Supply Chain Analytics Market Size, Share & Trends Analysis Report By Component (Software, Services), By Deployment (On-premise, Cloud), By Enterprise Size (Large Enterprises, Small & Medium Enterprises (SMEs)), By Industry Vertical (Automotive, Food & Beverages, Healthcare & Pharmaceuticals, Manufacturing, Retail & Consumer Goods, Transportation & Logistics, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Market Overview

The global supply chain analytics market size was valued at USD 7.36 billion in 2023. It is expected to reach USD 32.89 billion in 2032, growing at a CAGR of 18.1% over the forecast period (2024-32). The adoption of technologies like artificial intelligence (AI), machine learning (ML), big data analytics, and IoT (Internet of Things) is transforming supply chain operations. These technologies enable real-time data analysis, predictive analytics, and automation, driving the demand for supply chain analytics solutions.

Industries adopt innovative supply chain analytics technology to save money, boost corporate growth, and improve customer happiness. The need for increased supply chain visibility, reduced warehousing costs, shifting consumer preferences, and forecasts drive supply chain analytics solutions demand. Many businesses are implementing solutions to boost supply chain visibility and achieve high productivity. The need to increase the visibility of supply chain operations, such as orders, shipments, and inventories, is projected to drive significant expansion in the global market for supply chain analytics soon.

Some of the major factors driving the expansion of the worldwide supply chain analytics market include the need to boost operational and supply chain efficiency, the quick increase in business data volume across a vast number of industries, including manufacturing, retail, and transportation, the surge in government investments in Big Data supporting initiatives, and the rise in adoption of Big Data technologies. However, it is anticipated that a lack of qualified IT personnel and inaccurate data will limit market expansion. On the other hand, it is predicted that during the study period, increased demand for cloud-based supply chain analytics solutions and advanced knowledge of the advantages of supply chain analytics would create profitable growth prospects.

Market Dynamics

Global Supply Chain Analytics Market Drivers

The Growing Need to Enhance the Operational and Supply Chain Efficiencies

Businesses across various industries are investing significantly to increase operational and supply chain efficiencies and digitize their business models. In many companies today, standard operating procedures, such as analytical demand planning or integrated sales and operations planning, are the focus of the supply chain role. From customers to suppliers, integrated operations are ensured by the supply chain function. Because of the spike in the need for real-time monitoring and supply-demand forecasting, the market for supply chain analytics software is anticipated to expand at a substantial rate during the forecast period.

Additionally, it is anticipated that introducing trends like Industry 4.0 and Logistics 4.0 will present profitable chances for market advancement. Industry 4.0 is an automation concept that combines traditional manufacturing and industrial methods with modern technologies, including cloud computing, cyber-physical systems, the Internet of Things (IoT), and cognitive computing. The market is expanding due to increased government financing for Big Data projects in numerous nations and numerous initiatives launched by various governments to build Big Data infrastructure. For instance, the Japanese government has launched several financing and policy initiatives in Japan. The development of data analysis technologies and gathering Big Data through the Internet of Things (IoT) under such government programs have accelerated market expansion in Japan.

Global Supply Chain Analytics Market Restraints

Data Inaccuracies

All supply chain topologies suffer considerable performance decreases due to erroneous inventory information, but supply networks are disproportionately affected. When lead times are shorter and when demand uncertainty in the marketplace is lower, the adverse effects of erroneous inventory information are more pronounced. As a result, although offering precise and crucial business information regarding demand forecasting and future company planning, such supply chain data inaccuracy is a significant barrier.

Global Supply Chain Analytics Market Opportunities

Growing Awareness

In the upcoming years, the supply chain analytics market demand is anticipated to develop as more people become aware of the benefits of adopting supply chain analytics software. It enables lower inventory costs through intelligent demand sensing, addresses production workflow issues with predictive and prescriptive analytics, improves demand prediction, and plans logistics for transportation. Software for supply chain analytics can also be used to drive sales and operations execution (S&OE) procedures, which can keep longer-term operational goals on track by incorporating real-time information into the company's value stream and giving data stream structure. Additionally, it aids in manufacturing plan optimization.

Regional Analysis

The global supply chain analytics market's region-wise segmentation includes North America, Europe, Asia-Pacific, and LAMEA.

North America and the Asia Pacific Will Dominate the Regional Market

North America will be the predominant region, expanding at a CAGR of 16.21%. Due to increased spending on transportation and logistics, which is encouraging the adoption of automation technologies in logistics and supply chains, North America is anticipated to maintain its leadership during the projected period. The shipping, railroad, and air services sectors are a few of the diverse enterprises that make up this area's sizable and fiercely competitive transportation and logistics sector. Due to factors including the digital revolution in the transportation industry, rising urbanization, and increased traffic congestion, there is anticipated to be an increase in the implementation of SCA solutions in transportation management.

Furthermore, the region is home to significant firms that provide cutting-edge supply chain management software. Major supply chain management software suppliers, such as Oracle Corporation and SAP SE, are well-represented in North America. To meet the growing need for advanced supply chain management services across several industries, including transportation, automotive, food & beverage, vendors in this market have developed cutting-edge SCA software. It is envisaged that this would present profitable chances for market expansion.

Asia Pacific is envisioned to hold USD 7,127 million, growing at a CAGR of 21%. Supply chain analytics software has become a significant investment for commercial companies to maintain their growth and boost productivity due to solid economic expansion and continued development in the services sector. Factors including the proliferation of mobile usage, the rise in SMB cloud adoption, and the increasing modernization of the manufacturing and construction sectors all contribute to the high investment in SCA software in emerging markets.

In addition, Asia-Pacific is anticipated to develop at the highest rate in the coming years due to an increased organizational understanding of the benefits of supply chain analytics solutions. Additionally, the rapid growth in small and medium-sized firms and the rise in spending on the use of cutting-edge technologies to expand their operations are anticipated to propel the market's growth.

Segmental Analysis

The global supply chain analytics market is segregated based on the component, deployment, enterprise size, industry vertical, and region. 

By Component Analysis

Based on the component, the categories include software and services. 

The software section is contemplated to grow at a CAGR of 17% and hold the largest share. Supply Chain Analytics software enhances operational efficiency and effectiveness by facilitating data-driven strategic, functional, and tactical decisions. Increased need to optimize manufacturing processes, improve operations to manage inventory and other resources better, detect fraud, and decrease business risks are the primary growth drivers of the supply chain analytics solution market.

The service section holds the second-largest share. Professional and managed services are included in the supply chain analytics services. During the projected period, the market is anticipated to benefit significantly from the spike in demand for cloud-based supply chain analytics services. In addition, training and consulting services are expected to experience rapid market growth shortly.

By Deployment Analysis

Based on the deployment, the categories include on-premises and cloud.

The on-premise section will likely hold the largest share, growing at a CAGR of 16.65%. Utilizing the firm's own IT infrastructure, on-premise supply chain analytics software can be used to collect, display, and organize vital business data, allowing the company to keep the data secure. In addition, most businesses still favor on-premise implementation due to its high data transmission speed and security, a significant market driver worldwide.

The cloud section holds the second-largest share. Mid-sized financial organizations may adopt cloud-based supply chain analytics due to the absence of capital expenditures and low maintenance requirements. The supply chain analytics market share is primarily driven by the increasing adoption of cloud-based supply chain analytics across both large and mid-sized businesses. A key factor projected to drive the supply chain analytics market growth is the rise in cloud use and the increase in cloud computing adoption across various industrial verticals.

By Enterprise Size Analysis

Based on the enterprise size, the categories include large enterprises and small & medium enterprises.

The section of large enterprises is likely to advance at a CAGR of 16.42% and hold the largest share. Large organizations have made substantial investments in data analytics, which enables them to adopt modern technologies into their infrastructure and boost their overall productivity and efficiency. This has spurred the adoption of supply chain analytics in large organizations. In addition, the critical factor driving the supply chain analytics market growth is the rapid expansion of mission-critical applications among large organizations.

The section of small & medium enterprises holds the second-largest share. The increased adaptation of Big Data-enabled cloud services by small and medium-sized businesses across various industrial verticals is expected to propel the segment's growth over the forecast period. Small- and medium-sized enterprises use breakthrough technologies to keep their company processes operating smoothly and efficiently. Cloud adoption enables cash-strapped small and medium-sized firms to utilize innovative and cutting-edge technology, which is advantageous for the market.

By Industry Vertical Analysis

Based on the industry vertical, the segments are automotive, food & beverages, retail & consumer goods, transportation & logistics, manufacturing, healthcare & pharmaceuticals, and others.

The retail & consumer goods section is envisaged to hold the largest share, growing at a CAGR of 14.27%. The retail & consumer goods industry is changing its focus to digital transformation to unleash complete network inventory management, which encompasses initiatives such as supply chain visibility, big data and analytics, and cloud technologies to sense and react to demand fluctuations and respond appropriately to unanticipated changes. The market is driven by the increasing complexity of retail supply chain networks over time due to the vast number of suppliers & logistics providers, channels, products, and value-added services.

The manufacturing section holds the second-largest share. In the manufacturing sector, supply chain management software assures the timely delivery of raw materials to production facilities. The use of supply chain analytics is at an all-time high in the industrial sectors due to the considerable shift toward digitization and the rise in planning software, artificial intelligence, and machine learning usage. There is an increase in supply chain management software used in the manufacturing sector as manufacturers prioritize speed across their operations to satisfy client demands.

Impact of covid-19

When the world witnessed the noble Coronavirus breakout, it disrupted all nations' economies. The government imposed lockdowns to slow the disease's rapid spread. Productions were stopped, all workplaces were closed, public interactions were limited, and temporary manufacturing and trading operations suspensions were implemented globally. Implementing the lockdown and public exchange caused interruption causing a cutting down of the market's operations. The social distancing norms of the government also disrupted the supply chain. Because of lockdowns imposed by the government, businesses and employees could not use the equipment. This forced the farmers to lean towards the help provided by autonomous tractors pushing the autonomous tractor market growth further.

The South Korean nation faced many problems due to the social distancing and public interaction restrictions imposed by the government, which resulted in a workforce shortage. Travel restrictions imposed also restricted the movement of emigrant laborers into the nation. So the country had to ultimately shift towards using autonomous machines to continue their production and operations, to generate income during tough times. But still, during the era of covid, the market had to face a few bumps, such as the level of participation by the companies in the market declined, suppliers and distributors also slowed down their operations, and this negatively affected the farm machinery industry supply chain, resulting in a delay of deliveries of agricultural machinery.

Recent Developments

• January 2024 - Makersite, a start-up located in Stuttgart that is changing the game in automated supply chain management and lifecycle analysis, announced that it partnered with WSP, a leading provider of professional services worldwide. With this partnership, manufacturers all over the world will be able to use state-of-the-art technology and knowledge to transform digital twin and product lifecycle analysis.
• May 2024 - IBM (NYSE: IBM) and SAP SE (NYSE: SAP) unveiled their plans for the next phase of their partnership, which includes cloud solutions tailored to specific industries and new generative AI capabilities that can help customers realize financial gains.