Digital Supply Chain Market-By Type, By Organization, By Industry, By Geography - Global Opportunity Analysis & Industry Forecast, 2024-2030

Digital Supply Chain Market Overview

The global digital supply chain market is estimated to grow at a CAGR of 5.3% during the forecast period 2024-2030 and reach $95.1bn by 2030. Digital Supply Chain refers to the end-to-end delivery chain for digital media such as audio, video, electronic documents and other data through various means and stages. With the advent of the digitalization of technology and its heavy impact on the business sectors, the importance of the digital supply chain market has gained a lot of traction. Furthermore, data privacy, copyright and intellectual property right preservation also is encompassed as solutions of the market. The digital supply chain market caters largely to the Media and entertainment sector but also retains a substantial share in other business domains too. Moreover, increased adoption of cloud-based services in small and medium-sized organizations is attributed to propel the market. The development of digitalization and the advent of social media marketing platforms significantly raised the demand for enterprise software for business to capture and manage massive volumes of consumer data. Major players contributing to the market growth are Microsoft Corporation, Infor Inc., Oracle Corporation among others.

The digital supply chain market is evolving rapidly with several key trends shaping its trajectory. One significant trend is the adoption of blockchain technology to enhance transparency, traceability, and security across supply chain operations. Blockchain enables immutable and decentralized record-keeping of transactions, which improves trust among stakeholders and reduces fraud and counterfeiting risks. Another trend is the integration of Internet of Things (IoT) devices and sensors to provide real-time data on inventory levels, shipment status, and conditions like temperature and humidity. This data-driven approach enhances visibility and enables predictive analytics for better demand forecasting and inventory management. Artificial intelligence (AI) and machine learning (ML) are also revolutionizing the digital supply chain by optimizing processes such as route optimization, warehouse management, and supply chain planning. Cloud-based supply chain management solutions are gaining popularity for their scalability, flexibility, and ability to connect dispersed teams and partners seamlessly. Lastly, there is a growing emphasis on sustainability, prompting companies to use digital technologies to track and reduce their environmental footprint throughout the supply chain.

Market Snapshot :-

Digital Supply Chain Market Report Coverage

The report: “Digital Supply Chain Market – Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Digital Supply Chain market
By Solution: Production & Planning System, Digital Content Management Software, Customer Relationship Management, Digital Asset & Intellectual Property Management, Digital Rights and Royalty Management, Distribution & Tracking Solutions
By Technology: Blockchain, Internet of Things, Robotic Process Automation, Data Science
By Organization Size: SME, Large Organization
By Service: Consulting & Planning, Integration Services,     Professional Services, Support and Maintenance Services
By Application: Automotive, Transportation, Defense, Marine, Backup Power, Material Handling and Others
By Geography: North America (U.S, Canada, Mexico), South America (Brazil, Argentina and others), Europe (Germany, UK, France, Italy, Spain, Russia and Others), APAC (China, Japan India, SK, Aus and Others), and RoW (Middle east and Africa)

Key Takeaways

• The average cost for digital supply chain software depends on the pricing type of the software whether it is subscription or one time license.  As per Epicor Corporation, in case of annual subscription it generally costs around $49 per month, per user and in case of monthly billing it cost around 469 per month, per user. For the Enterprises it costs around $6 per month billed annually. 
• The price range of digital supply chain software depends on the number of users, type of deployment and the level of customizations along with the company's business requirements. Companies that choose to host the software using their own servers (on-premise deployment) generally pay a perpetual licensing fee which helps in supply chain module tracks products from manufacturing to warehouse to distributors to customers, businesses can monitor materials and supplies through inventory control, purchase orders, automatic ordering and inventory scanning. 
• As per SAP Business, companies can also pay subscription fee to access cloud, which the vendor maintains and hosts on a third-party data server which helps highly in the customizations. However, small to medium-sized businesses pay between $75,000 and $750,000 for implementation. Costs for large businesses range from $1 million to $10 million depending upon the requirements whether it is cloud based or on-premises. In addition, costs varies significantly for services such as change management and data migration where vendors like Oracle, SAP and Microsoft, use third-party consultants for implementation. 
• Some of the players such as Microsoft Dynamics 365 offers the Sales Professional module which costs $65 per user, per month, while the Sales Enterprise module costs $95 per user, per month whereas Lilly Works offers a monthly subscription that starts at $100 per user, per month and scales up from that point.

Digital Supply Chain Market Segment Analysis – By Organization Size

Large enterprise companies are the major end user of digital supply chain solutions with a total market share of 66% in 2023. The growing developments in the sector are majorly boosting the market growth rate. Small and medium enterprise companies occupied 34% share of the demand in 2023 but are the faster growing segment with a CAGR of 5.7% compared to 4.9% of large enterprises through 2030. Large retail companies such Walmart, Tesco, Walgreens etc are the major customers which fall in the large enterprises category who use digital supply chain solutions. Implementing an ERP scale digital supply chain solution can significantly improve the efficiency and transparency of larger organisations' operations by making activities and workflows more unified and transparent. They also provide valuable information that can be used to detect bottlenecks and inefficiencies and improve future planning. Large enterprises use business software and services to improve internal and external operational procedures. Adoption of enterprise solutions and services in large enterprises is being driven by factors such as the use of complex analytical engines, real-time data compilation tools, and process blueprints. Demand for enterprise software and services in the large enterprise segment is likely to be driven by enterprises' increasing preference for efficient networking solutions and automation capabilities. The increased emphasis on strategic decision-making and resource allocation is likely to fuel the expansion of the large enterprise segment even further. Large enterprises are widely using BI tools for achieving strategic corporate goals, which include business health planning, KPI measurement, and cost-effective deployment of resources.  The CRM and content management tools are in high demand because it enables businesses to improve process efficiency and provide real-time visibility into how a process is doing. With real-time business data, the DSC software is gaining appeal among large enterprises to better the orchestration of complex processes and outperform their business objectives.

Digital Supply Chain Market Segment Analysis – By End Use Industry

The demand for CRM systems is being driven by rising demand for automated customer engagement, expanding the breadth of digital operations, and increasing customer experience and services. In addition, advancements in cloud computing technology, the rise of server less and hybrid cloud computing, and the availability of multiple service models such as software as a service, Infrastructure as a Service , and Platform as a Service are driving the demand for CRM and is expected to boost the market for  digital supply chain software Market . According to SoftClouds' CRM Cloud Survey Report, 82% of the companies polled utilize CRM systems for sales reporting and process automation. Technological advancements in the fields of business intelligence and embedded analytics, and their implementation in CRM solutions are likely to boost the Market demand. Moreover, adoption and implementation of CRM solutions have increased owing to the rise of COVID-19 pandemic. 

Digital Supply Chain Market Segment Analysis – By Geography 

North America dominates the market with a share of 44% in 2023. Cloud infrastructure spending in US has significantly risen in the past year to accelerate digital transformation. This leads to rising demand for cloud-based digital supply chain software in the U.S. According to the U.S. Small Business Administration, there are 31.7 billion small and medium-sized businesses in the country, many of whom use digital supply chain software to reduce costs and complexity involved in internal technological systems. The growing benefits posed by digital supply chain in the construction industry in order to impower proactive decision making where an individual can identify early risk with predictive intelligence and make the right decision to keep the project on track is expected to fuel its market growth. The upsurging investments in residential construction in U.S. is expected to flourish its market growth in the future. 

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Digital Supply Chain Market Drivers 

Leveraging business intelligence and data visualizations

Global events such as natural disasters, geopolitical tensions, and pandemics like COVID-19 have highlighted the vulnerabilities of traditional supply chains. As a result, businesses are increasingly investing in digital technologies to build more resilient supply chains that can quickly adapt to disruptions and mitigate risks. Digital supply chain solutions offer capabilities such as real-time visibility into inventory levels across the entire network, enabling proactive risk management and contingency planning. Advanced analytics and AI-driven predictive modeling help companies identify potential disruptions early and take preemptive actions to minimize their impact. Additionally, the ability to collaborate closely with suppliers and partners in a digital ecosystem enhances agility and responsiveness in supply chain operations. By leveraging digital tools for risk management, businesses can enhance supply chain continuity, reduce operational disruptions, and maintain customer satisfaction even during challenging times. Therefore, resilience and risk management remain crucial drivers accelerating the adoption of digital supply chain technologies across industries.

Rising Need for Improved Customer Experience

A major driver in the digital supply chain market is the increasing focus on meeting customer expectations and enhancing the overall customer experience. In today's competitive landscape, customers demand faster delivery times, personalized products, and transparent communication regarding their orders. Digital supply chain technologies such as real-time tracking, predictive analytics, and inventory visibility enable companies to streamline operations and meet these demands effectively. By leveraging data insights from digital technologies, businesses can optimize inventory levels, reduce lead times, and improve order accuracy, thereby enhancing customer satisfaction. Additionally, digital supply chain solutions enable companies to offer more flexible delivery options, improve communication channels with customers, and provide real-time updates on order status and delivery schedules. Meeting these evolving customer expectations not only drives customer loyalty but also positions companies competitively in the market by delivering superior service and responsiveness. Thus, enhancing the customer experience remains a critical driver influencing the adoption and advancement of digital supply chain technologies.

Digital Supply Chain Market Challenges

High Cost of Deployment

High-costs associated with the services and security concerns hamper the market growth. Digital supply chain software deployment requires a significant investment in terms of money, time, and skill. Due to the lengthy implementation processes that include project planning, organisation, installation, training, and system configuration, enterprise software adds significant expense. In addition to the software deployment, the organization requires new hardware, updated network equipment, and security software installs, which will almost certainly incur additional costs. Furthermore, additional costs such as staff training, skilled personnel recruitment, and maintenance are likely to raise the initial implementation cost of enterprise software, thus stifling market growth during the forecast period. Feature bloat is another issue with enterprise software. Enterprise software might be so expensive because suppliers want to sell it as if the customer will use all of its features. However, in most cases, only a few functions are required and used on a regular basis. One method vendors deal with this is to offer a slew of separately priced features that are enabled by key, but this complicates things for the user (as well as the software vendor). This is expected to hamper market growth.

Digital Supply Chain Market Landscape

The Digital Supply Chain market is moderately consolidated with key players are adopting strategies such as acquisition, product launches and others with the players and companies prevalent in the market. The top companies present in the market include the below.

• IBM
• Sage Group
• Microsoft
• Oracle
• Teradata
• BlueYonder
• Talend
• Infor
• SAP
•  SAS

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