The global Supply Chain Risk Management Market is estimated to be valued at USD 2.9 Bn in 2021 and is expected to exhibit a CAGR of 9.2% over the forecast period 2022-2031, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Supply chain risk management involves the identification, assessment, and mitigation of risks associated with the supply chain process, ensuring the smooth flow of goods and services. With the increasing complexity of supply chains and the globalization of businesses, the need for effective risk management has become crucial. The market offers various solutions and software platforms to help organizations tackle supply chain risks, manage disruptions, and ensure business continuity.
B) Market Dynamics:
The global supply chain risk management market is driven by two main factors. The first driver is the need for organizations to proactively manage and mitigate risks in their supply chains. This is especially important in the face of increasing geopolitical uncertainties, natural disasters, and pandemics, which can disrupt supply chains and lead to significant financial losses. By implementing supply chain risk management solutions, organizations can identify potential risks, develop contingency plans, and take proactive measures to minimize disruptions.
The second driver is the rapid adoption of advanced technologies such as artificial intelligence, machine learning, Internet of Things (IoT), and blockchain in supply chain management. These technologies enable real-time tracking, visibility, and monitoring of the entire supply chain, helping organizations identify and address potential risks at every stage. For example, IoT sensors can provide real-time data on temperature, humidity, and location of goods, ensuring their integrity and reducing the risk of damage or spoilage. AI-powered analytics can analyze large volumes of data and identify patterns, anomalies, and potential risks, enabling organizations to take proactive actions.
C) Segment Analysis:
The supply chain risk management market can be segmented based on solution type, deployment mode, organization size, and industry vertical. Among these, the software solution segment is expected to dominate the market due to the increasing adoption of digital platforms for supply chain risk management. The cloud deployment mode is also gaining traction due to its scalability, flexibility, and cost-effectiveness. In terms of organization size, large enterprises are expected to hold a significant market share, as they have a higher risk exposure and greater resources to invest in risk management. Industries such as manufacturing, healthcare, retail, and logistics are expected to be the major adopters of supply chain risk management solutions.
D) PEST Analysis:
– Political: Political instability and trade disputes between countries can disrupt supply chains and increase risks for organizations operating in multiple regions.
– Economic: Economic fluctuations, currency exchange rates, and trade policies can impact the cost of goods, transportation, and overall supply chain efficiency.
– Social: Changing consumer preferences, sustainability concerns, and ethical considerations are influencing supply chain practices and risk management strategies.
– Technological: The adoption of advanced technologies such as AI, IoT, and blockchain is transforming supply chain management, enabling real-time tracking, visibility, and risk mitigation.
E) Key Takeaways:
– The global supply chain risk management market is expected to witness high growth, exhibiting a CAGR of 9.2% over the forecast period.
– North America is expected to be the fastest-growing and dominating region, driven by the presence of major players, technological advancements, and stringent regulations.
– Key players operating in the global supply chain risk management market include Avetta, LLC, Cura Software Solutions, DHL International GmbH, GEP, LogicManager, Inc., Marsh LLC, MetricStream Inc., SZ DJI Technology Co. Ltd., SAP Ariba Inc., Software AG, and The AnyLogic Company. These companies are focusing on product launches, partnerships, and acquisitions to strengthen their market position and expand their customer base.