The $3.7 Billion Supply Chain Management (SCM) Market in South America, 2023 - The Use of Blockchain Presents Lucrative Opportunities - ResearchAndMarkets.com
DUBLIN--(BUSINESS WIRE)--Feb 27, 2019--The “South America Supply Chain Management - South America Market Size, Share, Development, Growth and Demand Forecast, 2013-2023” report has been added to ResearchAndMarkets.com’s offering.
South America supply chain management market is expected to reach $3.7 billion by 2023. Growth in e-commerce industry, need for greater supply chain visibility, and surge in demand planning solutions are the major factors driving the market growth.
Based on component, the supply chain management market in South America has been categorized into software, hardware, and services. The software category held the majority share in the market, accounting 67% share in 2017, and is expected to witness a CAGR of 7.6%, during the forecast period. The major factor attributing to its largest share in the market is the increasing need to make the supply chains as transparent as possible in order to increase customer satisfaction.
In terms of delivery mode, on-premise mode in the supply chain management market in the country held a higher revenue share in 2017 and is expected to maintain its lead, during the forecast period. Compliance issues with cloud SCM is a major factor for the deployment of on-premise delivery mode. Companies often regulate storage of critical information on the cloud due to security concern associated with the cloud.
Moreover, if the company has already invested heavily in its on-premise solution, it will be reluctant to invest in cloud solution. On the other hand, the cloud-based delivery mode is expected to witness a CAGR of 14% during the forecast period. This growth will be mainly led by the capacity of cloud-based to offer ease of deployment and cost-effective solutions.
During the forecast period, Brazil is projected to record largest revenue in the South American market, reaching $1.2 billion by 2023, buoyed by increasing e-commerce sector in Brazil. Transportation and logistics industry is one of the major contributors to the growth of the supply chain management market in Brazil due to rising development of warehouses to meet the growth of e-commerce market. However, poor transport infrastructure and lack of government spending on the infrastructure development are expected to hinder the growth of the market in Brazil.
With the increase in smartphone ownership, internet penetration, and the rise in middle-class population, South America recorded a boom in its e-commerce industry in recent years. The industry growth is also propelled by improvement in the delivery of goods as well as the payment infrastructure. The growth in e-commerce industry, coupled with express delivery of products, led to higher demand for SCM solutions in the region.
Besides, the industry growth encouraged international companies to set-up their businesses in the region. For instance, in February 2018, Amazon was planning to lease a 50,000 square-meter warehouse outside of Sao Paulo to expand its business in Brazil. With growing presence of multinational companies in the region, demand for warehouse management software serving the growing e-commerce industry has considerably risen.
In the recent years, client wins, product launches, and updates as well as collaborations between companies for products and services were the major activities in the SCM industry in South America. International Business Machines (IBM) Corporation, Kinaxis Inc., and Oracle Corporation, were the major companies that exhibited client wins for their supply chain solutions and services. SAP SE, and JDA Software Group Inc. entered into collaboration with several companies to offer enhanced SCM planning solutions.
Some of the other key players operating in the South America supply chain management market are Logility Inc., TECSYS Inc., LogiTag Systems, Walmart Inc., Cisco Systems Inc., Intel Corporation, The Descartes Systems Group Inc., and Infor Inc.
- Increasing Focus Toward Cloud-Based SCM
- Growth in the E-Commerce Industry
- Need for Greater Supply Chain Visibility
- Increasing Need for Demand Planning Solutions
- Lack of Distribution Infrastructure
- Shortage of Skilled Labor
- Use of Blockchain in SCM
- JDA Software Group Inc.
- International Business Machines (IBM) Corporation
- Logility Inc.
- Kinaxis Inc.
- Oracle Corporation
- TECSYS Inc.
- Logi-Tag Systems
- Walmart Inc.
- Cisco Systems Inc.
- Intel Corporation
- SAP SE
- The Descartes Systems Group Inc.
- Infor Inc.
For more information about this report visit https://www.researchandmarkets.com/research/9xllbp/the_3_7_billion?w=4
View source version on businesswire.com:https://www.businesswire.com/news/home/20190227005512/en/
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Related Topics:Supply Chain Management
KEYWORD: SOUTH AMERICA
INDUSTRY KEYWORD: TRANSPORT LOGISTICS/SUPPLY CHAIN MANAGEMENT
SOURCE: Research and Markets
Copyright Business Wire 2019.
PUB: 02/27/2019 08:54 AM/DISC: 02/27/2019 08:54 AM