SMART AND MOBILE SUPPLY CHAIN SOLUTIONS MARKET ANALYSIS

Smart And Mobile Supply Chain Solutions Market Size and Trends

Global smart and mobile supply chain solutions market is estimated to be valued at US$ 47.02 Bn in 2024 and is expected to reach US$ 102.13 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 11.7% from 2024 to 2031.

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The market is expected to witness significant growth during the forecast period due  to increased adoption of digital technologies across supply chain operations to enhance visibility and optimize processes. Enterprises are increasingly leveraging smart and mobile solutions to gain real-time insights, manage inventory effectively, automate workflows and make demand-driven and informed decisions. Rising adoption of automation, internet of things (IoT), analytics and cloud computing in supply chain management can drive the market growth. Growing e-commerce sales, emphasis on omni-channel distribution and rising need to improve delivery experience compel companies to invest in innovative supply chain solutions for sustained growth and competitive advantage.

Rise of e-commerce and online shopping

Nowadays, consumers adopt online platforms for shopping and purchasing goods of all types. This transition to online channels has put pressure on retailers and supply chain operations to improve logistics and fulfillment capabilities. Traditional brick-and-mortar retailers are investing heavily in developing robust online stores and distribution networks to cater to digital customers. E-commerce companies are witnessing explosive growth and scaling up operations globally.

The expansion of e-commerce has boosted the need for efficient supply chain management across the online retail ecosystem. Features like faster delivery options, convenient return/exchange policies have now become basic customer expectations from digital retailers. This requires streamlining inventory management, order fulfillment, transport and handling of shipments. Moreover, the rise of multichannel retailing means synchronizing the flow of goods across physical and online sales channels. Managing fluctuating consumer demand and product returns poses unique challenges. Several retailers and third-party logistics providers have implemented smart technologies and digital solutions to address these issues. Cloud-based inventory tracking, automated warehouse management, predictive analytics for demand forecasting are being leveraged to optimize processes. Consumers also now demand complete visibility into order status, enhancing the relevance of solutions centered around supply chain visibility and traceability.

Booming e-commerce sector has boosted demand for advanced supply chain solutions that can support seamless fulfillment of online orders. Technologies facilitating improvements in areas like inventory optimization, omnichannel orchestration, real-time shipment monitoring have become imperative aids for retailers seeking to satisfy digitally savvy customers. Expanding digital commerce can boost investments in smarter logistic tools and applications aimed at synchronizing the physical and online operations of companies.

Market Concentration and Competitive Landscape

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Customer expectations for faster delivery

Rising consumer expectations regarding quicker delivery timelines have put pressure on companies across industries to compress their supply chain cycle times. In the current business environment, speed to market has become a key differentiator for brands looking to gain an edge over competitors. Particularly for product categories with high purchase consideration but low customer loyalty like apparel, consumer electronics and other commoditized goods - being able to deliver items promptly often dictates buying decisions.

Key Takeaways from Analyst:

Global smart and mobile supply chain solutions market growth is driven by increasing adoption of internet of things (IoT) technologies across industries. More companies are looking to leverage technologies like RFID, sensors and real-time data capture to gain visibility and efficiencies in their supply chain operations. This need for end-to-end visibility and automation can boost greater investments in mobile and smart supply chain solutions globally.

North America currently dominates the smart and mobile supply chain solutions market. However, Asia Pacific is expected to emerge as the fastest growing regional market due  to rapid industrialization and manufacturing growth in countries like China, India and southeast Asia. The availability of cheap labor and evolving regulatory landscape attracts more companies to set up facilities in Asia. This boosts the need for optimized supply chain logistics in the region.

Data security and high initial investment costs can hamper wider adoption of smart supply chain solutions. Integration of these new technologies also requires changes to existing supply chain infrastructure and processes. However, growing benefits of efficiency gains, optimized inventory management and reduced operational costs can overcome such restraints over time.

Market Challenges: Lack of investments from logistics companies

The lack of investments from logistics companies can hamper the global smart and mobile supply chain solutions market growth. Logistics being an integral part of the overall supply chain, low investments from these companies can hamper adoption of new age technologies in supply chain operations.

Logistics companies, especially smaller fleet operators, are still hesitant to integrate advanced IoT and automation solutions due to higher initial costs involved. The upfront capital requirement to implement solutions like fleet management systems, warehouse management systems, RFID, and other can deter many companies as  visible returns may only be seen in the long run after factoring in aspects like optimization of operations, enhanced visibility and efficiency.

Market Opportunities: Emergence of blockchain technology in supply chain management

Blockchain technology has the potential to transform supply chain management globally by providing a decentralized and transparent platform for various stakeholders. The emergence of blockchain allows all the participants in a supply chain right from manufacturers, transporters to retailers to directly trace each step of product movement and transaction in a verifiable manner. This technology ensures provenance, visibility and predictability for organizations across nations and industries.

By leveraging blockchain, organizations can digitally record all supply chain data and transactions including order details, shipments, certifications and payments on an immutable distributed ledger. This helps build trust among partners and eliminates intermediaries by streamlining processes. Real-time tracking of products, assets and documents empower businesses to proactively manage disruptions, track performance and optimize operations. Transparency brought by blockchain meet compliance requirements, monitor ESG practices and authenticate sustainability claims.

The COVID-19 pandemic highlighted the importance of resilient and transparent supply chains. It exposed vulnerabilities caused by lack of end-to-end visibility. Thus, global organizations are investing heavily in emerging technologies like blockchain to future-proof their supply networks. For example, some major car manufacturers have started implementing blockchain for traceability of conflict minerals. These aim to ensure responsible sourcing while meeting end customers' increasing demand for sustainability. Governments of major economies are funding research and pilot projects to leverage blockchain for enabling transparency in vaccine distribution, critical medical supplies and essential trade.

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Insights By Component- Software Dominates In Terms of Component

Software segment is estimated to contribute the highest market share of 61.2% in 2024, owing to its wider capabilities and applications. Supply chain software powers the digitization, optimization, and automation of operations across procurement, manufacturing, logistics, and sales. Its role has become increasingly important as companies strive to streamline processes, gain real-time visibility, and respond quickly to disruptions.

Leading software solutions offer comprehensive functionality that supports all aspects of supply chain execution. Enterprise resource planning software forms the core, integrating data from suppliers, manufacturers, warehouses, distributors, and retailers on a single platform. This allows end-to-end traceability and coordination between parties. Transportation management software coordinates freight, carriers, and deliveries. Warehouse management software digitally plans and monitors inventory, pick-packs-ship cycles, and labor. Procurement software automates purchasing, vendor management, contract compliance and price negotiations. Analytics dashboards also provide actionable insights into demand patterns, inventory levels, delivery schedules, and more.

The growing digitalization of supply chains has boosted demand for such integrated software suites. Companies now rely on data-driven insights and automated workflows to enhance productivity, customer service levels and resilience against uncertainties. This has prompted ongoing investments in upgrading legacy systems as well as adopting new SaaS-based solutions. The COVID-19 pandemic spotlighted the importance of digitization, propelling more firms to prioritize software implementations and optimizations. Vendors are also expanding capabilities around predictive analytics, machine learning, and blockchain to facilitate increasingly collaborative and intelligent supply networks of the future.

Insights By Application- Manufacturing Relies Heavily on Mobile Supply Chain Technologies

By application, manufacturing is estimated to contribute the highest market share of 35.4% in 2024. This industry faces unique operational complexities associated with production planning and scheduling, materials sourcing, inventory management, quality control and logistics coordination. Mobile solutions have become indispensable in supporting streamlined, real-time decision-making across manufacturing plants and supply networks.

Mobile ERP applications allow plant managers and supervisors to access schedules, monitor KPIs, and resolve issues from any location. Condition-based maintenance software utilizes sensors and mobile devices to schedule proactive repairs and prevent downtime. Warehouse workers rely on voice-enabled picking systems for accurate order fulfillment. Self-driving vehicles and robots increasingly assist with material movements both within and between facilities. Quality assurance personnel photograph defects and file reports remotely through mobile portals.

Manufacturers have also embraced solutions like connected vending cabinets, which track material levels and initiate automatic replenishments as needed. RFID and IoT sensors generate real-time insights into equipment usage, energy consumption and environmental factors. Drones assess infrastructure integrity and conduct inventory audits of remote yards or fields. This wealth of data fed into analytics dashboards helps manufacturing operations streamline processes, maximize output and maintain high customer service levels even during odd shifts or emergencies. The COVID-19 pandemic demonstrated how mobile solutions sustained manufacturing productivity during facility closures and social distancing protocols. Their adoption continues diversifying to support new trends like personalized customization, 3D printing and Industry 4.0 initiatives.

Regional Insights

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North America dominates the smart and mobile supply chain solutions market with an estimated market share of 39.5% in 2024. The region is home to several leading technology companies that offer innovative solutions for supply chain visibility, inventory management, transportation management and more. High focus on improving efficiency through automation and data-driven decision making can drive the market growth. Customers in various industries like retail, manufacturing and healthcare are rapidly adopting smart solutions.

The U.S. is the largest individual market, accounting for over half of the region's revenues. Early digitization and presence of advanced infrastructure have created a conducive environment for technologies.  

Asia Pacific has emerged as the fastest growing regional market for smart and mobile supply chain solutions. Countries like China, India, Japan and South Korea are witnessing expansions in manufacturing and logistics activities to keep pace with rising domestic and global demands. This has amplified the need for digital transformations that enhance resilience and responsiveness. Growing internet and smartphone penetration alongside government initiatives to develop smarter logistics can drive the market growth.

China has numerous large-scale domestic and multinational companies operating complex supply chain networks. Demand comes from sectors like automotive, electronics and FMCG that rely on just-in-time deliveries. Commercial availability of 5G technology and dedicated efforts to build smart infrastructure can offer new revenue opportunities. Vendors are strengthening local collaborations and R&D investments to leverage Asia Pacific's promising long-term outlook.

Market Report Scope

Smart And Mobile Supply Chain Solutions Industry News

• In February 2022, Oracle Corporation, a global leader in software development and deployment, announced that Bharti Airtel, India’s premier communications solutions provider, has adopted Oracle Fusion Cloud Enterprise Resource Planning (ERP) and Oracle Fusion Cloud Supply Chain Management to digitize and streamline its planning, finance, and supply chain processes.
• In November 2022, Microsoft introduced the Microsoft Supply Chain Platform, which enables organizations to optimize their existing supply chain investments using an open approach. The platform leverages Microsoft's strengths in AI, collaboration tools, low-code development, security, and Software as a Service (SaaS) applications to create a flexible, composable solution tailored to each organization's supply chain needs.
• In August 2020, IBM Corporation, a leading global technology and consulting company, launched Watson Supply Chain Solutions, a mobile platform designed to enhance supply chain management.
• In July 2020, Microsoft Corporation, a global leader in technology solutions, announced the development of a blockchain-based supply chain solutions platform aimed at enhancing transparency and efficiency within supply chains.

*Definition: Global Smart and Mobile Supply Chain Solutions Market consists of companies that provide technologies and services for integrating mobile devices into supply chain operations to improve visibility, workforce productivity and logistics management. This includes solutions such as mobile ERP apps, RFID and barcoding, GPS fleet management, supply chain analytics, warehouse management systems, transportation management and collaborative product development. The aim of these solutions is to enhance supply chain communication, execution and planning across organizations on a global scale.

Market Segmentation

• Component Insights (Revenue, US$ Bn, 2019 - 2031)
  • Software
  • Services
•  Application Insights (Revenue, US$ Bn, 2019 - 2031)
  • Retail
  • BFSI (Banking, Financial Services, and Insurance)
  • Government
  • Healthcare
  • IT and Telecommunication
  • Manufacturing
  • Energy and Utility
  • Logistics and Transportation
  • Others
• Regional Insights (Revenue, US$ Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • South Africa
    • Rest of Middle East & Africa
• Key Players Insights
  • Accenture PLC
  • Amazon Web Services
  • Blue Yonder (formerly JDA Software)
  • Cisco Systems, Inc.
  • Dassault Systèmes
  • DHL Supply Chain
  • FedEx Corporation
  • Google LLC
  • Honeywell International Inc.
  • IBM Corporation
  • Infosys Limited
  • Infor, Inc.
  • Intel Corporation
  • Manhattan Associates, Inc.
  • Microsoft Corporation