The supply chain management market revenue totaled ~USD 25.7 Billion for 2023, according to Future Market Insights (FMI’s) latest study. The overall market is expected to reach ~USD 78.5 Billion by 2033, growing at a CAGR of 11.8% from 2023 to 2033. The demand for supply chain management solutions will accelerate with the top 5 providers holding more than 50.2% of the total market in 2023.
Listed below are some of the market propellers pulling the SCM market upwards:
Among industry verticals, the market share for the retail & consumer goods sector is the largest among all. However, the transportation & logistics segment is estimated to grow at about 14.6% CAGR to emerge as the fastest-growing end user through the assessment period.
| Attributes | Details |
|---|---|
| Supply Chain Management Market Value (2023) | USD 25.7 Billion |
| Supply Chain Management Market Forecast Value (2033) | USD 78.5 Billion |
| Supply Chain Management Market CAGR (2023 to 2033) | 11.8% |
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Increasing demand for supply chain management solutions from both large enterprises and small and medium enterprises (SMEs), and growing awareness about the benefits offered by SCM solutions, including supply chain optimization, forecasting accuracy, meaningful synthesis of business data, and wastage minimization are likely to fuel the demand for supply chain management solutions over the coming years.
The SCM sales are estimated to rise at 11.8% CAGR between 2023 and 2033 in comparison with the 8.9% CAGR registered from 2018 to 2022.
In the quest to remove supply channel costs, streamline channel communications, and link customers to the value-added resources found along the supply chain continuum, SCM has emerged as a tactical operations tool.
The supply chain management (SCM) market has undergone a sea change in the 21st century-by embedding product and process innovation in supply chain operations and consciously managing and shaping demand from customers. There is a lot of potential in benefitting from new-age supply chain management solutions as companies recover from the recent financial crisis and position supply chains as enablers of revenue and margin growth.
Moreover, procurement processes that support the design and management of a sustainable supply chain are becoming critical for providers of goods and services in nearly every part of the world. In the demand-driven supply chain, companies are looking toward more lean procurement processes.
The global supply chain management growth scenario is anticipated to witness an increase in revenue from ~USD 25.7 Billion in 2023 to ~USD 78.5 Billion by 2033.
| Historical CAGR (2017 to 2022) | 8.9% |
|---|---|
| Forecast CAGR (2023 to 2033) | 11.8% |
In the current scenario, the rise in demand for management solutions among enterprises and the adoption of SCM software in healthcare and pharmaceutical companies are expected to fuel market growth.
In addition to this, the surge in demand for transportation management systems (TMS) software and the integration of blockchain technology in SCM software is expected to drive the growth of the SCM market in the upcoming years. Advanced technologies such as the Internet of Things, Artificial Intelligence, robotics, and 5G, SCM solutions are designed to anticipate and meet future challenges.
Moreover, big data analytics in Logistics and Supply Chain Management (LSCM) has garnered increasing attention owing to its complexity and the prominent role of LSCM in enhancing overall business performance. The power of data is becoming evident to businesses of all shapes and sizes, from financial services to automobile manufacturing, healthcare, NGO, and more.
It is increasingly becoming essential to make the best use of Big Data analytics in a supply chain to generate more profound insights. The retail sector streams a massive amount of data across its supply chains, at diverse customer touchpoints in many omnichannel operations. This is, in turn, creating a huge demand for supply chain management software over the forecast period.
| Country | USA |
|---|---|
| CAGR (2023 to 2033) | 9.6% |
| Market Size (2033) | USD 16.6 Billion |
| Country | United Kingdom |
|---|---|
| CAGR (2023 to 2033) | 11.5% |
| Market Size (2033) | USD 3.5 Billion |
| Country | China |
|---|---|
| CAGR (2023 to 2033) | 11.8% |
| Market Size (2033) | USD 8 Billion |
| Country | Japan |
|---|---|
| CAGR (2023 to 2033) | 14.9% |
| Market Size (2033) | USD 6.7 Billion |
| Country | South Korea |
|---|---|
| CAGR (2023 to 2033) | 10.1% |
| Market Size (2033) | USD 2.2 Billion |
| Attributes | Details |
|---|---|
| Market Size (2033) | USD 16.6 Billion |
| Market Absolute Dollar Growth (USD Billion/Billion) | USD 10 Billion |
North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. According to the study, the USA is expected to account for more than 79% of the North American market share through 2033. By 2033 end, the supply chain management market is estimated to reach a market valuation of USD 16.6 Billion. The market is projected to grow at a CAGR of 9.6% in the forecast period.
This growth can be attributed to the rise in spending on logistics & transportation, which is boosting the automation of supply chain management in these industries. The transportation & logistics sector is huge as well as competitive in the USA and consists of distinct industries such as railroads, air services, and shipping.
Factors such as an increase in urbanization, rise in traffic congestion, and digital revolution in the transportation sector are raising the demand for transportation management systems. As a result, the supply chain management market is expanding in the USA
| Historical CAGR (2017 to 2022) | 7.1% |
|---|---|
| Forecast CAGR (2023 to 2033) | 9.6% |
Demand for supply chain management platforms in Germany is expected to account for a revenue share of more than 22.2% by 2023 end. As Europe’s largest economy, Germany has a well-established industrial sector and is a dominant producer of chemicals, machinery, and automobiles.
The country also is recognized for its high-tech manufacturing potential and superior quality of products, due to considerable investments within educational, and research and development avenues.
Moreover, logistic distributors for Fast Moving Consumer Goods (FMCGs) are expanding their warehouse spaces to contain just-in-time deliveries. Investments in the technology industry are projected to have a substantial impact on logistics. Thus, several industrial developments and advancements in Germany are expected to favorably impact the country’s supply chain management market.
The demand in India is estimated to exhibit tremendous growth between 2023 and 2033. India’s supply chain and logistics sector are one of the largest globally. The sector has the potential to grow multifold. One of the biggest revelations of the pandemic for this sector is the urgent need to leverage disruptive technologies for greater resilience.
In 2023 and beyond, the supply chain management industry is expected to evolve in order to survive. New technology like cloud computing, Robotic Process Automation (RPA), and Artificial Intelligence (AI) is projected to replace the weaker link and transform the supply chain management market at large.
| Attributes | Details |
|---|---|
| Market Size (2033) | USD 6.7 Billion |
| Market Absolute Dollar Growth (USD Billion/Billion) | USD 5 Billion |
Demand for supply chain management solutions in Japan is estimated to account for a total sale of USD 6.7 Billion by the end of 2033. Japan is trying to improve its supply chain security while maintaining a positive economic engagement with China, as China is also a large market for Japanese firms.
Even before the coronavirus pandemic, Japanese companies had started shifting their production away from China due to the impacts of the USA-China trade war.
As a long-time world leader in manufacturing, the perspectives and actions of Japanese companies are heavily influenced by the need to source components and materials from lower-cost countries - long-time venues such as China, as well as emerging sources such as Brazil, Russia, and India.
| Historical CAGR (2017 to 2022) | 12.3% |
|---|---|
| Forecast CAGR (2023 to 2033) | 14.9% |
| Taxonomy | Solution |
|---|---|
| Top Segment | Software |
| Forecast CAGR | 12.8% |
| Taxonomy | Enterprise Size |
|---|---|
| Top Segment | Large Enterprises |
| Forecast CAGR | 11.6% |
Based on software, the integrated supply chain management platform/suite is expected to contribute nearly 54.1% of the overall share in 2021. A business facilitates relationships with all of its suppliers and manages all distribution and logistics activities through a centralized system rather than having multiple systems within the organization.
Concentrated professional expertise and cost efficiency are core benefits of the integrated supply chain process. This centralized approach leads to more streamlined and efficient activities, as well as the implementation of best industry practices in supply chain functions. Development of supplier relationships, acquisition of goods, storage, logistics, and transportation are among the primary activities managed in an integrated supply chain.
The cloud-based deployment segment is projected to register a high demand at a CAGR of more than 14.2% over the coming years. Cloud computing is quickly growing to support collaborative transportation management solutions and other aspects of transportation management, such as sourcing of network capacity, robust visibility and event management, and ancillary functions, including freight pay and audit.
Applying cloud-based business analytics and manufacturing intelligence allows manufacturing cycle times to improve, hence boosting supply chain management.
The large enterprise segment accounted for more than 59.7% of the overall market share in 2023 and is expected to continue its dominance during the forecast period. The growing demand for robust monitoring solutions and automation capabilities for resource allocation and strategic decision-making are key factors contributing to the segment’s growth.
Furthermore, a significant rise in the need for software in large businesses to assist in the collection of key business data such as inventory levels, projected sales numbers, supplier information, and others from diverse sources drives the growth of the market.
| Historical CAGR (2017 to 2022) | 8.4% |
|---|---|
| Forecast CAGR (2023 to 2033) | 11.6% |
The retail & consumer goods segment is expected to contribute towards more than 26.1% of sales in 2023 and is expected to maintain its dominance in the forthcoming years. This can be attributed to the surge in the complexity of retail supply chain networks over a period of time due to the presence of a large number of suppliers & logistics providers, channels, products, and value-added offerings.
The retail industry is being challenged with a sluggish economy, declining in-store sales, margins, and rising labor costs. Hence, most of the key players are adopting cloud-based supply chain management software to transform their supply chains with unprecedented visibility and insights from data.
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The supply chain management market (SCM) is highly concentrated and controlled by dominant players, like
These businesses are leveraging strategic collaborative initiatives to strengthen their market shares and enhance their profitability. However, with product innovations and technological advancements, midsize to smaller firms are growing their market presence by securing new contracts and tapping new markets.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD Billion for Value |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia & Pacific; and the Middle East & Africa |
| Key Countries Covered | USA, Canada, Germany, United Kingdom, France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Australia & New Zealand, GCC Countries, Turkey, and South Africa |
| Key Segments Covered | The solution, Deployment, Enterprise Size, Industry, and Region |
| Key Companies Profiled | IBM Corporation; Oracle Corporation; SAP SE; Manhattan Associates; Descartes Systems Group Inc.; Kinaxis; E2open, LLC; Basware Corporation; WiseTech Global; Infor; Blue Yonder Group, Inc. (JDA Software); Epicor Software Corporation; Logility, Inc.; Jaggaer; Ivalua Inc. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The supply chain management market is worth USD 25.7 billion in 2023.
The supply chain management market is estimated to thrive at an 11.8% CAGR from 2023 to 2033.
Japan’s supply chain management market is set to rise at 14.9% CAGR from 2023 to 2033.
Germany is expected to hold 22.2% of the supply chain management market revenue share in 2023.
The software segment is projected to expand at a 12.8% CAGR from 2023 to 2033.
| Estimated Market Size (2024E) | USD 7.8 billion |
|---|---|
| Projected Market Value (2034F) | USD 31.7 billion |
| Value-based CAGR (2024 to 2034) | 15.1% |
| Market Estimated Size (2023E) | USD 28,983.5 million |
|---|---|
| Projected Market Valuation (2033F) | USD 73,347.0 million |
| Value-based CAGR (2023 to 2033) | 9.7% |
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