SUPPLY CHAIN RISK MANAGEMENT MARKET ANALYSIS

Supply Chain Risk Management Market Size and Trends

Global supply chain risk management market is estimated to be valued at US$ 3.15 Bn in 2024 and is expected to reach US$ 6.23 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 10.2% from 2024 to 2031.

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The market is witnessing growth due to increasing globalization of supply chain operations and growing complexities across supply chain networks. Various factors such as rising geopolitical tensions, regulations, environmental vulnerabilities and information technology risks are forcing companies to focus more on risk preparedness and resilience. Adoption of technologies like AI, IoT and blockchain is helping organizations to gain end-to-end visibility and agility to combat disruptions. Furthermore, rising talent crunch  push vendors to offer more online training and resources to create a future-ready workforce for managing supply chain complexities. The coronavirus pandemic has also underscored the need for robust risk management strategies and governance.

Increasing complexity of global supply chain networks

As businesses operate across borders and regions to gain strategic advantage, their supply chain networks have become highly complex with multiple tiers of suppliers, manufacturing and distribution centers spread globally. Managing such extensive networks involve coordination of large number of partners and flow of materials, information and finances across the world. With growing networks, even small disruptions due to factors like supplier non-performance, natural disasters, pandemic outbreak, political instability or trade disputes can significantly impact the business operations. This increases the risks which are difficult to foresee and mitigate with traditional risk management approaches. To sustain in this dynamic environment, companies require advanced risk management strategies that provide end-to-end visibility across networks, monitor risks in real-time and support contingency planning. This boosts greater focus on supply chain risk management solutions that help maintain business continuity and resilience against disruptions through robust risk assessment, scenario modeling and coordinated response capabilities.

Demand for data-driven risk mitigation

Data has become the lifeline for businesses to gain insights and make informed decisions.  Due to rising proliferation of IoT technologies, large volumes of transactional and sensor data is being generated within supply chain operations on a daily basis. However, most of this data remains untapped and underutilized for risk management. Traditional methods rely heavily on manual assessment and are reactionary in nature. To stay ahead of risks, companies are looking to leverage big data analytics and AI/ML techniques to extract meaningful patterns and signals from disparate data sources. This helps identify emerging risks proactively, assess the impact of risks more accurately considering historical trends and current operations status. Data-driven approaches also support scenario modeling and "what-if" analysis to evaluate mitigation plans. Vendors offering cloud-based risk management platforms integrated with predictive analytics and data visualization capabilities are gaining popularity. These enable informed risk-based decision making across strategic, tactical and operational levels of supply chain management.