Increased usage of cloud computing and procurement software will drive the cloud-based supply chain management software market to grow at a CAGR of 14.3% during the forecast period 2017-2023
The persistent pressure on organizations to reduce IT expenditure and reduce the time to market of products will change the environment of the supply chain market.
Infoholic Research LLP, a global market research and consulting company, has published a study titled “Cloud-based Supply Chain Management (SCM) Software Market – Global Drivers, Restraints, Opportunities, Trends, and Forecasts to 2023”.
According to Infoholic Research, procurement software and supply chain planning will dominate the cloud-based SCM software market. Most of the companies present in the market offer SCM suite and the pure providers are offering SCM on SaaS model to attract more customers. The market is consistently growing as numerous organizations are rapidly deploying cloud-based services for storing and managing business-related data. The market is witnessing growth owing to the cloud SCM offerings which ensure better control of the critical applications and decrease loss and business downtime.
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As per the study, the market will experience a significant growth as cloud has a strong positive influence on the business ROI. Supply chain operating model act as an enabler with the help of mobility and by integrating social media functions. Moreover, the need for improved business agility, scalability, faster deployment, and reduction in TOC will drive the organizations to deploy cloud model of SCM. The market is expected to grow at a CAGR of 14.3% during the forecast period 2017–2023 to touch an aggregate of $7.03 billion by 2023.
“The cloud-based SCM software market is growing due to huge investment in cloud, and the enhanced emphasis on visibility of the entire supply chain process, by companies. Moreover, the need for reducing time to market for new products and services along with the need to improve the product lifespan is forcing companies to adopt innovative supply chain strategies. The market will have tremendous growth due to investments and integration of technologies. However, the lack of customization of TMS and procurement software will limit the market growth.” – Preeti Wadhwani, Team Lead – Research at Infoholic Research
The report is segmented by types, deployment model, industry verticals, and regions. The procurement software plays a major role in SCM as it deals with the purchase orders and distributes the purchase terms within the organization. The cloud SCM is being offered to the customers through public, private, and hybrid models. Since the market is experiencing a huge demand for cloud SCM from the SMBs, the growth of the public cloud will be tremendous. The retail sector holds majority share of the market, with 28.38% in 2017, and is expected to maintain its position till 2023. The cloud SCM technology gives retail providers the power to improve product availability, ensure better inventory management, improve labour productivity and improve the company’s efficiency.
North America is set to be the leading region for cloud-based SCM software market followed by Europe. APAC is set to be the emerging region for the market growth. The rise in manufacturing production and retail sales volume growth have resulted in enhanced demand for logistics, thereby driving the market for low cost models. The market in LAMEA is improving due to increase in domestic supply and need for better management of supply chain processes.
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The report aims to highlight key insights from providers and industry verticals. The report provides an in-depth analysis and forecast about the industry covering the following key features:
- The report not only highlights users’ conundrum (challenges and barriers to adopting cloud-based SCM software) but also brings in their perspective on the overall SCM market
- The market has been analyzed by considering the key regions – North America, Europe, APAC, and LAMEA
- The market is analyzed based on types, deployment model, verticals, and regions
- The report analyzes the top players in terms of market reach, business strategy, and business focus
- Provides an in-depth analysis of the key business opportunities within each technology types
- Competitive benchmarking analysis to optimize short term and long-term strategy of the organizations
- Stakeholders’ insights and key trends (current and future) of the market