SaaS-based SCM Market

SaaS-based SCM Market Size and Share:

The global SaaS-based SCM market size was valued at USD 9.2 Billion in 2024. Looking forward, IMARC Group estimates the market to reach USD 30.6 Billion by 2033, exhibiting a CAGR of 13.58% during 2025-2033. Europe currently dominates the market, holding a significant market share of over 32.8% in 2024. The SaaS-based SCM share across the region is propelled by the digital transformation, innovation-oriented decision-making, and regulatory compliance as more companies in Europe are adopting cloud-based SCM solutions to increase operational efficiency, optimize logistics, and facilitate inventory management.

Evolving demands for real-time data and analytics continue to accelerate the uptake of cloud solutions to better enable enterprises to optimize operations and make informed decisions. The flexibility and scalability of a SaaS platforms allow organizations to quickly respond to market changes and demands for growth. In such a scenario, more cost-effective solutions that do not require heavier upfront investments naturally attract clients towards subscription-based solutions. Integration with existing systems like ERP and CRM is yet another selling point for SaaS SCM. The spirit of digital transformation raging across various industries-including logistics, manufacturing, and retail-has provided impetus to SaaS solution acceptance. Finally, e-commerce growth and supply chain globalization will spur further adoption of advanced and agile SCM solutions.

The United States stands out as a key market disruptor, driven by its strong technological infrastructure, innovation-driven economy, and a high concentration of leading cloud-based solution providers. American firms have been increasingly prioritizing digital transformation across industries like manufacturing, retail, and logistics. This creates a strong demand for scalable and efficient SCM solutions. The competitive scenario in the U.S. keeps driving continuous innovation, therefore businesses can reap the benefits of improved operational efficiencies and gain a competitive strategic advantage. There are favorable government policies and investments as well for empowering technology infrastructure thereby taking possible steps toward a more intervention-based market force in developing the global trends for the implementation of SaaS SCM.

SaaS-based SCM Market Trends:

Artificial intelligence and machine learning integration

AI and machine learning technologies have gained significance in SaaS-based supply chain management solutions for enhancing forecasting, demand planning, and inventory management. AI-powered predictive analytics equips organizations with tools to sense shifting market conditions, optimize supply chain operations, and make decisions based on facts. McKinsy Global Survey suggests that 65% of the individuals working in their organizations are already deploying generative AI for product description writing, capitalizing on the technology's ability to analyze customer sentiment and forecast market demand. Use of AI enables better decision-making within enterprises, reduces forecasting errors, and ensures greater operational efficiency. The algorithms of machine learning can continuously analyze massive data sets, identify patterns, and adjust with changing conditions to make the supply chain more responsive and flexible. AI and ML adoption will be important for attaining unparalleled operational excellence as enterprises work to keep up with market competition.

Real-time supply chain visibility

Another important trend in the SaaS-based SCM market is real-time visibility. A cloud platform allows companies to monitor shipments, inventory, and production status in real time. This increased transparency allows the company to respond faster to disruptions and make proactive decisions. Integrated IoT sensors and RFID with SaaS enable the company to trace the movement and condition of goods in the supply chain. The global Internet of Things market size reached USD 1,022.6 billion by 2024. Organizations prefer these solutions over the cost comparisons, uptime, reliability, and monitoring of supply and demand. This visibility enhances communication between stakeholders and cuts down on stockouts and delay. It also helps manage risk by generating early warnings when there are signs of problems like shipment delays or quality issues. Data is useful in making smarter logistics plans and increasing supply chain resilience.

Focus on sustainability and green supply chains 

Sustainability is a growing concern in the global supply chain, and SaaS-based SCM platforms are adapting to meet these needs. According to the UN Environment Programme (UNEP) report, nations should commit to cutting 42% off from the annual greenhouse gas emissions by the year 2030 and 57% by 2035 in the next round of Nationally Determined Contributions (NDCs) or the Paris Agreement’s 1.5°C goal will be unattainable. Companies are increasingly focusing on reducing carbon emissions, minimizing waste, and improving resource efficiency across their supply chains. Cloud-based solutions provide tools to track the carbon footprint of transportation, manufacturing, and warehousing operations. By optimizing routes, consolidating shipments, and reducing energy consumption, businesses can achieve sustainability goals while maintaining profitability. Furthermore, SaaS solutions enable companies to monitor supplier compliance with environmental regulations, ensuring that sustainability is integrated into every level of the supply chain. This trend aligns with consumer preferences for eco-friendly products and corporate social responsibility.

SaaS-based SCM Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global SaaS-based SCM market, along with forecasts at the global, regional, and country levels from 2025-2033. The market has been categorized based on solution, deployment mode, end user, application, and vertical.

Analysis by Solution:

• Software
• Services

Software dominates the market in 2024, with almost 61.8% of the market share. Firms capitalize on SaaS-based SCM software to run their businesses more efficiently and blend the decision-making processes with real-time visibility, automation, and data-driven insights. The software provides efficiently integrated tools for managing inventory, logistics, procurement, and demand forecasting, aiding cost-reduction strategies and enhancing supply chain performance. Growing demand, coupled with an ever-increasing focus on flexibility and scalability; cloud-based software solutions with low upfront costs and seamless integration with other systems have been preferred. Furthermore, agility in the ever-changing marketplace allows software to facilitate continued growth and sustainable competitive advantage. The ongoing AI, machine learning, IoT adoption assists in SCM innovations through software.

Analysis by Deployment Mode:

• Public
• Private
• Hybrid

Hybrid leads the market with around 61.5% of market share in 2024. The hybrid deployment mode, which synergizes the advantages of cloud and on-site solutions, has gained traction to become the most prominent segment in the SaaS-based Supply Chain Management (SCM) market. It guarantees that companies can house sensitive operations on-site while taking advantage of cloud scalability and reduced costs for everything else. The hybrid deployment avenue also ensures improved data security and regulatory compliance and allows for customization important for industries dealing with sensitive information or complex supply chain requirements. By empowering organizations to attain a balance between operational efficiency and control over certain aspects of their SCM systems, the hybrid deployment trend holds massive market appeal. Following the trends in digital transformation and the increasing need for real-time data and analytics also prompt favours for hybrid solutions in current organizations. This makes them relatively more acceptable to organizations looking for the best in performance and risk management.

Analysis by End User:

• Large Enterprises
• Small and Medium Enterprises

Large enterprises lead the market with around 55.8% of market share in 2024. These organizations demand innovative solutions for managing operations across the globe, optimizing their logistics, and achieving coordinated effort across numerous suppliers and markets. SaaS-based SCM provides them with scale, real-time visibility, robust data analytics for better decision-making, and increased efficiency. Large enterprises find SaaS solutions attractive for their ability to seamlessly integrate with their current enterprise systems and their flexibility to adapt to changing business needs. Moreover, these enterprises are financially well off to invest in advanced technologies like AI and machine learning, which further enhance the supply chain function. Therefore, large enterprises continually fuel the growth of the SCM SaaS market.

Analysis by Application:

• Transportation Management
• Inventory and Warehouse Management
• Sourcing and Procurement Management
• Order Management
• Demand and Operations Planning
• Others

Demand and operations planning leads the market with around 17.1% of market share in 2024. This application helps organizations precisely forecast demand, align inventory levels, and streamline production schedules to use resources efficiently. By employing real-time data and advanced analytics, organizations can respond to seemingly erratic market situations and avoid overstocking or stock shortages. The SaaS model enables smooth collaboration among different departments, thereby improving decision making and fast-tracking operational agility. Given increasing market uncertainty and complexities in global supply chains, companies tend to embrace cloud-based demand and operations planning tools to maintain better visibility, improve responsiveness, and eventually cut costs. This lends momentum to the adoption of these solutions as they start to become the cornerstone of current SCM strategies.

Analysis by Vertical:

• Consumer Goods and Retail
• Food and Beverages
• Healthcare and Life Sciences
• Manufacturing
• Transportation and Logistics
• Others

Consumer goods and retail leads the market with around 28.1% of market share in 2024. This industry faces rapid product turnover, fluctuating consumer demand, and the complexities of global logistics. SaaS-based SCM solutions offer real-time inventory management, demand forecasting, and streamlining recalculating spend which help businesses cut costs, better streamline the availability of their products, and improve customer satisfaction. E-commerce, omnichannel retailing, and individualized customer experiences have increasingly given rise to the ever-increasing demand for cloud-based tools to provide visibility and flexibility in SCM. Furthermore, given the rising importance of sustainability and compliance, more companies in the consumer-packaged goods and retail sectors are adopting SaaS-based solutions in an attempt to achieve higher levels of operational efficiency and responsiveness in an increasingly competitive space.

Regional Analysis:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa

In 2024, Europe accounted for the largest market share of over 32.8%. European companies are increasingly adopting cloud-based SCM solutions to enhance operational efficiency, optimize logistics, and streamline inventory management. The region's diverse industries, including automotive, manufacturing, and retail, benefit from real-time data analytics, better supply chain visibility, and improved decision-making. Furthermore, Europe’s strict regulatory frameworks, such as GDPR, make secure, scalable, and compliant cloud solutions highly attractive. The rise of e-commerce, the demand for sustainability, and the need to adapt to global supply chain disruptions also contribute to Europe’s dominance in adopting SaaS-based SCM solutions. This trend is expected to continue as businesses seek to stay competitive and agile.

Key Regional Takeaways:

United States SaaS-based SCM Market Analysis

In 2024, the United States accounted for over 77.50% of the SaaS-based SCM market in North America. The U.S. SaaS-based SCM market is driven by increasing cloud adoption, expanding e-commerce, and advancements in AI and IoT. Businesses seek agile, scalable solutions to optimize logistics, improve inventory management, and enhance supply chain visibility. The rise of omnichannel retailing necessitates real-time analytics and automation, fueling demand for cloud-based SCM platforms. Additionally, regulatory compliance and sustainability concerns push enterprises toward SaaS solutions with built-in security and reporting capabilities. The U.S. cloud security market is projected to reach USD 10.0 Billion in 2025 and USD 31.2 Billion by 2033, growing at a CAGR of 14.2%, highlighting rising investments in secure cloud infrastructure. This surge underscores the need for robust cybersecurity measures, ensuring data protection across digital supply chains. Increased emphasis on supply chain resilience post-pandemic, coupled with AI-driven predictive analytics, accelerates adoption. Partnerships between cloud providers and logistics firms enhance market penetration, while cost reduction and operational efficiency remain key growth drivers. The evolving regulatory landscape and growing cybersecurity threats further strengthen the SaaS-based SCM demand across industries.

Asia Pacific SaaS-based SCM Market Analysis

The APAC SaaS-based SCM market is fueled by aggressive digitalization, growing e-commerce, and government policies supporting smart logistics. Economies such as China, India, and Japan experience high demand because of increasing manufacturing bases and rising cross-border trade. The fragmented supply chain networks of the region require cloud-based solutions to ensure efficiency and real-time tracking. Artificial intelligence (AI) is pivotal in supply chain optimization, with the APAC AI market growing to USD 27.8 Billion in 2023. IMARC Group estimates it to grow to USD 163.8 Billion by 2032 at a CAGR of 21.1%, highlighting increasing AI adoption. Companies use AI-based predictive analytics and automation to improve demand forecasting and operational efficiency. Good mobile and internet penetration, combined with growing investments in cloud infrastructure, further speeds up the adoption of SaaS SCM. Further, concerns regarding sustainability and regulatory compliance compel businesses to go for cloud-based platforms for improved inventory control and visibility in real-time.

Europe SaaS-based SCM Market Analysis

The European SaaS-based SCM market is fueled by sustainability efforts, regulatory requirements, and digitalization. Stringent environmental regulations compel companies to implement cloud-based SCM platforms for greater transparency and carbon footprint management. The growth of e-commerce and increasing customer expectations for quick, on-time deliveries drive demand for real-time supply chain visibility and automation. In addition, trade intricacies associated with Brexit promote companies to invest in nimble, cloud-based technologies for hassle-free cross-border logistics management. Security issues also drive SCM adoption, with 29% of EU companies utilizing Internet of Things (IoT) devices in 2021, mainly for premises security, as per industry reports. This reflects the growing dependence on digital infrastructure for supply chain security and operational effectiveness. AI, IoT, and predictive analytics support decision-making even further, decreasing inefficiencies and costs. Businesses focus on cybersecurity, which results in demand for SaaS platforms with enhanced data protection capabilities. The high penetration of cloud providers and logistics companies supports innovation, while Industry 4.0 projects and intelligent manufacturing speed up adoption. While businesses look for resilience and adaptability, SaaS-based SCM solutions keep moving forward in Europe.

Latin America SaaS-based SCM Market Analysis

The Latin American SaaS-based SCM market is driven by rising e-commerce adoption, increasing supply chain complexity, and digital transformation initiatives. Businesses seek cloud-based solutions to enhance logistics efficiency, reduce costs, and improve inventory management. E-commerce growth further accelerates demand, with transaction volume reaching USD 509 Billion in 2023 and projected to nearly double to USD 923 Billion by 2026, according to reports. This surge necessitates scalable, real-time SCM solutions to manage rising order volumes. Government efforts to modernize trade infrastructure and increasing mobile penetration further support SaaS SCM adoption, ensuring greater operational visibility and supply chain resilience.

Middle East and Africa SaaS-based SCM Market Analysis

The Middle East and Africa’s SaaS-based SCM market is driven by digitalization, expanding e-commerce, and cross-border trade growth. Businesses seek cloud-based solutions for supply chain visibility, cost optimization, and real-time analytics. E-commerce expansion further fuels demand, with internet penetration nearing 100% and 80% of users already purchasing online, according to industry reports. This surge necessitates scalable SCM platforms to manage rising order volumes efficiently. Government initiatives promoting smart logistics and infrastructure development also support adoption. Additionally, increasing mobile and cloud technology penetration enhances accessibility, while businesses focus on supply chain resilience to mitigate geopolitical and economic risks.

Competitive Landscape:

Key players in the SaaS-based supply chain management (SCM) market are offering cloud-based solutions to streamline operations, enhance visibility, and improve decision-making in supply chain management. A major trend is the increasing adoption of Artificial Intelligence (AI) and Machine Learning (ML) for predictive analytics, helping businesses optimize forecasting, inventory, and logistics. Blockchain technology is also gaining traction for its ability to ensure transparency and security in the supply chain. Additionally, there is a shift towards end-to-end, integrated solutions that can handle everything from procurement to final delivery, driving companies to enhance their technological offerings through continuous innovation and strategic partnerships. In addition to major players like SAP, Oracle, and Microsoft, other key contributors in the SaaS-based SCM market include Manhattan Associates, JDA Software (now Blue Yonder), and Coupa. These companies are expanding their portfolios through acquisitions and partnerships to strengthen their positions in the competitive landscape. A significant trend is the shift toward real-time data and advanced analytics, which allows companies to make faster, data-driven decisions. This is being enabled by the growing use of IoT (Internet of Things) in supply chains, providing real-time tracking of goods.

The report provides a comprehensive analysis of the competitive landscape in the SaaS-based SCM market with detailed profiles of all major companies, including:

• Blue Yonder Inc.
• Descartes Systems Group Inc.
• Epicor Software Corporation (KKR & Co. Inc.)
• Highjump Software Inc. (Körber AG)
• International Business Machines Corporation
• Infor Inc. (Koch Industries, Inc.)
• Kinaxis Inc.
• Logility Inc. (American Software Inc.)
• Manhattan Associates Inc.
• Oracle Corporation
• SAP SE

Latest News and Developments:

• October 2024: FuturMaster, a SaaS provider of Supply Chain Planning and Revenue Growth Management solutions, has been acquired by Sagard NewGen from its founder and Cathay Capital. Sagard NewGen becomes the majority shareholder, with the management team and Cathay Capital reinvesting in the transaction. FuturMaster’s Bloom platform leverages AI, digital twin modeling, and operational research to optimize supply chain planning and revenue management.
• July 2024: The TATA company Bigbasket has unveiled BB Matrix, a SaaS-based platform that improves the efficiency and visibility of the supply chain. By integrating AI-driven automation into order, warehouse, and transportation management, it cuts lead time by 60% and transportation expenses by 50%. It manages more than 15 million monthly transactions and facilitates smooth ERP, CRM, and POS connectivity. In addition to serving the retail sector, BB Matrix intends to expand into the United States, the Middle East, Southeast Asia, and Africa.
• February 2024: Oracle has made updates to its Cloud Supply Chain and Manufacturing (SCM) portfolio of products, including Transportation Management and Global Trade Management. The improvements include an updated Transportation Management Mobile app, a new trade incentive program, better logistics network modeling, and increased business information.
• March 2024: A EUR 3 million (USD 3.11 million) investment round led by Samaipata was closed by the Spanish SaaS firm Imperia. All Iron Ventures, Accel Starter Program, Draper B1, Angels Capital, and business angels were among the participants. Imperia's international expansion into the EU and Latin America was fueled by the investment, which also helped the company grow in supply chain management and efficiency within Spain. With operations in more than eight nations, the corporation sought to boost sales and market share in these areas.
• March 2024: Task Manager, a SaaS solution from Topo Solutions, was released to optimize supply chain processes. It facilitates sourcing, product creation, ordering, production, sustainability, quality, and compliance. For job prioritizing and status updates, the application offers an easy-to-use, automated alternative to conventional project management systems. The company's upgraded platform, Topo Version 5, includes Task Manager.

SaaS-based SCM Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the SaaS-based SCM market from 2019-2033.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global SaaS-based SCM market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's Five Forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the SaaS-based SCM industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.