Cloud Supply Chain Management Market Will Reach USD 37.6 Billion by 2030

The worldwide market for cloud supply chain management (SCM) reached an estimated value of USD 10.8 billion in 2023 and is projected to grow to around USD 37.6 billion by 2030. This growth is expected to occur at a compound annual growth rate (CAGR) of 19.7% during the period from 2024 to 2030.

This can be credited to the surging adoption of cloud techs, the rising requirement for agility & flexibility, growing e-commerce & omnichannel retailing, and the need for data-driven decision-making.

Increasing acceptance of cloud techs: The adoption of cloud is surging across several industries, and cloud SCM is no exception. Businesses are fascinated by the benefits of cloud-based solutions, such as reduced IT load and advanced security.

Growing e-commerce & omnichannel vending: The growth of e-commerce & omnichannel vending is fuelling the need for more combined and effective supply chains. Cloud SCM solutions can help businesses in handling difficult order fulfillment procedures and provide a seamless customer experience.

Instead of keeping all data and computing resources on-premise, many enterprises settle on using hybrid cloud solutions as their preferred infrastructure choice, somewhat automatically binding their in-house systems with the flexibility of public clouds Such a “hybrid option” ensures the safety of the data and the company’s control over the data management, and hence creates an opportunity to build a barrier between the business goals and the privacy threats.

In fact, there is a double-edged effect of machine learning and artificial intelligence which has a great impact on supply chain management nowadays. Saturation of tasks with AI and ML technologies, reduction of logistics expenses, and demand analysis on the basis of “ML” and “AI” contribute to Global Supply Chain efficiency and cost minimization.

On the basis of type, the hybrid category is a key revenue generator. Businesses increasingly recognize the importance of joining on-premise infrastructure with the flexibility and scalability offered by public cloud solutions.

This hybrid technique allows a unified integration of data security and also control, advancing SCM procedures. Businesses are increasingly prioritizing a blend of privacy and operational efficiency, with the hybrid cloud emerging as a significant factor influencing the cloud SCM environment. For example, a study released in 2022 revealed that 82% of surveyed IT leaders have implemented hybrid cloud solutions.

The largest shares in the industry reside in North America especially the USA where people have many different transportation alternatives in their daily lives given the interconnections among different spheres.

Logistics companies offer a wide diversity of services like software for supply chain monitoring, material handling, good packing, warehousing, reverse logistics, brokerage, and freight forwarding. On top of this, the North American region will witness the most pronounced increase in the sector as GS1, which is Global Standards 1, gets more and more recognition. 

Moreover, with the altering workload of the cloud environment, together with the growing need for improved infra management, the industry will grow in the years to come.

It is because of the mounting acceptance of cloud technologies all over the world, the demand for cloud supply chain management is on the rise. 

SOURCE: P&S Intelligence