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South America Supply Chain Management Market to Reach $3.7 Billion by 2023

South America Supply Chain Management Market to Reach $3.7 Billion by 2023

Published: September 2018

South America supply chain management market is expected to reach $3.7 billion by 2023, according to P&S Intelligence.

Growth in e-commerce industry, need for greater supply chain visibility, and surge in demand planning solutions are the major factors driving the market growth.

Insights on market segments

Based on component, the supply chain management market in South America has been categorized into software, hardware, and services. The software category held the majority share in the market, accounting 67% share in 2017, and is expected to witness a CAGR of 7.6%, during the forecast period. The major factor attributing to its largest share in the market is the increasing need to make the supply chains as transparent as possible in order to increase customer satisfaction.

South America Supply Chain Management Market

In terms of delivery mode, on-premise mode in the supply chain management market in the region held a higher revenue share in 2017 and is expected to maintain its lead, during the forecast period. Compliance issues with cloud SCM is a major factor for the deployment of on-premise delivery mode. Companies often regulate storage of critical information on the cloud due to security concern associated with the cloud.

Browse report overview with 170 tables and 98 figures spread through 219 pages and detailed TOC on "South America Supply Chain Management (SCM) Market By Component (Software [Purchasing Management {Supplying Management Transportation Management, Procurement, Strategic Sourcing, Capital Purchasing}, Inventory Management {Warehouse Management, Order Management}], Hardware [Barcodes and Barcode Scanners, Systems, RFID Tags and Readers], Services [Managed, Professional {Implementation, Support and Maintenance, Training and Consulting}]), by Delivery Mode (On-Premise, Cloud-based), by Industry (Transportation and Logistics, Manufacturing, Retail and Wholesale, Healthcare and Lifesciences, Food and Beverage), by Enterprise Size (Large Enterprises, SMEs) by Country (Brazil, Argentina, Chile, Peru, Columbia) – South America Market Size, Share, Development, Growth and Demand Forecast, 2013–2023" at:https://www.psmarketresearch.com/market-analysis/south-america-supply-chain-management-market

Moreover, if the company has already invested heavily in its on-premise solution, it will be reluctant to invest in cloud solution. On the other hand, the cloud-based delivery mode is expected to witness a CAGR of 14.0% during the forecast period. This growth will be mainly led by the capacity of cloud-based to offer ease of deployment and cost-effective solutions.

Brazil is expected to hold the largest revenue share in the market

During the forecast period, Brazil is projected to record largest revenue in the South American market, reaching $1.2 billion by 2023, buoyed by increasing e-commerce sector in Brazil. Transportation and logistics industry is one of the major contributors to the growth of the supply chain management market in Brazil due to rising development of warehouses to meet the growth of e-commerce market. However, poor transport infrastructure and lack of government spending on the infrastructure development are expected to hinder the growth of the market in Brazil.

Growth in the e-commerce industry is a key growth driver for the market

With the increase in smartphone ownership, internet penetration, and the rise in middle-class population, South America recorded a boom in its e-commerce industry in recent years. The industry growth is also propelled by improvement in the delivery of goods as well as the payment infrastructure. The growth in e-commerce industry, coupled with express delivery of products, led to higher demand for SCM solutions in the region.

Besides, the industry growth encouraged international companies to set-up their businesses in the region. For instance, in February 2018, Amazon was planning to lease a 50,000 square-meter warehouse outside of Sao Paulo to expand its business in Brazil. With growing presence of multinational companies in the region, demand for warehouse management software serving the growing e-commerce industry has considerably risen.

South America supply chain management market competitiveness

In the recent years, client wins, product launches, and updates as well as collaborations between companies for products and services were the major activities in the SCM industry in South America. International Business Machines (IBM) Corporation, Kinaxis Inc., and Oracle Corporation, were the major companies that exhibited client wins for their supply chain solutions and services. SAP SE, and JDA Software Group Inc. entered into collaboration with several companies to offer enhanced SCM planning solutions.

Some of the other key players operating in the South America supply chain management market are Logility Inc., TECSYS Inc., LogiTag Systems, Walmart Inc., Cisco Systems Inc., Intel Corporation, The Descartes Systems Group Inc., and Infor Inc.

South America supply chain management Market Segmentation

Market Segmentation by Component

Software
- Purchasing management software
  - Supplying management software
  - Procurement software
  - Capital purchasing software
  - Strategic sourcing software
  - Transportation management software
- Inventory management software
  - Order management software
  - Warehouse management software
Hardware
- Barcodes and barcode scanners
- Systems
- RFID tags and readers
Services
- Managed
- Professional
  - Training and consulting
  - Support and maintenance
  - Implementation

Market Segmentation by Delivery Mode

On-premise
Cloud-based

Market Segmentation by Industry

Food and Beverage
Healthcare and Lifesciences
Manufacturing
Retail and Wholesale
Transportation and Logistics
Others (Government, and Oil & Gas)

Market Segmentation by Enterprise Size

Small and Medium Enterprises (SMEs)
Large Enterprises

Market Segmentation by Country

Brazil supply chain management Market
- By component
- By delivery mode
- By industry
- By enterprise size
Argentina supply chain management Market
- By component
- By delivery mode
- By industry
- By enterprise size
Chile supply chain management Market
- By component
- By delivery mode
- By industry
- By enterprise size
Peru supply chain management Market
- By component
- By delivery mode
- By industry
- By enterprise size
Colombia supply chain management Market
- By component
- By delivery mode
- By industry
- By enterprise size
Rest of South America supply chain management Market
- By component
- By delivery mode
- By industry
- By enterprise size