The Global SaaS-based SCM Market size is expected to reach $19 billion by 2028, rising at a market growth of 12.9% CAGR during the forecast period.
Through improved insights and distribution network forecasting models, SaaS-based SCM offers end-to-end insight on commodities and product mobility. This solution is intended to improve and strengthen an organization's supply chain operations by inventory, managing production, sourcing, transportation, and product demand. It also provides exception-based process management solutions, which allow employees to micro-manage steady-state processes, and delivers superior visibility to businesses with cross-functional access.
The SaaS-based SCM market is primarily driven by an increase in requirement for real-time supply chain research, technical advances in digitized supply chain management, and increased ICT spending. Furthermore, the market expansion is fueled by factors such as the growth of manufacturing digital technologies and an increase in demand for greater supply chain visibility. Furthermore, the market's growth is fueled by an increase in the demand for management services among businesses and the use of Software as a service SCM software in pharmaceutical and healthcare businesses. In the years ahead, however, an increase in consumption of transportation management systems (TMS) software is likely to generate significant market expansion potential.
One of the driving factors supporting the market's growth is rapid industrialization, which is accompanied by increased digitization around the world. Companies and manufacturing units are implementing computerized and pre-programmed technology to reduce costs and time spent producing goods or providing services. Continuous monitoring and security management are provided by SaaS-based SCM technologies, which is growing their demand across diverse industries. In line with this, these devices also store data on the cloud, preventing data loss due to unforeseen circumstances.
A lot of sectors have been hit by the COVID-19 pandemic, and managing complicated supply chain networks has become problematic for them, which is projected to fuel the desire for SaaS-based SCM. According to a study conducted by the "Institute for Supply Chain Management Organization" in March 2020, nearly 75% of firms disclosed SCM disruptions in some form or another as a result of the corona virus-related transportation restrictions, and that number is expected to rise in the coming period. Following the tremendous disruption caused by the COVID-19 pandemic, businesses throughout the world are reviewing their supply chain strategy in order to become more resilient, collaborative, and coordinated with consumers, vendors, and other stakeholders.
Inventory control, production planning, and information management of commodities put in remote areas, on-time stakeholder communication, and other electronic supply chain management demands are met by SaaS-based SCM solutions. The use of SaaS-based SCM is predicted to rise across various business verticals, including retail, food and beverage, manufacturing, automotive, and others, due to a cost-effective hybrid deployment strategy. Moreover, the SaaS-based SCM allows supply chain managers to track how well their present operations are functioning or failing, allowing them to anticipate minor issues and reallocate resources to more important outcomes.
The cloud-based deployment strategy has no upfront costs and requires little maintenance, thus it is favored by a wide range of businesses, including SMEs and major corporations. Direct IT control, real-time distribution network monitoring, faster data analysis, and cloud deployment cost effectiveness are just a few of the aspects expected to boost market growth. The SaaS-based SCM industry is driven by an increase in the desire for cloud-based software across various sectors. Cloud-based supply chain management has various advantages over on-premises supply chain software solutions.
Businesses that use cloud-based SCM encounter security and privacy concerns. Enterprises have confidential data that must be safeguarded to prevent data breaches and theft, which could harm the company's overall reputation. Data from organizations could leak and be accessed by unauthorized people via the Internet, which is becoming a serious concern among corporations. Email is the most widely recognized vector, with spam scams in emails accounting for over 90% of successful cyber-attacks. Fake emails are used by cybercriminals to dupe victims into sending payloads via malicious content or URLs, harvesting credentials via counterfeit login pages, or committing fraud via impersonation.
Based on Component, the market is segmented into Software and Services. The service segment recorded a significant revenue share in the SaaS-based SCM Market in 2021. The use of SaaS-based SCM software has risen significantly, resulting in the acceptance of supply chain management solutions across many industrial sectors, as it ensures the software's proper functioning. The centralized administration of the flow of goods and services, and encompasses all operations that convert raw materials into finished items. Companies can decrease costs and deliver items to customers faster by optimizing the supply chain.
Based on Deployment, the market is segmented into Public, Private, and Hybrid. The public segment procured the largest revenue share in the SaaS-based SCM Market in 2021. The form of cloud computing service in which data is kept on distant servers and transmitted over the internet has been widely employed for a variety of purposes by various businesses. The security concerns connected with using cloud services can be reduced when tight steps are followed, such as encrypting all user data or installing an identity management system with multiple authentication protocols like two-factor authentication.
Based on Organization, the market is segmented into Large Enterprises and Small & Medium Enterprises. The small & medium enterprise segment registered a substantial revenue share in the SaaS-based SCM Market in 2021. Due to an increase in the use of cloud-based supply chain management software, which provides SMEs with a cost-effective and efficient solution SMEs choose cloud-based networking solutions over on-premises networking because they are more adaptable and less expensive. The adoption of SCM is expected to be fueled by SMEs' use of the pay-as-you-go approach to flexibly manage their IT infrastructure according to their requirements. In addition, the requirement for efficient customer information security and cost-cutting, along with gaining a competitive edge, allows for the quick response and prompt decisions, which is expected to drive the SCM market in SMEs.
Based on Vertical, the market is segmented into Consumer Goods, Retail, Food & Beverages, Logistics & Transportation, Healthcare & Life Sciences, Manufacturing, and Others. The consumer goods segment procured the highest revenue share in the SaaS-based SCM Market in 2021. This is due to seamless synchronization between in-store, online, and mobile applications, which ensures a consistent consumer experience and ensures stakeholder participation for individualized customer support. As a consequence, it'll have unprecedented insight and management throughout supply chain while also lowering total system deployment, maintenance, and support costs.
| Report Attribute | Details |
|---|---|
| Market size value in 2021 | USD 7.2 Billion |
| Market size forecast in 2028 | USD 19 Billion |
| Base Year | 2021 |
| Historical Period | 2018 to 2020 |
| Forecast Period | 2022 to 2028 |
| Revenue Growth Rate | CAGR of 12.9% from 2022 to 2028 |
| Number of Pages | 268 |
| Number of Tables | 460 |
| Report coverage | Market Trends, Revenue Estimation and Forecast, Segmentation Analysis, Regional and Country Breakdown, Companies Strategic Developments, Company Profiling |
| Segments covered | Component, Deployment, Organization Size, Vertical, 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 |
| Growth Drivers |
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| Restraints |
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Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. The North America segment acquired the highest revenue share in the SaaS-based SCM Market in 2021. Spending on transportation and logistics is increasing in the region, which is encouraging the use of automation technology in logistics and supply chain management. In this region, the transportation and logistics industry is extensive and competitive, with various industries like as railroads, shipping, and air services.
Free Valuable Insights: Global SaaS-based SCM Market size to reach USD 19 Billion by 2028
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The below illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, Accenture PLC, Oracle Corporation, SAP SE, The Descartes Systems Group, Inc., Manhattan Associates, Inc., Blue Yonder, Inc., Infor, Inc., Kinaxis, Inc., and HighJump Software Inc.
By Component
By Deployment
By Organization
By Vertical
By Geography
The SaaS-based SCM market size is projected to reach USD 19 billion by 2028.
Increased interest in using the cloud as a deployment model are increasing are driving the market in coming years, however, enterprises concerns about security and privacy growth of the market.
IBM Corporation, Accenture PLC, Oracle Corporation, SAP SE, The Descartes Systems Group, Inc., Manhattan Associates, Inc., Blue Yonder, Inc., Infor, Inc., Kinaxis, Inc., and HighJump Software Inc.
The expected CAGR of the SaaS-based SCM market is 12.9% from 2022 to 2028.
The Software segment acquired maximum revenue share in the Global SaaS-based SCM Market by Component in 2021, thereby, achieving a market value of $12.3 billion by 2028.
The North America is the fastest growing region dominated the Global SaaS-based SCM Market by Region in 2021, and would continue to be a dominant market till 2028.
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