Supply Chain Analytics Market by Component (Software and Services), Deployment (On-premise and Cloud), Enterprise Size (Large Enterprises and Small & Medium-sized Enterprises), and Industry Vertical (Automotive, Food & Beverages, Healthcare & Pharmaceuticals, Manufacturing, Retail & Consumer Goods, Transportation & Logistics, and Others): Global Opportunity Analysis and Industry Forecast, 2020–2027

Supply Chain Analytics Market

The global supply chain analytics market size was valued at USD 4.53 Billion in 2019, and is projected to reach USD 16.82 Billion by 2027, growing at a CAGR of 17.9% from 2020 to 2027.

Supply chain analytics targets to improve operational efficiency and effectiveness by enabling data-driven decisions at strategic, operational, and tactical levels. It incorporates virtually the complete value chain including sourcing, manufacturing, distribution, and logistics. Supply chain analytics helps in increasing productivity, reducing wastage, inventory forecasting, and to improve customer relationship.

Increase in need of improving operational and supply chain efficiencies, rapid increase in volume of business data across various sectors such as manufacturing, retail, transportation, surge in investments for Big Data supporting initiatives by governments, and rise in adoption of Big Data technologies are some of the major factors that drive the global supply chain analytics market growth. However, lack of skilled IT staff and inaccuracies in data are anticipated to restrict the market growth. On the contrary, growth in awareness regarding benefits of supply chain analytics and rise in demand for cloud-based supply chain analytics solutions are anticipated to provide lucrative growth opportunities for the expansion of global supply chain analytics market during the analysis period.

On the basis of component, the global supply chain analytics software segment is expected to dominate the overall supply chain analytics market size in 2027. This is attributed to advantage of supply chain analytics solution such as reduced inventory costs using smart demand sensing, enabling increased responsive transport logistics, facilitating new sales & operations execution (S&OE) workflows, optimization of workplans, and more. By supply chain analytics software type, the demand analytics and forecasting segment is expected to lead the market during the forecast period, owing to need for analyzing & managing data in inventory levels during peaks and troughs.

According to industry vertical, the retail and consumer goods segment accounted for the highest supply chain analytics market share in 2019, as retail industry’s supplier networks has become more complex across the world. However, the automotive sector is anticipated to witness the maximum growth rate during the forecast period, which further fuel the growth of this segment.

In 2019, the global supply chain analytics market share was dominated by the North America region, due to high spending on Big Data analytics and strong presence of large companies in retail, manufacturing sectors suppliers in this region. The need to analyze and forecast the budget requirements, inventory planning by analyzing historic trends act as the key driving forces of the North America supply chain analytics market.

The emergence of COVID-19 is expected to have a considerable impact on the growth supply chain analytics market. Thus, use of supply chain analytics across various industries to identify issues across the entire supply chain and helping to plan & adapt changing dynamics is expected to propel the market growth. In addition, with the emergence COVID-19, the use of supply chain analytics will enable companies to analyze business continuity scenarios post COVID-19.

The report focuses on the growth prospects, restraints, and global supply chain analytics market trends. Moreover, the study includes Porter’s five forces analysis of the industry to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the supply chain analytics market growth.

The global supply chain analytics market is segmented on the basis of component, deployment, enterprise size, industry vertical, and region. By component, it is divided into software and services. The software segment is further sub categorized into demand analysis and forecasting, supplier performance analytics, spend and procurement analytics, inventory analytics, transportation and logistics analytics, and others.

Depending on deployment, it is categorized into cloud and on-premises. According to enterprise size, the supply chain analytics market is segregated into large enterprises and small & medium enterprises. As per industry vertical, it is fragmented into BFSI, retail, IT & telecom, healthcare, government, manufacturing, and others. Region wise, it is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players operating in the global supply chain analytics market analysis include Oracle, SAP SE, IBM, SAS Institute, Microstrategy, Tableau, Qlik, Infor Inc., Kinaxis Inc., and Manhattan Associates.

Top Impacting Factors

Increase in need of improving operational and supply chain efficiencies

Companies in various sectors are investing heavily to improve operational & supply chain efficiencies and digitize their business models. The focus of the supply chain function has shifted to advanced planning processes, which comprises analytical demand planning or integrated sales & operations planning, which have become established business processes in many companies. The supply chain function ensures integrated operations from customers to suppliers. The market for supply chain analytics software is expected to grow at a significant rate during the forecast period due to surge in demand for real-time monitoring & supply-demand forecasting. In addition, emergence of trends such as Industry 4.0 and Logistics 4.0 is expected to provide lucrative opportunities for the market expansion. Industry 4.0 is a current trend of automation in manufacturing technologies, and is the combination of traditional manufacturing and industrial practices with the technologies such as cyber-physical systems, Internet of Things (IoT), cloud computing, and cognitive computing.

Rise in adoption of Big Data technologies

The volume of data captured by organization is continuously increasing due to rise in trend of Internet of Things (IoT), social media, and multimedia, which has produced a prodigious flow of data. Machine-based as well as human-generated data are witnessing 10 times faster growth rate than conventional business data. In addition, around 41 billion IoT devices are expected to be available in the global market by 2027, which will collect, analyze, and share this data. Increase in need to store, process, and analyze large volume of structured as well as unstructured datasets has driven many organizations and individuals to adopt advanced & big data analytics, which is likely to drive the growth of the market. Furthermore, due to massive amount of data generation in different industry verticals, investment in Big Data will increase, which, in turn, will fuel the growth of the supply chain analytics market.