USD 18.76 Billion
Report ID:
SQMIG45A2353 |
Region:
Global |
Published Date: November, 2024
Pages:
182
|Tables:
87
|Figures:
76
Supply Chain Management Software Market size was valued at USD 18.76 Billion in 2023 and is poised to grow from USD 19.55 Billion in 2024 to USD 20.91 Billion by 2032, growing at a CAGR of 4.20% during the forecast period (2025-2032).
Increasing expectations from customers for speedier and more reliable delivery are ultimately leading businesses to improve supply chain management efficiency. Growing needs for real-time tracking, on-demand shipping, and integrated logistics solutions power the quickly developed supply chain management market (SCM) technologies in order to deliver customer satisfaction, which in turn promotes the market.
To minimize costs throughout the supply chain, enterprises move manufacturing operations to countries with lower labor taxes and transport costs for raw materials. For some organizations, outsourcing production involves multiple countries for different parts of their products. However, outsourcing and the company’s procurement network extend the production process globally. Choosing suppliers in different geographical locations complicates the supply chain. Businesses need to coordinate, communicate, and collaborate with cross-border parties about manufacturing, warehousing, and logistics.
Adoption of SCM software among various firms and organizations is increasing as it allows them to efficiently manage the sourcing of the raw material, manufacturing, and assembling of any goods or products hence driving the market growth. Moreover, it also assists in tracking inventory and warehouse, managing the order entry, distribution channels, product delivery, demand planning, supply planning, procurement, and financial information, further surging the market growth. In addition, it allows management to work strategically with the company's distribution network, which is again driving the market expansion. A lack of IT infrastructure in developing countries and a rise in security and privacy concerns hampers the growth of the global market.
How Is AI Reshaping the Supply Chain Management Market in 2024?
Artificial Intelligence (AI) is playing a transformative role in the supply chain management market in 2024 by enhancing operational efficiency, accuracy, and resilience. One of the most notable impacts of AI has been on demand forecasting and inventory management. Companies like Southern Glazer's Wine & Spirits have leveraged Amazon SageMaker to improve their sales forecasting capabilities by analyzing vast datasets, reducing the risk of stockouts and overstocks. AI also contributes significantly to logistics optimization.
For example, DHL uses AI-driven systems to plan efficient delivery routes based on real-time traffic and weather data, cutting down on fuel costs and improving delivery timelines.
Moreover, AI has improved supply chain visibility and risk management through advanced predictive analytics. Organizations now benefit from AI-powered "control tower" systems that monitor disruptions in real time and allow quick decision-making. Hospitals like Mayo Clinic and Cleveland Clinic are already using AI to manage critical inventory more efficiently, helping them mitigate supply shortages. Additionally, AI is a catalyst for automation within warehouses. Companies such as Ocado have deployed autonomous mobile robots powered by AI to streamline picking and packing processes, reducing labor dependency and enhancing order fulfillment speed.
Market snapshot - 2025-2032
Global Market Size
USD 18.76 Billion
Largest Segment
Solutions
Fastest Growth
Transportation
Growth Rate
4.20% CAGR
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The supply chain management market is segmented into component, deployment, enterprise size, vertical and region. Based on component, the market is segmented into solutions and services. Based on deployment, the market is segmented into on-premises and cloud-based. Based on enterprise size, the market is segmented into small and medium sized enterprises and large enterprises. Based on vertical, the market is segmented into retail & e-commerce, healthcare, automotive and transportation & logistics. Based on region, the market is segmented into North America, Asia-Pacific, Europe, Latin America, and Middle East & Africa.
The solutions segment is currently dominant. This dominance is because solutions such as software for demand forecasting, inventory optimization, and logistics management provide direct and measurable improvements in supply chain efficiency. Companies invest heavily in these technologies to reduce costs, improve accuracy, and gain real-time visibility, which drives the solutions segment to hold the largest market share.
As per the global supply chain management market analysis, the services are the fastest growing segment in the market. As supply chains become more complex and technology-driven, businesses increasingly require consulting, implementation, integration, and ongoing support services to successfully adopt and maintain these advanced solutions. The rising need for expert guidance and customization fuels rapid growth in the services segment, making it a key area of expansion within the supply chain management market.
As per the global supply chain management market forecast, the on-premises segment continues to dominate the market primarily because many established enterprises prioritize data security, control, and compliance. On-premises solutions allow organizations to deeply customize and integrate supply chain software with their existing ERP and legacy systems, ensuring seamless operation without dependency on external internet connectivity. Large corporations with extensive IT infrastructure and dedicated teams often prefer on-premises models to maintain control over critical business operations and reduce risks associated with data breaches or downtime.
As per global supply chain management market outlook, the cloud-based segment is experiencing rapid growth, with an estimated annual growth rate of over 20% globally in 2024. Cloud solutions are favored for their agility, scalability, and cost-effectiveness. They enable real-time data sharing and collaboration across multiple stakeholders, including suppliers, logistics providers, and retailers, which is critical in today’s fast-moving global supply chains.
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As per regional forecast, North America stands as one of the most mature and technologically advanced regions in the global supply chain management market. The presence of leading technology providers, advanced infrastructure, and a strong focus on innovation contribute to this leadership position. The demand for real-time supply chain visibility, enhanced agility, and resilience against global disruptions such as geopolitical tensions has accelerated the adoption of AI, machine learning, and cloud-based SCM solutions across industries.
The United States leads the North America supply chain management market with high adoption rates of AI, advanced analytics, and cloud-based SCM platforms. American companies prioritize agility and supply chain visibility to quickly respond to market changes and disruptions. Investments in cybersecurity and data governance remain critical due to the increasing frequency of cyberattacks. The retail, manufacturing, and healthcare sectors are the largest adopters of SCM solutions, focusing on demand forecasting, inventory optimization, and last-mile delivery improvements. The US government’s support for digital infrastructure and smart manufacturing initiatives further stimulates the supply chain management market’s growth.
Canada’s supply chain management market is growing steadily, supported by government programs aimed at digitalizing logistics and transportation infrastructure. Canadian enterprises, particularly in healthcare, natural resources, and retail, are adopting cloud-based SCM solutions to enhance operational efficiency and supply chain transparency. The country’s geographic vastness and relatively low population density pose unique supply chain challenges, encouraging the adoption of innovative technologies such as AI-driven route optimization and real-time tracking.
As per regional outlook, Asia-Pacific is the fastest-growing region in the supply chain management market, driven by its rapidly expanding manufacturing base, rising e-commerce penetration, and significant government investments in infrastructure modernization. Countries in the region are capitalizing on the rise of urbanization and a growing middle class, which increases demand for efficient, flexible, and scalable supply chain systems. The need for real-time data sharing and end-to-end visibility to manage complex cross-border supply chains is accelerating the adoption of AI-powered and cloud-based SCM solutions.
Japan is a global pioneer in integrating advanced robotics, AI, and precision manufacturing techniques into supply chain management. Japanese companies emphasize quality control, reliability, and efficiency, supported by significant investments in R&D and smart factory initiatives. The country’s supply chains benefit from mature logistics networks and strong government support for digital transformation under initiatives like “Society 5.0.” Japan’s focus on minimizing waste and improving resource utilization aligns with its cultural emphasis on continuous improvement (Kaizen), which translates into highly efficient supply chain operations.
South Korea’s supply chain management market is characterized by rapid technology adoption and innovation, especially in smart logistics and IoT connectivity. The country leverages its advanced telecommunications infrastructure and technology-driven economy to integrate AI-powered SCM solutions across manufacturing, electronics, and e-commerce sectors. South Korean companies focus on automation, predictive analytics, and real-time monitoring to enhance supply chain responsiveness and reduce operational costs. Government initiatives promoting smart cities and digital supply chains further boost the market’s growth potential.
As per industry analysis, Europe’s supply chain management market is characterized by a strong focus on sustainability, regulatory compliance, and digital innovation. European countries are increasingly adopting Industry 4.0 technologies such as IoT, AI, robotics, and blockchain to enhance transparency, reduce environmental impact, and improve supply chain resilience. Compliance with strict regulations regarding data privacy, carbon emissions, and fair-trade practices push companies to deploy sophisticated SCM solutions.
Germany, Europe’s industrial powerhouse, is at the forefront of Industry 4.0 adoption, combining automation, AI, and data analytics to optimize supply chain operations in automotive, machinery, and chemical sectors. German companies prioritize efficiency, precision, and sustainability, investing heavily in digital twins, predictive maintenance, and green logistics. The country’s strong emphasis on manufacturing excellence and regulatory compliance drives continuous innovation in supply chain technologies.
The UK’s supply chain management market is undergoing significant transformation in response to post-Brexit trade changes. Businesses are focusing on enhancing supply chain visibility, agility, and compliance to manage new customs regulations and cross-border complexities. The UK government supports digital transformation initiatives to strengthen logistics infrastructure and supply chain resilience. AI, blockchain, and cloud-based SCM solutions are increasingly adopted to mitigate risks, optimize inventory, and improve demand forecasting. The country’s strong financial services sector also invests in supply chain fintech solutions to streamline payments and contracts.
Italy’s supply chain management market focuses on modernizing logistics networks, particularly to support its large number of small and medium enterprises (SMEs). Investments in AI and cloud-based SCM solutions aim to improve inventory management, demand forecasting, and transportation efficiency. Italy is also embracing sustainability through green logistics and supply chain transparency initiatives.
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Enhanced Forecasting and Demand Planning
AI's ability to analyze vast historical and real-time datasets drives more accurate forecasting and demand planning in supply chains. Machine learning models consider external factors such as market trends, seasonality, social media sentiment, and even weather forecasts to provide predictive insights. For instance, companies like Walmart and Amazon use AI-based systems to anticipate consumer demand, enabling them to optimize stock levels, minimize shortages, and avoid excess inventory. This has significantly reduced holding costs and improved service levels.
Operational Efficiency through Automation
AI is accelerating automation across supply chains, from warehouse robotics to intelligent transport systems. Automation reduces human error, cuts down processing times, and increases scalability. AI-powered robots (e.g., from companies like Ocado and Amazon Robotics) are used for picking, packing, and inventory scanning, allowing faster and more precise operations. Additionally, route optimization algorithms reduce fuel consumption and delivery delays, thereby increasing operational efficiency and cost-effectiveness.
High Implementation Costs and Complexity
Despite its benefits, integrating AI into existing supply chain systems comes with high costs and complexity. Many small and medium-sized enterprises (SMEs) struggle with the capital investment needed for AI infrastructure, training, and system overhaul. The complexity of integrating AI with legacy ERP systems and ensuring seamless interoperability often creates additional hurdles. These cost and tech integration challenges slow down adoption rates across more traditional or resource-constrained companies.
Data Quality and Security Concerns
AI systems heavily depend on data to function optimally, but poor data quality or lack of standardized data across systems can result in inaccurate predictions and flawed decision-making. Moreover, supply chains often involve multiple stakeholders across different regions and sectors, making data privacy and cybersecurity critical issues. Breaches or misuse of sensitive supply chain data can lead to financial losses and reputational damage, restraining full-scale AI deployment.
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The competitive landscape of the AI in global supply chain management industry in 2024 is marked by strategic partnerships, AI-driven platform enhancements, and targeted solutions tailored to improve agility, visibility, and efficiency across global supply chains. Leading technology companies, logistics firms, and supply chain solution providers are aggressively investing in AI capabilities to differentiate themselves and capture a larger market share.
As per market strategies, in 2024, Microsoft launched a significant update to its Dynamics 365 Supply Chain Management platform, embedding Copilot, a generative AI assistant, which helps companies analyze disruptions, predict delays, and recommend proactive measures. This moves enhanced Microsoft's position as a key innovator in enterprise AI and added a competitive edge in predictive and prescriptive analytics within supply chains.
The growing complexity and globalization of supply chains have created fertile ground for innovation, particularly through the integration of Artificial Intelligence (AI). In recent years, a new wave of startups has emerged, leveraging AI to solve long-standing inefficiencies in logistics, procurement, inventory optimization, and demand forecasting. These startups are bringing agility and intelligence to supply chain management, often outperforming legacy systems with their ability to provide real-time insights, automation, and data-driven decision-making.
Rise of AI-Powered Control Towers: In 2024, a growing trend is the deployment of AI-enabled “control towers” that provide end-to-end visibility across the entire supply chain. These systems leverage AI to gather and analyze real-time data from suppliers, distributors, logistics partners, and retailers to identify potential disruptions and offer prescriptive solutions. Companies such as IBM and Oracle are leading this trend by offering cloud-based supply chain control tower platforms that enhance agility and responsiveness in complex, global supply networks.
Integration of Generative AI in Decision-Making: A recent trend gaining momentum is the use of generative AI for scenario planning, process optimization, and intelligent decision-making. Generative AI tools simulate "what-if" scenarios, helping managers evaluate alternatives in dynamic market conditions. For example, Microsoft’s integration of Copilot in supply chain management platforms allows users to interact conversationally with supply chain data, generating actionable insights on procurement, inventory risk, or supplier performance redefining decision-making across the value chain.
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, key drivers of market growth include growing adoption of AI and advanced analytics. The growth of the supply chain management market can be attributed to the rising demand and increased awareness of the benefits of SCM solutions, such as transportation management systems, planning & analytics, forecasting accuracy, warehouse & inventory management, supply chain optimization, procurement & sourcing, waste minimization, manufacturing execution and relevant synthesis of business data. Shortage of professionals with expertise in advanced SCM technologies hampers effective implementation and utilization. With the advent of e-commerce, firms have started selling their products online, which has helped reach a larger audience than ever before. This trend also increased competition among companies trying to win customers’ cores by providing them with better products and services at affordable prices.
Report Metric | Details |
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Market size value in 2023 | USD 18.76 Billion |
Market size value in 2032 | USD 20.91 Billion |
Growth Rate | 4.20% |
Base year | 2024 |
Forecast period | 2025-2032 |
Forecast Unit (Value) | USD Billion |
Segments covered |
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Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
Companies covered |
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Table Of Content
Executive Summary
Market overview
Parent Market Analysis
Market overview
Market size
KEY MARKET INSIGHTS
COVID IMPACT
MARKET DYNAMICS & OUTLOOK
Market Size by Region
KEY COMPANY PROFILES
Methodology
For the Supply Chain Management Software Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Supply Chain Management Software Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
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With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Supply Chain Management Software Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
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Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
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Supply Chain Management Software Market size was valued at USD 18.76 Billion in 2023 and is poised to grow from USD 19.55 Billion in 2024 to USD 20.91 Billion by 2032, growing at a CAGR of 4.20% during the forecast period (2025-2032).
One notable strategy is between the Oracle and DHL supply chains. In 2023, it partnered with DHL to optimize its supply chain logistics using Oracle’s cloud-based solutions. This collaboration enabled DHL to optimize logistics and reduce transportation costs using Oracle's advanced predictive analytics, real-time tracking, and automated workflows. DHL can build route planning, warehousing management and optimized last-mile delivery through Oracle's AI-powered systems. This example illustrates how partnerships in the SCM software market can drive innovation and add value to end users through a combination of technical and business expertise. 'International Business Machines Corporation (IBM) (US) ', 'Kinaxis Inc. (Canada) ', 'Korber AG (Germany) ', 'Manhattan Associates (US) ', 'Oracle Corporation (US) ', 'SAP SE (Germany) ', 'The Descartes Systems Group Inc. (Canada) ', 'Panasonic (Japan) ', 'Epicor Software Corporation (US) ', 'E2open, LLC (US) ', 'Körber (Germany) ', 'GEP Worldwide (US) ', 'IFS AB (Sweden) ', 'Logility, Inc. (US) ', 'RELEX Solutions (Finland) ', 'Basware Corporation (Finland) ', 'Softeon (US) ', 'Tecsys Inc. (Canada) ', 'Verizon Connect (US) ', 'Uber Technologies, Inc. (US)'
Modern businesses rely heavily on technology, with larger companies having their own IT department that manages and manages business processes. SMEs don’t really have adequate IT infrastructure. due to additional cost requirements and for managing and maintaining an IT department. Therefore, most SMEs and startups are adopting cloud-based SCM systems, where they can reap the benefits of the IT department through cloud management systems without having to hire additional staff at additional cost. The storage flexibility of cloud-based SCM provides scalability, which is very important for SMEs and will help them with unexpected growth in the first year of business operations. Besides, cloud based SCM provides powerful inventory management for SMEs, in latest performance improvements It is very responsive.
Technological Advancement Drives Growth in Supply Chain Management: Advances in information and communication technologies make the supply chain development more feasible. Technologies such as IoT, cloud computing, 5G, blockchain, AI, 3D printing, and robotics are all needed to enable the digital supply chain of the future because transparency and computation are key areas of supply chain for in-service, real-time viewing. GPS trackers can now track everything from the location of a shipment to its current temperature, delivering up-to-the-minute data. Real-time features and affordable tracking are useful in the ongoing COVID-19 pandemic.
North America accounted for a market size of 39.2% in 2023 and is estimated to dominate the market during the forecast period. The large adoption rate of such software in the region, the fact that the industry is growing technologically and other major players in this sector such as IBM, Microsoft, Telus International, Infor are a factor another major contributor to the growth of the market. SCM software in the US. are numerous and contribute significantly to revenue. The supply chain management software market in the US. is growing significantly and accounts for the largest revenue share of 74.2% in 2022. Adoption of advanced technologies such as artificial intelligence, data analytics and automation to increase visibility, traceability and efficiency in the supply chain.
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