Supply Chain Analytics Market size is projected to surpass USD 30 billion by 2032, according to a new research report by Global Market Insights Inc.
The rapid penetration of big data technology in the retail sector, particularly across developed economies is complementing the industry dynamics. Numerous retailers in countries such as the U.S. are increasingly shifting towards advanced systems enabled by AI and IoT to derive actionable insights from large volumes of structured and unstructured data pertaining to consumer behavior. For instance, in November 2022, IBM Corporation unveiled a new software, IBM Business Analytics Enterprise, designed to enable organizations to break down data and analytics silos for data-driven decision-making, and navigate unanticipated disruptions.
High preference for outsourcing managed services to drive the industry growth
Supply chain analytics market valuation from the service segment crossed USD 2 billion in 2022. A wide range of businesses right from retail to manufacturing, and fast-moving consumer goods (FMCG) are increasingly focusing on the integration of intelligent data analytics. These services help businesses assess consumer preferences, and forecast demand for goods, and services. The emergence of managed services with utility across an array of business verticals will also positively influence the market growth. Supply chain analytics services compromise managed and professional services. The professional services subsegment held more than 70% share of the industry in 2022, due to an upsurge in outsourcing of advanced professional services across companies with extensive experience and professional licenses. The easy accessibility and availability of professional services along with new outsourcing mediums are allowing enterprises to troubleshoot infrastructure integration and development-related challenges.
Advent of hybrid models to accelerate adoption of on-premises supply chain analytics
Supply chain analytics market size from the on-premise deployment model segment is anticipated to exhibit over 17% CAGR between 2023 and 2032. A large number of SMEs and giant enterprises rely on on-premise supply chain analytics solutions and services for robust security and regulatory compliance, as well as minimal dependency on internet connectivity. Moreover, several supply chain applications of the cloud still need on-premises interventions. For cloud computing systems to cater to all logistical requirements, the integration of on-premises technologies has grown crucial. Thus, several companies with an on-premises model are integrating advanced analytics solutions into the existing inventory management and ERP systems. Furthermore, the growing emphasis on hybrid models for better scalability will fuel the need for on-premise solutions.
Browse key industry insights spread across 190 pages with 392 market data tables and 41 figures & charts from the report, “Supply Chain Analytics Market Size By Component (Solution [Demand Planning, Procurement Analytics, Inventory Analytics, Manufacturing Analytics, Logistics Analytics, Others], Service [Professional Service, Managed Service]), Organization Size (Large Enterprises, SMEs), By Deployment Size (On-premise, Cloud), By Application (Retail, Manufacturing, Transportation and Logistics, Healthcare, Government & Defense, Automotive, Energy & Utilities and others), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032” in detail along with the table of contents:
Rapid adoption of connected devices to propel healthcare application scope of supply chain analytics
Supply chain analytics market share from healthcare applications segment is poised to depict over 20% CAGR from 2023 to 2032. The digitization of the healthcare sector and the increasing penetration of machine learning, IoT, and AI are fostering lucrative demand for advanced solutions in the management of the supply chain. Several healthcare firms are leveraging predictive analytics and big data to forecast product demand by assessing real-time as well as historical data. Furthermore, the growing dependence on connected devices and electronic health records is accelerating the need for technologically advanced analytics solutions for streamlining and managing workflows, inventory, and other operations.
Rising retail sales to augment the North America market expansion
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North America supply chain analytics market size was valued at more than USD 2 billion in 2022. The presence of leading industry players such as Oracle Corporation, and IBM Corporation across the U.S., and Canada will influence the industry expansion in North America. The fiercely competitive retail sector, growing logistics requirements, expanding retail and manufacturing businesses, and booming automotive industry are proliferating the requirement for supply chain analytics in the region. For instance, the National Retail Federation estimated a 6% to 8% surge in retail sales in the U.S. in 2022, driven by increasing consumer spending on restaurants and trips.
Mergers and acquisitions to boost the industry development
Some of the leading companies involved in the supply chain analytics market include Antuit.ai, Axway Inc., Bridgei2i, Capgemini SE, Blue Yonder Group, Inc., DataFactZ, IBM Corporation, Halo BI, Infor, Manhatten Associates, Logility, Inc., Oracle Corporation, Sage clarity systems, QlikTech International AB, SAP SE, Savi Technology, SAS Institutes Inc., Tableau Software LLC, TIBCO Software, and Voxware. These comanies are foraying into strategic partnerships and mergers to strengthen their business footprint and expand their product portfolio. For instance, in January 2022, NTT DATA Services announced the acquisition of Chainalytics to enhance its supply chain consulting and analytics capabilities.