Supply chain risk management includes activities and practices used to minimize vulnerability and ensure effective response to disruptions from suppliers, manufacturing, and distribution channels. Supply chain risk management solutions help organizations to respond quickly to any problems and maintain business continuity with minimal disruption. The solutions enable organizations to analyze historical data, customer behavior patterns, demand forecasts and supply chain configurations to predict potential disruptions and proactively take mitigating actions.
The global supply chain risk management market is estimated to be valued at US$ 2.22 Billion in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growing burden of chronic diseases has increased the demand for pharmaceutical products worldwide which has led to increased complexity of pharmaceutical supply chains. Supply chain risk management solutions help pharmaceutical companies to ensure uninterrupted supply of essential medicines to patients facing chronic illnesses. Moreover, the rising geriatric population is more susceptible to chronic medical conditions thereby further driving the demand for pharmaceutical products globally. Supply chain risk management enables pharmaceutical supply chains to deal with increased demand from aging population and prevent potential disruptions in medicine supply. These factors are expected to propel the global supply chain risk management market growth over the forecast period.
Segment Analysis
The global supply chain risk management market is segmented into software, services, deployment and geography. The software segment dominated the market in 2023 and is projected to maintain its dominance during the forecast period. This is due to increasing use of supply chain risk management software by enterprises to identify and resolve potential risks across complex supply chains. The services segment is expected to witness fastest growth during the forecast period due to growing need for supply chain risk management services such as consulting, support and maintenance among enterprises.
PEST Analysis
Political: Governments across countries are implementing supply chain related regulations to ensure quality standards and safety, thereby forcing enterprises to adopt robust supply chain risk management practices.
Economic: Recession and uncertainties negatively impact global trade and economy, increasing risks for supply chains. Enterprises are investing in risk management solutions to mitigate such risks.
Social: Growing consumer awareness about ethics and sustainability is pressurizing companies to ensure responsible supply chain practices with no/minimal risks.
Technological: Adoption of technologies like AI, ML and blockchain help enterprises gain real-time visibility and predictive insights into global supply chains, facilitating proactive risk monitoring.
Key Takeaways
The Global Supply Chain Risk Management Market Growth is expected to witness high during the forecast period of 2023 to 2030. The global supply chain risk management market is estimated to be valued at US$ 2.22 Billion in 2023 and is expected to exhibit a CAGR of 6.3% over the forecast period 2023 to 2030.
Regional analysis: North America held the largest share of the market in 2023 owing to strict regulatory frameworks and early adoption of supply chain risk management solutions by enterprises in the region.
Key players: Key players operating in the supply chain risk management market are Rise in burden of chronic diseasesGrowing geriatric (aging) population, Avetta, CuraeContract, Epicor Software Corporation, GEP, International Business Machines Corporation, LogicManager, Marshall, MetricStream, Resilience360, SAP SE. Key players are focusing on new product launches and partnerships to enhance their market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it