The global supply chain security market size is estimated to reach USD 4.9 billion by 2030, growing at a CAGR of 11.1% from 2023 to 2030, according to a new report by Grand View Research, Inc. The market growth has been attributed to the rising public and private investments in the transport & logistics sector owing to the growing demand for goods fuelled by the growing population and globalisation.
For instance, according to SITA’s 2021 study on Air Transportation IT Insights, 100% of the airlines have invested in cyber security services, thereby achieving enhanced efficiency through digitalisation. Furthermore, shifting end-user firms’ focus on supply chain traceability & transparency and advancements in digital security solutions is creating robust growth opportunities for the market.
The increase in cyber threats on the supply chain has been a growing issue among large-, medium-, and small-sized enterprises. For instance, the recently exposed supply chain attack of Solarwinds, a leading software development company based in the U.S., is one of the biggest cyber security incidents in the past few years. The Network Management System (NMS) delivered by the company, which enabled customers to examine and monitor their networks with efficiency, was found vulnerable to software supply chain attacks. This attack enabled the hacker to access various companies’ data, including Fireeye, one of the leading cyber security firms. This incident emerged the need for high-end supply chain security solutions among enterprises operating across different sectors, such as transportation, manufacturing, healthcare, and retail.
Supply chain security solutions enable enterprises to identify potential vendors, suppliers, customers, logistics, and other transportation services risks. It enables businesses to effectively address and analyse the threats and mitigate risks that arise with the involvement of other organisations within the supply chain. The use of risk management concepts, along with extensive cyber defence capabilities, form a comprehensive set of security solutions for the supply chain model. Security solutions help enterprises maintain track of criticalities associated with the engagement of other organisations, devise a preemptive risk mitigation strategy, and identify the core liabilities, assets, future threats, and breaches with nominal downtime. These functions and benefits associated with the deployment of supply chain security solutions have fuelled market growth across different regions, according to the researchers.
Grand View Research analysts came up wit the following summary of statistical findings:
● The services segment is expected to register a CAGR of 12.2% from 2023 to 2030. The growing complexities in the supply chain and increased concerns about overcoming risks & vulnerabilities boost the segment demand.
● The data locality & protection segment is anticipated to grow at a CAGR of 11.9% from 2023 to 2030. The engagement of various suppliers, vendors, logistics, and customers in the supply chain process forms a huge set of databases that needs to be arranged and stored securely. This has emerged the need for data locality & protection security solutions.
● The small and medium-sized enterprises(SMEs) segment is anticipated to grow at a CAGR of 11.6% from 2023 to 2030. SMEs are increasingly becoming more vulnerable to cyber threats, such as data breaches, ransomware, and phishing scams, disrupting the supply chain process. This has augmented the need for supply chain security solutions.
● The retail & e-commerce segment is anticipated to grow at a CAGR of 13.2% from 2023 to 2030. Retailers & e-commerce sectors involve complex and large supply chain processes, which need to be secured and protected from cyber attacks to avoid any disruptions during the transportation of goods. Furthermore, huge online money transactions in e-commerce websites bode well for the growth of software & hardware security solutions in the market.
● Asia Pacific is anticipated to grow at a CAGR of 13.1% from 2023 to 2030. The growing public & private investment in digitalization and various countries’ government emphasis on strengthening security across the country are driving the regional market
