Analyst report: Supply chain analytics to grow at nearly 18% pace through 2027
Rise in need of improving operational and supply chain efficiencies, increase in adoption of Big Data technologies, and supporting initiatives by transportation & logistics for Big Data projects drive the growth of supply chain analytics
A new report by Allied Market Research on the supply chain analytics software and services market finds that the global supply chain analytics market generated $4.53 billion in 2019, and is expected to garner $16.82 billion by 2027, growing at a CAGR of 17.9% from 2020 to 2027.
Rise in need of improving operational and supply chain efficiencies, increase in adoption of Big Data technologies, and supporting initiatives by transportation & logistics for Big Data projects drive the growth of the global supply chain analytics market. However, inaccuracies in data and lack of skilled IT staff restrain the market growth. On the other hand, growth in awareness regarding benefits of supply chain analytics and surge in demand for cloud-based supply chain analytics solution are anticipated to present new opportunities in the coming years.
According to Allied Market Research, the Covid-19 outbreak has considerably enhanced the growth of the supply chain analytics market. The demand for supply chain analytics has increased across various industries. At the same time, the demand for supply chain analytics is anticipated to elevate post-pandemic, as it would enable the companies to examine business continuity scenarios.
Software held the largest portion of supply chain analysts market in 2019, accounting for nearly two-thirds of the total, and is expected to maintain its dominant share during the forecast period. This is attributed to the advantages offered by supply chain analytics solutions such as reduced inventory costs using smart demand sensing, increased responsive transport logistics, new sales & operations execution (S&OE) workflows, optimization of work plans and more. However, the services segment is expected to witness the highest CAGR of 17.9% from 2020 to 2027, owing to its adoption to ensure effective functioning of software and platforms throughout the predictive analysis process.
Based on industry vertical, the retail and consumer goods segment contributed to the highest market share in 2019, accounting for more than one-fourth of the total share of the global supply chain analytics market, and is projected to maintain its leadership status by 2027. This is due to high demand for advanced solutions to manage the supplier network, Omni-channel sales, and risk management in supply chain of retail companies. However, the automotive segment is expected to grow at the highest CAGR of 24.9% during the forecast period, owing to increased adoption of automation & following Industry 4.0 trend, especially in Europe.
