Supply Chain Analytics Market Analysis by Deployment (On-premise, and Cloud); and by End User (Transportation, Healthcare, Automotive, Energy & Utilities, and Others) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
Buy Now Report ID: 4837 | Published Date: Apr 17, 2023
The global supply chain analytics market is estimated to garner a revenue of ~USD 72 billion by the end of 2035 by growing at a CAGR of ~22.80% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of ~USD 6 billion in the year 2022. The market growth is mainly owing to the increasing demand for real-time visibility and transparency in supply chain operations. With the rise of e-commerce and omni channel retail, customers expect faster and more efficient delivery of products. This has led to increased demand for real-time visibility and transparency in supply chain operations, which can be achieved through the use of analytics. Global e-commerce sales were noted to reach nearly USD 4.9 trillion by the year 2021, up from nearly USD 3.5 trillion in the year 2019.
In addition to this, in the year 2020, e-commerce sales grew by nearly 30% globally, with total sales reaching nearly USD 4.3 trillion. In the US, e-commerce sales grew by nearly 33% in the year 2020, reaching nearly USD 792 billion. Mobile commerce (m-commerce) is also on the rise, with global m-commerce sales noted to reach nearly USD 3.5 trillion by the year 2021, up from USD 2.9 trillion in the year 2020. Amazon is the largest e-commerce retailer in the world, with net sales of nearly USD 390 billion in the year 2020. Overall, the rise of e-commerce has had a significant impact on the supply chain analytics market, and the trend is expected to continue in the forecast years.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~22.80% |
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Base Year Market Size (2023) |
~ USD 6 Billion |
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Forecast Year Market Size (2035) |
~ USD 72 Billion |
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Regional Scope |
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Growth Drivers
Real-time Visibility and Transparency: With the rise of e-commerce and omnichannel retail, customers expect faster and more efficient delivery of products. According to a survey, about 79% of customers expect to receive updates on their orders in real-time, and nearly 60% will switch to a competitor if they do not receive these updates.
Predictive and Prescriptive Analytics: Predictive and prescriptive analytics can help companies optimize their supply chain operations by identifying potential bottlenecks and recommending actions to mitigate them. It was noted that, about 66% of companies believe that predictive analytics would be critical to their supply chain operations in the next five years.
IoT and Big Data Technologies: IoT and big data technologies can provide companies with valuable insights into their supply chain operations. According to a survey, nearly 81% of supply chain professionals believe that IoT will have a significant impact on their operations over the next five years, while 77% believe that big data analytics will be critical to their operations.
Rise in Research Spending – Growth in the global market during the forecast period can be further attributed to increased investment in research and development activities to continuously find more viable solutions for supply chain analytics. Research reports show that global R&D spending has more than tripled in real terms since 2000, rising from about USD 680 billion to more than USD 2.5 trillion in the year 2019.
Increasing Adoption of the Internet – According to the statistics by the International Telecommunication Union (ITU), the number of people using the internet grew from 1.1 Billion in 2005 to 4 Billion in the year 2019. Further, it was noted that by the end of 2020, the number of internet users around the world was close to 4.5 Billion.
Challenges
The global supply chain analytics market is segmented and analyzed for demand and supply by end user into transportation, healthcare, automotive, energy & utilities, and others. Out of the five types of applications, the automotive segment is estimated to gain the largest market share of about ~35% in the year 2035. The growth of the segment can be accredited to the increasing production rate of electric vehicles worldwide and the growing awareness of the global population about the negative impact of traffic emissions on human health and the environment. This is backed by the expected high demand. The International Energy Agency reported that 2021 electric vehicle sales surpassed its 2020 sales, nearly doubling to 6.6 million. The automotive industry is vulnerable to supply chain disruptions, which can have a significant impact on production and revenue. According to a report, supply chain disruptions cost the automotive industry nearly USD 56 billion in the year 2020. Supply chain analytics can help companies identify and mitigate risks in their supply chains.
The global supply chain analytics market is also segmented and analyzed for demand and supply by deployment into on-premise, and cloud. Amongst these two segments, the cloud segment is expected to garner a significant share of around ~30% in the year 2035. The growth of the segment can be accredited to the cost efficiency, and scalability of cloud services. Cloud-based supply chain analytics solutions can be more cost-efficient than traditional on-premises solutions. With cloud-based solutions, companies can avoid the upfront costs of hardware and software, and instead pay for services on a subscription basis. This can make supply chain analytics more accessible to smaller companies and those with limited budgets. Cloud-based supply chain analytics solutions can be easily scaled up or down as needed, providing companies with greater flexibility and agility. This is particularly important in the context of rapidly changing supply chain dynamics, where companies need to be able to adapt quickly to new market conditions. Cloud-based supply chain analytics solutions can offer improved data security compared to on-premises solutions. Cloud service providers typically have robust security measures in place to protect against cyber threats, and are often better equipped to manage security risks than individual companies.
Our in-depth analysis of the global supply chain analytics market includes the following segments:
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By End User |
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By Deployment |
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The supply chain analytics in the Asia Pacific region, amongst the market in all the other regions, is projected to hold the largest market share of about ~35% by the end of 2035. The regional growth can majorly be attributed to the increasing demand for e-commerce. The rapid growth of e-commerce in the APAC region is driving demand for supply chain analytics solutions. According to a report, retail e-commerce sales in the APAC region were noted to reach nearly USD 2.3 trillion in the year 2021, accounting for nearly 64% of total global e-commerce sales. The APAC region is home to several countries that are leaders in the adoption of automation and AI technologies, such as China, Japan, and South Korea. Many companies in the APAC region are investing in supply chain technology to improve efficiency, reduce costs, and increase visibility. Governments in the APAC region are increasingly focused on promoting digital transformation in their economies, which includes the adoption of supply chain analytics solutions. For instance, the Singapore government has launched several initiatives to promote the adoption of Industry 4.0 technologies in the country. Hence, all of these factors are estimated to add to the regional market growth significantly over the forecast period.
The supply chain analytics in the North America region, amongst the market in all the other regions, is projected to hold the second largest share of about ~24% during the forecast period. The growth of the market in this region can primarily be attributed to the adoption of advanced technologies. The North America region has been an early adopter of advanced technologies such as automation, IoT, and AI, which have been key enablers of supply chain analytics solutions. In an increasingly competitive marketplace, companies in North America are focused on improving supply chain visibility and efficiency to reduce costs and increase customer satisfaction. Supply chain analytics solutions provide real-time data and insights that enable companies to optimize their supply chain operations and improve delivery times. The US government has launched several initiatives to promote digital transformation in the economy, which includes the adoption of supply chain analytics solutions. Companies in North America are increasingly focused on sustainability in their supply chains, with many investing in solutions to reduce waste and carbon emissions. These growth drivers, along with the ongoing digital transformation of industries, are expected to continue to drive demand for supply chain analytics solutions in North America.
Further, the supply chain analytics in the Europe region, amongst the market in all the other regions, is projected to hold a majority of the share by the end of 2035. The growth of the market can be attributed majorly to the emphasis on supply chain visibility and efficiency. European companies are focused on improving supply chain visibility and efficiency to reduce costs and increase customer satisfaction. Supply chain analytics solutions provide real-time data and insights that enable companies to optimize their supply chain operations and improve delivery times. European companies face stringent regulatory requirements around product safety, data privacy, and environmental protection, which has led to increased adoption of supply chain analytics solutions. For instance, the General Data Protection Regulation (GDPR) has mandated the adoption of data privacy and security measures in the supply chain. European companies have been early adopters of advanced technologies such as artificial intelligence, automation, and the Internet of Things (IoT), which are key enablers of supply chain analytics solutions.
SAP SE announced that it has partnered with Google Cloud to offer its customers more flexibility and choice in deploying SAP applications in the cloud. The partnership will enable customers to run SAP applications on Google Cloud, and take advantage of its global network, security, and AI/ML capabilities.
IBM Corporation announced that it has launched a new supply chain sustainability service, which will enable companies to track their supply chain carbon footprint and take steps to reduce it. The service will use IBM's advanced analytics and AI capabilities to provide real-time insights into carbon emissions and identify opportunities for improvement.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Author Credits: Abhishek Verma, Hetal Singh
Ans: Increasing predictive and prescriptive analytics, and IoT and big data technologies are the major factors driving the market growth.
Ans: The market size of supply chain analytics is anticipated to attain a CAGR of ~22.80% over the forecast period, i.e., 2023 – 2035.
Ans: The lack of Skilled Professionals and unavailability of quality data is estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Tableau Software, LLC, SAS Institute Inc., Capgemini SE, Genpact Ltd., Accenture plc, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by deployment, end-user, and by region.
Ans: The automotive segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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