Global smart and mobile supply chain solutions market is estimated to witness high growth, due to rising e-commerce adoption and growing emphasis on supply chain visibility
Global smart and mobile supply chain solutions market is estimated to be valued at US$ 47.02 Bn in 2024, exhibiting a CAGR of 11.7% over the forecast period of 2024-2031. The market growth is driven by rising adoption of e-commerce and increasing emphasis on improving supply chain visibility across industries. Furthermore, growth in omni-channel retailing and incorporation of advanced technologies such as IoT, AI and automation in supply chain operations can drive the market growth.
Market Dynamics:
Rising e-commerce adoption can boost demand for smart and mobile supply chain solutions globally. The proliferation of online retail has increased complexity in supply chain networks, necessitating efficient logistics and inventory management. Moreover, growing emphasis on enhancing supply chain visibility and monitoring supply chain activities in real-time also boosts adoption of these solutions. Mobile and cloud-based technologies enable greater visibility across procurement, production and distribution processes. This helps companies streamline operations and decision making.
Growing Adoption of Internet of Things (IoT) Can Boost Demand for Smart Supply Chain Solutions
Increasing adoption of IoT across various industries can drive the global smart and mobile supply chain solutions market growth. IoT enables efficient monitoring and management of supply chain operations through real-time data collection and analysis. Devices equipped with sensors can track goods, assets and inventory levels throughout the supply chain and automatically trigger actions. This level of visibility and automation greatly enhances productivity, reduces costs and improves customer satisfaction. As more companies implement IoT technologies, there will be huge need for supporting supply chain solutions. Rising Popularity of Mobility and Cloud Computing
Rising popularity of mobility and cloud computing technologies can drive the market growth. Modern workforce is highly mobile and expect to access business applications from any device, anytime and anywhere. Cloud-based supply chain solutions offer this flexibility through their ability to be accessed via smartphones, tablets and laptops. Cloud platforms also provide scalability and pay-as-you-go pricing models, which seems attractive to many businesses. Transition to cloud allows small and medium enterprises to adopt advanced supply chain solutions, which were previously unaffordable due to high upfront licensing fees. This boosts demand for mobile and cloud-based smart supply chain offerings.
Lack of IoT Infrastructure in Developing Regions
Lack of adequate IoT infrastructure in developing regions can hamper the market growth. Full realization of benefits from smart supply chains requires widespread deployment of sensors, RFID tags and networking technologies across supply chain assets. However, many developing countries are still in the nascent stages of implementing national IoT frameworks and standards. The low connectivity and high costs involved pose significant barriers, especially for SMEs operating in such regions. This hampers tge ability to effectively adopt solutions driven by IoT technologies.
Cybersecurity and Data Privacy Concerns
Growing threat of cyber-attacks on supply chain systems and databases can hamper the market growth. Integration of operations with smart devices and cloud platforms exposes vulnerabilities that hackers can exploit. Any security breach can severely damage brand reputation, harm customer trust and compliance with regulations like GDPR. Addressing cybersecurity risks remains a major challenge, as it requires ongoing investments and expertise that many organizations lack. Unless robust measures are taken by solution providers and customers to bolster security, concerns around data privacy will hamper the market growth.
Growth of Omnichannel Fulfillment and B2C Supply Chains
Rising e-commerce and demand for faster deliveries can offer new growth opportunities. Modern consumers expect seamless shopping experiences across websites, mobile apps and physical stores. This propel retailers and brands to adopt omnichannel fulfillment strategies using distributed inventories. Smart supply chain solutions can optimize order allocations, inventory visibility, multi-channel shipping workflows and last-mile deliveries. These address the complexity challenges of omnichannel, which traditional infrastructures cannot handle. The growth of B2C supply chains can also boost demand to support personalized customers experiences.
Focus on Supply Chain Resilience
The COVID-19 pandemic highlighted the risks of disruptions to global supply networks and the need for flexibility. It prompt companies to evaluate tools for demand forecasting, supplier risk assessment, inventory optimization and demand-supply balancing. Solutions enabling real-time decision-making based on predictive analytics can help businesses respond dynamically to changes. This focus on resilience will promote investments in digital technologies and automation across supply chains in the long run.
Key Developments:
- In February 2022, Oracle Corporation, a worldwide leader in software development and deployment, revealed that Bharti Airtel, India’s leading provider of communication solutions, had implemented Oracle Fusion Cloud Enterprise Resource Planning (ERP) and Oracle Fusion Cloud Supply Chain Management. This move aims to digitalize and enhance the efficiency of its planning, finance, and supply chain operations.
- In August 2020, IBM Corporation, a prominent global technology and consulting firm, unveiled Watson Supply Chain Solutions, a mobile platform crafted to elevate the management of supply chains
- In July 2020, Microsoft Corporation, a prominent global technology firm, introduced Azure Supply Chain Solutions, a cloud-based platform aimed at optimizing supply chain management
- In July 2020, Microsoft Corporation, a global leader in technology solutions, announced its plans for a blockchain-based platform for supply chain solutions, aimed at improving transparency and efficiency across supply chains
Key Players:
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
