SCM Software Global Market Opportunities and Strategies to 2032

This report describes and explains the supply chain management (SCM) software market and covers 2017-2022, termed the historic period, and 2022-2027 termed the forecast period, along with further forecasts for the period 2027-2032. The report evaluates the market across each region and for the major economies within each region.

The global SCM software market reached a value of nearly $31,026.0 million in 2022, having grown at a compound annual growth rate (CAGR) of 17.9% since 2017. The market is expected to grow from $31,026.0 million in 2022 to $69,351.9 million in 2027 at a rate of 17.4%. The market is then expected to grow at a CAGR of 20.1% from 2027 and reach $173,648.7 million in 2032.

Growth in the historic period resulted from emerging markets growth, an increasing demand for SCM software due to COVID-19 and an increased internet penetration. Factors that negatively affected growth in the historic period were an increase in cyber-attacks on supply chains, data breaches, software piracy issues and security challenges.

Going forward, rising utilization of cloud computing, a growing e-commerce industry and cost savings due to SCM software will drive the growth. Factors that could hinder the growth of the SCM software market in the future include the impact of Russia-Ukraine war and intense competition.

The SCM software market is segmented by product into transportation management system, warehouse management system, supply chain planning, procurement software and manufacturing execution system. The procurement software market was the largest segment of the SCM software market segmented by product accounting for 18.3% of the total in 2022. Going forward, the transportation management system market is expected to be the fastest growing segment in the SCM software market segmented by product, at a CAGR of 17.9% during 2022-2027.

The SCM software market is segmented by industrial vertical into consumer goods, healthcare and pharmaceuticals, food and beverages, transportation and logistics and other industrial verticals. The consumer goods market was the largest segment of the SCM software market segmented by industrial vertical accounting for 18.9% of the total in 2022. Going forward, the healthcare & pharmaceuticals market is expected to be the fastest growing segment in the SCM software market segmented by industrial vertical, at a CAGR of 18.8% during 2022-2027.

The 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 SCM software market segmented by user type accounting for 18.5% of the total in 2022. Going forward, the small and medium sized enterprises (SMEs) market is expected to be the fastest growing segment in the SCM software market segmented by user type, at a CAGR of 17.7% during 2022-2027.

Asia-Pacific was the largest region in the SCM software market, accounting for 19.1% of the total in 2022. It was followed by North America and then the other regions. Going forward, the fastest-growing regions in the SCM software market will be South America and the Middle East, where growth will be at CAGRs of 20.6% and 19.7% respectively. These will be followed by Asia-Pacific and North America, where the markets are expected to grow at CAGRs of 18.2% and 17.0% respectively.

The SCM software market is moderately fragmented, with a large number of players. The top ten competitors in the market made up to 30.3% of the total market in 2021. SAP SE was the largest competitor with 12.4% share of the market, followed by Oracle Corporation with 7.16%, Panasonic Corporation with 4.5%, Koch Industries with 2.37%, Coupa Software Inc with 0.83%, Kinaxis Inc. with 0.76%, Manhattan Associates with 0.68%, E2open LLC with 0.65%, WiseTech Global with 0.48% and Epicor Software Corporation with 0.41%.

The top opportunities in the SCM software market segmented by product will arise in the procurement software segment, which will gain $21,270.53 million of global annual sales by 2027. The top opportunities in the SCM software market segmented by industrial vertical will arise in the consumer goods segment, which will gain $ 16,321.95 million of global annual sales by 2027. The top opportunities in the SCM software market segmented by user type will arise in the large enterprises segment, which will gain $ 41,137.93 million of global annual sales by 2027. The SCM software market size will gain the most in USA at $24,471.39 million.

Market-trend-based strategies for the SCM software market include focus on artificial intelligence in SCM, product innovations, focus on supply-chain technology management in business operations, sustainability solutions, use of blockchain in supply chain management, use of digital supply chain twin (DSCT), use of 5G technology, focus on continuous intelligence (CI), focus on supply chain governance and security and focus on partnerships and collaborations.

Player-adopted strategies in the SCM software market include expanding business presence in the supply chain management software market through strategic partnerships and collaborations, focusing on building more adaptable businesses through offering upgraded products and services and focusing on accelerating digital transformation through strategic acquisitions.

To take advantage of the opportunities, the publisher recommends the SCM software companies to focus on product innovations, focus on use of artificial intelligence, focus on sustainability solutions, focus on supply chain technology management in business operations, expand in emerging markets, continue to focus on developed markets, focus on partnerships and collaborations, provide competitively priced offerings, continue to use B2B promotions, continue to target fast-growing industry verticals.