The global Control Towers Market, which was valued at USD 6.1 billion in 2021, is expected to witness remarkable growth, reaching USD 23.5 billion by 2028, with a Compound Annual Growth Rate (CAGR) of 20.1% during the forecast period. This substantial expansion is primarily attributed to the growing need for digitalizing supply chain processes among retailers, contract manufacturers, and logistics service providers to enhance visibility and decision-making through supply chain control tower software.
Rising Demand for Supply Chain Efficiency
Control towers are gaining prominence in the transportation and supply chain ecosystems, providing companies with real-time tracking capabilities and improved delivery efficiency. As supply chains become increasingly complex due to technological advancements and globalization, businesses are seeking solutions to manage complexity while mitigating risks and uncertainties. Control towers offer the ideal solution by enhancing visibility among trading partners, including companies, nations, and modes of transportation, allowing organizations to identify areas for revenue growth and cost reduction.
Integration with Enterprise Systems Drives Adoption
The integration of control towers with Enterprise Resource Planning (ERP), Transportation Management Systems (TMS), and Warehouse Management Systems (WMS) has played a pivotal role in their rising popularity. This integration empowers firms with operational control over their entire supply chain network, enabling staff to assess and optimize decisions, identify process flaws, and manage orders based on cycle times. Over the forecast period, the additional benefits of control towers are expected to further fuel market expansion.
Challenges in Data Security and Skilled Workforce
Despite the numerous advantages of control towers, poor visibility caused by data quality issues and concerns over data security pose challenges to market growth. Companies and their partners exchange sensitive information and data, making data security crucial to protect critical information from intruders. Additionally, the shortage of qualified individuals capable of producing reliable insights hampers the expansion of the control tower sector.
COVID-19 Impact
The COVID-19 pandemic has impacted businesses worldwide, stifling innovation and profitability. However, it has also prompted the development of more efficient distribution and production networks. Businesses are increasingly investing in control tower solutions to anticipate, respond to, and forecast supply chain challenges, with 83% of surveyed firms increasing their supply chain investments in the past year.
Market Segmentation
- Operational Segment Dominates: In 2021, the operational segment accounted for over 83% of sales, offering real-time visibility and control over the supply chain. Analytical control towers are expected to have the fastest CAGR, thanks to their ability to provide real-time analytics information.
- Supply Chain Category Leads: With a revenue share exceeding 61% in 2021, the supply chain category dominates the market. Control towers offer benefits such as effective warehouse management, real-time monitoring, and shipment deliveries, driving segment growth.
Regional Landscape
- North America Leads: North America is expected to lead the market, driven by the adoption of transportation management systems and the need to manage complex logistics networks. Intense competition and rising operational costs also contribute to the regions growing interest in control towers.
- Asia Pacific Shows Rapid Growth: Asia Pacific is projected to experience the fastest growth over the forecast period, fueled by the flourishing retail and e-commerce sectors and the regions increasing adoption of advanced technology and digitization.
Competitive Landscape
Key players in the Control Towers Market include Blue Yonder Group, Inc., E2open, LLC, Elementum, Infor, Kinaxis, Coupa Software Inc., One Network Enterprises, PearlChain, SAP, and Viewlocity Technologies Pty Ltd.
Recent Developments:
- Blue Yonder Group, Inc. collaborates with data cloud firm Snowflake to transform supply chain managements access to fragmented data, enhancing risk mitigation and supply chain issue resolution.
- SAP SE introduces the SAP Sustainability Control Tower solution, enabling businesses to analyze operational performance and create strategies using sustainability-related performance measures.
The Control Towers Market is poised for significant growth as businesses increasingly embrace digitalization and data-driven decision-making to optimize their supply chain operations.
Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa) https://www.fairfieldmarketresearch.com/report/control-towers-market
Visit Our Blogs:
About Us
Fairfield Market Research is a UK-based market research provider. Fairfield offers a wide spectrum of services, ranging from customized reports to consulting solutions. With a strong European footprint, Fairfield operates globally and helps businesses navigate through business cycles, with quick responses and multi-pronged approaches. The company values an eye for insightful take on global matters, ably backed by a team of exceptionally experienced researchers. With a strong repository of syndicated market research reports that are continuously published & updated to ensure the ever-changing needs of customers are met with absolute promptness.
Contact
Fairfield Market Research
London, UK
UK +44 (0)20 30025888
USA (Toll-free) +1 (844) 3829746
Web: https://www.fairfieldmarketresearch.com/
Email: [email protected]
This press release first seen on Brilad
COMTEX_442467073/2840/2023-10-26T02:15:53
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No People Reportage journalist was involved in the writing and production of this article.
