Supply Chain Traceability Software Market Size, Share, Growth, and Industry Analysis by Type (Cloud Based and On-premises) By Application (SMEs and Large Enterprises) Regional Forecast From 2023 To 2030

Updated On: 22 April 2024

SUPPLY CHAIN TRACEABILITY SOFTWARE MARKET REPORT OVERVIEW 

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The global supply chain traceability software market size expanded rapidly in 2022. The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels. As per our research, the supply chain traceability software market is expected to generate substantial revenue by 2028, a robust CAGR during the forecast period. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Software used to manage and simplify a company's whole supply chain, from evaluation and forecasting to managing supplier relationships, is referred to as supply chain traceability software. Supply chain planning, warehouse management, procurement software, and manufacturing execution systems are the primary product categories of supply chain traceability software. Using technology, a transportation management system (TMS) is a logistics platform that helps companies plan, carry out, and optimize the physical movement of goods, both incoming and outgoing, as well as ensure compliance and accurate documentation.

By improving visibility, boosting productivity, cutting expenses, and lowering risks, supply chain traceability software provides significant benefits to enterprises. Small and medium-sized businesses (SMEs), as well as big businesses in the consumer goods, healthcare, pharmaceuticals, manufacturing, food and beverage, transportation and logistics, and other industry verticals, use the software. Additionally, it improves customer service and communication while increasing compliance and automating important operations. SCM software thus has a wide range of uses in the retail, e-commerce, healthcare, automotive, logistics, manufacturing, and transportation sectors.

COVID-19 Impact: Halt on Manufacturing Operations to Slower Market Growth

The COVID-19 pandemic had a significant impact on businesses, societies, and the world's commerce, financial, health, and education systems. However, 92% of companies continued to invest in technology during the COVID-19 pandemic which in turn had a positive impact on supply chain traceability software. This illustrates how important a digital supply chain is for assisting businesses in navigating disruptive forces and swiftly adapting to erratic supply and demand.  The impact of COVID-19 highlighted the significance of traceability and standardization for the efficient monitoring of individuals, the supply chain, and assets in the healthcare sector.

LATEST TRENDS

"Rapid Expansion of E- Commerce Sector to Boost Market Growth"

One of the main factors propelling the supply chain traceability software market growth is the e-commerce sector's rapid expansion. For purchase automation, inventory management, order tracking, synchronizing processes, and vendor interactions, supply chain traceability software is frequently used in e-commerce management. Another reason driving supply chain traceability software market growth is the rising demand for cloud-based SCM software to shorten the manufacturing cycle, guarantee quality, improve scalability, handle interruption, and simplify infrastructure administration. A further factor driving supply chain traceability software market expansion is the incorporation of artificial intelligence (AI) to boost productivity, address the labor shortage, and make data-driven decisions regarding transportation.

SUPPLY CHAIN TRACEABILITY SOFTWARE MARKET SEGMENTATION 

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• By Type Analysis

As per the type, the market is classified as follows: Cloud Based and On-premises. The cloud-based segment dominates the supply chain traceability software market share.

• By Application Analysis

Based on application, the market is segmented as follows: SMEs and Large Enterprises. The application on SMEs is anticipated to increase the supply chain traceability software market share.

DRIVING FACTORS

"Growing competition among Businesses to Facilitate Market Development"

Modern supply chains are complex, but supply chain traceability software can handle them. The supply chains are becoming more complicated as a result of enterprises growing worldwide and rising competition. The quantity of suppliers, orders placed and fulfilled, the range of products offered, information produced, etc., have all grown significantly. Supply chain traceability software enables the reduction of complexity while also saving money and resources. One of the primary factors propelling the growth of the supply chain traceability software market is the necessity for businesses to stay relevant in the marketplace despite the fierce competition.

"Increased Demand for Supply Chain Traceability Software to Promote Industry Progress"

A bright picture for the supply chain traceability software market is being created by growing product uptake among small and medium-sized organizations (SMEs) as a result of quick business growth, a globalized supply chain, and geographically extended selling destinations. A further factor driving supply chain traceability software market expansion is the growing need for SCM software in the healthcare sector to manage cost management, improve the distribution of medical supplies, and monitor inventories. The Internet of Things (IoT) being integrated to manage staff, flights, passenger logistics, and aircraft, as well as to optimize routes, decrease fuel consumption, and boost customer satisfaction, are additional reasons that are predicted to contribute to the supply chain traceability software market's expansion.

RESTRAINING FACTORS

"Possibilities of Target Data Breach to Hinder Market Growth"

Data is at the center of every phase of the supply chain's evolution, which is ongoing. The hazards associated with data and IT security are significant given the massive amount of data collected. The major difficulty of maintaining data exchange while maintaining privacy could prove to be a barrier for the supply chain traceability software sector. Lax security at an HVAC vendor led to the Target data breach, which may have exposed the personal information of up to 70 million people. Customer names, credit or debit card numbers, the expiration date of the card, and the CVV number were among the data stolen.

SUPPLY CHAIN TRACEABILITY SOFTWARE MARKET REGIONAL INSIGHTS

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"Increase in Demand to Propel Market Progress in North America"

Due to the significant adoption of supply chain traceability software across numerous industries, including the pharmaceutical and healthcare sectors, North America held the highest supply chain traceability software Market Share of approximately 34.9% in the global supply chain traceability software market in 2020 and is expected to continue growing at a significant rate during the forecast period 2021–2026. In the long run, factors like strict government rules for the application of serialization and aggregation standards and manufacturers placing increasing focus on brand protection will fuel the supply chain traceability software market in the North American area.

KEY MARKET PLAYERS

"Market Players Focus on New Product Launches to Strengthen Market Position"

Leading players in the market are adopting various strategies to expand their presence in the market. These include R&D investments and the launch of new, technologically-advanced products in the market. Some companies are also adopting strategies such as partnerships, mergers, and acquisitions to strengthen their market position.   

List of Market Players Profiled

• IBM (U.S.)
• SAP (Germany)
• Oracle (U.S.)
• Infor (U.S.)
• Zetes (Belgium)
• Optimity (Canada)
• NexTec Group (U.S.)
• Rfxcel (U.S.)
• ChainPoint (Netherlands)
• OPTEL (Canada)
• SourceTrace (U.S.)
• Nordson (U.S.)
• SYSPRO (South Africa)
• Plex Systems (U.S.)
• Radley (U.K)
• TagOne (U.S.)
• ThinkIQ (U.S.)

REPORT COVERAGE

The report covers overall market aspects, including the market segmentation based on its type and application. The report depicts a diverse group of participants that includes the market and the potential market leaders. Major factors that are expected to drive major growth in the market. The factors anticipated to expand the market share are also included in the report to offer market insights. The estimated growth of the market in the forecast period is also included in the report. The regional analysis is completed to explain the region's dominance in the global market. The factors hindering the growth of the market are discussed in detail. The SWOT analysis of the market is depicted in the report. It contains all-inclusive market details.