Supply chain management is taking a larger role in the overall performance of companies. That in combination with the increased complexity of the supply chain is causes grow in the global supply chain analytics market, according to a report by BCC Research.
The report, " Global Supply Chain Analytics: Technologies Market" predicts that the market will see a compounded annual growth rate of 15.8% through 2024 when it could be worth $9.2 billion.
“Supply chain analytics solutions are used across a wide range of industries, including retail and consumer goods, industrial and automation, transportation and logistics, energy and utilities, healthcare, and others,” writes analyst Aneesh Kumar.
“Among these industries, the industrial and manufacturing sector is expected to hold the majority share of the market during the forecast period,” Kumar added. “The revolution of industry 4.0 is characterized by the creation of advanced factories that can implement and integrate various state-of-the-art technologies such as the industrial internet of things (IoT), data analytics, additive manufacturing, 3D printing and cyber-physical systems.”
- The industrial and manufacturing segment of the global supply chain analytics market is expected to grow from $1.3 billion in 2019 to $2.8 billion in 2024 at a rate of 16.4%.
- The retail and consumer goods segment of the global supply chain analytics market is expected to grow from $1.2 billion in 2019 to $2.5 billion in 2024 at a rate of 16.2%.
- The U.S. retail industry is expected to report growth in the range of 3.8% to 4.4% by the end of 2019, due to the growing internet penetration and increasing e-commerce sales.
The Importance of AI in Supply Chain Analytics
The technology of Artificial intelligence (AI) is expected to have the potential to be among one of the most developed technologies of this century. AI is increasing innovation in every sector, but it has major applications in the sector of supply chain management.
Adoption of machine-learning technology has the potential of boosting the market for the supply chain by resolving its issues for time, resources and cost. Most of the companies rely upon machine learning and AI for management of their predictive network for analysis of different parameters of internal data to identify the factors influencing delay in shipment. Machine learning is expected to contribute a lot in improving supply chain management in the coming years.