Report Overview

Increasing adoption of cloud supply chain management, particularly among SMEs, and rising government initiatives are projected to propel the expansion of the India Supply Chain Management (SCM) Market during the forecast period between 2024 and 2030.

India Supply Chain Management (SCM) Market - Industry Trends & Forecast Report, 2030

India Supply Chain Management (SCM) Market size was estimated at USD 3,421.17 million in 2023. During the forecast period between 2024 and 2030, the size of India Supply Chain Management (SCM) Market is projected to grow at a CAGR of 11.1% reaching a value of USD 6,433.24 million by 2030. Major growth drivers for the India Supply Chain Management (SCM) Market include the increasing adoption of technology solutions aimed at streamlining supply chain operations by local companies. This adoption is fueled by the imperative for improved visibility, agility, and cost optimization within supply chain management, addressing the mounting complexity of supply chain networks. Companies across diverse industries are increasingly embracing SCMS solutions to achieve real-time tracking and monitoring of goods. Prominent trends in the Indian SCMS market include a notable shift towards cloud-based solutions, driven by the desire for scalability, flexibility, and cost-effectiveness, aimed at reducing IT infrastructure costs and enhancing overall supply chain operations. Also, a noteworthy trend involves the integration of artificial intelligence (AI) and machine learning (ML) technologies into SCMS solutions to optimize operations, predict demand, identify potential disruptions, and optimize inventory levels. The Indian SCMS market exhibits the presence of both local and global players, with local providers offering customized solutions tailored to the specific needs of Indian companies. Amidst these trends, macroeconomic factors, including steady economic growth, government initiatives such as 'Make in India' and 'Digital India,' the expanding e-commerce sector, and the growth of the retail industry collectively contribute to the sustained and growing demand for SCMS solutions in India.

Supply Chain Management (SCM) – Overview

Supply chain management (SCM) helps organizations in efficiently handling their supply chain activities. SCM encompasses the end-to-end coordination and optimization of processes involved in the production, distribution, and delivery of goods and services. It integrates procurement, manufacturing, transportation, warehousing, and logistics for the efficient flow of materials and information from the point of origin to the final consumer. SCM plays a pivotal role in helping organizations respond to market demands, mitigate risks, and gain a competitive edge. SCM applications offer tools to optimize inventory, vendor management, and logistics operations. SCM aids in cost reduction, enhanced customer service, and increased competitiveness for organizations.

India Supply Chain Management (SCM) Market

Growth Drivers

Government’s Supportive Initiatives

The surge in government initiatives is propelling significant growth in the Indian Supply Chain Management (SCM) Market. India, recognized as one of the fastest-growing global economies, has witnessed a real GDP growth estimated at 7.2% during 2022-23. With an emphasis on improving the overall supply chain landscape, the government is undertaking bold measures, including enhancing transportation infrastructure like roads and ports, to ensure more efficient movement of goods and services. This strategic focus aligns with the broader goal of creating a world-class supply chain ecosystem. Furthermore, concerted efforts to enhance the ease of doing business, coupled with investments in Skill India and Make in India initiatives, are contributing to India's positioning as a global leader in SCM. As the government actively fosters an enabling environment, supply chain managers are presented with a unique opportunity to optimize operations, leverage India's strengths in technology and a skilled workforce, and navigate the evolving regulatory landscape. The rising tide of government-backed initiatives underscores the transformative potential within the India Supply Chain Management (SCM) Market, paving the way for sustained growth and innovation during the forecast period.

Restraints

Growing Security and Privacy Concerns among Enterprises

The India Supply Chain Management (SCM) Market faces growth constraints due to growing security and privacy concerns among enterprises. As the digital landscape evolves, the heightened awareness about potential vulnerabilities and data breaches hampers the seamless adoption of SCM solutions. Enterprises grapple with the need for robust cybersecurity measures to safeguard sensitive information within the supply chain. The imperative to strike a balance between technological advancement and data protection poses a challenge, influencing the pace of market expansion in this domain.

Impact of COVID-19 on India Supply Chain Management (SCM) Market

COVID-19 pandemic had a mixed impact on the India Supply Chain Management (SCM) Market. Countries worldwide implemented lockdowns to curb the spread of SARS-CoV-2. Consequently, the Indian supply chain experienced disruptions, facing shortages in raw materials and struggling to fulfill the demand and supply needs for various goods and products. Despite these initial disruptions, India's logistics sector proved resilient and rebounded. The pandemic prompted a strategic shift, positioning India favorably as a preferred business destination due to its quick adaptability, robust domestic market, and secure investment climate. This potential in global supply chains was reinforced by diverse corporate environments, skilled labor, and favorable legal structures, making India an attractive investment hub. The nation's trajectory towards international supply chain integration hinged on collaborative efforts between the government, local bodies, and businesses. Embracing opportunities and executing a well-planned strategy could propel India into the global supply chain, marking significant progress and growth.

India Supply Chain Management (SCM) Market

Segmental Coverage

India Supply Chain Management (SCM) Market – By Component

By component, the India Supply Chain Management (SCM) Market is bifurcated into Solutions and Services segments. The solutions segment holds a higher share in the India Supply Chain Management (SCM) Market by component. The solution segment is sub-divided into transportation management system, planning & analytics, warehouse & inventory management system, procurement & sourcing, and manufacturing execution system. SCM solutions play a pivotal role in quality assurance, supplier management, and logistics. These solutions offer advantages such as enhanced visibility, heightened efficiency, analytical insights, cost reduction, improved agility, and increased compliance within intricate supply chains. The automation of critical processes like order processing, billing, and order tracking contributes to time and administrative cost savings. SCM systems further pinpoint surplus materials and expenses associated with shipping, warehousing, and manufacturing, facilitating the reduction of excess inventory.

India Supply Chain Management (SCM) Market – By Enterprise Size

Based on enterprise size, the India Supply Chain Management (SCM) Market is bifurcated into Small & Medium-sized Enterprises (SMEs) and Large Enterprises segments. The large enterprises segment holds a higher share in the India Supply Chain Management (SCM) Market by enterprise. The expansion can be ascribed to a heightened demand for continuous monitoring systems and automated functionalities, including advanced shipment notification management, customizable alerts, in-transit status updates, user-configurable dashboards, and visual representations of the supply chain in various sizable industries. Also, SCM offers access to precise real-time freight analytics and the flexibility to generate reports, empowering large enterprises to enhance decision-making in areas like supply planning, inventory management, and distribution planning. The market's growth is further propelled by a substantial increase in the need for software in large enterprises to gather crucial business data, encompassing inventory volumes, anticipated sales figures, supplier details, and more.

India Supply Chain Management (SCM) Market – By Vertical

Based on vertical, the India Supply Chain Management (SCM) Market is divided into Retail & E-commerce, Healthcare, Automotive, Transportation & Logistics, Food & Beverages, and Manufacturing segments. The manufacturing segment holds the highest share in the India Supply Chain Management (SCM) Market and is expected to maintain its dominance during the forecast period. It can be attributed to a growing demand for automation within the supply chain processes of the manufacturing industry. The adoption of a reliable SCM system enables manufacturers to enhance their product manufacturing processes and reduce operational expenses effectively. Meanwhile, the retail & e-commerce segment is expected to witness the fastest growth rate during the forecast period. E-commerce SCM streamlines raw material procurement, manufacturing, and timely product distribution. It encompasses supply and demand management, warehouse operations, inventory monitoring, order processing, and final delivery. SCM ensures transparent network oversight, allowing control from procurement to end-user shipment. Effective SCM enhances on-time deliveries, positively impacting customer interactions and reducing manufacturing and distribution costs for increased profitability.

India Supply Chain Management (SCM) Market – By Region

Regionally, the India Supply Chain Management (SCM) Market is segmented as North India, South India, East India, and West India.

Competitive Landscape

Major players operating in the India Supply Chain Management (SCM) Market include SAP, Oracle, IBM, Kinaxis, and Manhattan Associates. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In July 2023 - The PM GatiShakti initiative aims to establish a robust logistics and supply chain network, facilitating seamless cross-border movement of goods and expanding global market access. This approach is integral to state planning for connectivity to industrial regions and determining the locations of social infrastructure assets. Aligned with the National Logistics Policy, the initiative seeks to enhance logistics efficiency, reduce costs, and elevate India's global logistics ranking. The Gati Shakti Master Plan is focusing on logistical efficiency and connectivity.

Scope of the Report

By Component

• Solutions

• Services

By Enterprise

• Small & Medium-sized Enterprises (SMEs)

• Large Enterprises

By Vertical

• Retail & E-commerce

• Healthcare

• Automotive

• Transportation & Logistics

• Food & Beverages

• Manufacturing

By Region

• North India

• South India

• East India

• West India