Supply Chain Analytics Market
Global Industry Analysis and Forecast 2023-2030
Market Value (2022)
USD 5.96 Billion
Forecasted Value (2030)
USD 32.18 Billion
CAGR (2023 - 2030)
Fastest Growing Region (2023 - 2030)
Healthcare and Life Sciences, Manufacturing, Automotive, Retail and Consumer Packaged Goods, High Technology Products, Aerospace and Defense, Others
The global Supply Chain Analytics Market was valued at USD 5.96 billion in 2022 and is projected to reach USD 32.18 billion by 2030, growing at a CAGR of 20.32% from 2023 to 2030.
Supply chain analytics solutions are in high demand as organizations seek to optimize their supply chain performance and gain a competitive advantage. These solutions range from demand analysis and forecasting to supplier performance analytics, procurement analytics, and inventory analytics. The utilization of supply chain analytics solutions enables organizations to enhance their visibility and control over their supply chains, leading to improved delivery times, cost reduction, and enhanced responsiveness to market dynamics. As a result, supply chain analytics solutions are becoming increasingly important for businesses across a wide range of industries. However, the implementation of supply chain analytics solutions can be expensive, and significant maintenance costs are associated with maintaining and updating the software.
Analyst’s Review on Supply Chain Analytics Market
Supply chain analytics is an increasingly key focus area in the business world, as it involves leveraging data analysis to optimize the performance of supply chains. One current trend is the move towards digitization of supply chains, with new technologies like the Internet of Things (IoT), cloud computing, and Artificial Intelligence (AI) being applied to improve visibility, traceability, and efficiency. Additionally, the COVID-19 pandemic has prompted the adoption of new data and methods to deal with disruptions and uncertainties. Overall, the use of supply chain analytics is becoming increasingly important in gaining a competitive edge and meeting customer demands effectively.
Supply chain analytics refers to the use of data analysis in supply chain management to gain insights and make better decisions. It involves using tools like statistical analysis, and machine learning to analyze large amounts of data from different sources in the supply chain, including suppliers, manufacturers, distributors, and retailers.
Supply Chain Analytics helps companies to improve their supply chain operations by providing complete visibility which can help identify inefficiencies and improve inventory management, reduce cost, and enhance customer satisfaction. Moreover, supply chain analytics enables companies to improve process efficiency, mitigate risks, and adapt to changes in demand and supply quickly. Organizations can also benefit from more accurate demand forecasting, better inventory management, and improved order fulfillment times. As a result, supply chain analytics offers numerous opportunities for organizations to optimize operations, reduce costs, and improve customer satisfaction.
The surge in investments for big data in support of supply chain analytics initiatives in recent years with a rising dependence on big data analytics to improve decision-making and optimize supply chain performance. Additionally, large enterprises have been investing in supply chain infrastructure to boost efficiency through data-driven processes and analytics. The use of big data analytics has led to increased automation and operational efficiency in supply chain management. Moreover, an increasing number of organizations recognize the advantages of Big Data for enhancing supply chain analytics, and investments in this area are anticipated to rise in the coming years.
The growth of the supply chain analytics market has been driven by the need to optimize resource utilization. However, one of the challenges faced by this industry is a lack of skilled IT staff and inaccuracies in data, which can hinder supply chain analytics market growth. Despite these challenges, the use of big data and predictive analytics in supply chain management has gained popularity in recent years as a means of predicting customer behavior and improving supply chain performance. Overall, supply chain analytics is an important tool for optimizing supply chain performance and driving growth, however, companies must be prepared to address potential challenges related to data quality and staffing.
The global supply chain analytics market is segmented based on component, deployment, vertical, and geography.
Based on the component, the supply chain analytics market is bifurcated into solution and services. The solution segment accumulated the largest market share of 72.15% in 2022 due to the availability of software solutions designed to address challenges related to supply chain management. Organizations can leverage these software solutions to gain insights, make better decisions, and optimize supply chain performance. The purpose of these solutions is to increase efficiency and reduce costs driven by the demand for supply chain analytics software continues to grow along with new technologies and approaches being developed to address the specific needs of different industries and organizations. The supply chain analytics market is projected to experience significant growth primarily due to the widespread uptake of software solutions.
Based on the deployment, the supply chain analytics market is divided into cloud-based and on-premises. The cloud-based segment held the largest market share of 80.27% in 2022. Cloud-based supply chain analytics solutions offer numerous advantages including increased accuracy, and the ability to influence and optimize supply chain performance. As a result, the adoption of cloud-based supply chain analytics solutions is increasing across a wide range of industries from electronic production to logistics. For instance, SAP offers several cloud-based supply chain analytics solutions, such as SAP Integrated Business Planning for Supply Chain and SAP Business Network for Logistics. These solutions enable businesses to achieve complete end-to-end visibility and real-time tracking of the network, from manufacturing to the end consumer. Overall, cloud-based supply chain analytics solutions are enabling organizations to build more resilient and efficient supply chains, ultimately resulting in increased profitability and competitiveness.
By vertical, the supply chain analytics market is divided into healthcare, manufacturing, automotive, government, retail, aerospace and defense, and others. The manufacturing segment led the market with a 21.34% share in 2022. Market growth is being driven by recent advancements in supply chain technologies, including the integration of powerful artificial intelligence (AI) into solutions. By utilizing data analytics, manufacturers can obtain a complete and detailed view of their operations. This empowers customers to make informed decisions and optimize their supply chains. For instance, in July 2022, SAP SE launched SAP Digital Manufacturing, which assists manufacturers in significantly enhancing their supply chain performance and driving sustainable outcomes. Additionally, adherence to sustainable practices, such as sustainable guidelines for packaging, has become a crucial factor for organizations looking to reduce their environmental impact and risk resilience.
Based on regional analysis, the global supply chain analytics market is classified into North America, Europe, Asia Pacific, MEA, and Latin America.
North America has dominated the supply chain analytics market share of 41.17% in 2022 owing to the increasing need to improve operational efficiency, reduce costs, and optimize the supply chain processes has led to the adoption of AI and IoT technologies, particularly in the retail industry and healthcare. With the prominence of technology players in the market and increasing penetration of big data in the retail space, retailers are leveraging supply chain analytics to gain deeper insights into their operations, enhance efficiency, and drive profitability. Whereas, the pressure on pharmaceutical and healthcare companies to manage surges in inventory, the effects of COVID-19 on global supply chains, and the increasing deployment of supply chain management solutions. Overall, the market size for supply chain analytics continues to grow in North America, with the USA playing a significant role in this expansion.
The global supply chain analytics industry study report will provide valuable insight, with an emphasis on the fragmented nature of the global market. Prominent players are focusing on several key business strategies such as partnerships, mergers and acquisitions, product innovations, and joint ventures to expand their product portfolios and increase their respective supply chain analytics market shares across different regions. Development and investments involve a range of strategic initiatives, including investments in R&D activities, new manufacturing facilities, and supply chain optimization. The major players in the supply chain analytics market are
- QlikTech International AB
- Kinaxis Inc.
- Manhattan Associates
- The AnyLogic Company
- IBM Corporation
- SAS Institute Inc.
- SAP SE
- MICROSTRATEGY INCORPORATED
- TABLEAU SOFTWARE, LLC
- April 2023 (Advancements): SAP SE has recently announced significant advancements to its suite of supply chain solutions, which are designed to provide organizations with new data-driven insights to improve the sustainability and resilience of their supply chain operations. These advancements include the integration of powerful artificial intelligence (AI) into the SAP Digital Manufacturing solution, the capability to create 3D product and operation views for manufacturing, service, and maintenance processes, and adherence to sustainable packaging guidelines.
- November 2021 (Launch): Oracle has unveiled a new cloud analytics solution designed to provide Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) customers with valuable insights to help them detect and resolve issues more efficiently.
The global Supply Chain Analytics Market is segmented as:
- Aerospace and Defense
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Middle East & Africa
- North Africa
- South Africa
- Rest of Middle East & Africa
- Latin America
- Rest of Latin America