline their operations while achieving the finest revenue returns. Supply chain management software is a real-time analytical platform that speeds up the movement of information and materials throughout the supply chain network. The program is intended to improve a company's SCM processes and offer businesses with visibility into procurement, manufacturing, inventory, distribution, and retailing.
Furthermore, supply chain management software can be customized and modified to meet the needs of the organization. Large retailers with many regional distribution centers, like Walmart, use supply chain management systems to coordinate between suppliers of merchandise (e.g., clothes, paper products) and Walmart's retail stores to reduce inventory costs. This helps retailers like Walmart pass savings onto customers through lower prices for many everyday products. The backbone of many service operations is Supply Chain Management or SCM.
The market value is expected to grow at a CAGR of 10.63% during the forecast period of 2023-2028. The growing demand for real-time analysis and identification of complex patterns, development of industrial-grade digital technology, surge in need for improved supply chain transparency, as increase in inclination toward cloud-based supply chain management software well as the growing use of big data virtualization, are creating new growth opportunities for supply chain management software vendors. Improved performance, scalability, reliability, better problem solving, and real-time application are some of the key benefits of implementing supply chain management software solutions.
Market Dynamics
Growth Drivers
- Growing E-commerce Industry
- Growing Demand for Real-time Visibility
- Adoption of SCM Software in Healthcare and Pharmaceutical Companies
- Growing Need for Demand Management System
- Implementation of Digitization in Businesses
- Increasing Adoption of Cloud Based Supply Chain Management Software
- Globalization
Challenges
- High Initial Cost and Availability of Open-source Software
- Increase in Security and Privacy Concerns
Market Trends
- Integration of Artificial Intelligence (AI) in Supply Chain
- Adoption of Big Data Analytics and IoT
- Advancements in Industrial-Grade Digital Technologies
- Increasing Demand from Aviation Industry
- Inclination Towards Technological Advancement and Investments
Market Segmentation Analysis:
- By Deployment: The report provides the segmentation of supply chain management software based on the deployment: On Premise and Cloud. During the forecast period, the cloud-based segment is expected to grow at the fastest CAGR. Cloud computing and storage systems are becoming increasingly popular among small and medium-sized businesses. Several organizations are gradually transitioning to cloud infrastructure, and this trend is expected to accelerate in the coming years. The advantages of cloud infrastructure, such as ease of adoption, reduced reliance on in-house infrastructure, scalability, and simple installation, contribute to the segment's rapid growth.
- By Enterprise Size: The supply chain management software market is further bifurcated based on the enterprise size: Large Enterprises and Small and Medium Enterprises (SMEs). Large enterprises dominated the market in 2022. Large enterprises typically have more complex supply chains, with multiple suppliers and distribution networks spanning multiple countries and regions. As a result, they require SCM software solutions that offer robust features and functionalities for managing these complexities. The market's rise is being driven by the demand for software in key industry verticals to assist in the collection of critical business data from various and different sources, such as inventory levels, predicted sales figures, supplier information, and others.
- By Solution: The report provides the bifurcation of the market into into five segments based on the solution: Manufacturing Execution System, Transportation Management System, Procurement and Sourcing, Warehouse Management System Management, and Supply Chain Planning. In 2022, the manufacturing execution system segment accounted for the largest share of the supply chain management software market. The growth of MES in the supply chain is driven by the need for real-time visibility and control over production processes. This allows manufacturers to improve production efficiency and reduce costs. The increasing adoption of automation and the rise of Industry 4.0 are also driving the growth of MES in the supply chain.
- By Industry Vertical: The report provides the bifurcation of the market into seven segments based on the industry vertical: Manufacturing, Food & Beverages, Transportation & Logistics, Retail & E-commerce, Healthcare, Automotive, and Others. The retail & e-commerce segment is expected to grow with the highgest CAGR uring the forecasted period. The goal of retail and e-commerce supply chain management software is to assist these businesses in managing their whole supply chain, from the acquisition of raw materials to the distribution of finished goods to customers. Retailers can use the program to track consumer orders, manage their inventory, and guarantee delivery on time. The demand for better inventory management, the requirement for real-time insight into the supply chain, and the want for greater supplier and customer collaboration are the drivers influencing the adoption of supply chain management software in the retail and e-commerce sector.
- By Region: The report provides insight into the supply chain management software market based on the geographical operations, namely North America, Europe, Asia Pacific, and ROW. The North American region held a dominant share in the supply chain management software market, owing to the factors such as increasing adoption of cloud-based technologies, which are enabling businesses to store and analyze large amounts of data more efficiently and cost-effectively. Additionally, there is a growth in the adoption of supply chain management software in the healthcare & pharmaceutical industries. With the compulsory implementation of GS1 standards & Unique Device Identification on pharmaceutical drugs and medical devices, the adoption of SCM software is increasing in the region.
- During the forecast period, Asia-Pacific is anticipated to expand rapidly. This expansion is due to rapid industrialization and increased government spending. Companies in Asia-Pacific are increasingly adopting internet-based technologies, resulting in a rise in the region's use of cloud-based SCM software. The region's countries' ever-increasing economic development, as well as the rising services sector, are encouraging business firms to make large investments in supply chain management software in order to sustain growth and improve productivity. Besides, there is an increased awareness among enterprises regarding the benefits of supply chain management solutions.
The key players in the global supply chain management software market are:
- Oracle Corporation
- SAP SE
- International Business Machines Corporation (IBM)
- Descartes Systems Group Inc.
- E2open Parent Holdings, Inc.
- Kinaxis Inc.
- American Software, Inc. (Logility)
- Infor Global Solutions Inc.
- Coupa Software Inc.
- Epicor Software Corporation
- Korber AG
- Blue Yonder Group, Inc.
- O9 Solutions Inc.
SAP is currently the dominant player in the industry, with Oracle following closely behind. However, Oracle has recently made significant progress in the Cloud SCM market by offering a range of enhancements and accelerated go-live templates. These developments have appealed to a large number of net new customers, including many who recognize the strategic value of a unified Oracle cloud platform.
Key Topics Covered:
1. Executive Summary
2. Introduction
3. Global Market Analysis
4. Regional Market Analysis
5. Impact of Covid-19
6. Market Dynamics
7. Competitive Landscape
8. Company Profiles
For more information about this report visit https://www.researchandmarkets.com/r/xr8jrl
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