The global cloud SCM market is predicted to reach $11.0 billion by 2023.
It is being observed that the world’s supply chain and transportation networks are considerably complex, and to gain an edge, every organization wants to replace its old technologies with advanced ones. The increasing need to reduce the complexity in the supply chain and transportation management is one of the key drivers for the growth of the cloud SCM market. Moreover, software vendors are focusing more on the advancement and amalgamation of the technology to offer better solutions for transportation with integrated capabilities, so that logistics firms can easily streamline the supply chain process and experience a cost and time reduction.
Insights on Market Segments
Based on solutions, it has been predicted that the demand planning and forecasting category would witness the highest market CAGR of 20.3% during the forecast period. Such solutions assist in forecasting and achieving replenishment effectively, aligning price and profit margins, and maintaining a profitable supply chain.
Demand management solutions are a boon for supply chain management, as they create an automated ecosystem which maps demand forecasting against multiple factors such as financial predictions, inventory count, and supply restrictions. These factors are resulting in a greater usage of demand management, thereby leading to the significant growth in adoption of demand planning and forecasting solutions.
In the forecast period, the demand for cloud SCM would rise at a faster pace in small and medium enterprises. The market for cloud SCM is predicted to grow in the retail & wholesale and energy & power industries at the same CAGR. In terms of service, the support & maintenance category of the cloud SCM market is predicted to witness the highest CAGR during the forecast period. Private cloud has been observed to be the most preferred deployment type, which would result in its fastest growth during the forecast period.
Market Expected to Witness the Fastest Growth in Asia-Pacific
Due to the rising need for and awareness on the technology, regional governments are supporting various businesses, which is projected to result in the rapid growth of the cloud SCM market in APAC. Rapid automation in various processes by organizations and swift industrialization would be further responsible for the healthy market progress in the region. The growing demand for cost-effective solutions from varied industrial verticals and significant expansion of the e-commerce market are the other factors that would lead to the considerable growth of the market in APAC.
Cloud SCM Market Competitive Landscape
Due to the existence of multiple players in the market, each one of these is focusing on gaining a better foothold, thereby increasing the degree of rivalry. In 2017, Aditya Birla Online Fashion (Abof) implemented Watson and IBM Cloud to deliver a convenient and customized shopping experience to customers. It provides multiple accessibility features, such as receiving personalization and product recommendations as per customers’ preference using natural language questions featured on Abof’s advanced e-commerce solution.
Some of the key players in the cloud SCM market are JDA Software, International Business Machines Corporation (IBM), Logility Inc., Kinaxis, and Oracle Corporation.
CLOUD SCM MARKET SEGMENTATION
Market Segmentation by Solution
Market Segmentation by Service
Market Segmentation by Deployment Type
Market Segmentation by User Type
Market Segmentation by Industry
Market Segmentation by Geography