The value of the Cloud Supply Chain Management (SCM) market is projected to reach $11bn by 2023, according to new figures.
Surging adoption in transportation management has been one of the major drivers for the cloud SCM market, research published by P&S Market Research found.
As the world’s transportation networks and supply chains become increasingly intertwisted and complex, the systems that support them are advancing and improving at a rapid pace.
Software vendors have been integrating more transportation optimization capabilities into their solutions, making it easier for shippers to streamline their supply chains, while also making them more cost- and time-efficient. This has been augmenting the growth of the cloud SCM market.
During the course of the analysis, P&S found that demand planning and forecasting is projected to witness the highest growth, with 20.3% CAGR during the forecast period, among all solutions in the cloud SCM market.
Demand management solutions help to predict and manage replenishment effectively, align price and profit margins, better leverage past product performance and maintain a leaner and more profitable supply chain.
In a statement, P&S said: “Demand management solutions takes supply chain management to the next level by enabling an automated ecosystem that simultaneously maps demand forecasting against factors like financial predictions, supply restrictions, inventory counts and customer commitments, as well as patterns of behaviour that can affect demand at any given time.
“These benefits of demand management solutions are thus driving the growth of the demand planning and forecasting.”
Cloud SCM demand will grow at the fastest rate in small and medium enterprises during the forecast period, it is predicted, while the market for cloud SCM in energy and power, and retail and wholesale industries are projected to grow at the fastest and equal rate, during the forecast period.
Support and maintenance is estimated to be the fastest growing service type in this market. Private cloud deployment is becoming the most preferred cloud supply chain management, resulting in the highest growth among all deployment types, during 2017 – 2023.
Cloud SCM market has been growing at the highest pace in Asia-Pacific on account of surging industrialisation in the region, and the growing adoption of automation among enterprises.
Growing e-commerce market coupled with increasing focus on reducing the ownership cost are the other factors driving the cloud SCM market in the region. The regional governments have also been supporting the industrial growth, which is being translated into the growth of cloud SCM market in the region.