Supply chain security market set to reach $6.3 billion by 2031

Supply chain - globe

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A new report on the supply chain security market has revealed that it generated $2 billion in 2021 and is anticipated to generate $6.3 billion by 2031, witnessing a compound annual growth rate (CAGR) of 12.6% from 2022 to 2031.

As outlined by Allied Market Research, the report says that the rise in complexity and globalization of supply chains, the growing demand for transparency and sustainability, a surge in supply chain attacks and ransoms, the demand for better risk prediction and mitigation, a rising number of IoT devices in the supply chain and an excessive adoption of automation technology are factors that are driving the global supply chain security market.

Hindrances to the market

The report highlights that high investment cost and complexity of supply chain security will restrict the market growth. On the other hand, as the importance of security continues to increase, businesses are looking for innovative solutions to help them protect their supply chains. This factor is expected to provide new opportunities for the market growth in the coming years.

Additionally, the report says that the demand for security solutions increased owing to global disruptions due to lockdowns, travel restrictions and other COVID-19 pandemic related factors. This resulted in an increased focus on supply chain visibility, risk management and resilience. Many companies invested in technologies such as IoT sensors, blockchain and AI to improve their supply chain security.

Therefore, the pandemic had an overall positive impact on the supply chain security market owing to increased digitalization of supply chain management.

In short, the pandemic highlighted the importance of this security market, leading to an increased investment in solutions that could assist businesses in mitigating risks and ensuring the continuity of their operations.

Market segments

Based on region, the market in North America was the largest in 2021, accounting for nearly two-fifths of the global supply chain security market. The growth of the segment is driven by the increasing technological trends and the presence of key players in the region.

In terms of security type, the report says that the data protection segment contributed to the largest share of more than three-fifths of the global supply chain security market in 2021 and is expected to maintain its dominance during the forecast period. The growth is attributed to the rise in the adoption of encryption technologies to safeguard sensitive data during transportation and storage.

However, the data visibility and governance segment is estimated to witness the fastest CAGR of 15.6% from 2022 to 2031. The growth is attributed to the increasing use of AI and machine learning to enhance data visibility and automate governance processes.   

Based on industry vertical, the retail and e-commerce segment held the highest share of nearly one-third of the global supply chain security market in 2021 and is expected to dominate the market during the forecast period. An increasing awareness of the importance of cybersecurity in retail and e-commerce is leading to increased investment in solutions to protect against cyber-threats and data breaches drives the growth of segment.

The healthcare segment, on the other hand, is estimated to cite the fastest CAGR of 17.1% from 2022 to 2031. This is due to the increasing use of track-and-trace systems that leverage technologies such as RFID and barcodes to monitor the movement of pharmaceuticals and medical devices.  

Key players

In terms of key players, the report lists IBM Corporation, SailPoint Technologies, Inc., Accenture, Omega Compliance and Tagbox and leading companies.

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