The Supply Chain Risk Management Market is estimated to be valued at US$ 2.9 Bn or Mn in 2021 and is expected to exhibit a CAGR of 9.2% over the forecast period 2022 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The supply chain risk management market consists of solutions and services that help organizations assess risks in logistics, procurement and supply chain related activities. Key functions include risk identification, assessment, monitoring, reporting and mitigation. With complex global supply chains, companies use these tools to gain visibility and manage risks proactively.
Market Dynamics:
Increasing instances of disruptions such as natural disasters, geopolitical issues and supply shortages have underscored the need for robust risk management. Many companies are investing in tools that integrate risk assessment across supplier sites, transportation networks and points of distribution. This helps obtain a unified risk profile and prioritize mitigation efforts. In addition, the adoption of automated risk monitoring systems allows organizations to continuously track external factors that could impact the supply chain. Real-time alerts help take swift corrective actions to minimize business impact.
Market Key Trends:
The supply chain risk management market has been witnessing high growth due to increasing complexity in supply chains and globalization of operations. Modern supply chains have become highly complex with involvement of multiple parties across different geographies. Even a small disruption anywhere in the chain can significantly impact overall operations. Further, rising geopolitical tensions and global trade wars have added another layer of uncertainty. These factors are pushing companies to implement advanced supply chain risk management solutions to gain visibility and mitigate risks.
SWOT Analysis:
Strengths: Supply chain risk management solutions help companies achieve supply chain resilience, mitigate financial losses from disruptions, and ensure business continuity.
Weaknesses: High initial costs of deployment and integration challenges with legacy systems.
Opportunities: Growth in blockchain applications and AI/ML capabilities in solutions can help detect risks early.
Threats: Economic slowdowns can reduce IT budgets and disrupt global supply chains.
Key Takeaways:
The global Supply Chain Risk Management Market Share size was valued at $2.9 billion in 2021. The market is expected to grow at a strong CAGR of 9.2% during 2022 to 2031, driven by increasing complexities in global supply chain operations.
The North America region currently dominates the market due to presence of major players like SAP Ariba, Avetta, LLC, Marsh LLC. The region exhibits high adoption of advanced technologies among supply chain stakeholders.
Key players operating in the supply chain risk management market are Avetta, LLC, Cura Software Solutions, DHL International GmbH, GEP, LogicManager, Inc., Marsh LLC, MetricStream Inc., SZ DJI Technology Co. Ltd., SAP Ariba Inc., Software AG, and The AnyLogic Company, and others. Players are focusing on integrating AI/ML and blockchain capabilities for better decision making. They are also expanding to fast growing Asian markets through partnerships.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it