Supply Chain Management Market to Total $62.6 Billion by 2031: Report
As per the latest study published by Future Market Insights (FMI), the global supply chain management market is expected to reach $62.6 billion by the end of 2031.
Surging demand for supply chain management (SCM) solutions across small and medium enterprises (SMEs) and large enterprises is favoring the market growth.
Increasing demand for SCM solutions to counter the complexities of retail supply chain networks, owing to the presence of large number of products, channels, and value-added offerings, are spurring the sales across the segment.
The market is estimated to expand at a CAGR of 11.4% CAGR over the forecast period between 2021 and 2031.
Shift in consumer preference in favor of online shopping, especially during COVID-19 times, has substantially bolstered the e-commerce industry.
SCM solutions assist in the management of potential e-commerce challenges such as inventory and labor shortages, demand spike, and transportation disruptions, along with efficiently mitigating supply chain disturbances.
Thus, rapidly expanding e-commerce industry is expected to provide immense sales opportunities to the market players.
Increasing need for effective demand management solutions among enterprises and the rising adoption of SCM software across healthcare and pharmaceutical industries are boosting the market.
With the integration of big data analytics in logistics and supply chain management (LSCM), the demand for SCM is anticipated to increase by year-on-year (YoY) growth of 8.7% in 2021
Among the various industries, the retail & consumer goods sector is anticipated to emerge as the leading end user, accounting for 26.1% of the total sales in the market in 2021.
"Growing adoption of cloud-based supply chain management solutions and increasing efforts to integrate advance technologies such as artificial intelligence (AI), robotics, and internet of things (IoT) to provide real-time supply chain visibility will accelerate the market growth in the coming year," says an FMI analyst.
The integration of blockchain technology with supply chain management systems to reduce errors and delays, faster identification of errors, minimized transportation cost, and increasing focus on sustainability, is also driving the growth of the market.