Global Digital Supply Chain Market Size, Share & Industry Trends Analysis Report By Component (Solution and Services), By Enterprise Size, By End User, By Regional Outlook and Forecast, 2021 - 2027
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Get in-depth analysis of the COVID-19 impact on the Digital Supply Chain Market
Market Report Description
The Global Digital Supply Chain Market size is expected to reach $8.6 billion by 2027, rising at a market growth of 12.8% CAGR during the forecast period.
The digital supply chain is the end-to-end delivery chain for digital media like video, audio, electronic document & other data by certain stages. The digital supply chain market has gained immense popularity among consumers with the increasing digitalization of technology across the world. Moreover, the data supply chain solutions include copyright, data privacy, & intellectual property right preservation. The digital supply chain market widely serves the media & entertainment sector along with many other business domains.
The supply chain operations of organizations have shifted to an independent supply chain management function which is managed by the chief supply chain officer. The supply chain management function is focused on advanced planning processes like integrated sales & operation and demand planning. The integrated functions take care of all the unified operations from the consumers to suppliers.
Industry 4.0 along with the introduction of various new technologies has improved the companies’ traditional way of working and enabled them to re-design their supply chains. Additionally, megatrends & consumer expectations also play an important role in this process. Businesses have an opportunity of adopting digital supply chains which may lead to improving their operational effectiveness.
The continuous growth of the rural areas coupled with the wealth shifting into regions has majorly affected the supply chains. The trend of customization & individualization is changing the portfolio of the stock-keeping unit as well as driving the growth of the digital supply chain market. The transparency of online distribution channels & easy availability of multiple options is resulting in a more competitive supply chain platform. To cope up with these changing needs, the supply chains are required to be more granular, faster, and precise.
COVID-19 Impact Analysis
The outbreak of the COVID-19 pandemic has affected the economy of world brutally. Various industries could not able to maintain the traditionally used complex supply chains due to COVID. Most of the companies have faced disruptions in supply chains due to various restrictions imposed over the import & export by the government of many countries along with the complete lockdown to curb the effect of COVID-19. This has led to the increased adoption of digital supply chains by many companies.
Moreover, consumers’ preference has also shifted to purchase from the online distribution channels instead of stepping out for shopping. The rising trend of digitalization and growing demand for online shopping is enforcing the manufacturing, food & beverage and other companies to invest in automation of operations which further includes the digitalization of supply chains. These all factors are expected to contribute to the growth of the digital supply chain market during the post-pandemic period.
Market Growth Factors:
Growing shoppers at e-commerce platforms
The changing lifestyle and the rising disposable incomes of the people is changing the preferences of the consumers in various regions. Due to the hectic lifestyle of working-class consumers and shortage of time, most of the consumers prefer to shop through various e-commerce channels and the online stores. By shopping from such distribution channels, consumers not only save time but also can avail the discounts vouchers offered by such stores. This changing preference of consumers arises the need of adoption of ecommerce channels by the companies.
Increased use of industrial-grade digital technology
The trend of digital transformation of various activities is leading to next generation of supply chain management. The digital supply chain brings up the supplier with consumer in a unique manner overcoming the issues occurred in traditional supply chains. The disruptions caused by the pandemic have led most of the industries to shift toward digital technology contributing to the growth of digital supply chain market.
Marketing Restraining Factor:
The rise in cases of security and privacy breaches among companies
The use cloud-based security supply chain involves the risk of security & privacy. The organizations have a large amount of confidential information which is required to be protected from data breaches & theft, as such breaches may lead to any kind to the organization & also ruin the image of the organization. In addition, it also involves the high risk of leaking the data on the internet which can be used by any unauthorized people which is becoming the main concern of the business organization.
Based on components, the digital supply chain market is segmented into service and solution. The service segment accounted a significant share in the digital supply chain market in 2020. It is due to the fact that many companies would outsource these activities and get the services by experts who can optimize the process. Owing to which, companies would adopt digital supply chain services in order to ensure effective functioning of solutions, software & platforms.
Enterprise Size Outlook
On the basis of enterprise size, the digital supply chain market is divided into large enterprise & small and medium sized enterprises. The large enterprise segment led the digital supply chain market with the highest revenue share in 2020. Because of the broad customer base, the large amount of data is collected in large-sized enterprises which are required to be kept secured for analyzing the consumer demand. By digitalizing the supply chain, the large enterprise can easily get the information related to actual needs & supply chain activities which would enable them to make better decisions on time.
End User Outlook
By end user, the digital supply chain market is categorized into retail & consumer goods, healthcare & pharmaceuticals, manufacturing, food & beverages, transportation & logistics and automotive. The food and beverage segment recorded a significant revenue share in digital supply chain market in 2020. The consumers nowadays are demanding to have updated information regarding the food they are consuming which can be done through the digital media. Therefore, the rising awareness among consumers is resulting in growth of digital supply chain market.
|Market size value in 2020||USD 3.8 Billion|
|Market size forecast in 2027||USD 8.6 Billion|
|Historical Period||2017 to 2019|
|Forecast Period||2021 to 2027|
|Revenue Growth Rate||CAGR of 12.8% from 2021 to 2027|
|Number of Pages||232|
|Number of Tables||373|
|Report coverage||Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Competitive Landscape, Companies Strategic Developments, Company Profiling|
|Segments covered||Component, Enterprise Size, End User, Region|
|Country scope||US, Canada, Mexico, Germany, UK, France, Russia, Spain, Italy, China, Japan, India, South Korea, Singapore, Malaysia, Brazil, Argentina, UAE, Saudi Arabia, South Africa, Nigeria|
Region wise, the digital supply chain market is analyzed in North America, Europe, Asia Pacific and LAMEA. In 2020, North America emerged as the leading region in the digital supply chain market with the largest revenue share. It is due to rising investments in developing technologies like artificial intelligence (AI), Internet of Things (IoT), robotics & automation, autonomous cars, augmented & virtual reality, digital twin, and 5G networking.
Free Valuable Insights: Global Digital Supply Chain Market size to reach USD 8.6 Billion by 2027
KBV Cardinal Matrix - Digital Supply Chain Market Competition Analysis
The major strategies followed by the market participants are Partnerships. Based on the Analysis presented in the Cardinal matrix; Oracle Corporation is the major forerunner in the Digital Supply Chain Market. Companies such as International Business Machines Corporation, SAP SE and Salesforce.com, Inc. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Cloudera, Inc., IBM Corporation, SAP SE, MicroStrategy, Inc., TIBCO Software, Inc., SAS Institute, Inc., Salesforce.com, Inc., Oracle Corporation, Software AG, and Infor, Inc.
Recent Strategy Deployed in Digital Supply Chain Market
» Partnerships, Collaborations and Agreements:
- Dec-2021: SAS partnered with C.H. Robinson, a global logistics company. Under the partnership, both the companies would use data & analytics to solve a gargantuan supply chain problem and enhance the supply chain efficiency. The companies aimed to design an end-to-end supply chain solution that integrates inventory & demand signal data with real-time transportation data.
- Oct-2021: Salesforce teamed up with JSW Group, an Indian multinational conglomerate. The collaboration aimed to improve JSW's distribution, consumer experience & supply chain for its large project division in steel & cement businesses by Salesforce Sales Cloud & Service Cloud.
- Sep-2021: Salesforce partnered with FedEx, an American multinational conglomerate holding company focused on transportation, e-commerce, and services. The partnership aimed to provide merchants with new tools in a bid to meet increasing demand & customer expectations for fast, free shipping & returns while keeping supply chain costs low and increasing efficiency. Under this partnership, Salesforce’s Commerce Cloud and Order Management would be integrated with capabilities from FedEx & its eCommerce platform subsidiary, ShopRunner. In addition, Salesforce would have access to free two-day shipping & the latest return processes like label-less returns, and return-packaging at FedEx locations & easy drop-off, along with access to millions of shoppers on FedEx’s ShopRunner platform.
- Jun-2021: Oracle extended its existing partnership with Redwood Logistics, one of the fastest-growing supply chain & logistics companies in North America. The companies aimed to provide OTM users with robust capacity, instant rates & 100% tender acceptance through the integration of Rating API of Redwood with Oracle Fusion Cloud Transportation Management (OTM) which would allow any consumer of the Oracle Transportation Management network to obtain guaranteed capacity on automatically priced loads & tender shipments immediately without human interaction.
- Apr-2021: Cloudera entered into a partnership with NVIDIA, an American multinational technology company. From this partnership, the companies would integrate the RAPIDS Accelerator for Apache Spark 3.0. This partnership aimed to allow organizations to accelerate data pipelines & enhance the performance boundaries of data & machine learning (ML) activities to drive the use of artificial intelligence & deliver better outcomes without changing any code.
- Apr-2021: Oracle extended its existing partnership with Bizdata, an international award-winning data analytics agency. The extension aimed to expand the capabilities of Oracle's eZintegrations platform by integrating the Oracle Supply Chain Planning Cloud.
- Apr-2021: Software AG entered into a partnership with MxD, the U.S. leading cybersecurity research, and digital manufacturing innovation center. This partnership aimed to deliver a supply chain risk alert framework to the U.S. Department of Defense (DoD) by providing hybrid integration solutions. Under this partnership, the MxD would design a rapid analysis tool that provides policymakers & supply chain leaders the ability to efficiently assess a broad range of value chain designs of pandemic scenarios to improve supply chain resiliency & agility during an emergency.
- Mar-2021: SAP extended its existing partnership with Software AG, an enterprise software company. The extension aimed to allow the deployment of TrendMiner analytics software on S/4HANA Cloud from SAP. The TrendMiner would analyze sensor data collected from a factory floor & stored in a time-series database.
- Dec-2020: SAP extended its partnership with Microsoft, an American multinational technology corporation. This partnership aimed to allow consumers to develop & operate intelligent digital supply chains & Industry 4.0 solutions in the cloud on edge. This would enable enterprises to utilize a comprehensive set of SAP Digital supply chain solutions on Microsoft Azure that includes SAP Intelligent Asset Management solutions, SAP solutions for digital manufacturing, SAP Logistics Business Network, and SAP Integrated Business Planning.
» Product Launches and Product Expansions:
- Nov-2021: Oracle unveiled a new cloud analytics offering for the company's shipper consumers that utilize Oracle Fusion Cloud Supply Chain & Manufacturing (SCM) platform. Through this launch, the company aimed to provide shippers with the required insights to understand, detect & resolve issues faster all over the supply chain by connecting their supply networks with an integrated suite of cloud business applications.
- Jun-2021: SAP unveiled SAP Business Network, a cloud-based collaboration offering. The offering would enhance the supply chain networks and connect trading partners. The solution would combine the company's various business networks at a single platform designed to unify the way of interaction between supply chain companies and their network & trading partners.
- Apr-2021: Salesforce unveiled Salesforce Sustainability Cloud Scope 3 Hub, a new platform. The platform would help user enterprises of any size & any industry to streamline how they track & measure supply chain carbon emissions by capturing and visualizing Scope 3 emissions, such as purchased goods, business travel, and employee commutes, within the Salesforce Sustainability Cloud. Moreover, the Salesforce Sustainability Cloud currently calculates the companies’ direct emissions from operations (Scope 1), & those related to the purchase of electricity, heat, or cooling (Scope 2), providing a single source of truth for emissions data.
- Jun-2020: IBM unveiled IBM Sterling Inventory Control Tower, enabled with AI. The product would support companies in managing inventory & building resilient supply chains more effectively. The latest product is developed to provide insights to see inventory wherever it is, identify & understand the impact of external events to assume the challenges, and react on the basis of playbook recommendations to reduce the upstream & downstream effects.
- May-2020: Oracle introduced its new blockchain applications cloud suite. The suite would allow the enterprises to analyze their supply chains more accurately & incisively by blockchain’s verifiable trust factor which ensures that data provided is accurate & traceable.
» Acquisitions and Mergers:
- Jan-2022: IBM acquired Envizi, a provider of data and analytics software. The acquisition aimed to allow consumers to speed up environmental initiatives. This move would add value to the company's increasing investments in AI-powered software that include IBM Sterling for supply chain analysis and IBM Maximo for asset management.
Scope of the Study
Market Segments Covered in the Report:
By Enterprise Size
- Large Enterprises
- Small & Medium Enterprises
By End User
- Retail & Consumer Goods
- Food & Beverages
- Healthcare & Pharmaceuticals
- Transportation & Logistics
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Cloudera, Inc.
- IBM Corporation
- SAP SE
- MicroStrategy, Inc.
- TIBCO Software, Inc.
- SAS Institute, Inc.
- Salesforce.com, Inc.
- Oracle Corporation
- Software AG
- Infor, Inc.
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What would be the value of the global digital supply chain market by 2027?
The global digital supply chain market size is expected to reach $8.6 billion by 2027.
What are the key driving factors and challenges in digital supply chain market?
Growing shoppers at e-commerce platforms are driving the market in coming years, however, the rise in cases of security and privacy breaches among companies limited the growth of the market.
What are the major top companies in the competitive landscape?
Cloudera, Inc., IBM Corporation, SAP SE, MicroStrategy, Inc., TIBCO Software, Inc., SAS Institute, Inc., Salesforce.com, Inc., Oracle Corporation, Software AG, and Infor, Inc.
Which segment shows a high revenue share of digital supply chain market in 2020?
The Solution market is generating high revenue in the Global Digital Supply Chain Market by Component 2020, thereby, achieving a market value of $6.1 billion by 2027.
Which segment shows the high growth rate of digital supply chain market over the forecast period?
The Small & Medium Enterprises market shows high growth rate of 14.5% during (2021 - 2027).