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Global SaaS-based SCM Market to Exhibit 16% During 2022-2027, Impelled by Rapid Digitization

Published on Feb 23, 2021

IMARC Group’s latest report, titled “SaaS-based SCM Market: Global Industry Trends, Share, Size, Growth, Opportunity and Forecast 2022-2027,” finds that the global SaaS-based SCM market reached a value of US$ 6.04 Billion in 2021. Software-as-a-Service-based supply chain management (SaaS-based SCM) is the software utilized to manage on-premises and on-cloud supply chain processes. It is used to maintain the inventory record, which aids in increasing productivity while eliminating the duplication of work and standardizing processes. The software provides a faster return on investment with a limited workforce and lowers capital expenses and operating costs. It finds application in sourcing and procurement, order management, demand and operations planning and inventory, and warehouse and transportation management.

We are regularly tracking the direct effect of COVID-19 on the market, along with the indirect influence of associated industries. These observations will be integrated into the report.

Global SaaS-based SCM Market Trends:

The SaaS-based SCM market is primarily driven by the growing adoption of automated and pre-programmed machinery across various organizations and manufacturing units. SaaS-based SCM helps store data on servers to prevent the sudden loss of information in case of uncertainties. The software also provides constant monitoring and operational security that minimizes the cost and overall time taken to produce goods and cater services. Besides this, rapid urbanization, increasing digitization, and expanding logistics and transportation industries have escalated the demand for SaaS-based SCM solutions. Moreover, the market players are focusing on improving SaaS-based SCM solutions to ensure competence and effectiveness. They are also integrating SaaS-based SCM platforms with the Internet-of-Things (IoT) and developing hybrid and pay-as-you-go models. On account of these factors, the market value is expected to grow at a CAGR of 16% during the forecast period (2022-2027).

Market Summary:

  • Based on the solution, the market has been bifurcated into software and services. At present, services hold the largest market share.
  • On the basis of the deployment mode, the market has been segmented into public, private, and hybrid. Amongst these, the hybrid segment accounts for the majority of the market share.
  • Based on the end user, small and medium enterprises represent the largest end user, followed by large enterprises.
  • On the basis of the application, the market has been segregated into transportation management, inventory and warehouse management, sourcing and procurement management, order management, demand and operations planning, and others.
  • Based on the vertical, consumer goods and retail dominate the market. Other major segments include food and beverages, healthcare and life sciences, manufacturing, transportation and logistics.
  • Region-wise, Europe (Germany, France, the United Kingdom, Italy, Russia ,Spain and Others) exhibits a clear dominance in the market. Other major regions are North America (the United States and Canada), Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia and others), Latin America (Brazil, Mexico and others), and Middle East and Africa.
  • The competitive landscape of the market has been examined, with some of the key players being Blue Yonder Inc., Descartes Systems Group Inc., Epicor Software Corporation (KKR & Co. Inc.), Highjump Software Inc. (Korber AG), International Business Machines Corporation, Infor Inc. (Koch Industries, Inc), Kinaxis Inc., Logility Inc. (American Software Inc.), Manhattan Associates Inc., Oracle Corporation, and SAP SE.

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