Iot For Supply Chain Management Market

According to Stratistics MRC, the Global IoT for Supply Chain Management Market is accounted for $25.47 billion in 2024 and is expected to reach $58.90 billion by 2030 growing at a CAGR of 15.0% during the forecast period. IoT (Internet of Things) for Supply Chain Management revolutionizes the way businesses monitor, track, and optimize their supply chain operations. Businesses can obtain real-time visibility into inventory levels, shipment locations, and equipment status by integrating IoT devices such as sensors, GPS trackers, and RFID tags. Because of this connectivity, businesses can make proactive decisions and react quickly to unforeseen events like delays, damaged goods, or shortages in inventory. IoT also improves predictive maintenance, which lowers downtime and boosts operational effectiveness for vehicles and machinery.

According to the World Economic Forum, IoT-enabled supply chains can achieve up to a 30% increase in productivity by providing real-time data and analytics that enhance decision-making and operational efficiency.

Market Dynamics: 

Driver: 

Enhanced transparency and visibility

Real-time data on the status of goods is provided by IoT technologies, which greatly improve visibility throughout the supply chain. Shipments can be tracked by companies from point of origin to point of destination using GPS, RFID tags, and Internet of Things sensors. In order to make sure that goods are stored and transported under ideal circumstances, this degree of transparency enables stakeholders to keep an eye on variables like temperature, humidity, and location. Additionally, customers are more likely to trust a company that they can precisely predict delivery times and receive updates on their orders, which help with logistics management.

Restraint:

Workforce training and the skills gap

A workforce with supply chain management and technology skills is necessary for the effective implementation of IoT technologies. Nevertheless, a lot of companies have a skills gap since their staff might not be qualified to run and maintain these sophisticated systems. Employee resistance could also come from staff members who are reluctant to adopt new technologies because they are used to conventional procedures. Furthermore, in order to provide employees with the necessary skills for efficient IoT utilization and to cultivate an organizational culture that welcomes technological innovation, companies must invest in extensive training initiatives.

Opportunity:

Improvements in inventory control

Real-time insights into stock conditions and levels are made possible by IoT technology, which transforms inventory management. Businesses can minimize stock outs and ensure timely replenishment by using IoT-enabled systems to continuously monitor inventory status. In order to initiate automatic reordering procedures, sensors, for example, can identify when inventory levels drop below a predetermined threshold. This capacity guarantees that companies keep the right amount of inventory on hand while also improving forecasting accuracy by using real consumption patterns to determine future inventory requirements. Moreover, RFID technology has been effectively used by businesses such as Walmart to track inventory with great precision, enhancing accuracy and streamlining replenishment processes.

Threat:

Privacy issues and data breach

Numerous private data sets, such as operational metrics, customer information, and proprietary business insights, are gathered and transmitted by Internet of Things devices. Cloud environments—which are prone to security breaches if not sufficiently secured—are frequently used to store this data. Significant privacy violations, legal penalties, and reputational harm can result from unauthorized access to this data. Additionally, sensitive information must be protected from cyber threats by organizations using strict data protection measures, such as encryption and access controls.

Covid-19 Impact: 

The industry has undergone a significant transformation as a result of the COVID-19 pandemic, which has accelerated the adoption of Internet of Things (IoT) technologies in supply chain management. 90% of logistics and transportation companies have either accelerated or plan to accelerate their Internet of Things projects in response to the challenges presented by the pandemic, according to research. This change has been brought about by the need for improved operational resilience and visibility, which enable businesses to adjust to supply chain disruptions. Furthermore, a lot of companies have realized that IoT solutions make data analytics and real-time monitoring possible, both of which are critical for keeping operations running smoothly in times of emergency.

The Cloud-Based segment is expected to be the largest during the forecast period

Due to its ability to offer solutions that are affordable, flexible, and scalable, the cloud-based segment of the IoT for Supply Chain Management market has the largest share. Utilizing cutting-edge technologies, cloud-based supply chain management improves operational visibility and efficiency. Through its integration, businesses can combine different supply chain operations, including demand forecasting, inventory control, and logistics, into a single, easily accessible platform. Moreover, cloud technologies are being used more and more, especially in industries where agility and responsiveness are critical, like e-commerce and retail.

The Predictive Maintenance segment is expected to have the highest CAGR during the forecast period

In the IoT for Supply Chain Management market, the predictive maintenance segment is anticipated to grow at the highest CAGR. This increase is explained by the growing reliance on IoT technologies to continuously monitor the performance and health of equipment. With the use of data from linked sensors, predictive maintenance helps businesses plan maintenance proactively and minimize unscheduled downtime by foreseeing equipment failures before they happen. Predictive maintenance solutions are expected to become more in demand as industries continue to embrace digital transformation. Additionally, this demand is fueled by the need for improved asset management in complex supply chain environments, as well as increased efficiency and cost savings.

Region with largest share:

Due to its early adoption of IoT solutions across a variety of industries and sophisticated technological infrastructure, the North American region currently holds the largest share of the market for IoT for supply chain management. North America is now recognized as a leader in the application of IoT technologies in supply chains due to the presence of prominent IoT solution providers and large investments in digital transformation projects. Strong emphasis is placed on innovation, automation, and efficiency gains in this region, all of which are essential for improving supply chain operations. 

Region with highest CAGR:

In the IoT for Supply Chain Management market, the Europe region is projected to have the highest CAGR. Large investments in digital transformation projects throughout several European nations and the early adoption of Industry 4.0 principles are what are fueling this growth. The region's market potential is further enhanced by its emphasis on sustainable supply chain practices, innovation, and technological advancements. Moreover, demand for IoT solutions is predicted to soar, establishing Europe as a major player in the global IoT supply chain landscape as companies in the region place an increasing emphasis on transparency and real-time data analytics.

Key players in the market

Some of the key players in IoT for Supply Chain Management market include Cisco Corporation, FedEx, Honeywell Systems, Microsoft Corporation, Amazon, IBM Corporation, Oracle Corporation, Zebra Technologies, Mitsubishi Heavy Industries, SAP SE, Volvo, Nissan, Samsara, Maersk and Parametric Technology Corporation.

Key Developments:

In June 2024, Microsoft Corp. and Hitachi Ltd. announced projected multibillion-dollar collaboration over the next three years that will accelerate social innovation with generative AI. Through this strategic alliance, Hitachi will propel growth of the Lumada business, with a planned revenue of 2.65 trillion yen (18.9 billion USD)*1 in FY2024, and will promote operational efficiency and productivity improvements for Hitachi Group’s 270,000 employees.

In March 2024, Networking major Cisco has signed an agreement with the Karnataka government to train 40,000 people in cybersecurity skills and awareness. Women will represent half of the trained workforce to help meet the growing need for such skills as organisations bolster the cybersecurity, according to the memorandum of understanding the company signed with Karnataka Innovation Technology Society, Department of Electronics, Information Technology, Biotechnology.
 
In January 2024, IBM is announcing that it has signed a definitive agreement to acquire application modernization capabilities from Advanced, bringing a combination of talent, tools and knowledge to enhance IBM Consulting’s mainframe application and data modernization services.

Components Covered:
• Hardware
• Software 
• Services 

Deployment Modes Covered:
• On-Premise
• Hybrid
• Cloud-Based 

Applications Covered:
• Inventory Management
• Fleet Management
• Asset Tracking
• Predictive Maintenance
• Real-time Monitoring
• Other Applications 

End Users Covered:
• Retail
• Manufacturing
• Healthcare
• Food & Beverages
• Transportation & Logistics
• Other End Users

Regions Covered:
• North America
o US
o Canada
o Mexico
• Europe
o Germany
o UK
o Italy
o France
o Spain
o Rest of Europe
• Asia Pacific
o Japan        
o China        
o India        
o Australia  
o New Zealand
o South Korea
o Rest of Asia Pacific    
• South America
o Argentina
o Brazil
o Chile
o Rest of South America
• Middle East & Africa 
o Saudi Arabia
o UAE
o Qatar
o South Africa
o Rest of Middle East & Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2022, 2023, 2024, 2026, and 2030
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements

Free Customization Offerings: 
All the customers of this report will be entitled to receive one of the following free customization options:
• Company Profiling
o Comprehensive profiling of additional market players (up to 3)
o SWOT Analysis of key players (up to 3)
• Regional Segmentation
o Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances