SUPPLY CHAIN & LOGISTICS ("SCL") SOFTWARE MARKET REPORT

Core Insights - The global supply chain software market is projected to grow at an annual rate of approximately 16%, reaching around $62 billion by 2028, driven by increasing global disruptions and complexities [8][18][19] - The demand for supply chain and logistics (SCL) software is expected to see significant growth due to a backlog of demand and private equity cash reserves, benefiting from organic growth [9][19] - The report highlights a notable increase in spending on supply chain management modernization projects, which is expected to account for over 50$17 billion by 2028 [19] Market Dynamics - The SCL software market is experiencing a moderate level of mergers and acquisitions (M&A) activity in 2024 due to ongoing uncertainties, with expectations for a significant acceleration in M&A activity by the end of 2025 and early 2026 [8][9] - The report indicates that the average annual renewal rates for leading supply chain management (SCM) software providers are expected to nearly double from the current 3%-5% to 7%-10% post-2025 [19] - Autonomous spending on new end-to-end supply chain management capabilities and orchestration platforms is projected to account for approximately 30% of the forecasted growth [19] Technological Advancements - The integration of artificial intelligence (AI) and machine learning is enhancing operational decision-making capabilities, optimizing inventory levels, and reducing waste [20] - AI-driven risk assessments are identifying vulnerabilities within supplier networks, improving resilience, and mitigating potential disruptions [20] - Advanced data processing ensures higher accuracy and completeness, driving more informed decision-making and streamlined processes across the supply chain [20] Industry Trends - The report notes a significant increase in the adoption of warehouse automation technologies, which rose from approximately 5% to 25% over the past decade, with expectations for continued growth [22] - The North American market holds the largest share of the inventory management systems, accounting for about 40%, with local deployments still representing around 64% of all systems [22] - The last-mile delivery market is projected to reach $161 billion in 2024, with an expected annual growth rate of about 10% over the next eight years [25] M&A Activity - The report outlines several notable acquisitions in the SCL software space, including Veriforce's acquisition aimed at enhancing supply chain risk management solutions and Jaggaer's acquisition to support its next growth phase [27][28] - The report indicates a total of 74 M&A transactions in the SCL sector, with a notable increase in transaction volume observed in recent quarters [30][31]