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Supply Chain Management Market

Supply Chain Management (SCM) Market By Solution (Software, Services), Deployment (Cloud-Based, On-Premises), Enterprise Size (SMEs, Large Enterprises), Industry (Retail & Consumer Goods, Manufacturing, Automotive, Healthcare & Pharma, Food & Beverages, Transportation & Logistics) & Region - Forecast to 2021 - 2031

Supply Chain Management (SCM) Market By Solution (Software, Services), Deployment (Cloud-Based, On-Premises), Enterprise Size (SMEs, Large Enterprises), Industry (Retail & Consumer Goods, Manufacturing, Automotive, Healthcare & Pharma, Food & Beverages, Transportation & Logistics) & Region - Forecast to 2021 - 2031

Supply Chain Management Market - Analysis, Outlook, Growth, Trends, Forecasts

Supply Chain Management Industry Snapshot

The supply chain management (SCM) market solutions revenue totaled ~US$ 19.5 Bn for 2020, according to Future Market Insights’ (FMI’s) latest study. The overall market is expected to reach ~US$ 62.6 Bn by 2031, growing at a CAGR of 11.4% for 2021 – 31. The demand for supply chain management solutions will accelerate with top 5 providers holding around 50.2% of total market in 2020.

Newly released data on the supply chain management demand outlook indicates 8.7% y-o-y growth in 2021. Among industry verticals, the market share for retail & consumer goods sector is the largest among all. However, the transportation & logistics segment will grow at 14.6% CAGR to emerge as the fastest growing end user through the assessment period.

Key Points Covered in Supply Chain Management Market Study

  • Market estimates and forecast 2016-2031
  • Key drivers and restraints impacting market growth
  • Segment-wise, Country-wise, and Region-wise Analysis
  • Competition Mapping and Benchmarking
  • Market Share Analysis
  • Key Product Innovations and Regulatory Climate
  • COVID-19 Impact on Supply Chain Management market and how to Navigate
  • Recommendation on Key Winning Strategies

2016-2020 Supply Chain Management Demand Outlook Compared to 2021-2031 Forecast

Increasing demand for supply chain management (SCM) market solutions from both large enterprises and small and medium enterprises (SMEs), growing awareness about the benefits offered by SCM solutions, including supply chain optimization, forecasting accuracy, meaningful synthesis of business data, and wastage minimization are likely to fuel the demand for supply chain management solutions over the coming years.

The SCM sales is estimated to rise at 11.4% CAGR between 2021 and 2031 in comparison with 8.6% CAGR registered during 2016-2020.

In the quest to remove supply channel costs, streamline channel communications, and link customers to the value-added resources found along the supply chain continuum, SCM has emerged as a tactical operations tool.

Supply chain management (SCM) market has undergone a sea change in the 21st century -- by embedding product and process innovation in supply chain operations and consciously managing and shaping demand from customers. There is a lot of potential in benefitting from new age supply chain management solutions as companies recover from the recent financial crisis and position supply chains as enablers of revenue and margin growth.  

Moreover, procurement processes that support the design and management of a sustainable supply chain are becoming critical for providers of goods and services in nearly every part of the world. In the demand-driven supply chain, companies are looking toward more lean procurement processes.

The global supply chain management growth scenario is anticipated to witness an increase in revenue from ~US$ 21.2 Bn in 2021 to ~US$ 62.6 Bn by 2031.

How are Advances in Technologies Helping the Supply Chain Industry Evolve?

In the current scenario, rise in need for demand management solutions among enterprises and adoption of SCM software in healthcare and pharmaceutical companies are expected to fuel the market growth.

In addition to this, the surge in demand for transportation management systems (TMS) software and integration of block chain technology in SCM software is expected to drive the growth of the SCM market in the upcoming years. Advanced technologies such as the Internet of Things, artificial intelligence, robotics, and 5G, SCM solutions are designed to anticipate and meet future challenges.

Moreover, big data analytics in logistics and supply chain management (LSCM) has garnered increasing attention owing to its complexity and the prominent role of LSCM in enhancing the overall business performance. The power of data is becoming evident to businesses of all shapes and sizes, from financial service to automobile manufacturing, healthcare, NGO, and more.

It is increasingly becoming essential to make the best use of Big Data analytics in a supply chain to generate more profound insights. The retail sector streams a massive amount of data across its supply chains, at diverse customer touch points in many omnichannel operations. This is in turn creating huge demand for supply chain management solutions over the forecast period.

What Is the Impact of COVID-19 Crisis on Supply Chain Management Demand?

COVID-19 pandemic has impacted every sector and due to social distancing norms organizations are transforming towards digitalization to ensure the safety. A decades-long focus on supply chain optimization to minimize costs, reduce inventories, and drive up asset utilization has removed buffers and flexibility to absorb disruptions and COVID-19 illustrates that many companies are not fully aware of the vulnerability of their supply chain relationships to global shocks.

Fortunately, new supply chain technologies are emerging that will dramatically improve visibility across the end-to-end supply chain, and support companies’ ability to resist such shocks. The traditional linear supply chain model is transforming into digital supply networks (DSNs), where functional silos are broken down and organizations become connected to their complete supply network to enable end-to-end visibility, collaboration, agility, and optimization.

The recent COVID-19 outbreak is expected to have an impact on the growth of the various end-user industries (excluding the pharmaceutical industry) in the short term. However, the impact is temporary, and the supply chain management market (SCM) is anticipated to show considerable growth during the forecast period. Thus, the demand for supply chain management is estimated to witness a slight decline, temporarily, from around 9.1% to 8.7% Y-o-Y from 2019 to 2021.

Country-wise Insights

How big is the Opportunity for Supply Chain Management (SCM) Adoption in the U.S.?

North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. According to the study, the U.S. is expected to account for more than 79% of the North America market share through 2031.

This growth can be attributed to the rise in spending on logistics & transportation, which is improving the implementation of automation technologies in supply chain and logistics. The transportation & logistic sector is huge as well as competitive in the U.S. and consists of distinct industries such as railroads, air services, and shipping.

Factors such as increase in urbanization, rise in traffic congestion, and digital revolution in the transportation sector are projected to drive the expansion of the market in the U.S., as a result of rising adoption of SCM solutions in transportation management.

Why is Demand for Supply Chain Management Increasing in Germany?

Demand for supply chain management platforms in Germany is expected to account for a revenue share of 22.2% by 2021 end. As Europe’s largest economy, Germany has a well-established industrial sector and is a dominant producer of chemicals, machinery, and automobiles.

The country also is recognized for its high-tech manufacturing potential and superior quality of products, due to considerable investments within educational, and research and development avenues.

Moreover, logistic distributors for Fast Moving Consumer Goods (FMCGs) are expanding their warehouse spaces to contain just-in-time deliveries. Investments in the technology industry are projected to have a substantial impact on logistics. Thus, several industrial developments and advancements in Germany are expected to favorably impact the country’s supply chain management market.

How will the Demand for Supply Chain Management Solutions unfold in India?

The demand in India is estimated to exhibit tremendous growth of around 20% CAGR between 2021 and 2031. India’s supply chain and logistics sector is one of the largest globally. The sector has the potential to grow multifold. One of the biggest revelations of the pandemic for this sector is the urgent need to leverage disruptive technologies for greater resilience.

In India, the pandemic has accelerated digital adoption on the demand side. This stemmed from the unprecedented demand faced by online grocery providers, which forced them to limit access for existing consumers in April and May 2020. These disruptive events pushed decision-makers to reimagine the country’s supply chain management.

How is Japan Contributing towards the Supply Chain Management (SCM) Sales?

Demand for supply chain management solutions in Japan is estimated to account for a total sale of US$ 1.28 Bn by the end of 2021. Japan is trying to improve its supply chain security amidst the pandemic while maintaining a positive economic engagement with China, as China is also a large market for Japanese firms.

Even before the coronavirus pandemic Japanese companies had started shifting their production away from China due to the impacts of the U.S.-China trade war.

As a long-time world leader in manufacturing, the perspectives and actions of Japanese companies are heavily influenced by the need to source components and materiel from "lower-cost countries" — long-time venues such as China, as well as emerging sources such as Brazil, Russia and India.

Category-wise Insights

Why is the Demand for Integrated SCM Platform/Suite Continuously Rising?

Based on software, integrated supply chain management platform/suite is expected to contribute nearly 54.1% of the overall share in 2021. A business facilitates relationships with all of its suppliers and manages all distribution and logistics activities through a centralized system rather than having multiple systems within the organization.

Concentrated professional expertise and cost efficiency are core benefits of the integrated supply chain process. This centralized approach leads to more streamlined and efficient activities, as well as implementation of best industry practices in supply chain functions. Development of supplier relationships, acquisition of goods, storage, logistics and transportation are among the primary activities managed in an integrated supply chain.

Why are Cloud-Based SCM Solutions Most Preferred?

The cloud-based deployment segment is projected to register a high demand at a CAGR of 14.2% over the coming years. Cloud computing is quickly growing to support collaborative transportation management solutions and other aspects of transportation management, such as sourcing of network capacity, robust visibility and event management, and ancillary functions, including freight pay and audit.

Applying cloud-based business analytics and manufacturing intelligence allows manufacturing cycle times to improve, hence boosting supply chain management.

Large Enterprises Likely to Use Supply Chain Management Solutions on a Larger Scale than SMEs

The large enterprises segment accounted for 59.7% of the overall market share in 2020, and is expected to continue its dominance during the forecast period. The growing demand for robust monitoring solutions and automation capabilities for resource allocation and strategic decision-making are key factors contributing towards the segment’s growth.

Furthermore, significant rise in need for software in large businesses to assist in the collection of key business data such as inventory levels, projected sales numbers, supplier information, and others from diverse sources drives the growth of the market.

How is Application in Retail & Consumer Goods Sector Supporting Growth?

The retail & consumer goods segment is expected to contribute towards 26.1% of sales in 2021 and is expected to maintain its dominance in the forthcoming years. This can be attributed to the surge in complexity of retail supply chain networks over a period of time due to the presence of large number of suppliers & logistics providers, channels, products, and value-added offerings.

The retail industry is being challenged with a sluggish economy, declining in-store sales, and margins, rising labor costs. Hence, most of the key players are adopting cloud-based technologies to transform their supply chains with unprecedented visibility and insights from data.

Competitive Landscape

The supply chain management market (SCM) is highly concentrated and controlled by dominant players, like

  • Oracle Corporation
  • SAP SE
  • Descartes Systems Group Inc.
  • Infor Inc.
  • IBM Corporation.

These businesses are leveraging strategic collaborative initiatives to strengthen their market shares and enhance their profitability. However, with product innovations and technological advancements, midsize to smaller firms are growing their market presence by securing new contracts and tapping new markets.

  • In June 2021, at its global SAPPHIRE NOW conference, SAP unveiled the first step toward creating the world’s largest business network with SAP Business Network, which will bring together Ariba Network, SAP Logistics Business Network and SAP Asset Intelligence Network. To support this central announcement, SAP is also announcing new innovations designed to help companies modernize and digitalize their business processes to become intelligent enterprises.

Scope of Report



Forecast Period


Historical Data Available for


Market Analysis

US$ Million for Value

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia & Pacific, and the Middle East & Africa

Key Countries Covered

US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, ASEAN, Australia & New Zealand, GCC Countries, Turkey, and South Africa

Key Segments Covered

Solution, Deployment, Enterprise Size, Industry, and Region

Key Companies Profiled

  • IBM Corporation
  • Oracle Corporation
  • SAP SE
  • Manhattan Associates
  • Descartes Systems Group Inc.
  • Kinaxis
  • E2open, LLC
  • Basware Corporation
  • WiseTech Global
  • Infor
  • Blue Yonder Group, Inc. (JDA Software)
  • Epicor Software Corporation
  • Logility, Inc.
  • Jaggaer
  • Ivalua Inc.

Report Coverage

Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives

Customization & Pricing

Available upon Request

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Supply Chain Management Outlook by Category

By Solution:

  • Software
    • Integrated SCM Platform/Suite
    • Standalone Solutions
      • Supply Chain Planning
      • Warehouse Management Software
      • Transportation Management Software
      • Sourcing & Procurement
      • Order Management
      • Others
  • Services
    • Outsource Supply Chain Management Services
    • Professional Services
      • Integration & Implementation
      • Support & Maintenance
      • Consulting Services

By Deployment:

  • Cloud-Based
  • On-Premises

By Enterprise Size:

  • Small and Medium Enterprises (SMEs)
  • Large Enterprises

By Industrys:

  • Retail & Consumer Goods
  • Manufacturing
  • Automotive
  • Healthcare & Pharma
  • Food & Beverages
  • Transportation & Logistics
  • Others

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Pacific
  • Middle East and Africa (MEA)

Key Questions Answered in the Report

Which region is expected to showcase high growth in supply chain management solutions demand?

South Asia & Pacific is projected to register strong growth in the market at a CAGR of 17% during the forecast period. However, North America currently leads the global market, with a share of nearly 33% in 2021.  
Order management software is currently the most attractive solution in the market. It accounted for over 33% of revenue generated in 2020. However, warehouse management software is expected to register a robust CAGR of 16% throughout the forecast period.
Some of the leading companies in this landscape are IBM Corporation, Oracle, SAP SE, Manhattan Associates, and E2open LLC among others. As per Future Market Insights, nearly 60% of the market share is currently covered by the top 15 players.
Retail & consumer goods sector is expected to dominate the market over the forecast period, generating revenue of ~US$ 16.2 Bn by 2031. However, transportation & logistics sector is estimated to boost majorly with a CAGR of over 14% over the forecast period.
The supply chain management industry was valued at ~US$ 19.5 Bn in 2020, and is estimated to grow at an exceptional pace with a CAGR of 11.4% to reach ~US$ 62.6 Bn in 2031.
The supply chain management market (SCM) sales are expected to be valued at ~US$ 21.2 Bn by the end of 2021 and is likely to reach ~US$ 62.6 Bn by 2031.
The market in last 5 years (2016 – 2020) grew by a CAGR of 8.6%.
Key trends in the market includes: Increasing blockchain technology to propel the sales Logistics 4.0 driving supply chain management solution growth Integration of machine learning and artificial intelligence with supply chain software
Upsurge in demand for transportation management systems (TMS) software and integration of blockchain technology in SCM software are the key factors driving the market growth.
Countries involved in providing supply chain management solutions include the U.S., Germany, Canada, and Australia.
The global market is expected to exhibit growth at 8.7% between 2020 and 2021.
Top 5 countries driving demand for supply chain management include the U.S., Brazil, Germany, ASEAN, and GCC countries.
North America is predicted to remain one of the most attractive markets during the forecast period, according to Future Market Insights. According to the study, the U.S. is expected to account for more than 79% of the North America market through 2031.
The supply chain management industry in Europe is estimated to expand at a CAGR of 8.1% over the forecast period.
The supply chain management demand in Japan and South Korea was valued at US$ 1.14 Bn and US$ 666.5 Mn in 2020, respectively and is projected to register CAGR of 14.8% and 9.9%, respectively between 2021 and 2031.

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