Supply Chain Security Market

Market Definition

Supply chain security involves protecting the flow of goods, information, and finances across the supply chain from risks such as cyber threats, theft, counterfeiting, and disruptions. The market includes technologies, services, and solutions aimed at safeguarding logistics operations and ensuring continuity.

It is widely applied in manufacturing, retail, defense, and healthcare to enhance visibility, ensure compliance, prevent losses, and maintain the integrity and reliability of global supply networks.

Supply Chain Security Market Overview

The global supply chain security market size was valued at USD 27.09 billion in 2024 and is projected to grow from USD 30.76 billion in 2025 to USD 84.49 billion by 2032, exhibiting a CAGR of 15.53% during the forecast period.

The growth of the market is primarily driven by the expansion of e-commerce, which increases the need for real-time tracking and secure logistics to minimize disruptions. Moreover, the integration of AI supports predictive risk analysis, enabling early threat detection and mitigation, thereby enhancing overall operational efficiency.

Major companies operating in the supply chain security industry are IBM, Emerson Electric Co., Oracle, NXP Semiconductors, Testo SE & Co. KGaA, ORBCOMM, Carrier, Berlinger & Co. AG, Altana, Dickson, ELPRO-BUCHS AG., SAFOUS Service, Signatrol, Cold Chain Technologies, and LogTag North America Inc.

The market is driven by rising cyber threats targeting interconnected digital supply chain systems. Increasing reliance on digital platforms and cloud technologies has expanded the attack surface, making supply chains more vulnerable to data breaches, ransomware, and other cyberattacks.

These threats compromise the integrity, confidentiality, and availability of critical supply chain information, prompting organizations to invest heavily in secure solutions. Enhanced cybersecurity measures are essential to protect operational continuity and maintain trust across global supply networks.

• In June 2024, OASIS launched the Open Supply Chain Information Modeling (OSIM) initiative to standardize supply chain information models and strengthen cybersecurity. OSIM is designed to complement existing software bill of materials (SBOM) standards such as CSAF and CycloneDX. The initiative aims to improve transparency across software supply chains, reduce vulnerability exposure, and support better risk management and contingency planning.

Key Highlights:

1. The supply chain security market size was recorded at USD 27.09 billion in 2024.
2. The market is projected to grow at a CAGR of 15.53% from 2025 to 2032.
3. North America held a market share of 39.70% in 2024, with a valuation of USD 10.75 billion.
4. The tier 3 segment garnered USD 13.98 billion in revenue in 2024.
5. The services segment is expected to reach USD 19.34 billion by 2032.
6. The large enterprises segment is anticipated to witness a CAGR of 18.12% during the forecast period.
7. The enterprise segment is estimated to grow at a share of 39.73% by 2032.
8. The IT & telecom segment held a market share of 30.80% in 2024.
9. Asia Pacific is anticipated to grow at a CAGR of 19.02% during the forecast period.

Market Driver

Rapid Growth of E-Commerce

The market is driven by the rapid growth of e-commerce, which requires real-time tracking and enhanced logistics security. As online retail expands, the volume and complexity of shipments increase, raising the need for precise monitoring and protection against theft, loss, and tampering.

Secure logistics solutions enable seamless visibility across supply networks, ensuring timely deliveries and safeguarding customer trust. This demand drives innovation in tracking technologies and security protocols tailored to meet e-commerce’s dynamic operational requirements.

• In April 2024, Synopsys launched Black Duck Supply Chain Edition, a software composition analysis tool that helps e-commerce companies manage software supply chain risks. It integrates open-source detection, automated SBOM analysis, and malware detection to identify vulnerabilities, malicious code, and license issues. This enables development and security teams to track dependencies throughout the application lifecycle, ensuring safer, more reliable e-commerce platforms.

Market Challenge

Limited awareness about Supply Chain Security among Organizations

The supply chain security market faces a significant challenge due to limited awareness among organizations about potential risks and the importance of proactive security measures.

Many businesses continue to underestimate threats such as cyberattacks, data breaches, and counterfeit products, resulting in vulnerabilities across their supply chains. This lack of understanding often leads to inadequate investment in comprehensive security solutions.

To address this issue, companies are launching targeted awareness campaigns, providing specialized training programs, and partnering with cybersecurity firms. Industry leaders are also focusing on developing intuitive, user-friendly platforms and tools to simplify adoption and encourage broader implementation of security practices.

Market Trend

Integration of Artificial Intelligence for Predictive Risk Analysis

A key trend in the market is the integration of artificial intelligence for predictive risk analysis. AI technologies are increasingly being embedded into supply chain platforms to analyze vast datasets, identify risk patterns, and forecast potential disruptions before they occur.

This proactive approach enhances decision-making and operational efficiency by enabling early mitigation strategies. Growing demand for resilient and transparent supply chains is accelerating the deployment of AI-powered tools across logistics and procurement networks.

• In May 2025, Blue Yonder unveiled its new Cognitive Solutions and five AI agents at ICON 2025, aimed at transforming supply chain operations. The solutions are built on a cloud-native platform integrated with Snowflake’s AI Data Cloud. They support autonomous coordination, unified decision-making, and end-to-end interoperability. Predictive, generative, and agentic AI technologies further improve speed, precision, and overall user experience.

Supply Chain Security Market Report Snapshot

Segmentation	Details
By Tier Type	Tier 1, Tier 2, Tier 3, Tier 4
By Component	Solutions, Services
By Organization Size	Small & Medium Enterprises (SMEs), Large Enterprises
By Deployment Type	Edge, Enterprise, Colocation
By Industry Vertical	IT & Telecom, BFSI, Government & Defense, Healthcare, Media & Entertainment, Retail, Others
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E., Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

 Market Segmentation

• By Tier Type (Tier 1, Tier 2, Tier 3, Tier 4): The tier 3 segment earned USD 13.98 billion in 2024 due to its balanced infrastructure offering cost-effective scalability and enhanced security features for mid-sized enterprises.
• By Component (Solutions, Services): The solutions segment held 71.40% of the market in 2024, due to the increasing demand for integrated security platforms that offer real-time threat detection, risk management, and supply chain visibility.
• By Organization Size (Small & Medium Enterprises (SMEs), Large Enterprises): The small & medium enterprises segment is projected to reach USD 47.87 billion by 2032, due to growing adoption of affordable, cloud-based supply chain security solutions to mitigate rising cyber and operational risks.
• By Deployment Type (Edge, Enterprise, Colocation): The colocation segment is anticipated to grow at a CAGR of 16.96% due to increasing demand for secure, cost-efficient infrastructure that supports scalable supply chain operations and enhanced data protection.
• By Industry Vertical (IT & Telecom, BFSI, Government & Defense, Healthcare, Media & Entertainment, Retail, Others): The IT & Telecom segment held a market share of 30.80% in 2024 due to the sector’s critical need for robust cybersecurity measures and advanced data protection across complex global supply chains.

Supply Chain Security Market Regional Analysis

Based on region, the market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The North America supply chain security market share stood at 39.70% in 2024, with a valuation of USD 10.75 billion. North America dominates the market due to its stringent regulatory frameworks focused on protecting critical infrastructure and government technology systems.

The region’s focus on securing digital supply chains, particularly in high-security environments such as federal agencies, drives the adoption of advanced security solutions.

Additionally, the presence of robust cross-domain information-sharing requirements and initiatives aimed at mitigating risks in complex technology supply chains further accelerates demand. These factors are driving the market in the North America region.

• In July 2024, Eclypsium partnered with Everfox to strengthen supply chain security for U.S. government technology. The collaboration supports Raise the Bar (RTB) requirements under the National Cross Domain Strategy by protecting firmware and components in Cross Domain.

Asia Pacific market is poised for significant growth at a CAGR of 19.02% over the forecast period. The growth of the Asia Pacific supply chain security industry is driven by the implementation of multilateral agreements under international economic frameworks, which are fostering deeper cross-border collaboration.

These agreements aim to standardize security protocols, streamline regulatory compliance, and facilitate information sharing among regional stakeholders.

By promoting coordinated efforts to address vulnerabilities, they are reinforcing the resilience of critical infrastructure and enhancing the region’s ability to respond to disruptions, ultimately strengthening the overall security and efficiency of supply chains.

• In December 2024, the Indian Ministry of Commerce & Industry reported that the country signed the Supply Chain Resilience Agreement (Pillar-II) under the Indo-Pacific Economic Framework for Prosperity (IPEF), a 14-member bloc accounting for 40% of global GDP. Effective from February 2024, the Agreement aims to enhance the resilience and security of critical supply chains, boost trade cooperation, and encourage private sector participation to boost efficiency, sustainability, and inclusivity.

Regulatory Frameworks

• In the U.S., supply chain security is primarily regulated by the Department of Homeland Security (DHS), which oversees critical infrastructure protection, and the Transportation Security Administration (TSA), responsible for securing transportation supply chains against threats and disruptions.
• In India, supply chain security is regulated by the Ministry of Commerce and Industry, overseeing trade and logistics policies, and the Central Industrial Security Force (CISF), responsible for securing critical infrastructure, including ports, airports, and industrial supply chains.

Competitive Landscape

Key players in the supply chain security market are actively leveraging strategies such as mergers and acquisitions, strategic partnerships, and new product launches to strengthen their market position.

Companies are acquiring innovative technology providers to expand their solution portfolios and entering collaborations to enhance service capabilities. Additionally, firms are investing in the development and introduction of advanced security platforms and tools to address evolving market demands.

• In February 2025, SecurityScorecard partnered with P3 Group to integrate its MAX Managed Service into P3’s global client offerings. This collaboration aims to enhance supply chain security by providing continuous monitoring, threat detection, and response through SecurityScorecard’s advanced Supply Chain Detection and Response (SCDR) platform. The solution delivers real-time security ratings and actionable intelligence to help organizations effectively manage and mitigate supply chain risks.

List of Key Companies in Supply Chain Security Market:

• IBM
• Emerson Electric Co.
• Oracle
• NXP Semiconductors
• Testo SE & Co. KGaA
• ORBCOMM
• Carrier
• Berlinger & Co. AG
• Altana
• Dickson
• ELPRO-BUCHS AG.
• SAFOUS Service
• Signatrol
• Cold Chain Technologies
• LogTag North America Inc.

Recent Developments (M&A/ Product Launch)

• In March 2025, SpendHQ launched its Supplier Risk Management solution to help businesses proactively address supply chain disruptions. The platform monitors supplier risks across financial, geopolitical, and operational dimensions, enabling informed, timely decision-making.
• In January 2025, Veracode acquired key assets from Phylum, enhancing its software supply chain security with advanced malicious package detection and mitigation technologies. This acquisition strengthens Veracode’s capability to identify and block threats in open-source libraries and provide its customers with comprehensive risk visibility and proactive defense.
• In December 2024, RunSafe Security introduced its new Supply Chain Security Platform, designed to automate risk identification, exploit prevention, and runtime monitoring. The platform allows developers to produce high-fidelity SBOMs at build time for precise visibility into software components and vulnerabilities.
• In May 2024, OX Security launched a strategic OEM partnership program with HCLSoftware. Through this collaboration, OX Security’s capabilities such as reachability analysis, SBOM, SaaSBOM, API exposure management, and SCA detection will be integrated into HCL AppScan’s suite. This partnership aims to enhance supply chain security by strengthening comprehensive, end-to-end application security testing and risk management.