Supply Chain Management Market By Component (Software, Services), By End-Use Vertical (Transportation & Logistics, Food & Beverage, Retail, Automotive, Electronics/Hi-Tech, Industrial, Others) - Growth, Share, Opportunities & Competitive Analysis, 2018 – 2026

The global supply chain management market was valued at US$ 12.96 Bn in 2017 and expected to expand at a CAGR of 12.3% during the forecast period from 2018 to 2026. Over the last few years, there has been a rise in both intra-regional and cross-border trades due to liberalization and consequent proliferation of e-commerce. Effective planning, management, and timely delivery of products to end-consumers has become crucial for the success of e-commerce business. With the increase in range of offerings by manufacturers, reliable logistic service has become necessity for firms of all sizes and across varied industry verticals. This has triggered need for efficient supply chain management solutions that not only enable shippers to control freight costs and offer supply chain visibility, but also handle different logistics operations effectively, enabling them to make quick decisions.  

Market Synopsis

Demand for SaaS (Software-as-a-Service) solutions to Drive Market Demand

Based on component, the global supply chain management market is categorized in to two major categories, namely: software and services. In 2017, collective value contribution of on-demand and SaaS software deployments was greater than contribution from services like maintenance, upgrades, and support. The software segment accounted for around 60% of the global supply chain management market value in 2017. The majority of this contribution came from on-premise deployments. Benefits offered by on-premise deployments in terms of security and control over data have somehow convinced businesses, especially in emerging economies to delay shift towards SaaS deployments. On the contrary, faster implementations, cost savings, and ability to leverage new technologies will eventually compel businesses around the globe to adopt cloud-based deployments. With business organizations becoming more convinced over cloud security and aware about the capabilities of SaaS solutions, the cloud-based deployments will surge in the coming years. Rise in cloud-based deployments will result in reduced maintenance cost, leading to steady decline in the value share of services segment during the forecast period.

North America to Dominate; Asia Pacific to Experience Fastest Growth

In 2017, North America was the largest supply chain management market worldwide followed by Europe and Asia Pacific respectively. North America accounted for over one-third of the global market value in 2017 and presumed to remain the largest value contributor throughout the forecast period. The U.S. represents the largest supply chain management market in North America and worldwide. With the growing trend towards near shoring and re-shoring, manufacturers are relocating their manufacturing facilities back to the U.S. This has resulted in increased volumes of freight and related inflation in the country. To address these challenges and optimally manage freight, manufacturers are increasingly deploying state-of-the-art supply chain management solutions that offer better supply chain visibility. The prevailing trend towards omni-channel distribution due to advances in e-commerce industry, especially in Asia Pacific has been instrumental in encouraging shippers to streamline their operations, thereby augmenting demand for supply management solutions.

Transportation & Logistics Segment to Dominate; Retail Sector to Witness Maximum Adoption

In 2017, the adoption of supply chain management solutions was highest in transportation & logistics segment. The value contribution from transportation & logistics segment stood at 58.3% in the same year. Since profit margins for transportation & logistics companies are low, companies are constantly seeking new solutions for reducing overheads without compromising on fleet performance. With transportation networks becoming more complex, demand for solutions that are capable of effectively managing and executing operations linked with transportation and delivery will surge in the coming years. Thus, transportation & logistics segment expected to remain highest value contributing segment throughout the forecast period from 2018 to 2026. On the other hand, with the proliferation of e-commerce and growing preference for omni-channel distribution among retailers, the demand for supply chain management solutions is expected to witness an upsurge in the retail sector.

Key companies profiled in the research study include SAP SE, Oracle Corporation, JDA Software Group, Inc., Vanguard Software, Comarch, IBM Corporation, Aspen Technology, Inc., Infor, Inc., Kinaxis, Plex Systems, QAD, Inc., and Sage Group Plc among others.

Historical & Forecast Period

2016 – Historical Year

2017 – Base Year

2018 - 2026 – Forecast Period

This research study provides qualitative as well as quantitative insights for each segment and sub-segment from 2016 to 2026, considering 2017 as the base year for the research. CAGR (Compounded Annual Growth Rate) for each segment and sub-segment is calculated for the forecast period from 2018 to 2026.

Report Scope by Segments

Key segments covered in the report are as follows:

Component Segment (2016–2026; US$ Bn)

• Software
  • On-premise
  • Cloud-based
• Services (Maintenance, Upgrades & Support)
•  

End-use Vertical Segment (2016–2026; US$ Bn)

• Transportation & Logistics
• Food & Beverage
• Retail
• Automotive
• Electronics/Hi-tech
• Industrial
• Others (Aerospace & Defense, Healthcare, etc.)
•  

Geography Segment (2016–2026; US$ Bn)

• North America
  
  • United States
  • Rest of North America
• Europe
  
  • United Kingdom
  • Germany
  • France
  • Rest of Europe
• Asia Pacific (APAC)
  
  • China
  • Japan
  • India
  • Rest of Asia Pacific
• Rest of the World (RoW)
  
  • Middle East & Africa (MEA)
  • Latin America