[319 Pages Report] The global supply chain analytics market size is expected to grow from USD 3.5 billion in 2020 to USD 8.8 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 19.8% during the forecast period. Increasing volume and velocity of data, need to enhance operation and supply chain efficiencies, and the advent of Artificial Intelligence (AI) and machine learning into supply chain management would drive the market growth. However, data security issues and inaccuracies in data sets are expected to restrain the market growth. Factors such as increasing adoption of cloud-based supply chain analytics and increasing awareness of supply chain analytics tools among organizations would create opportunities.

COVID-19 impact on the global supply chain analytics market

Since the start of 2020, COVID-19 took its toll over China, leading to the supply shortage. Disruptions were witnessed in the availability of goods sourced from China, which included finished goods for sale as well as raw materials for the factories. As the countries started instituting lockdowns, supply chains started witnessing demand shocks as people started piling up consumer staples for complying with movement restrictions. On the production side, factory owners began maximizing the production by using full spare capacity to meet the demand.

Market Dynamics

Driver: Increasing volume and velocity of data

Rising data, together with the persistent requirement for a unified cost-saving solution, is expected to uplift the demand for advanced analytics solutions across industry verticals. Big data has evolved as a pivotal element in building business development strategies. Moreover, a few of the primary concerns of companies are cost-cutting and resource-saving, which can be achieved through appropriate optimization of their supply chain. Hence, the use of data enhances the analytical power of such analytical solutions and provides companies with valuable insights into the root causes of lost productivity and diminished velocity. These insights further offer better visibility into supply chain performance, enabling companies to control the flow of their resources and target their improvement initiatives.

Supply chain analytics provides companies with advantages, such as cost containment, transportation network design, and route optimization, inventory optimization, risk management, customer collaboration, and global integration in their supply chains. Furthermore, the use of IoT devices across industry verticals, such as automotive, healthcare, and manufacturing, has also led to the generation of the voluminous amount of data creating a surge among companies to apply such solutions in their supply chain.

Restraint: Growing concerns for data security across enterprises

The enterprises adopting supply chain analytics solutions face security and privacy issues. Enterprises possess confidential data, which needs to be protected to avoid data breaches and theft, as it may affect the reputation of enterprises. The enterprises� data may leak over the internet and can be accessed by unauthorized users, which is the growing concern. For example, the Transportation Management System (TMS) needs multitenant architecture, in which a single version of the software runs on a server that is shared by multiple customers. Here, there is a possibility that subscribers of an enterprise can view the data of competitors. These security issues relating to the data access by unauthorized users would threaten the enterprise data security and competitive business position as well. Hence, these issues relating to security and privacy increase the concern among enterprises, thus restraining the growth of the supply chain analytics market during the forecast period.

Opportunity: Increasing adoption of cloud-based supply chain analytics

With the growing complexities and the increasing need for real-time analysis of data across the supply chain ecosystem, organizations are inclined toward the adoption of cloud-based supply chain analytics solutions. The use of cloud-based analytics solutions mainly helps in tracking and analyzing the overall supply chain activities across the forward and backward supply chain ecosystem. Moreover, features of the cloud, such as cost-effectiveness, agility, ease of use and integration, planning, and scalability, are attracting various supply chain management solution providers.

The global supply chain systems need extensive setups or modifications in transportation and incur a secondary cost for enterprises, which, in turn, increases the investment costs. The rise in complexity and extra costs lead the enterprise to adopt end-to-end supply chain visibility, such as a cloud-based supply system for transportation management. The cloud-based supply chain analytics solutions in logistics and transportations enable enterprises to connect, engage, and collaborate with customers, business partners, and suppliers. It also helps enterprises build a secure, reliable, and integrated system for the transportation management system, which gives real-time information to consumers. These benefits enhance the growth of cloud-based supply chain analytics solutions across industry verticals, including electronics equipment manufacturing, automotive, F&B manufacturing, machinery, and industrial equipment manufacturing, pharmaceuticals, government, and energy and utilities.

Challenge: Lack of skilled personnel

The rise of big data across industry verticals has led to the generation of the voluminous amount of data, which needs to be correctly modeled, integrated, wrangled, and then analyzed to gain specific insights. From data ingestion to data reporting, specific skills are required by the data scientist teams to understand and uncover the patterns that help marketers make proper decisions. The biggest challenge faced by the supply chain industry is the dearth of skilled professionals.

According to a Teradata survey, 48% of enterprises face big data analytics skill gap in 2017. Moreover, roles such as information leaders, chief data officers, data scientists, and information architects are expected to witness an increased demand in the coming years. The sudden increase in the need for data scientists results in a skill gap in the market. To overcome this challenge, several enterprises are collaborating with academic institutions to offer different courses in big data and business analytics to ensure that a strong and skilled workforce is available to extract insights from big data and business analytics.

Software segment to constitute a larger market size during the forecast period

The supply chain analytics market by component covers software and services. The software segment outperforms the services segment and would see maturation in the future due to the higher adoption of software. The demand for software, such as inventory analytics, demand analysis & forecasting, and supplier performance analytics, would drive the market growth.

Demand analytics and forecasting segment to hold the largest market size during the forecast period

The demand analysis and forecasting software is one of the major software in the supply chain analytics market that helps companies forecast the future demands for a product through historical data analysis. Demand forecasting helps the company manage inventory levels during peaks and troughs, thereby ensuring the products are not overstocked or understocked. The demand analysis and forecasting solution facilitate businesses to boost their service levels, shorten cycle times, reduce inventory investment, and minimize obsolescence. With the advancements in machine learning and AI, the demand forecasting tools have become super-efficient that helps traders optimize resource utilization, increase product availability, and enhance profitability by managing supply and demand variability.

Cloud deployment model to grow at a higher CAGR during the forecast period

The cloud deployment model is expected to grow at a higher CAGR during the forecast period. Cloud-based solutions are gaining a firm hold in the market due to various benefits, such as cost control, resource pooling, and less implementation time. Cloud deployment offers flexibility, scalability, and cost-effectiveness benefits. It also enables an enterprise to have more control over the server, infrastructure, and systems that can be configured as per the business requirements

North America to account for the largest market size during the forecast period

The global supply chain analytics market by region covers five major geographic regions: North America, Asia Pacific (APAC), Europe, Middle East & Africa (MEA), and Latin America. North America is expected to account for the largest market size during the forecast period. North America is expected to hold the highest market share and dominate the market from 2020 to 2025, due to the presence of a large number of solution vendors in the US. Major retail chains across the US and Canada have already embraced analytics in its supply chain processes and are gaining numerous benefits from it. For instance, Walmart initiated its own Walmart Data Caf�, which was developed on SAP HANA�s in-memory engine. Walmart Data Caf� gathers around 200 streams of data from both internal and external sources, which include 40 petabytes of the recent transactional data. The data is analyzed and offers a bird�s eye view to operational staff that makes use of such timely information to make strategic decisions.

Key Market Players

The supply chain analytics market comprises major solution providers, such as SAP (Germany), Oracle (US), IBM (US), SAS Institute (US), Software AG (Germany), MicroStrategy (US), Tableau (US), Qlik (US), TIBCO (US), Cloudera (US), Logility (US), Savi Technology (US), Infor (US), RELEX Solutions (Finland), TARGIT(Denmark), Voxware (US), The AnyLogic Company (US), Antuit (US), Axway (US), AIMMS (Netherlands), BRIDGEi2i (India), Domo (US), Datameer (US), 1010data(US), Rosslyn Analytics(UK), Blue Yonder (US), Manhattan Associates (US), and DataFactZ (US)./

The study includes an in-depth competitive analysis of these key players in the supply chain analytics market with their company profiles, recent developments, and key market strategies.

Scope of the Report

Report Metric Details Market size available for years 2014�2025 Base year considered 2019 Forecast period 2020�2025 Forecast units Billion (USD) Segments covered Component, Software, Services, Deployment Mode, Organization Size, Industry Verticals, and Regions Geographies covered North America, APAC, Europe, Latin America, and MEA Companies covered SAP (Germany), Oracle (US), IBM (US), SAS Institute (US), Software AG (Germany), MicroStrategy (US), Tableau (US), Qlik (US), TIBCO (US), Cloudera (US), Logility (US), Savi Technology (US), Infor (US), RELEX Solutions (Finland), TARGIT (Denmark), Voxware (US), The AnyLogic Company(US), Antuit(US), Axway (US), AIMMS (Netherlands), BRIDGEi2i (India), Domo (US), Datameer (US), 1010data(US), Rosslyn Analytics(UK), Blue Yonder (US), Manhattan Associates (US), and DataFactZ (US).

This research report categorizes the supply chain analytics market based on components, software, services, deployment mode, organization size, industry verticals, and regions.

Based on the component:

Software

Services

Based on software:

Demand analysis and forecasting

Supplier performance analytics

Spend and procurement analytics

Inventory analytics

Transportation and logistics analytics

Based on services:

Managed services

Professional services Consulting services Support and maintenance services Deployment and integration services



Based on deployment models:

On-premises

Cloud

Based on organization size:

Large enterprises

Small and Medium-sized Enterprises (SMEs)

Based on industry verticals:

Automotive

Retail and consumer goods

F&B manufacturing

Machinery and industrial equipment manufacturing

Pharmaceuticals

Government

Energy and utilities

Based on regions:

North America US Canada

Europe UK Germany France Rest of Europe

APAC India Japan China Rest of APAC

Latin America Brazil Mexico Argentina Rest of Latin America

MEA Middle East Africa



Recent Developments:

In October 2018, the company released Watson Supply Chain Insights that offers real-time data about supply chain operations to supply chain officers. The company has been continuously investing in R&D to focus on high-growth strategic opportunities and expand its market presence.

In May 2018, Oracle launched new AI cloud applications for supply chain managers to discover patterns and gain insights on product issues. The strong network of channel partners and distributors has strengthened the reach of the company across the world.

Frequently Asked Questions (FAQ):

What is supply chain analytics? Supply chain analytics is the application of different analytics tools to improvise the supply chain operational efficiency and effectiveness with data-driven intelligence. Various industry verticals, such as manufacturing, retail and consumer goods, energy and utilities, and healthcare, are expected to make informed decisions related to spending and procurement, supplier performance, inventory optimization, demand planning, and forecasting, and supply chain optimization using supply chain analytics solutions. What are the top vendors in supply chain analytics market? Major vendors offering supply chain analytics solutions and services includes SAP SE (SAP), Oracle Corporation (Oracle), IBM Corporation (IBM), SAS Institute Inc. (SAS Institute), Software AG, MicroStrategy Incorporated (MicroStrategy), Tableau Software(Tableau), QlikTech International AB (Qlik), TIBCO Software Inc.(TIBCO), Cloudera, Inc.(Cloudera), Logility, Savi Technology, Infor, RELEX Solutions, TARGIT, Voxware, The AnyLogic Company, Antuit, Inc. (Antuit), Axway, AIMMS B.V. (AIMMS), BRIDGEi2i Analytics Solutions. These vendors have adopted different types of organic and inorganic growth strategies such as new product launches, partnerships and collaborations, and mergers and acquisitions to expand their offerings in the market. Which are the analytics software covered in supply chain analytics market? The different types of software considered in the research study include demand analysis and forecasting, supplier performance analytics, spend and procurement analytics, inventory analytics, and transportation and logistics analytics. Which industry verticals are covered in supply chain analytics market study? The insights found The supply chain analytics market covers all industry verticals, including automotive, electronics, equipment manufacturing, F&B manufacturing, machinery, and industrial equipment manufacturing, pharmaceuticals, government, and energy and utilities Does this report include the impact of COVID-19 on supply chain analytics market? Tobii (Sweden), EyeTracking (US), SR Research (Canada), Seeing Machine (Australia), Eyegaze (US), Smart Eye (Sweden), EyeTech Digital Systems (US), and PRS IN VIVO (US) are among the major companies operating in the eye-tracking market. .

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