SaaS-based SCM Market Expected to Reach $26.0 Billion by 2030—Allied Market Research

According to a new report published by Allied Market Research, titled, “SaaS-based SCM Market," The saas-based scm market was valued at $7.3 billion in 2020, and is estimated to reach $26.0 billion by 2030, growing at a CAGR of 13.42% from 2021 to 2030.

Growth in demand for real-time supply chain analysis, technology progress in digital supply chain industry, and increase in ICT spending primarily drives growth of the SaaS-based SCM market. In addition, the factors such as development of industrial-grade digital technology and upsurge in need for improved supply chain visibility fuels the market growth. Moreover, surge in need for demand management solutions among enterprises and increase in adoption of SaaS-based SCM software in healthcare and pharmaceutical companies further boosts the growth of the market. However, security concern over cloud deployment among enterprises is expected to impede the market growth. On the contrary, upsurge in demand for transportation management systems (TMS) software is expected to create major opportunities for market expansion in the upcoming years.

On the basis of solution, the software segment dominated the global market in 2020, and is expected to continue this trend during the forecast period. The major factors influencing the SaaS-based SCM software market is high level of cost savings on total cost of ownership and increase in need for real time material monitoring and forecasting of production plan by several industry verticals including consumer goods, retail, manufacturing, and others. However, the services segment is expected to grow at the highest CAGR during the forecast period. In the last few years, the adoption of SaaS based supply chain management software has notably increased, which has resulted in the adoption of supply chain management services across different industry verticals, as it assures effective functioning of software.

By user type, the large enterprises segment dominated the global market in 2020, and is expected to continue this trend during the forecast period, owing to increase in adoption of SCM software to integrate this software into their existing software and inventories. Furthermore, the small & medium-sized enterprises segment is expected to grow at the highest CAGR during the forecast period, owing to surge in adoption of cloud-based supply chain management software, as it provides cost-effective and efficient solution for SMEs.

The global SaaS-based SCM market was led by the consumer goods segment in 2020, and is projected to maintain its dominance during the SaaS-based SCM Market Forecast period. The implementation of SCM solutions by the CG industry has facilitated synchronization among in-store, online, and mobile applications for consistent consumer experience, ensuring collaboration between stakeholders for personalized customer service.

Post COVID-19, the global SaaS-based SCM market was valued at $7,314.32 million in 2020, and is projected to reach $25,980.18 million by 2030, registering a CAGR of 13.42%. The current estimation of 2030 is projected to be higher than pre-COVID-19 estimates. This is attributed to rapid growth in demand for SCM software due to supply chain disruptions triggered by the COVID-19 pandemic. In addition, there is huge demand for online shopping in several areas, which requires food & beverage, manufacturing, and logistics companies to increase their investments in automation, including the automation of supply chains. Thus, fueling the growth of the market.

Due to this outbreak, number of industries have been affected and maintaining the complex supply chain networks is becoming difficult for them, which is expected to drive the demand for SaaS-based SCM. For instance, according to a survey conducted by "Institute for Supply Chain Management Organization" in March 2020, almost 75% of the companies reported global SCM disruptions in one form or other due to the corona virus related transportation restrictions and it is further expected to increase in the upcoming few weeks. In the aftermath of severe disturbance from the COVID-19 pandemic, enterprises across the globe are intended to review their supply chain strategies to turn out to become resilient, collaborative, and coordinate with clients, suppliers, and other stakeholders. To do that, they will increase investment in SaaS-based SCM, which is expected to be opportunistic for the growth of the market.

KEY FINDINGS OF THE STUDY

• By Solution, in 2020 the Software dominated the SaaS-based SCM market size.
• Depending on deployment, the public generated the highest revenue in 2020 of SaaS-based SCM market share. However, hybrid segment is expected to exhibit significant growth during the forecast period.
• By User, in 2020 the large enterprises dominated the SaaS-based SCM market size.
• Region wise, the SaaS-based SCM industry was dominated by North America region. However, Asia-Pacific is expected to witness significant growth in the upcoming years.

Some of the key SaaS-based SCM industry players profiled in the report are Accenture, SAP SE, Oracle Corporation, Blue Yonder Group, Inc., Infor, Manhattan Associates, The Descartes Systems Group Inc., HighJump (Korber AG), Kinaxis Inc., and IBM Corporation. This study includes market trends, SaaS-based SCM market analysis, and future estimations to determine the imminent investment pockets.