Supply Chain Visibility Software Market Size - By Component (Software, Services), By Deployment Model (On-Premises, Cloud), By Enterprise Size (Large Enterprises, SMEs), By Application, By Industry Vertical & Forecast, 2024 - 2032

Supply Chain Visibility Software Market Size

Supply Chain Visibility Software Market size was valued at USD 2.4 billion in 2023 and is anticipated to register a CAGR of over 13% between 2024 and 2032. The growth of the market can be attributed to the rise of e-commerce and omnichannel retail across geographies. According to the Census Bureau of the Department of Commerce, the estimate of U.S. retail e-commerce sales for the first quarter of 2024 was USD 289.2 billion, witnessing a growth of 2.1% from the fourth quarter of 2023.  
 

The e-commerce sales in the first quarter accounted for 15.9% of the total retail sales in the country. This proliferation of e-commerce and omnichannel retail strategies has increased demand for efficient logistics and supply chain operations. Further, visibility software helps businesses to synchronize inventory across various channels and fulfill orders swiftly, enhancing customer satisfaction.
 

The supply chain visibility software market growth is also fueled by growth in international trade, which has increased complexities associated with managing supply chains. According to the World Trade Organization, as of 2022, the world trade volume and value have expanded by 4% and 6% respectively on average since 1995. The expansion of trade volume and value is driving the demand for supply chain visibility software. This software helps businesses handle the complexities associated with global trade, reduce risks, enhance efficiency, and cater to the changing demands of international customers and regulatory requirements.
 

The major factors hindering the growth of the supply chain visibility software market include complexities and challenges in the integration of supply chain visibility software. Implementing supply chain visibility software is complex, especially in large and diverse supply chains. Moreover, integration with existing systems, data standardization across different platforms, and ensuring compatibility with various stakeholders pose significant challenges. Further, the initial investment costs for implementing supply chain visibility software are high, including software licensing, infrastructure upgrades, and consulting fees, which hampers the adoption of these solutions in the market growth.
 

Supply Chain Visibility Software Market Trends

The integration of AI and Machine Learning into supply chain visibility software is transforming the way companies manage their supply chains. These technologies enable more accurate forecasting, real-time decision-making, and improved efficiency by analyzing large volumes of data to identify patterns and predict outcomes. AI and machine learning can analyze historical data and current trends to predict future demand, helping companies optimize inventory levels and reduce stockouts or overstock situations. Various companies are aligning with this trend and expanding their offerings to customers.
 

For instance, in April 2024, SAP SE announced AI advancements in its supply chain solutions that will release a transformative wave of productivity and precision in manufacturing. AI-driven insights from real-time data help companies enhance decisions across their supply chains, streamline product development, and improve manufacturing efficiency.
 

Integration of blockchain is another emerging trend that is being adopted to create a secure and transparent record of transactions. This technology guarantees that every transaction is documented in a ledger accessible to authorized parties, improving traceability and reducing the chances of fraud and errors. Once recorded on a blockchain, transactions cannot be modified or removed, ensuring the integrity of data and fostering trust among stakeholders.
 

Supply Chain Visibility Software Market Analysis

Based on the deployment model, the market is divided into on-premises and cloud. The cloud segment accounted for around 55% market share in 2023 and is expected to reach around USD 4 billion by 2032. The growth of the segment can be attributed to its scalability, accessibility, and cost-effectiveness.  These solutions allow businesses to access real-time data from anywhere, facilitating better decision-making and collaboration across the supply chain.
 

Moreover, a significant trend is the integration of cloud platforms with advanced analytics and IoT devices, providing comprehensive visibility and control over supply chain operations. The cloud model also supports rapid implementation and easy scalability, making it an attractive option for both SMEs and large enterprises.
 

Based on industry vertical, the supply chain visibility software market is categorized into retail and consumer goods, healthcare and pharmaceuticals, manufacturing, transportation and logistics, automotive, aerospace and defense, food and beverage, and others. The retail & consumer goods segment accounted for a market share of 24% in 2023, owing to heightened competition and evolving consumer behaviors.
 

The retail & consumer goods industry is leveraging visibility software to manage complex supply chains, track inventory in real-time, and thus ensure timely deliveries. Leading retailers such as Walmart and Amazon have implemented advanced supply chain visibility solutions to gain a competitive edge. The ability to monitor the entire supply chain, from suppliers to end consumers, helps retailers optimize stock levels, reduce lead times, and minimize losses, due to overstocking or stockouts.
 

North America accounted for around 39% of the supply chain visibility software market share in 2023. The region is a hub for technological innovation, driving advancements in supply chain visibility software. Technologies such as IoT, AI, and blockchain are increasingly integrated into supply chain visibility solutions to enhance data accuracy, predictive analytics, and decision support capabilities.
 

Companies in this region are early adopters of these technologies which are being integrated into supply chain visibility solutions to enhance efficiency and transparency. Furthermore, these businesses have an extensive global supply chain, spanning multiple regions and countries. Supply chain visibility software helps manage this complexity by providing real-time insights into inventory, shipments, and logistics across the entire supply chain network.
 

The U.S. continues to experience robust growth in e-commerce, driving the demand for efficient supply chain operations. Supply chain visibility software helps U.S. companies manage the complexities of online retail logistics, enhance inventory and levels and meet the fast delivery expectations among online shoppers.
 

Europe has stringent regulations across industries, including automotive, pharmaceuticals, and food & beverage. Supply chain visibility software helps businesses in Europe to ensure compliance with these regulations by offering real-time tracking of goods and compliance with environmental standards such as GDPR.
 

Furthermore, the role of China as a major global exporter and manufacturer necessitates efficient supply chain management. The supply chain visibility software enables businesses in the country to monitor and optimize logistics, manage inventory across global supply chains, and ensure timely deliveries to international markets.
 

Supply Chain Visibility Software Market Share

SAP SE and Blue Yonder dominate the supply chain visibility software industry with a significant market share of over 10% in 2023. SAP SE integrates AI and machine learning capabilities into its supply chain solutions. These AI-driven insights enable predictive analytics for demand forecasting, risk management, and supply chain optimization. This helps businesses address supply chain disruptions and improve decision-making based on real-time data.
 

Blue Yonder focuses on customer-centric innovation and enhancing their solutions based on customer feedback and industry trends. Tailored solutions address specific customer needs, such as omnichannel fulfillment, sustainability initiatives, and regulatory compliance, thereby enhancing customer satisfaction.
 

Supply Chain Visibility Software Market Companies

Major players operating in the supply chain visibility software industry are:

• Blue Yonder
• Descartes Systems Group Inc.
• Epicor Software Corporation
• FourKites, Inc.
• IBM Corporation
• Infor
• Kinaxis
• Manhattan Associates, Inc.
• Oracle Corporation
• SAP SE
   

Supply Chain Visibility Software Industry News

• In April 2024, Blue Yonder acquired One Network Enterprise, a provider of digital supply chain network technology. The acquisition brought One Network’s digital supply chain network platform alongside its supply chain tools to provide customers real-time visibility across the supply chain for upstream raw material suppliers to OEM customers and carriers.
   
• In November 2023, FourKites, a supply chain visibility provider announced the availability of a new Inbound Visibility solution that provides customers with a highly predictive, accurate, and seamless way to manage all inbound orders and shipments across all modes, through the entire order lifecycle.
   

The supply chain visibility software market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Billion) from 2021 to 2032, for the following segments:

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Market, By Component

• Software
• Services
  • Consulting
  • Implementation
  • Support & maintenance

Market, By Deployment Model

• On-premises
• Cloud

Market, By Enterprise Size

• Large enterprises
• SMEs

Market, By Application

• Order management
• Asset tracking
• Inventory management
• Shipment tracking
• Supply chain planning
• Others

Market, By Industry Vertical

• Retail and consumer goods
• Healthcare and pharmaceuticals
• Manufacturing
• Transportation and logistics
• Automotive
• Aerospace and defense
• Food and beverage
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
  • Rest of Europe
• Asia Pacific
  • China
  • India
  • ANZ
  • Japan
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • Rest of Latin America 
• MEA
  • UAE
  • South Africa
  • Saudi Arabia
  • Rest of MEA