LONDON--(BUSINESS WIRE)--Technavio’s latest ICT industry report covers the present scenario and growth prospects for the global supply chain management (SCM) market during the period 2016-2020.
In this report, Technavio’s enterprise application research experts announce their key market highlights for the global SCM market. Their findings include:
Global supply chain management (SCM) market expected to grow at a CAGR of over 11% in terms of revenue during 2015−2020
The global SCM software market was valued at over USD 11 billion in 2015. The demand for greater visibility of the entire supply chain and the need for increased productivity drives the market for SCM software. Organizations utilize these software solutions to boost productivity and decision-making. The software also helps maintain their market position in the competitive business environment.
One of Technavio’s lead analysts Amrita Choudhury, who specializes in enterprise application said, “As multinational organizations are opening their branches in BRIC nations, it is increasing supply chain complexities, therefore augmenting the need for implementing SCM solutions. This factor coupled with trade globalization is increasing the demand for SCM software in many developing countries.”
Global, the supply chain planning (SCP) segment held the highest share in the global SCM software market in 2015
SCP is the process of coordinating assets to optimize the delivery of goods and services with all relevant details. These details relate to the exchange of essential information between suppliers and customers. Planning includes the total number of marketing channels required for promotions, policies related to inventory, and replenishment control and production. The global SCP segment held the highest share in the global SCM software market, with a share of close to 35% in 2015.
High demand for SCP software is driven by the need for inventory planning. Enterprises currently use SCP software for demand planning, inventory planning, and asset planning. However, the need to reduce corporate costs is also expected to drive the importance of SCP in enterprises during the forecast period.
Adoption of software-as-a-service (SaaS)-based SCM is a major factor in the growth of global market
SMEs adopt SaaS-based SCM technologies because of its ease of implementation and high efficiency. SaaS makes SCM software accessible to companies that cannot otherwise afford it. The availability of SaaS-based SCM software enables companies to implement SCM by merely deploying modules specific to their needs.
As SMEs are expected to use transport management systems (TMS) solutions to manage freight prices, the global TMS market is predicted to expand at a faster pace compared to other segments of the global SCM software market in the next four years.
Americas held the maximum share of 49.77% of the market share in 2015
The US is the leading country in the SCM market in the Americas as well as globally. The IT software market in the US gains a majority of its revenue from the enterprise applications software segment, and it is the biggest revenue generator for the global SCM software market. SCM software also holds the majority share in the enterprise applications software market. The need to increase operational efficiency, reduce supply chain costs, and modernize logistics and warehouse operations are some of the key factors that drive the demand for SCM software in the US.
Browse related reports:
- SaaS-Based SCM Market: Global Research Report 2015-2019
- Cold Chain Market in Europe 2015-2019
- Transportation Management System (TMS) Market in North America
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Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, re-sellers, and end-users.
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