Supply Chain Visibility is Not Enough; Organizations Need Quantified Supply Chain Risk Insights to Tackle Trade Complexity

Continuous disruption in global supply chains has pushed organizations to take a more proactive role in managing risk associated with key suppliers and logistics routes. No matter how granular, visibility is not enough for companies to resolve issues. Dedicated Supply Chain Risk Management (SCRM) solution revenues are set to grow at a Compound Annual Growth Rate (CAGR) of 35% to 2032, rising to US$5 billion, according to ABI Research, a global technology intelligence firm.

“A general growth in supply chain awareness is a big part of the increasing spending on risk management solutions. Issues with raw materials supply driving up prices, transport blocks from geopolitical uncertainty, and adverse weather is pushing companies to work more proactively with their Tier One suppliers to help manage their Tier Two and Tier Three suppliers,” says Ryan Wiggin, Senior Analyst at ABI Research.

Leading providers such as Everstream Analytics, Exiger, and Resilinc are providing critical supply chain data to organizations and developing unique tools to visualize supply chains, identify risks, and action resolutions accordingly. Tariffs and targeted international policies are creating an opportunity for risk management solutions that make a sharper focus on specific countries or types of risk, such as supplier ties, regulatory risk, sustainability, and compliance. Key providers include Sphera, Interos.ai, and Strider Technologies.

North America is currently the largest spender on SCRM solutions, with roughly 40% market share, followed closely by Europe at 36%. Solution providers all reference a growing interest from companies in Asia-Pacific, with the region representing the highest forecast CAGR in revenue at 47.1%. Revenue from regional companies is expected to surpass North America and Europe by 2032.

“It’s often hard to identify the Return On Investment (ROI) of SCRM solutions, but companies should also view risk management as a means for unlocking supply chain savings, as the mapping of suppliers and sub-tier suppliers can support large-scale optimization projects. And as providers develop and become harder to differentiate, accessing real-time transport visibility data ‘on the ground’ will be key to providing the highest value,” concludes Wiggin.

These findings are from ABI Research’s Supply Chain Risk Management Solutions application analysis report. This report is part of the company’s Supply Chain Management & Logistics research service, which includes research, data, and analyst insights.