Market Insights Technology Software Enterprise Software

Supply Chain Management Software - Africa

Africa

In 2024, the projected revenue in the Supply Chain Management Software market for Africa is expected to reach US$217.90m.
This market segment is anticipated to experience a compound annual growth rate (CAGR 2024-2029) of 5.64%, resulting in a market volume of US$286.70m by 2029.
Furthermore, it is projected that the average Spend per Employee in this market will reach US$0.42 in 2024.
When compared globally, United States is expected to generate the highest revenue in the Supply Chain Management Software market, reaching US$10,900.00m in 2024.
Africa's growing e-commerce industry is driving the demand for supply chain management software solutions across the continent.

Key regions: Netherlands, Germany, Australia, Canada, France

Market

Region

Region comparison

Currency

Analyst Opinion

The demand for Supply Chain Management Software (SCMS) in Africa is on the rise due to the increasing adoption of technology in the region.

Customer preferences: African businesses are increasingly recognizing the benefits of using SCMS to improve their supply chain efficiency. The software helps businesses to optimize their inventory, reduce lead times, and improve customer satisfaction. Moreover, businesses are also looking for SCMS that are easy to use, customizable, and affordable.

Trends in the market: South Africa is the largest SCMS market in Africa due to its developed economy and advanced technological infrastructure. However, other African countries such as Nigeria, Egypt, and Kenya are also witnessing a significant increase in the adoption of SCMS. In Nigeria, for instance, the government's efforts to improve the country's logistics infrastructure have led to the increased adoption of SCMS by businesses. In Egypt, the growth of the e-commerce industry has also driven the demand for SCMS. In Kenya, the adoption of SCMS has been driven by the country's position as a regional hub for trade and logistics.

Local special circumstances: One of the challenges facing the adoption of SCMS in Africa is the lack of technological infrastructure in some countries. In addition, some businesses may not have the resources to invest in SCMS due to the high cost of implementation. However, this challenge is being addressed by the emergence of cloud-based SCMS, which are more affordable and accessible to businesses of all sizes.

Underlying macroeconomic factors: The growth of the SCMS market in Africa is being driven by the continent's economic growth and increasing trade volumes. Africa's population is also growing rapidly, leading to an increase in consumer demand and the need for efficient supply chains. Moreover, the African Continental Free Trade Area (AfCFTA) agreement is expected to further boost trade volumes and increase the demand for SCMS in the region.

Methodology

Data coverage:

The data encompasses B2B, B2G, and B2C enterprises. Figures are based on the allocation to the country where the money was spent at manufacturer price level (excluding VAT).

Modeling approach / Market size:

The segment size is determined through a top-down approach. We use financial statements such as annual reports, quarterly earnings, and expert opinions to analyze the markets. To estimate the segment size for each country individually, we use relevant key market indicators and data from country-specific industry associations such as GDP, level of digitization, GDP sector composition, and observed level of software piracy.

Forecasts:

We use a variety of forecasting techniques, for instance, advanced statistical methods, depending on the behavior of the relevant segment. The main drivers are the GDP and the level of digitization.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic is considered at a country-specific level.