The size of the supply chain management (SCM) software market worldwide is forecast to grow at a compound annual growth rate of 3.8 percent from 2023 to 2028. The market is projected to have a reach a valuation of over 16 billion U.S. dollars in 2028.

Supply Chain Management Software Market size was valued at USD 30.41 Billion in 2024 and is projected to reach USD 64.64 Billion by 2031, growing at a CAGR of 10.90% during the forecast period 2024-2031.

Emerging trends such as Industry 4.0 and Logistics 4.0 are expected to propel market growth. Industry 4.0 integrates traditional manufacturing processes with cutting-edge technologies like cloud computing, cognitive computing, cyber-physical systems, and the Internet of Things (IoT), driven by digital transformation and increasing customer service expectations. The rising demand for supply chain customization and personalization, alongside heightened online transparency, is further shaping the market landscape. The growing adoption of supply chain management (SCM) software, particularly in the e-commerce sector, is a significant driver of market expansion.

Cloud Supply Chain Management Market size was valued at USD 25.38 Billion in 2023 and is projected to reach USD 280.89 Billion by 2030, growing at a CAGR of 35.09% during the forecast period 2024-2030.

Global Cloud Supply Chain Management Market Drivers

The market drivers for the Cloud Supply Chain Management Market can be influenced by various factors. These may include:

Initiatives for Digital Transformation: To update their operations and maintain their competitiveness, several firms are engaged in digital transformation projects. Scalability, adaptability, and accessibility are features of cloud SCM solutions that complement these transformation objectives.
Globalization and Complex Supply networks: As supply networks become more globalized, businesses must deal with an ever-increasing level of operational complexity. The visibility, communication, and analytical tools required for managing intricate supply chains across borders are provided by cloud SCM solutions.
Demand for Real-Time Visibility: The need for supply chain processes to be visible in real-time is increasing. Real-time tracking of inventory, shipments, and manufacturing processes is made possible by cloud SCM solutions, which improves decision-making and increases responsiveness to variations in supply and demand.
Cost Reduction and Efficiency Gains: By optimizing inventory levels, cutting waste, and streamlining procedures, cloud SCM solutions can help businesses cut expenses. Utilizing cloud-based technologies allows businesses to operate their supply chains more productively and efficiently.
Adoption of IoT and sophisticated Analytics: Supply chain management is increasingly utilizing Internet of Things (IoT) devices and sophisticated analytics. Demand forecasting, predictive maintenance, and operational efficiency can all be enhanced by integrating cloud SCM systems with IoT sensors and devices to gather and analyze data.
Subscription-Based Business structures: Cloud SCM is now more affordable for businesses of all sizes because to the move toward subscription-based software pricing structures. Comparing subscription-based models to traditional on-premises software deployments, the former offers flexibility, scalability, and reduced upfront expenses.
Regulatory Compliance and Sustainability: As regulations pertaining to ethical sourcing, traceability, and sustainability become more stringent, cloud SCM solutions are becoming more and more popular. Throughout the supply chain, these platforms offer the ability to track and report on social and environmental data.

Explore the SCM Software Market trends! Covers key players, growth rate 10.5% CAGR, market size $96.72 Billion, and forecasts to 2034. Get insights now!

This statistic shows the global market share held by the leading supply chain management (SCM) and procurement software vendors from 2009 to 2017. In 2017, SAP's market share was 26.6 percent, by revenue share.

The supply chain management market revenue totaled ~US$ 25.7 Billion for 2023, according to Future Market Insights (FMI’s) latest study. The overall market is expected to reach ~US$ 78.5 Billion by 2033, growing at a CAGR of 11.8% from 2023 to 2033.

Attributes	Details
Supply Chain Management Market Value (2023)	US$ 25.7 Billion
Supply Chain Management Market Forecast Value (2033)	US$ 78.5 Billion
Supply Chain Management Market CAGR (2023 to 2033)	11.8%

2018 to 2022 Supply Chain Management Demand Outlook Compared to 2023 to 2033 Forecast

Historical CAGR (2017 to 2022)	8.9%
Forecast CAGR (2023 to 2033)	11.8%

Supply Chain Management Market: Country-wise Insights

Country	USA
CAGR (2023 to 2033)	9.6%
Market Size (2033)	US$ 16.6 Billion

Country	United Kingdom
CAGR (2023 to 2033)	11.5%
Market Size (2033)	US$ 3.5 Billion

Country	China
CAGR (2023 to 2033)	11.8%
Market Size (2033)	US$ 8 Billion

Country	Japan
CAGR (2023 to 2033)	14.9%
Market Size (2033)	US$ 6.7 Billion

Country	South Korea
CAGR (2023 to 2033)	10.1%
Market Size (2033)	US$ 2.2 Billion

Attributes	Details
Market Size (2033)	US$ 16.6 Billion
Market Absolute Dollar Growth (US$ Billion/Billion)	US$ 10 Billio

Historical CAGR (2017 to 2022)	7.1%
Forecast CAGR (2023 to 2033)	9.6%

Attributes	Details
Market Size (2033)	US$ 6.7 Billion
Market Absolute Dollar Growth (US$ Billion/Billion)	US$ 5 Billion

Historical CAGR (2017 to 2022)	12.3%
Forecast CAGR (2023 to 2033)	14.9%

Supply Chain Management Market: Category-wise Insights

Taxonomy	Solution
Top Segment	Software
Forecast CAGR	12.8%

Taxonomy	Enterprise Size
Top Segment	Large Enterprises
Forecast CAGR	11.6%

Historical CAGR (2017 to 2022)	8.4%
Forecast CAGR (2023 to 2033)	11.6%

Supply Chain Risk Management Software Market size was valued at USD 1.28 Billion in 2024 and is projected to reach USD 2.98 Billion by 2031, growing at a CAGR of 12.29% during the forecasted period 2024 to 2031.

The Supply Chain Risk Management Software market is driven by increasing awareness of supply chain vulnerabilities, fueled by recent global disruptions such as the COVID-19 pandemic, geopolitical tensions, and natural disasters. Companies are seeking tools to enhance resilience, transparency, and agility in their supply chains to mitigate risks associated with supplier instability, logistical bottlenecks, and compliance challenges. Advanced technologies like artificial intelligence, machine learning, and predictive analytics embedded in risk management software allow businesses to proactively identify, assess, and respond to potential threats, minimizing financial losses and maintaining operational continuity. Additionally, rising regulatory requirements and sustainability expectations are pushing organizations to invest in robust risk management solutions to ensure compliance and align with environmental, social, and governance (ESG) goals, further supporting market growth.

The global supply chain management (SCM) market was valued at USD 27.13 billion in 2021 and is expected to grow at a CAGR of 9.4% during the forecast period.

United States supply chain management software market size is projected to exhibit a growth rate (CAGR) of 4.65% during 2024-2032. The inflating need among various organizational departments, including sales and marketing, customer services, and support, for elevating client experience and foster robust connections with potential customers is primarily driving the market growth.

According to Cognitive Market Research, the global Supply Chain Procurement Software market size will be USD 7512.5 million in 2024. It will expand at a compound annual growth rate (CAGR) of 123.74% from 2024 to 2031.

North America held the major market share for more than 40% of the global revenue with a market size of USD 3005.00 million in 2024 and will grow at a compound annual growth rate (CAGR) of 8.8% from 2024 to 2031.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 2253.75 million.
Asia Pacific held a market share of around 23% of the global revenue with a market size of USD 1727.88 million in 2024 and will grow at a compound annual growth rate (CAGR) of 12.6% from 2024 to 2031.
Latin America had a market share of more than 5% of the global revenue with a market size of USD 375.63 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.0% from 2024 to 2031.
Middle East and Africa had a market share of around 2% of the global revenue and was estimated at a market size of USD 150.25 million in 2024 and will grow at a compound annual growth rate (CAGR) of 10.3% from 2024 to 2031.
The Cloud-based deployment segment category is the fastest growing segment of the Supply Chain Procurement Software industry

Market Dynamics of Supply Chain Procurement Software Market

Key Drivers for Supply Chain Procurement Software Market

Growing adoption of digital transformation initiatives accelerates the need for automated procurement systems

The ongoing digital transformation across industries is fundamentally reshaping procurement processes, leading to a significant rise in the adoption of automated procurement systems. Organizations are increasingly recognizing the importance of integrating technology to enhance operational efficiency, reduce costs, and improve decision-making capabilities. Automated procurement systems streamline workflows, minimize manual errors, and provide real-time visibility into spending, inventory, and supplier performance. This shift is driven by the need for agility in responding to market demands and managing supplier relationships effectively. As companies invest in digital tools, they can leverage data analytics and artificial intelligence to gain insights that inform procurement strategies. The automation of procurement processes not only enhances efficiency but also fosters collaboration among stakeholders, enabling organizations to achieve greater transparency and optimize their supply chain operations in an increasingly competitive landscape. For instance, strategy and management consultancy Kearney acquired a Germany-based software firm, Optano, to optimize its supply chain planning. Optano’s AI-driven software will enable businesses to optimize their supply chain processes, from production through planning and transport, and increase demand for optimization services and supply chain re-design.

Greater emphasis on supply chain efficiency and transparency boosts procurement software usage

In today’s fast-paced business environment, organizations are placing greater emphasis on supply chain efficiency and transparency, significantly driving the usage of procurement software. Efficient supply chain management is crucial for minimizing costs, reducing lead times, and enhancing overall performance. As companies face challenges like global sourcing, fluctuating demand, and regulatory compliance, procurement software provides the necessary tools to address these complexities. By automating procurement processes, businesses can ensure better visibility into their supply chain activities, allowing for more informed decision-making. Transparency in procurement fosters trust among stakeholders, enables better supplier relationship management, and facilitates compliance with ethical sourcing practices. Furthermore, with the rise of sustainability initiatives, procurement software plays a vital role in tracking and reporting on sustainability metrics, thereby aligning procurement strategies with broader organizational goals and enhancing the competitive edge in the market.

Restraint Factor for the Supply Chain Procurement Software Market

Resistance to change from traditional procurement methods can hinder software implementation efforts

Resistance to change from traditional procurement methods presents a significant barrier to the successful implementation of modern procur...

In 2022, Demand Planning led the supply chain management (SCM) software market with a market share of 35 percent. Other vendors following Demand Planning in terms of market share were JDA, SAP Supply Chain Management and o9. As noted by the source, SCM software is commonly used for creating and fulfilling demands for goods and services.

Global supply chain management (scm) software market size is expected at $10,368.04 million by 2033 at a growth rate of 11.13%

Supply Chain Planning System of Record Market size was valued at USD 8.4 Billion in 2024 and is projected to reach USD 25.6 Billion by 2031, growing at a CAGR of 10.6% during the forecast period 2024-2031.

Global Supply Chain Planning System of Record Market Drivers

Increasing Complexity of Supply Chains: Modern supply chains are becoming more complex due to globalization, diverse product ranges, and intricate logistics. This complexity necessitates advanced planning systems that can handle and optimize multifaceted supply chain operations.

Demand for Real-Time Data and Analytics: Companies are increasingly recognizing the value of real-time data and advanced analytics for making informed decisions. SCP SOR solutions provide real-time visibility into supply chain activities, enabling proactive management and improved decision-making.

Need for Integrated Solutions: The push towards integrated supply chain solutions that can synchronize various functions—such as procurement, production, inventory, and distribution—drives the adoption of SCP SOR systems. These systems offer a holistic view and coordination across the entire supply chain.

Technological Advancements: Innovations in technologies such as artificial intelligence (AI), machine learning (ML), and the Internet of Things (IoT) enhance the capabilities of SCP SOR solutions. These technologies enable predictive analytics, automation, and enhanced forecasting, improving supply chain efficiency and resilience.

E-commerce Growth: The rapid growth of e-commerce demands more agile and responsive supply chain planning systems. SCP SOR solutions help manage the increased volume and velocity of orders, ensuring timely fulfillment and efficient inventory management.

Supply Chain Disruptions: The COVID-19 pandemic and other recent global events have highlighted the vulnerability of supply chains to disruptions. Businesses are investing in SCP SOR solutions to build more resilient and adaptive supply chains that can respond quickly to unforeseen events.

Sustainability and Ethical Sourcing: Increasing emphasis on sustainability and ethical sourcing requires transparent and traceable supply chains. SCP SOR systems provide the necessary tools to track and manage sustainability metrics and ensure compliance with ethical standards.

Regulatory Compliance: Adherence to various regulatory requirements, such as customs regulations, trade tariffs, and industry-specific standards, drives the need for sophisticated planning systems. SCP SOR solutions help businesses navigate and comply with these regulations effectively.

Cost Optimization: Companies aim to reduce operational costs and improve margins through better supply chain planning. SCP SOR systems optimize inventory levels, reduce excess stock, and streamline logistics, leading to significant cost savings.

Enhanced Collaboration: The need for improved collaboration and communication among supply chain partners drives the adoption of SCP SOR solutions. These systems facilitate better coordination between suppliers, manufacturers, and distributors, enhancing overall supply chain performance.

The supply chain management market size is projected to grow from USD 31.27 billion in 2024 to USD 94.71 billion by 2035, representing a CAGR of 10.60%, during the forecast period till 2035.

The size and share of the market is categorized based on Type (Cloud Deployment, Local Deployment) and Application (Electronic Products, Food And Drink Industry, Transportation and Logistics, Other) and geographical regions (North America, Europe, Asia-Pacific, South America, and Middle-East and Africa).

The inventory management software market is projected to be valued at US$ 2,191.2 million by the end of 2024 and is expected to rise to US$ 7,516.8 million by 2034. The global inventory management software industry is expected to grow at a CAGR of 13.1% during the forecast period.

Attributes	Key Statistics
Expected Base Year Value (2024)	US$ 2,191.2 million
Anticipated Forecast Value (2034)	US$ 7,516.8 million
Estimated Growth (2024 to 2034)	13.1% CAGR

Category-wise Insights

Attributes	Details
Component	Software
Market Share	72.9%

Attributes	Details
Deployment	SaaS
Market Share	84.4%

Country-wise Insights

Countries	CAGR
The United States	10.0%
Germany	12.6%
Japan	14.4%
China	13.6%
Australia	16.6%

In 2020, the global supply chain management market was valued at 15.85 billion U.S. dollars and is expected to reach almost 31 billion U.S. dollars by 2026. In 2020, Germany's SAP was the leading supply chain management software supplier with revenue of around 4.4 billion U.S. dollars.

Global supply chain management market size is expected to grow from USD 20.41 Bn in 2023 to USD 42.21 Bn by 2032, at CAGR of 19.00% from 2024-2032

The U.S. Supply Chain Management Software Market was valued at USD 12.45 Billion in 2024 and is projected to reach USD 21.72 Billion by 2032, growing at a CAGR of 7.2% from 2025 to 2032.

U.S. Supply Chain Management Software Market Dynamics

The key market dynamics that are shaping the U.S. Supply Chain Management Software Market include:

Key Market Drivers

• Increasing Adoption of Cloud-based Solutions: The US Supply Chain Management (SCM) software market is gaining momentum due to the rise of cloud-based solutions, with Gartner predicting that these solutions will account for 45% of the market by 2024. Cloud computing offers scalability, flexibility, and cost efficiency, enabling businesses to manage their supply chains more effectively across multiple locations.

The report covers Healthcare Supply Chain Companies and it is Segmented by Component (Software Application and Hardware Type), Delivery Mode (On-premise and Cloud-based), End-User (Healthcare Providers, Healthcare Manufacturers, and Others), and Geography (North America, Europe, Asia-Pacific, Middle East and Africa, South America).