Supply Chain Visibility Software Market Size

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.

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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.