NEW YORK, Feb. 7, 2025 -- Report with the AI impact on market trends - The global supply chain management (SCM) software market size is estimated to grow by USD 24.87 billion from 2025-2029, according to Technavio. The market is estimated to grow at a CAGR of almost 14.6% during the forecast period. Emergence of supply chain visibility and event management is driving market growth, with a trend towards growing demand for fleet management in logistics service industry. However, high initial costs and availability of open-source software poses a challenge. Key market players include American Software Inc., Blue Yonder Inc., Coupa Software Inc., Cybozu Inc., Descartes Systems Group Inc., E2open Parent Holdings Inc., Epicor Software Corp., Infor Inc., International Business Machines Corp., Kinaxis Inc., Koerber AG, Magaya Corp., Manhattan Associates Inc., Microsoft Corp., Oracle Corp., SAP SE, Solvoyo, Sonata Software Ltd., StockIQ Technologies Inc., and Webgility Inc..
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Forecast period | 2025-2029 |
Base Year | 2024 |
Historic Data | 2019 - 2023 |
Segment Covered | Application (SCP, Procurement, WMS, and TMS), Deployment (On-premises and Cloud-based), and Geography (North America, Europe, APAC, Middle East and Africa, and South America) |
Region Covered | North America, Europe, APAC, Middle East and Africa, and South America |
Key companies profiled | American Software Inc., Blue Yonder Inc., Coupa Software Inc., Cybozu Inc., Descartes Systems Group Inc., E2open Parent Holdings Inc., Epicor Software Corp., Infor Inc., International Business Machines Corp., Kinaxis Inc., Koerber AG, Magaya Corp., Manhattan Associates Inc., Microsoft Corp., Oracle Corp., SAP SE, Solvoyo, Sonata Software Ltd., StockIQ Technologies Inc., and Webgility Inc. |
Key Market Trends Fueling Growth
Supply Chain Management (SCM) software plays a crucial role in logistics services by organizing, planning, managing, and implementing processes for transportation management, fleet management, order fulfillment, logistics network design, and inventory control. The integration of SCM software is particularly popular in fleet management, enabling businesses to optimize the use of their work vehicles, minimize fuel costs, reduce fleet operating costs, improve fleet productivity, and ensure driver safety. A significant step in implementing a fleet management system involves integrating SCM software to record and analyze data through middleware. Global end-users of logistics services are increasingly adopting fleet management solutions to optimize their supply chains. For instance, Lidl UK and Associated Wholesale Grocers Inc. Have selected ORBCOMM Inc. To provide fleet management solutions for their transport networks. The growing demand for fleet management in logistics services is anticipated to fuel the need for SCM solutions during the forecast period.
Supply Chain Management (SCM) software is a crucial business tool for managing the flow of goods and services. SMEs are increasingly adopting cloud-based SCM systems due to their affordability and flexibility. Cloud management systems offer real-time inventory management, data access, and multitenant architecture for subscribers. However, security concerns such as data breaches and theft are key challenges. IoT, 5G, blockchain, and robotics are trending technologies enhancing SCM. High-value items require accountability through GPS monitors and chain of custody. Logistics professionals use SCM tools for transportation spend management, shipment routing, and on-demand delivery. In healthcare, stockless inventory systems and IoT data are vital for device check-ins. SCM software supports internal departments with measurement systems, executive support, and business intelligence. Cloud deployment models offer flexibility for fast-moving consumer goods and trucking industries. Containerization and computerization streamline work-in-progress and finished goods management.
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Market Challenges
• The cost of implementing and maintaining Supply Chain Management (SCM) software solutions has been a concern for businesses due to expenses related to software licensing, installation, hardware, customization, training, and ongoing maintenance. The implementation of Transportation Management Systems (TMS) and Warehouse Management Systems (WMS) necessitates the installation of data-capturing devices on transportation fleets and investment in IT infrastructure. Trained IT staff and dedicated personnel are required for managing and operating SCM solutions. Periodic upgrades and integration with advanced technologies like big data and blockchain further increase costs. Open-source SCM software solutions, such as Odoo, OpenBoxes, xTuple, OpenLMIS, and Sellsy, offer cost savings but have limited features, making them suitable only for small businesses with less complex requirements. This dynamic may hinder the growth of the global SCM software market during the forecast period.
• Supply Chain Management (SCM) software market is witnessing significant growth due to the increasing complexities in IT and telecommunication, omnichannel businesses, and logistics. Businesses aim for a streamlined supply chain to enhance operational agility and time-to-market efficiency. Artificial intelligence (AI) and machine learning technologies, data analysis, and cloud-based SCM solutions are key trends. E-commerce businesses, international trade, and retail sectors are major solution segments. Data security, organizational structure, and solution segmentation (cloud vs traditional on-premises) are challenges. Cloud-based solutions offer transparency through real-time monitoring and verification. Blockchain technology ensures supply chain transparency. Automation technologies like robotic process automation, lean inventory, and just-in-time replenishment are essential for large enterprises and startups alike. IT departments play a crucial role in SCM software implementation. SCM products enable effective supply chain strategies and technologies. Domestic production and e-commerce businesses require efficient SCM solutions.
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Segment Overview
This supply chain management (scm) software market report extensively covers market segmentation by
- Application
- SCP
- Procurement
- WMS
- TMS
- Deployment
- On-premises
- Cloud-based
- Geography
- North America
- Europe
- APAC
- Middle East And Africa
- South America
1.1 SCP- Supply Chain Planning (SCP) software is an essential business tool that helps organizations manage and synchronize various functions, including sales and operations planning, demand planning, demand sensing, strategic supply network designing, and long-term and strategic planning. SCP software solutions provide insights by analyzing trends in sales and operations planning, enabling companies to balance demand and supply effectively. Hong Kong Aircraft Engineering Co. Ltd. (Hong Kong Aircraft Engineering) and Heineken NV (Heineken) are among the companies that have implemented SCP software to manage sales data, optimize inventory, and improve demand forecasting. Hong Kong Aircraft Engineering partnered with Ramco Systems to integrate SCP software with advanced supply chain planning and optimization features. Heineken extended its partnership with JDA Software Group to upgrade from sales and operations planning to integrated business planning. Some other SCP software solutions in the market include SAP SE IBP sales and operations planning, Infor Inc. S and OP, JDA Software S and OP, and Manhattan Associates Inc. S and OP. By implementing SCP software, businesses can achieve operational efficiency and make informed decisions based on accurate and timely data.
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Research Analysis
The Supply Chain Management (SCM) software market is experiencing significant growth due to the increasing demand for transparency, efficiency, and operational agility in retail and e-commerce industries. SCM products are essential for implementing effective supply chain strategies and leveraging advanced technologies such as AI, machine learning, and robotic process automation. These technologies enable real-time supply chain data analysis, demand management solutions, and just-in-time replenishment. Moreover, industrial-grade digital technology is revolutionizing SCM, providing streamlined supply chain transactions, supplier relationships, and warehousing management. Domestic production and lean inventory are also becoming critical components of supply chain strategies, leading to time-to-market efficiency and improved supplier relationships. Logistics and purchasing are also being transformed through SCM solutions, enabling real-time tracking and optimization of supply chain transactions. Cloud-based SCM solutions offer flexibility, scalability, and cost savings, making them an attractive option for businesses looking to enhance their supply chain visibility and operational agility. Overall, the future of SCM is bright, with a focus on data analysis, demand management, and the integration of advanced technologies to optimize the entire supply chain process.
Market Research Overview
The Supply Chain Management (SCM) software market is experiencing significant growth as businesses seek to enhance transparency and gain real-time insights into their supply chain operations. Retail and e-commerce industries are major adopters, leveraging SCM products for inventory management, demand forecasting, and transportation spend management. AI, robotics, IoT, and blockchain are transforming SCM technologies, enabling just-in-time replenishment, lean inventory, and real-time material movement. Large enterprises, IT departments, startups, and SMEs are embracing cloud-based SCM systems for their scalability and cost-effectiveness. However, data security concerns, such as data breaches and theft, are driving the adoption of multitenant architecture and access control mechanisms. The market also includes various SCM tools for purchasing, warehousing, and supplier relationships, as well as advanced planning procedures, logistics 4.0, and Industry 4.0 solutions. The integration of real-time monitoring, analytics, and business intelligence is revolutionizing corporate operations, leading to improved accountability, efficiency, and responsiveness. The future of SCM lies in digitalizing business models, optimizing inventory, and enhancing supply chain visibility through industrial-grade digital technology and on-demand delivery systems.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Application
- SCP
- Procurement
- WMS
- TMS
- Deployment
- On-premises
- Cloud-based
- Geography
- North America
- Europe
- APAC
- Middle East And Africa
- South America
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/
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