PUBLISHER: The Business Research Company | PRODUCT CODE: 1672629
PUBLISHER: The Business Research Company | PRODUCT CODE: 1672629
Supply chain management software encompasses a program, platform, or set of tools designed to streamline and oversee a company's entire supply chain processes, spanning assessment and forecasting to the management of supplier relationships.
The primary product types within the realm of supply chain management (SCM) software include transportation management systems, warehouse management systems, supply chain planning tools, procurement software, and manufacturing execution systems. A transportation management system (TMS) is a logistical platform leveraging technology to aid businesses in planning, executing, and optimizing the physical movement of goods, both inbound and outbound. This includes ensuring compliance and maintaining proper documentation. This software is utilized by various entities, including small and medium-sized enterprises (SMEs), large enterprises across sectors such as consumer goods, healthcare, pharmaceuticals, manufacturing, food and beverages, transportation and logistics, and other industry verticals.
The supply chain management SCM software market research report is one of a series of new reports from The Business Research Company that provides supply chain management SCM software market statistics, including supply chain management SCM software industry global market size, regional shares, competitors with a supply chain management SCM software market share, detailed supply chain management SCM software market segments, market trends and opportunities, and any further data you may need to thrive in the supply chain management SCM software industry. This supply chain management SCM software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The SCM software market size has grown rapidly in recent years. It will grow from $58.5 billion in 2024 to $64.98 billion in 2025 at a compound annual growth rate (CAGR) of 11.1%. The growth in the historic period can be attributed to emerging markets growth, an increasing demand for SCM software due to COVID-19 and an increased internet penetration.
The SCM software market size is expected to see rapid growth in the next few years. It will grow to $96.72 billion in 2029 at a compound annual growth rate (CAGR) of 10.5%. The growth in the forecast period can be attributed to rising utilization of cloud computing, a growing e-commerce industry and cost savings due to SCM software. Major trends in the forecast period include focus on artificial intelligence in SCM, product innovations, focus on supply-chain technology management in business operations, sustainability solutions, use of blockchain in supply chain management, use of digital supply chain twin (DSCT), use of 5G technology, focus on continuous intelligence (CI), focus on supply chain governance and security and focus on partnerships and collaborations.
SCM software plays a crucial role in managing the complexities of the modern-day supply chain, particularly as businesses expand globally and face heightened competition. The contemporary supply chains have become intricate, marked by an increase in the number of suppliers, orders, product offerings, and generated information. SCM software proves instrumental in simplifying this complexity, leading to cost and resource savings. The imperative for companies to stay relevant in the market amid intense competition serves as a pivotal driver for the growth of the SCM software market.
The increasing growth in e-commerce is expected to drive the expansion of the SCM (Supply Chain Management) software market moving forward. E-commerce, or electronic commerce, refers to the buying and selling of goods or services online through websites, mobile apps, or other online marketplaces. SCM software helps e-commerce companies reduce costs by streamlining their supply chains, minimizing expenses related to manufacturing, shipping, and raw materials, and ultimately lowering consumer prices. For example, a report by Manaferra Inc., a US-based digital marketing company, revealed that e-commerce revenue in the United States rose from $789 billion in 2022 to $910.3 billion in 2023, reaching $1,061 billion in 2024. Therefore, the growth of e-commerce is driving the demand for SCM software.
Supply chains are undergoing constant evolution, with data positioned at the core of each stage in the value chain. The substantial volume of generated data presents a significant challenge in terms of data and IT security risks. Safeguarding privacy while sharing data across the supply chain emerges as a major hurdle that could potentially impede the SCM software industry. A prominent example illustrating the consequences of lax security involves the Target breach, where compromised security at an HVAC vendor led to the exposure of personal information for up to 70 million individuals. The stolen information included customer names, credit or debit card numbers, expiration dates, and CVV numbers.
Leading companies in the supply chain management software market are intensifying their focus on introducing innovative platforms to gain a competitive advantage. These platforms aim to offer a comprehensive and holistic view of supply chain operations, optimize planning and forecasting, reduce costs, prevent waste and overstocks, and align with customer demand and financial objectives. For instance, in February 2023, Sonatype, a US-based software supply chain management company, unveiled the 'Run Anywhere' platform for software supply chain management. Recognized as the most flexible software composition analysis and application security testing solution, it provides cloud deployment along with on-premises and entirely disconnected options. Sonatype's proprietary intelligence, leading research, and AI behavioral analysis enable organizations to manage their software supply chains at scale, facilitating quicker and safer open-source product development. The platform's adaptable deployment options support seamless integration into diverse operational environments, empowering teams to shift left without encountering operational challenges.
Major companies operating in the SCM software market include SAP SE, Oracle Corporation, Panasonic Corporation, Koch Industries, Coupa Software Inc, Kinaxis Inc., Manhattan Associates, E2open LLC, WiseTech Global, JDA Software Group Inc, Epicor Software Corporation, Kewill Systems, BluJay Solutions, Dassault Systemes SE, Vanguard Software Corporation, IBM Corporation, Blue Yonder, Verizon connect, Infor, Descartes Systems Group, GT Nexus, High Jump, IFS, SPS Commerce, Inc, Pronto Cargo Logistics & Supply Chain, Fox Brazil, Imexlog Logistica Aduaneira Perfect Solutions, Vendorful, Smart Software, OdooTecxii, AxolonERP, Trackmatic
Asia-Pacific was the largest region in the supply chain management SCM software market in 2024. North America was the second largest region of the global supply chain management SCM software market share. The regions covered in the SCM software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa
The countries covered in the SCM software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain
The supply chain management SCM software market includes revenues earned by entities by developing and distributing software that manages the flow of products and information across the supply chain, thereby strengthening the supply chain operations in an organization. Software such as SCMs are used to bring equilibrium between supply and demand by improving business processes and plan future needs using algorithms that provide consumption analysis. Values in this market are factory gate values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods. Only goods and services traded between entities or sold to end consumers are included.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.
SCM Software Global Market Report 2025 from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on scm software market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for scm software ? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? The scm software market global report from the Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
The forecasts are made after considering the major factors currently impacting the market. These include the Russia-Ukraine war, rising inflation, higher interest rates, and the legacy of the COVID-19 pandemic.