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

Market Excerpt

The global supply chain management market was worth US$ 12.96 billion in 2017 and is expected to grow at a CAGR of 12.3% from 2018 to 2026. Over the last few years, there has been a rise in both intra-regional and cross-border trade due to liberalization and the consequent proliferation of e-commerce. Effective product planning, management, and delivery to end users have become critical for the success of e-commerce businesses. With the expansion of manufacturers' offerings, dependable logistics service has become a requirement for businesses of all sizes and across a wide range of industry verticals. This has triggered the 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 components, the global supply chain management market is categorized into two major categories, namely: software and services. In 2017, the collective value contribution of on-demand and SaaS software deployments was greater than the 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-premises deployments. The benefits offered by on-premise deployments in terms of security and control over data have somehow convinced businesses, especially in emerging economies, to delay the shift towards SaaS deployments. On the contrary, faster implementations, cost savings, and the ability to leverage new technologies will eventually compel businesses around the globe to adopt cloud-based deployments. With business organizations becoming more convinced about cloud security and aware of the capabilities of SaaS solutions, cloud-based deployments will surge in the coming years. The rise in cloud-based deployments will result in reduced maintenance costs, leading to a steady decline in the value share of the services segment during the forecast period.

North America will dominate, with Asia Pacific experiencing the 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 is 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 reshoring, 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 omnichannel distribution due to advances in the 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 and Logistics Segment to Dominate; Retail Sector to Witness Maximum Adoption

In 2017, the adoption of supply chain management solutions was highest in the transportation and logistics segment. The value contribution from the transportation and logistics segment stood at 58.3% in the same year. Since profit margins for transportation and logistics companies are low, companies are constantly seeking new solutions for reducing overhead without compromising fleet performance. As transportation networks become more complex, demand for solutions capable of effectively managing and executing transportation and delivery operations will increase in the coming years. Thus, the transportation and logistics segment is expected to remain the highest value-contributing segment throughout the forecast period from 2018 to 2026. On the other hand, with the proliferation of e-commerce and the growing preference for omnichannel 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.

Periods of History and Forecast

2016 : Historic 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. The CAGR (compound annual growth rate) for each segment and sub-segment is calculated for the forecast period from 2018 to 2026.

Report Scope by Segments

Component Segment (US$ Billion) (2016-2026)

  • Software
    • On-premise
    • Cloud-based
  • Maintenance, upgrades, and support services

Vertical End-Use Segment (2016-2026; US$ BN)

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

Geography (2016-2026; USD Billion)

  • 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 and Africa (MEA)
    • Latin America

Frequently Asked Questions:

The market for Supply Chain Management Market is expected to reach US$ 12.96 Bn By 2026.

The Supply Chain Management Market is expected to see significant CAGR growth over the coming years, at 12.3%.

The report is forecasted from 2018-2026.

The base year of this report is 2017.

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 are some of the major players in the global market.

Choose License Type
Trusted By
Published Date:  Jul 2018
Category:  Technology & Media
Report ID:   59232
Report Format:   PDF
Pages:   120
Rating:    4.5 (60)
Delivery Time: 24 Hours to 48 Hours   
Connect With Us
24/7 Research Support