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The supply chain analytics market size is estimated to grow at a CAGR of 19.28% between 2023 and 2028. The market size is forecast to increase by USD 10.38 billion. The growth of the market depends on several factors, including an increased need to improve business processes, rising e-commerce and omnichannel retailing and an increasing need to improve supply chain visibility. Supply chain analytics refers to the use of data analysis tools and techniques to gain insights, optimize processes, and make informed decisions within the supply chain. It involves collecting, processing, and analyzing data related to the various components of the supply chain, from procurement and production to distribution and logistics, including fleet management. The goal of supply chain analytics is to improve efficiency, reduce costs, enhance visibility, and ultimately contribute to better decision-making across the entire supply chain.
The report includes a comprehensive outlook on the supply chain analytics market offering forecasts for the industry segmented by Deployment, which comprises cloud-based and on-premises. Additionally, it categorizes End-user into retail, manufacturing, transportation, healthcare, and others and covers Region, including North America, APAC, Europe, Middle East and Africa, and South America. The report provides market size, historical data spanning from 2018 to 2022, and future projections, all presented in terms of value in USD billion for each of the mentioned segments.
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The increasing need to improve supply chain visibility is notably driving market growth. Organizations desire better transparency for their orders, inventory, and shipment information. They also require information regarding all inbound and outbound processes. The adoption of supply chain software, along with analytics, helps organizations get better visibility with cross-functional access. Companies can use supply chain analytics to monitor warehouses, partner responses, and customer needs for better-informed decisions. Vendors in the market have developed different types of software to optimize supply chain performance.
For instance, IBM has developed many software products to increase the effectiveness of supply chain analytics by using AI. Supply chain software can anticipate production flow and changes with the help of AI technologies. Thus, the benefits offered by supply chain analytics to improve supply chain visibility in different business sectors are expected to drive the demand for supply chain analytics, which will strengthen the growth of the global supply chain analytics market during the forecast period.
The emergence of procurement analytics is an emerging trend shaping market growth. Analytics is one of the emerging trends in the peer-to-peer (P2P) outsourcing market. Analytical solutions use statistical modelling tools and a methodology for an in-depth analysis of the procurement supply chain process. Advanced analytical tools, such as predictive analytics, provide insights connected to the procurement process by clustering numerous factors expected in the supply chain management systems. Further, procurement analytics help users streamline the procurement process and effectively manage their business.
For instance, procurement spend analysis from Anaplan enables procurement and finance users to automate the process of analyzing spend data from transactional systems (ERP + P2P) to generate future predictions that better estimate supplier expenditure and savings opportunities. Thus, the emergence of procurement analytics will accelerate the growth of the supply chain analytics market during the forecast period.
Concerns associated with the implementation of supply chain analytics is a significant challenge hindering market growth. The application of analytics is difficult in supply chain networks that are becoming increasingly interconnected at the global level. This is because the coordination of demand and capacities between suppliers and customers is a complex task. Additionally, optimization is infeasible as the supply chain process involves so many key variables. The different B2B standards present are also evolving, causing SCM software vendors to support different business processes within a customer supply chain.
Therefore, market competition is no longer fought merely by individual enterprises but by the entire supply chains. This has increased the complexity of SCM software solutions, which negatively affects the growth of the global supply chain analytics market over the forecast period.
The market share growth by the cloud-based segment will be significant during the forecast period. Cloud-based solutions allow organizations to scale their analytics infrastructure based on their evolving needs. Whether it handling increased data volumes or expanding analytics capabilities, the cloud provides on-demand resources. Cloud computing eliminates the need for substantial upfront investments in hardware and infrastructure. Organizations can use a pay-as-you-go model, paying only for the resources they consume.
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The cloud-based was the largest segment and was valued at USD 2.47 million in 2018. Cloud platforms provide the infrastructure to integrate data from various sources within the supply chain seamlessly. This integration enhances the accuracy and completeness of analytics by allowing a holistic view of the entire supply chain. In addition to that, cloud-based solutions often come with advanced analytics and machine learning (ML) capabilities. Organizations can leverage these tools to gain deeper insights, predict future trends, and optimize supply chain processes. Cloud-based solutions can be deployed more rapidly than traditional on-premises systems. This agility is beneficial for organizations looking to implement supply chain analytics quickly and respond promptly to changing business requirements. Thus, these factors will drive the growth of cloud-based deployment, which will boost the growth of the global supply chain analytic market during the forecast period.
Retailers use supply chain analytics to analyze historical sales data, market trends, and external factors to forecast demand accurately. This helps in optimizing inventory levels, reducing stockouts or excess inventory, and improving overall supply chain efficiency. Analytics helps retailers understand customer preferences and behaviours. By analyzing customer data, retailers can personalize services, anticipate customer needs, and improve the overall customer experience, leading to increased customer loyalty. Thus, the use of supply chain analytics in demand forecasting, inventory management, order fulfilment optimization, and assortment planning will boost the growth of the retail segment and propel the global supply chain analytic market during the forecast period.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The supply chain analytic market is expected to grow in North America during the forecast period. North America, particularly the United States, is a hub for technological innovation. The continuous development of advanced analytics technologies, including artificial intelligence (AI), ML, and big data analytics, contributes to the adoption of sophisticated supply chain analytics solutions. Supply chains in North America have become more complex due to globalization, e-commerce growth, and evolving customer expectations. To navigate this complexity and optimize operations, businesses are turning to supply chain analytics for insights into demand, inventory, and logistics.
In addition, the surge in e-commerce activities has placed a significant strain on supply chain networks. Retailers and logistics companies are leveraging analytics to enhance order fulfilment processes, optimize inventory, and improve last-mile delivery efficiency to meet the demands of online consumers. Supply chain analytics helps in understanding customer preferences, optimizing inventory to meet demand, and ensuring timely delivery, contributing to a positive customer experience. Thus, these factors will enhance the growth of the supply chain analytic market in North America during the forecast period.
The Supply Chain Analytics Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Supply Chain Analytics Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AIMMS BV - The company offers supply chain analytics which is an optimization software for supply chain network design, greenfield analysis and multi-objective scenario modeling.
American Software Inc. - The company offers supply chain analytics such as Logility digital supply chain platform, which enables one to seize new opportunities, sense and respond to changing market dynamics, and more profitably manage complex global supply chains.
Coupa Software Inc.- The company offers supply chain analytics with advantages such as Descriptive analytics, Predictive analytics, and Prescriptive analytics.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The supply chain analytics market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2022
Supply Chain Analytics Market Scope |
|
Report Coverage |
Details |
Page number |
181 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.28% |
Market Growth 2024-2028 |
USD 10.38 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
15.83 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 38% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AIMMS BV, American Software Inc., Anaplan Inc., Coupa Software Inc., Domo Inc., International Business Machines Corp., Kinaxis Inc., Manhattan Associates Inc., MicroStrategy Inc., NB Ventures Inc., NTT DATA Corp., Oracle Corp., Panasonic Holdings Corp., Salesforce Inc., SAP SE, SAS Institute Inc., TARGIT AS, Teradata Corp., TIBCO Software Inc., and Infor Inc. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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