Digital supply chain market to reach $13.67 billion by 2030
The global digital supply chain market was pegged at $3.91 billion in 2020, and is expected to reach $13.67 billion by 2030, growing at a CAGR of 13.2% from 2021 to 2030, according to Allied Market Research.
Major determinants of the digital supply chain market growth
Increase in demand for reliable, fast, and effective order execution, rise in demand for cloud-based supply chain management solutions, and improved use of industrial-grade digital technology drive the growth of the global digital supply chain market.
However, security concerns associated with the digital supply chain among the people hinder the market growth. On the contrary,the ongoing digital transformation trend and proliferation of supply chain 4.0 are expected to open lucrative opportunities for the market players in the coming years.
COVID-19 scenario
The outbreak of the COVID-19 pandemic has significantly stimulated the growth of the global digital supply chain market as there was increased inclination toward digitization.
The demand for online shopping has increased in several areas, including manufacturing, food & beverage, and logistics companies to increase their investments in automation of operations and supply chains, thus fueling the market growth.
The solution segment dominated the digital supply chain market
By component, the solution segment held the largest share in 2020, accounting for more than three-fifths of the global digital supply chain market, and is expected to dominate the market during the forecast period. The demand is due to rise in the adoption of supply chain visibility and event management solution, which is an important part of digital supply chain.
However, the services segment is estimated to register the highest CAGR of 14.8% during the forecast period, owing to rise in the adoption of supply chain management solutions which has resulted in demand for supply chain management services across different industry verticals.
The small and medium enterprise segment to manifest the highest CAGR through 2030
By organization size, the small and medium enterprise segment would showcase the highest CAGR of 14.1% from 2021 to 2030, due to surge in the adoption of digital supply chain management solutions in SMEs, to obtain insights by analyzing real-time data.
However, the large enterprise segment held the largest share in 2020, contributing to nearly three-fifths of the market, and is expected to maintain its dominance in the forecast period. Large-scale enterprises need to keep hugeamounts of data handy and secure to analyze customer demand, this drives the growth of the segment.
North America held the lion’s share
By region, the global digital supply chain industry across North America dominated in 2020, accounting for more than two-fifths of the market, due to increased investment in emerging technologies such as artificial intelligence (AI), robotics & automation, Internet of Things (IoT), 5G networking, augmented & virtual reality (AR/VR), digital twin, autonomous cars, and drones which in turn drives the growth of digital supply chain market.
However, the market across Asia-Pacific is anticipated to showcase the highest CAGR of 16.1% during the forecast period, owing to strong economic growth and ongoing development in services sector, due to which the business enterprises are investing in the digital supply chain solution to sustain their growth and improve productivity.