Global Supply Chain IoT Market Size By Component (Hardware, Software, Service), By Application (Inventory And Warehouse Management, Fleet And Transportation), By Geographic Scope And Forecast

Supply Chain IoT Market Size And Forecast

Supply Chain IoT Market size was valued at USD 21.36 Billion in 2024 and is projected to reach USD 55.58 Billion by 2031, growing at a CAGR of 12.70% during the forecast period 2024-2031.

Global Supply Chain IoT Market Drivers

The market drivers for the Supply Chain IoT Market can be influenced by various factors. These may include

• Enhanced Productivity and Cost SavingsInternet of Things (IoT) technologies provide real-time tracking, monitoring, and optimisation of supply chain activities, resulting in enhanced productivity and cost savings in transportation, logistics, and inventory management.
• Demand for Transparency and TraceabilityAs customer demand for sustainability and transparency grows, IoT enables businesses to offer end-to-end supply chain visibility, guaranteeing product traceability from point of origin to final destination. This is especially important for the food, pharmaceutical, and electronics industries.
• Growing Usage of Sensors and RFIDBecause of lowering costs, advancing technology, and regulatory requirements, supply chain management is adopting RFID (Radio-Frequency Identification) tags, sensors, and other Internet of Things (IoT) devices at a rapid rate.
• Emergence of Industry 4.0 and Smart ManufacturingIndustry 4.0 initiatives are encouraging the use of IoT solutions to establish intelligent, interconnected supply chains. These initiatives centre on the integration of digital technology into manufacturing and supply chain activities.
• Growing Adoption of Edge and Cloud ComputingAs these technologies proliferate, it becomes easier to store, analyse, and analyse vast amounts of IoT data produced by supply chain devices, allowing for real-time insights and action.
• Globalisation and Complex Supply ChainsTo manage the flow of goods, information, and funds across numerous regions, suppliers, and partners, there is an increasing need for IoT solutions. This is because supply chains are becoming more and more globalised and complex.
• Risk management and compliance with regulationsIoT solutions for compliance monitoring and risk mitigation inside supply chains are becoming more and more popular as a result of regulatory requirements pertaining to product safety, quality, and security.
• COVID-19 Pandemic and the Sturdiness of the Supply ChainThe COVID-19 pandemic’s interruptions have brought attention to how crucial supply chain agility and resilience are. IoT technologies are thought to be essential for creating supply networks that are more resilient, able to adjust to shifting circumstances and lessen potential disruptions.

Global Supply Chain IoT Market Restraints

Several factors can act as restraints or challenges for the Supply Chain IoT Market. These may include

• Cost of ImplementationIt can be costly to integrate IoT devices and solutions into the current supply chain infrastructure. This covers the price of implementation services, software, and hardware. The large initial outlay that is necessary may cause many businesses to hesitate.
• Complexity of IntegrationIt is frequently necessary to integrate IoT devices and solutions with pre-existing systems and procedures in order to integrate them into the supply chain. This can be laborious and complicated, particularly for businesses with decentralised operations or outdated technology.
• Privacy and Data Security ConcernsThroughout the supply chain, Internet of Things (IoT) sensors gather enormous volumes of data, including private data like product whereabouts, inventory levels, and shipment details. Companies are quite concerned about ensuring the security and privacy of sensitive data, especially in sectors like healthcare and finance where rules are stringent.
• Interoperability ProblemsInteroperability problems can arise from a lack of standardisation among IoT platforms and devices. The usage of several protocols or formats by various devices for data exchange makes it challenging to develop end-to-end solutions that work seamlessly.
• Performance and ReliabilityFor supply chain operations, the functionality and dependability of IoT networks and devices are essential. Operations can be disrupted by outages or performance problems, which can cause delays or losses.
• The ability to scale ChallengesScalability is a major challenge as supply chains expand and change. IoT solutions need to be scalable in order to adapt to variations in volume, complexity, and geographic reach.
• Regulatory ComplianceOrganisations deploying IoT solutions may face difficulties adhering to industry-specific norms and laws like the General Data Protection Regulation (GDPR). IoT projects become more complex and expensive when compliance is required.
• Cybersecurity RisksMalware, ransomware, and data breaches are just a few of the cyberattacks that can target Internet of Things devices. It will take constant investment in cybersecurity measures to protect IoT networks and devices from these threats.
• Lack of SkillsSpecialised knowledge in fields like network administration, cybersecurity, and data analytics is necessary for implementing and maintaining Internet of Things solutions. These talents are frequently in low supply, which makes it difficult for businesses to hire and retain competent staff.
• Opposition to ChangeThe adoption of IoT technology may be impeded by resistance to change within organisations. Workers may be hesitant to adopt new procedures or technology, particularly if they believe they would jeopardise their jobs or way of doing things now.

Global Supply Chain IoT Market Segmentation Analysis

The Global Supply Chain IoT Market is Segmented on the basis of Component, Application, and Geography.

Supply Chain IoT Market, By Component

• Hardware
• Software
• Service

Based on Component, the market is bifurcated into Hardware, Software, and Service. The hardware segment holds the largest share of the market among the component segment in the worldwide IoT supply chain industry. The IoT ecosystem’s physical sensors and equipment, such as RFID tags, barcode scanners, GPS trackers, sensors, gateways, and communication modules, are referred to as hardware. These hardware elements are necessary for data collection, asset monitoring, and supply chain communication. They are essential in gathering up-to-date data on supplies, machinery, and shipments, giving useful information for supply chain improvement. Due to the enormous investment made in IoT devices and sensors across industries to improve visibility, tracking, and automation in the supply chain processes, the hardware category has the biggest market share.

Supply Chain IoT Market, By Application

• Inventory and Warehouse Management
• Fleet and Transportation
• Demand and Supply Planning
• Cold Chain Management
• Track and Trace
• Predictive Maintenance

Based on Application, the market is bifurcated into Inventory and Warehouse Management, Fleet and Transportation, Demand and Supply Planning, Cold Chain Management, Track and Trace, and Predictive Maintenance. Inventory and warehouse management hold the majority share of the Global Supply Chain IoT Market among the application segments. This application focuses on utilizing IoT technology to improve inventory and warehouse operations tracking, monitoring, and optimization.

Companies can get real-time visibility into their inventory levels, automate stock replenishment procedures, and boost overall warehouse productivity by implementing IoT devices and sensors. Inventory and warehouse management IoT systems provide precise inventory tracking, giving firms knowledge of stock quantities, location, and movement. This helps minimize surplus inventory, improve stock replenishment, and prevent stockouts. IoT sensors may also keep an eye on warehouse environmental factors like temperature and humidity to ensure that delicate items are stored properly.

Supply Chain IoT Market, By Geography

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America

On the basis of Regional Analysis, the Global Supply Chain IoT Market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. The Supply Chain IoT Market in the world is dominated by North America. As a result of its leadership in technical development and digital transformation, North America is a crucial location for the adoption of IoT in a variety of sectors, including supply chain management. The dominance of North America in the industry is attributed to the presence of significant IoT solution providers, existing infrastructure, and a strong emphasis on innovation and automation.

Key Players

The “Global Supply Chain IoT Market” study report will provide valuable insight with an emphasis on the global market. The major players in the market are Cisco, Robert Bosch GmbH, IBM, Microsoft, Qualcomm Inc, Intel, Honeywell, Huawei Technologies Co. Ltd, Amazon Web Services, and Oracle.

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