According to the report, the SCaaS market in North America accounted for $4.47 billion in 2017 and is expected to reach $7.85 billion by 2025, growing at a CAGR of 7.5% during the forecast period, 2018-2025.
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The growth of the North America SCaaS market is driven by unprecedented growth of the retail industry, surge in consumer expectations, and increased requirement for managing logistics services. Additionally, the integration of blockchain technology along with the advent of omni-channel supply chain approach would create lucrative opportunities for new market players in the near future. However, concerns regarding data protection and security significantly hamper market growth.
By application, order management is poised to register the highest CAGR of 8.4% from 2018 to 2025, on account of growing demand to track real-time inventory levels & shipment status by vendors & customers, along with the increasing need to manage the complexities associated with such orders. However, the logistics management segment would continue to dominate the North American market and generate almost two-fifths of the continental revenue by 2025.
By component, the solutions segment occupied more than two-thirds of the continental market in 2017 and is expected to continue the dominance through 2025. This is attributed to the growing demand to develop efficient transportation of goods in myriad industries along with rising requirements by retailers to build efficient business strategies & well-organized management solutions. However, the services segment is projected to grow at the highest CAGR of 8.8% during the forecast period.
By organization size, large enterprises segment would continue to maintain its stronghold over the North American market and occupy more than four-fifths of the overall share by 2025. This is attributed to the adoption of SCaaS by large enterprises to effectively manage the cost associated with obtaining goods & business expansion. However, the small & medium enterprises segment would register the highest CAGR of 11.3% during the forecast period.
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The key players analyzed in the report include Accenture, CEVA Logistics, DHL International GmbH (Deutsche Post DHL Group), FedEx Corporation, GEODIS (SNCF Mobilits Group), Kuehne+Nagel, TATA Consultancy Services Limited, United Parcel Service (UPS), XPO Logistics, Inc., and Zensar Technologies Ltd. They have adopted different strategies including collaborations, joint ventures, partnerships, expansions, mergers & acquisitions, and others to gain a strong position in the industry.
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