Supply Chain Management (SCM) Software Global Market Opportunities and Strategies to 2033

This report describes and explains the supply chain management (SCM) software market and covers 2018-2023, termed the historic period, and 2023-2028, 2033F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global supply chain management (SCM) software market reached a value of nearly $36.7 billion in 2023, having grown at a compound annual growth rate (CAGR) of 16.83% since 2018. The market is expected to grow from $36.7 billion in 2023 to $83.7 billion in 2028 at a rate of 17.93%. The market is then expected to grow at a CAGR of 18.33% from 2028 and reach $194.3 billion in 2033.

Growth in the historic period resulted from the emerging markets growth, cost savings due to SCM software and increased internet penetration. Factors that negatively affected growth in the historic period were long-term software piracy and security challenges.

Going forward, increasing demand for real-time visibility in the supply chain processes, rise in globalization and trade, rising utilization of cloud computing and surge in e-commerce and retail sales will drive the growth. Factor that could hinder the growth of the supply chain management (SCM) software market in the future include limited availability of skilled personnel and technical expertise and growing concerns about data security.

The supply chain management (SCM) software market is segmented by product into transportation management systems, warehouse management system, supply chain planning, procurement software and manufacturing execution system. The supply chain planning market was the largest segment of the supply chain management (SCM) software market segmented by product, accounting for 29% or $10.6 billion of the total in 2023. Going forward, the transportation management systems segment is expected to be the fastest growing segment in the supply chain management (SCM) software market segmented by product, at a CAGR of 18.51% during 2023-2028.

The supply chain management (SCM) software market is segmented by industrial vertical into consumer goods, healthcare and pharmaceuticals, manufacturing, food and beverages, transportation and logistics and other industrial verticals. The manufacturing market was the largest segment of the supply chain management (SCM) software market segmented by industrial vertical, accounting for 22.9% or $8.4 billion of the total in 2023. Going forward, the healthcare and pharmaceuticals segment is expected to be the fastest growing segment in the supply chain management (SCM) software market segmented by industrial vertical, at a CAGR of 19.59% during 2023-2028.

The supply chain management (SCM) software market is segmented by user type into small and medium-sized enterprises (SMES) and large enterprises. The large enterprises market was the largest segment of the supply chain management (SCM) software market segmented by user type, accounting for 59.8% or $21.9 billion of the total in 2023. Going forward, the small and medium-sized enterprises segment is expected to be the fastest growing segment in the supply chain management (SCM) software market segmented by user type, at a CAGR of 18.46% during 2023-2028.

North America was the largest region in the supply chain management (SCM) software market, accounting for 42.7% or $15.7 billion of the total in 2023. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the supply chain management (SCM) software market will be South America and Middle East where growth will be at CAGRs of 21.40% and 20.62% respectively. These will be followed by Asia-Pacific and Africa where the markets are expected to grow at CAGRs of 18.24% and 17.73% respectively.

The top opportunities in the supply chain management (SCM) software market segmented by product will arise in the supply chain planning segment, which will gain $13.2 billion of global annual sales by 2028. The top opportunities in the supply chain management (SCM) software market segmented by industrial vertical will arise in the manufacturing segment, which will gain $10.6 billion of global annual sales by 2028. The top opportunities in the supply chain management (SCM) software market segmented by user type will arise in the large enterprises segment, which will gain $27.4 billion of global annual sales by 2028. The supply chain management (SCM) software market size will gain the most in the USA at $16.6 billion.

The global supply chain management (SCM) software market is concentrated, with a few players operating in the market. The top ten competitors in the market made up 32.24% of the total market in 2022. Oracle Corporation was the largest competitor with a 19.32% share of the market, followed by SAP SE with 8.14%, Panasonic Corporation with 2.04%, Kinaxis Inc. with 0.94%, Koch Industries with 0.92%, Coupa Software Inc with 0.70%, Manhattan Associates with 0.66%, E2open LLC. with 0.55%, Epicor Software Corporation with 0.50% and Kinaxis Inc with 0.47%.

Market-trend-based strategies for the supply chain management (SCM) software market include artificial intelligence in SCM for enhanced supply chain operations, product innovations redefining supply chain management software, focus on supply-chain technology management in business operations, integrated business planning platforms driving sustainable supply chains, use of blockchain in supply chain management, capital acquisition for global expansion and innovation, 5G solutions integration in SCM software for industrial automation, importance of continuous intelligence in SCM software, growing significance of supply chain security in digital environments and strategic partnerships and collaborations to expand reach and capabilities.

Player-adopted strategies in the supply chain management (SCM) software market include focus on focus on expanding its operational capabilities through new product development, business operations through new product solutions, and strengthening its operational capabilities through strategic partnerships.

To take advantage of the opportunities, the analyst recommends the supply chain management (SCM) software to focus on AI-driven product development, focus on product innovations for enhanced SCM, focus on cloud-based SCM solutions, focus on continuous intelligence solutions, focus on procurement software and manufacturing execution system segments, focus on transportation and logistics and consumer goods segments for growth, expand in emerging markets, continue to focus on developed markets, focus on strategic partnerships, provide competitively priced offerings, participate in trade shows and events, continue to use B2B promotions, focus on tailored solutions for end-users and focus on small & medium sized enterprises (SMEs) segment for growth.