The cloud supply chain management market is evaluated at US$14.307 billion for the year 2019 and is projected to grow at a CAGR of 13.81% to reach the market size of US$35.395 billion by the year 2026.
The growth of the cloud supply chain management market is majorly attributed to the continuous shifting of business processes towards the cloud as enterprises continue to increase their focus on agility while adopting solutions that can increase their profit margins by streamlining the business processes. The increasing focus of enterprises towards ensuring business continuity is anticipated to push them towards cloud-based supply chain management solutions which aid in mitigating potential risks associated with the supply chain, which is boosting the growth of the market. Solid growth of the market is anticipated over the projected period as e-commerce continues to show rapid growth across all major regions around the globe. Growing competition across industries is fueling the adoption of advanced cloud supply chain management solutions among enterprises as they seek to remain ahead of their competitors, which is further projected to boost the growth of the market.
The recent outbreak of the novel coronavirus disease had a positive impact on the cloud supply chain management market. As the lockdowns and strict COVID-19 measures led to the shutting down of factories for various end-use industries of the market such as manufacturing, retail, automotive, among others, the market growth for the cloud supply chain management market also declined initially. However, as the supply chains were disrupted due to COVID-19, increased adoption of cloud supply chain management was witnessed after the initial few months as the companies took a lesson from the first wave and started building their supply chains more robust.
Rising use of cloud supply chain management in logistics and transportation management.
Various companies are increasingly replacing their traditional logistics and transportation management with cloud technology which is one of the major factors anticipated to drive the growth of the cloud supply chain management market during the forecast period. The supply chain has become extremely complex today and hence companies are adopting cloud supply chain management in logistics and transportation management as it provides a high level of visibility into the supply chain. Furthermore, it reduces costs and improves efficiency along with providing greater oversight to help avoid consumer shortages. Owing to these advantages, a large number of companies are moving to cloud technology for managing their logistics and transportation. For instance, in July 2021, E2open announced to be working with Tesco PLC, a UK-based multinational grocery and general merchandise retailer, to modernize and streamline the logistics and transportation of Tesco with the cloud supply chain management system. With this announcement, Tesco replaced its traditional transport management system with the E2open platform for better transport execution, visibility, supply collaboration, and invoice processes.
Rise of cloud computing.
A large number of organizations are switching to cloud computing which is anticipated to have a positive impact on the cloud supply chain management market during the forecast period. Cloud computing allows companies to store huge amounts of data without the need of setting up an IT infrastructure themselves, which saves the companies cost and time. It allows the companies to focus completely on their core business, as the cloud computing is provided by third parties, reducing the cost of managing and maintaining the IT systems, which is leading to rising demand for cloud computing and hence is anticipated to propel the growth of the cloud supply chain management market in the coming years. In June 2021, Ferrari entered into an agreement with Amazon Web Services (AWS) and made it its official cloud provider. As per Ferrari, the move was taken to transform it into a data-driven organization that utilizes the power of technology for upgrading its products and customer engagements, along with also being able to provide better driving experiences. Similarly, more and more companies are adopting cloud computing for upgrading their businesses, which is one of the prominent factors anticipated to drive market growth in the coming years.
North America to hold a significant market share.
Geographically, the North American region is anticipated to hold a significant market share as the industries in the region are technologically advanced and hence have a higher tendency to adopt technologies like cloud supply chain management. The Asia Pacific region is anticipated to witness substantial growth during the forecast period due to rising investments in cloud-based solutions. According to CAICT, the cloud computing market in China is projected to increase 1.8 times between 2019 and 2023, reaching a market size of 375.42 billion yuan by 2023. Furthermore, the rising number of start-ups in the region providing cloud-based solutions is anticipated to propel the growth of the market during the forecast period.
|Market size value in 2019||US$14.307 billion|
|Market size value in 2026||US$35.395 billion|
|Growth Rate||CAGR of 13.81% from 2019 to 2026|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Solution, Deployment Model, Enterprise Size, End-Use Industry, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||SAP SE, Infor, Inc., Oracle Corporation, The Descartes Systems Group Inc., JDA Software Group, Inc., Manhattan Associates, Inc., Logility, Inc., Kinaxis, Inc., HighJump Software, LLC, BluJay Solutions, CloudLogix Inc.|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What is the size of the global cloud supply chain management market?
A1. Cloud Supply Chain Management Market was valued at US$14.307 billion in the year 2019.
Q2. What will be the cloud supply chain management market size by 2026?
A2. The global cloud supply chain management market is projected to reach a market size of US$35.395 billion by 2026.
Q3. What are the growth prospects for the cloud supply chain management market?
A3. The cloud supply chain management market is projected to grow at a CAGR of 13.81% during the forecast period.
Q4. What factors are anticipated to drive the cloud supply chain management market growth?
A4. Various companies are increasingly replacing their traditional logistics and transportation management with cloud technology which is one of the major factors anticipated to drive the cloud supply chain management market growth.
Q5. Which region holds the maximum share of the cloud supply chain management market?
A5. Geographically, the North American region is anticipated to hold a significant share of the cloud supply chain management market.