SCM (Global Market)

2023: Global Supply Chain Management Systems Market Growth to $23.58 Billion

In 2023, the costs in the global supply chain management systems market Supply Chain Management, (SCM) amounted to $23.58 billion. About a third of this amount fell on the North American region. Such data are provided in a Fortune Business Insights study, the results of which TAdviser reviewed at the end of May 2025.

SCM is a comprehensive concept and organizational strategy that consists in an integrated approach to planning and managing the entire flow of information about raw materials, materials, products and services within the logistics and production processes of the enterprise. Such systems help optimize the activities of companies, as well as ensure that the right product is available at the right time in the right place. This improves customer satisfaction and reduces costs.

One of the drivers of the analytics industry is the rapid development of e-commerce. With online marketplaces, audience reach is greatly expanded, but efficient sales management requires specialized software. This stimulates the demand for SCM systems: such tools minimize the likelihood of lack of demanded products in the warehouse, help speed up delivery and allow you to track the status of orders. Through supply chain management, companies can make the most of available resources, such as manufacturing or transportation equipment.

The pandemic has had a positive impact on the industry. COVID-19 The restrictions imposed amid the spread of the coronavirus have disrupted global supply chains. Due to quarantine, many enterprises were forced to suspend activities. In response, organizations around the world began to more actively implement SCM systems to solve problems. In addition, the digitalization of enterprises in all areas continues, which generates additional demand for SCM platforms.

The expansion of the industry is facilitated by the introduction of artificial intelligence and machine learning. AI algorithms are capable of analyzing huge amounts of heterogeneous data at high speed. This allows you to predict market demand, track the location of goods in real time, identify possible problems and failures. As a result, companies receive numerous benefits - from reducing costs and reducing risks to speeding up delivery and improving customer service. In addition, thanks to AI, the burden on employees is reduced.

According to the deployment model, the market is segmented into cloud and local SCM solutions. The first type of products provided the largest revenue in 2023 due to their flexibility, scalability and economic advantages. The SCM product category identifies transportation, warehouse, supply and purchasing, production, inventory, and so on. The dominant segment is the production segment. From a geographical point of view, North America leads, which accounted for 32.5% of revenue, or $7.66 billion. The Asia-Pacific region is showing the fastest growth rate. Significant players on a global scale are named:

• Oracle;
• IBM;
• Kinaxis;
• SAP;
• Wolters Kluwer N.V.;
• Blue Yonder Group;
• Infor;
• o9 Solutions;
• Logility;
• GainSystems.

Fortune Business Insights analysts believe that in the future, the CAGR in the market under consideration will be 11.7%. Thus, by 2032, costs may increase to $63.77 billion.^[1]

2017: 13.9% market growth to $12.2 billion Leaderboard

The global Supply Chain Management (SCM) software market reached $12.2 billion in 2017, exceeding the one-year-old figure by 13.9%. Such data are provided in the Gartner analysis report.

Director of Research at Gartner Balaji Abbabatulla says that the trend of increasing growth in the SCM market continued for several years in 2017. This is because technology for logistics management has become a key component for implementing digital business strategies.

Major SCM Vendors, Gartner Data

SCM technologies create digital value by optimizing the flow of products, services and relevant information from source to client and back, the expert noted.

All five of the largest supply chain management software manufacturers increased sales in 2017, but only Blue Yonder (formerly JDA Software) and Infor recorded faster-than-market share growth. At the same time, the category of other vendors that are not among the five leaders is growing much faster than the top 5 companies, but the balance of power in the top five remained unchanged in 2017, Balaji Abbabatullah emphasized.

According to him, small cloud service providers in 2017 increased sales of SCM solutions by an average of 41.4%. The top five players are strengthening their positions precisely by counting strategies in which cloud computing comes to the fore. They manage to quickly implement new products through the development, collaboration and acquisition of companies within their platforms, Abbabatullah said.

Cloud products have become a growth driver for the entire market in part because companies with above-average business sizes use SCM solutions to digitalize their operations.^[2]

2014: SAP Gets a Quarter of the Logistics Management Software Market

On May 12, 2015, the analytical company Gartner presented the results of a study of the global market for logistics management software. Experts recorded an increase in sales of this software and a strengthening of SAP leadership.

According to Gartner's 2014 estimate, the global Supply Chain Management (SCM) and Procurement Software (PS) market amounted to $9.9 billion, an increase of 10.8% compared to 2013. It is noted that this segment of the software industry is one of the fastest growing.

Sales of cloud SCM products increased by 17% in 2014, the sale of new licenses for the installation of this software increased by 9%. In both cases, there was significant growth, signaling that companies were looking to modernize the management of their supply chains using various models, said Chad Eschinger, vice president of research at Gartner.

Analysts say demand for SCM and PS solutions is growing steadily as the supply channel remains a key source of strengthening companies' competitiveness to meet challenges such as improving operational results and improving customer satisfaction and business flexibility.

The logistics management software market remains fragmented. There are about 67 manufacturers there: the ten largest companies controlled 55% of sales in 2014, and the remaining 57 vendors were able to increase total revenue by only 9.6%. This situation creates great potential for M&A transactions, and also provides high demand for specialized solutions that are quite competitive and often complement the products of large suppliers, the study says.

Top 5 players in the global logistics management software market, $ million

2014 Gartner Data

The balance of power in the supply chain management and procurement automation software market can be seen in the table above. It shows that SAP has increased its gap from its closest pursuers, earning about $2.6 billion from these decisions in 2014, which is 20% more than a year earlier.^[3]

2013: Next Generation Supply Chains - Efficient, Fast and Tailored to Customer Needs

The 2013 Global Review of Supply Chain Management conducted by Pricewaterhouse Coopers notes that companies that view supply chains as a strategic asset are 70% more efficient than competitors; that there is a growing interest in new generation supply chains that can deliver efficient, fast and tailored to the individual needs^[4] supply^[5].

Aberdeen Group, during the On Demand Applications In Supply Chain study, interviewed 455 companies. According to the results, "best in class" companies are twice as active in using SCM systems "on demand" to solve key supply chain management tasks, while showing three times the best results in logistics and relationship management B2B. In most cases, on-demand SCM applications are used to replace or enhance the capabilities of conventional systems by individual business processes or areas, usually in the field of external process management.

2012: Megavendors snap up developers

The global supply chain management (SCM) market grew 7.1% to $8.3 billion in 2012, according to Gartner Gartner^[6] May 2013. Despite economic difficulties and reduced IT budgets, investment in supply chain management automation remained a priority for most companies.

Most of the global SCM systems market is in North America and Western Europe - 77%. However, in Western Europe, the growth of SCM implementations slowed down, and in the Asia-Pacific region, on the contrary, acquired a rapid pace.

Among vendors, SCM has a leading place in the global market SAP (20.8% of the market in monetary terms in 2012, which is equivalent to $1.7 billion), with SAP taking the first place in this market over the past more than ten years. The second place belongs to the company Oracle with revenue of $1.5 billion in 2012, the third - companies, Blue Yonder (formerly JDA Software) close the top five and, Ariba Manhattan Associates moreover, data on Ariba is presented only for 9 months of 2012 - before its purchase by SAP.

Top 5 players in the global SCM systems market in 2012, $ million

* Data on Ariba is presented only for 9 months of 2012 - before its purchase by SAP.
Gartner, 2013

Despite the fact that the top five vendors account for about 50% of the market, in general, its structure remains quite fragmented, Gartner experts say. At the same time, the market is consolidating: a major deal to buy SAP developer Ariba took place in 2012, as well as a deal between RedPrairie and JDA Software.

An important technology trend in the global SCM market is the growth of the SaaS applications segment: it increased by 13% in 2012, while the segment of proprietary systems separately grew by only 3.5%.

2010

The global supply chains supply chain management (SCM) market in 2010 grew by 10% to $6.8 billion. As analysts emphasize, the Gartner market has recovered, and activity is growing on it, although selling corporate solutions is still not easy. Curiously, the market growth was largely influenced by the efforts of niche players. Their growth in this segment is three times the growth of system suppliers ERP. However, the market leaders are still such ERP giants as well. SAP In Oracle general, during 2010, the efforts of vendors were aimed at ensuring the integration capabilities of their systems and building mobile solutions. According to analytical reports, supply Gartner chain performance management solutions are currently on the rise, in 5-10 years they will be used everywhere.

However, in 2009, the SCM segment of systems was more stable than others, and in 2010 it felt much more confident. At the same time, suppliers of clean SCM solutions and specialized systems bypassed the ERP of vendors last year: the ratio was three to one.

At the same time, SAP continues to lead the SCM market, occupying a share of 19.5% of the global market. Vendor No. 2 is Oracle with 17.9% of the market. Further down the declining JDA Software (5.4%), Ariba (3.7%), Manhattan Associates (2%). More than half (51.5%) are from smaller players.

At the same time, Blue Yonder (formerly JDA Software) showed the highest business growth rates in 2010 - by 40.2%. In 2010, vendors focused on strengthening partnerships, expanding their presence in the North American market, developing new packages and delivery options, as well as releasing regular releases. The focus of SCM solutions was on solution integration, business process platform, and mobility.

At the same time, companies in North America and Western Europe continue to be the main customers of SCM systems in dollar terms: they account for 79% of the global market. However, Asia-Pacific and Latin America showed significant growth in 2010, exceeding the market average.

See also

SCM

Notes