The Global Smart and Mobile Supply Chain Solutions Market is expected to be valued at US$ 51,123.3 billion by 2027, exhibiting a CAGR of 17.2% during the forecast period (2020-2027), as highlighted in a report published by Coherent Market Insights.
Smart supply chain solutions help companies to deal effectively with the risk associated with supply chains. It includes asset tracking, level of inventory, the supply of goods against demand forecast, and services. These solutions help organizations achieve their business objectives by providing effective and efficient supply chain services. With advances in technology, supply chain solutions are becoming more interconnected, intelligent, and instrumented. They provide various systems and services such as transportation management, warehouse management, sourcing and procurement, manufacturing execution, analytics, and supply chain planning.
The global smart and mobile supply chain solutions market is estimated to account for US$ 51,123.3 Bn in terms of value by the end of 2027.
Increasing need for dynamic supply chain solutions is expected to accelerate growth of the global smart mobile supply chain solutions market during the forecast period
Supply chain solutions and business conditions have changed significantly in the recent past. As a result of this, many companies are facing new challenges and issues regarding economic uncertainties and globalization to technological changes. Furthermore, urbanization is expected to increase in the near future. According to World Health Organization (WHO), in 2014 the urban population accounted for 54% of the total global population; by 2017, even in less-developed countries, the majority of the population would be living in urban areas. Since the larger part of the population is moving toward urban areas, the dependency on technology is expected to increase as well. As a result of this, supply chain providers have incorporated new technologies in their solutions to meet the surging demand of the population. Hence, these factors are expected to drive growth of the global smart and mobile supply chain solutions market during the forecast period.
Mergers and acquisitions among major market players can present lucrative growth opportunities
Key players operating in the market are focused on mergers and acquisitions, in order to gain a competitive edge in the market.
High cost associated with implementation is expected to hamper the global smart and mobile supply chain solutions market growth over the forecast period
According to the Coherent Market Insights research, smart and mobile supply chain solutions is a sophisticated technology that requires a robust infrastructure and skilled for operation. Implementing such fairly advanced technology is expensive and not affordable for small and medium-sized companies. Besides, there are many concerns regarding security and privacy issues among enterprises that could hamper its adoption. Therefore, these factors are expected to hamper the global smart and mobile supply chain solutions market growth over the forecast period.
Advent of cloud-based service is a major trend
The market dynamics of the SCM sector remain very strong with small and mid-sized, and larger companies increasingly having global supply chains and complex offshoring relationships, thereby necessitating SCM adoption. Developments in mobility, cloud-based service, and advanced analytics have lowered the total cost of ownership and opened up new avenues for companies to incorporate SCM, ERP (Enterprise Resource Planning), and other application software into their core operations.
Software-as-a-service model is another key trend
Smart and mobile supply chain solutions can be offered in terms of the software-as-a-service (SaaS) model. In SaaS, the software is licensed on a subscription basis and is centrally hosted. SaaS model offers various advantages such as reduce time to benefit, lower costs, enhanced scalability & integration, latest upgrades, and easy-to-use and perform. Many companies are offering smart and supply chain solutions in terms of the SaaS model, in order to gain a competitive edge in the market.
Global Smart and Mobile Supply Chain Solutions Market - Impact of Coronavirus (Covid-19) Pandemic
Due to Covid-19 pandemic, many industries witnessed significant shift in their business. The disruption in the supply chain adversely affected the manufacturing industry, as China is one of the major suppliers for the raw materials (used to manufacture products) as well as the finished products. The industry is facing a reduction in production, disruption in supply, and price fluctuations. Due to this pandemic manufacturers are forced to slow down their manufacturing operations till the time this situation is not recovered. In addition, the scarcity of raw material can still pose a challenge to this industry. Due to this situation most of the manufacturing companies are now focusing on saving their business instead of investing in smart manufacturing of products and solutions