Supply Chain Management Market Size, Share & Trends Analysis growing CAGR of 11.2% from 2024 to 2030
The global supply chain management market size was valued at USD 23.26 billion in 2023 and is projected to reach USD 48.60 billion by 2030, growing CAGR of 11.2% from 2024 to 2030. The growth of the supply chain management (SCM) market can be attributed to the rising demand and increased awareness of the benefits of SCM solutions, such as transportation management systems, planning & analytics, forecasting accuracy, warehouse & inventory management, supply chain optimization, procurement & sourcing, waste minimization, manufacturing execution and relevant synthesis of business data.
Key Market Trends & Insights
- North America accounted for the major market revenue share of 39.2% in 2023 and is estimated to dominate the market during the forecast period.
- Country-wise, U.S. is expected to register the highest CAGR from 2024 to 2030.
- Based on component, the solution segment accounted for the largest share of 55.1% in 2023.
- By enterprise size, the large enterprise segment accounted for the highest market share of 47.3% in 2023.
- Based on deployment, the on-premise segment accounted for the largest market share of 49.3% in 2023.
Market Size & Forecast
- 2023 Revenue: USD 23.26 Billion
- 2030 Projected Market Size: USD 48.60 Billion
- CAGR (2024-2030): 11.2%
- North America: Largest market in 2023
- Asia-Pacific: Fastest growing market
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Additionally, the rapidly growing adoption of information technology and technical breakthroughs improves and supports the overall supply chain, contributing to market expansion. The COVID-19 outbreak had a positive impact on the target market. A significant surge has been observed due to the increased usage of SCM during the COVID-19 pandemic to predict and meet the demand and supply requirements. The set of things, including designing a new service or product, obtaining raw materials, converting them into a semi-finished or finished product, their transportation, and distributing or delivering them to the end-users, is known as a supply chain. The set of software used for seamless integration and coordination of all the fore-mentioned events, along with providing support after the sale, is known as supply chain management (SCM). Simply, it is the management of the flow of goods from the source to the user stage in a synchronized manner. All the partners, such as information system providers, vendors, third-party companies, carriers, and others, are linked and connected in this chain.
Adoption of SCM software among various firms and organizations is increasing as it allows them to efficiently manage the sourcing of the raw material, manufacturing, and assembling of any goods or products hence driving the market growth. Moreover, it also assists in tracking inventory and warehouse, managing the order entry, distribution channels, product delivery, demand planning, supply planning, procurement, and financial information, further surging the market growth. In addition, it allows management to work strategically with the company’s distribution network, which is again driving the market expansion. A lack of IT infrastructure in developing countries and a rise in security and privacy concerns hampers the growth of the global market.
In terms of technology deployment, organization infrastructure, strategic partnerships, and enterprise resource management, SCM solution and services enable companies to improve their decision-making skills. Furthermore, by exploiting the acquired insights and data, SCM solutions promote strategic decision-making and assist enterprises in optimizing return on investment, strengthening their market position, and accelerating growth. Advancements in industrial-grade digital technology, a shift toward cloud-based SCM software, and a growing need for greater supply chain visibility fuel SCM market growth.
