Increased Preference for Cloud Deployment Models to Fuel Growth of SaaS-Based SCM Market
Direct IT control, real-time supply chain tracking, faster data processing, and the cost-effectiveness of cloud deployment are just a few of the factors expected to drive market growth. The growing demand for cloud-based software across industries propels the SaaS-based SCM market. The cloud-based SCM software provides several advantages over cloud SCM vendors working on upgrading their portfolio, which is expected to lower the costs of the solutions. For instance, in January 2021, SIEMENS, IBM, and Red Hat launched a hybrid cloud initiative to boost the value of industrial supply chain management data in real-time. Moreover, factors such as increased cloud SCM adoption among small and medium-sized enterprises (SMEs), increased demand for low initial investment, and the development of cloud SCM in the e-commerce industry provide lucrative opportunities for the market. It provides several benefits to organizations such as faster deployment, lower risk, greater flexibility, less demand on IT, increased visibility, and others, all of which are positively impacting the growth of the SaaS-based SCM market.
Furthermore, there is a high demand for online shopping in a variety of industries, requiring food and beverage, manufacturing, and logistics companies to increase their investments in automation, including supply chain automation. As a result, the market is expanding. A number of industries have been affected by this outbreak, and maintaining complex supply chain networks is becoming difficult for them, which is expected to drive demand for SaaS-based SCM. According to a survey conducted by the "Institute for Supply Chain Management Organisation" in March 2020, nearly 75% of the companies reported global SCM disruptions in one form or another as a result of the corona virus-related transportation restrictions, and this is expected to increase in the coming weeks. Following the severe disruption caused by the COVID-19 pandemic, businesses around the world are expected to review their supply chain strategies in order to become more resilient, collaborative, and coordinated with clients, suppliers, and other stakeholders. To accomplish this, they will increase investment in SaaS-based SCM, which is expected to be beneficial to market growth.
Rising Demand for Real-Time Materials to Fuel SaaS-Based SCM Market
The software segment dominated the worldwide SaaS-based SCM market. The demand for real-time material monitoring and forecasting of production plans by numerous industry verticals, such as consumer products, retail, manufacturing, and others, is driving the SaaS-based SCM software market. However, during the forecast period, the services segment is expected to rise. The use of SaaS-based SCM software has risen significantly in recent years, resulting in the adoption of supply chain management services across a variety of industrial verticals, since it ensures the program's proper working.
Increasing Transportation and Logistics Spending in North America to Drive Growth SaaS-Based SCM Market
North America is expected to maintain its dominance during the forecast period due to an increase in transportation and logistics spending, which is driving the adoption of automation technologies in the logistics and supply chain. This region's transportation and logistics industry are large and competitive, and it includes distinct industries such as shipping, railroads, and air services.
Growth in demand for cloud-based software across numerous industries is driving the US market. Cloud-based supply chain management software has various advantages over on-premise supply chain management software. Since it offers pay-per-use licensing and requires no IT setup, businesses are turning to cloud SCM to cut operating costs and modernize operations. For instance, Blue Yonder, Inc. offers the Luminate Platform, which enables global businesses to maximize the value of their data by integrating, processing, and acting at scale throughout their supply chains. Their Luminate Platform provides a single, end-to-end view of your company, allowing you to plan ahead of time and provide world-class client experiences.
Asia-Pacific is expected to have the highest growth rate during the forecast period. Strong economic growth, combined with ongoing development in the services sector, has prompted businesses to invest heavily in SaaS-based SCM in order to sustain and improve productivity. Furthermore, factors such as increased mobility penetration, increased cloud deployment among small and medium businesses, and ongoing modernization of the manufacturing and construction industries drive heavy investment in the SaaS-based SCM industry in emerging markets. In 2021, Investcorp signed definitive agreements to invest in Linkedcare, China's leading Software-as-a-Service (SaaS) and supply chain management provider for the country's rapidly expanding dental and medical aesthetics industries. Moreover, in Japan, Druva Inc. has launched its Managed Service Provider (MSP) program. The extended initiative, which is part of the Druva Compass Partner Program, is aimed to empower MSPs in the region and help them accelerate their clients' cloud transformation by providing a reliable, simple data protection service.
Global SaaS-Based SCM Market: Competitive Landscape
Companies in the market are introducing new products alongside initiation collaborations, alliances and partnership agreements. For instance, in October 2021, for major distributors looking for additional control and flexibility in managing global operations on a scalable and secure cloud platform, Epicor Prophet 21 offers a new Epicor Cloud Enterprise Services package. On the other hand, Manhattan Associates, Inc. delivers supply chain services that are faster, smarter, easier, expandable, versions, and linked. Their intelligence allows for real-time distribution planning and optimization, which results in more precise and timely operational decisions.
A few of the players in the global SaaS-based SCM market include IBM, Accenture, Oracle Corporation, SAP SE, Blue Yonder Group, Inc., Manhattan Associates, Inc., Infor, The Descartes Systems Group Inc., and HighJump and Kinaxis Inc.
Global SaaS-Based SCM Market is Segmented as Below:
By User Type
By Industry Vertical
Key Elements Included In The Study: Global SaaS-Based SCM Market
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