Global Control Towers Market Anticipated to Generate a Revenue of $9,881.0 Million, Growing at a CAGR of 14.9% from 2021 to 2028Download Sample Reports Overview
According to the global control towers market forecast, the market is expected to be valued at $9,881.0 million by 2028, surging from $3,178.6 million in 2020, at a noteworthy CAGR of 14.9%
Covid-19 Impact on Control Towers Market
The COVID-19 outbreak has shut down economies and impacted every aspect of the supply chain. As a result, several industries have shifted their typical manufacturing processes to produce necessary medical supplies, PPE kits, and other items. The COVID-19 epidemic is having a clear impact on the supply chains of practically all European manufacturers, distributors, and retailers, according to a study conducted by Supply Chain Media among 143 supply chain decision-makers in Europe. The COVID-19 epidemic has resulted in a surge in eCommerce demand. To function successfully in a pandemic, technologies like artificial intelligence (AI) and machine learning (ML) are beginning to drive company innovation initiatives, which has fueled the adoption of cloud-based SCM solutions among SMEs. People began stockpiling consumer necessities to comply with mobility restrictions, causing demand shocks in supply chains. On the production side, factory owners started maximizing output by utilizing all available spare capacity to meet demand. The coronavirus pandemic has had a significant impact on practically all European manufacturers, distributors, and retailers' supply chains. While 78 percent of them are seeing a negative short-term impact, 17 %are witnessing favorable results. Only 5% say they haven't been touched in any manner. These findings are based on a survey of 143 supply chain decision-makers in Europe conducted by Supply Chain Media. The respondents include directors and managers from a wide range of enterprises that manufacture and trade physical items, and they are all responsible for the European or even global supply chain. The pandemic disturbances are rippling through the commerce ecosystem and supply networks., with unexpected demand signals from consumer behavior. Control towers provide visibility into the supply chain, serve as an analytics platform, and aid in the management of the user's ecosystem. In the event of a pandemic viral disruption, a supply chain control tower would collect data from users' networks and ecosystem partners' networks.
Global Control Towers Market Insight
Historically, the largest impediment to accomplishing supply chain objectives has been a lack of visibility and openness. Most businesses lack the supply chain transparency and insight required to better predict and prevent disruptions and inventory imbalances. This largely stems from an incapacity to hold irresistible amount of data distributed across different processes, sources, and systems. Supply chain organizations struggle to retain speed with both technological advances and changes that the digital age is bringing to industries and markets. They lag in elevating their staff and equipping them with the information, data, and competencies they need to succeed in these circumstances. Supply chain, sourcing, and procurement leaders must now prepare their procedures and infrastructure to accept new technology and their capacity to exploit more data than ever before. Leaders in back offices can promote product excellence, expedite time-to-market, and develop new goods and services by leveraging technologies like machine learning, AI, and IoT to improve supply chain transparency.
However, the lack of awareness regarding the control tower solution might restrain the growth of the control tower market during the forecast period.
The transformation of the supply chain is becoming increasingly possible because to advancements in information and communications technologies. Because of the increased complexity and expense, the company decided to implement end-to-end supply chain visibility, such as a control tower-based supply solution for process management. Enterprises can connect and collaborate with customers, suppliers and business partners using control tower solutions in logistics. It also assists businesses in developing a secure, dependable, and integrated transportation management system that provides consumers with real-time information. These advantages help control tower supply chain solutions expand in industries like electronics, automotive, food and beverage, manufacturing, machinery, and industrial equipment production, pharmaceuticals, government, and energy and utilities. Moreover, the growing control towers market trends such as adoption of the latest technologies including AI, IoT, Cloud computing in supply chain industry is also propelling the growth of the control tower market.
Global Control Towers Market Share, Segmentation
The global control towers market share is segmented based on type, application, end-use, and region.
The type segment is further classified into operational and analytical. The operational sub-segment is expected to have the largest market share, with revenue exceeding $8,103.8 million by 2028, up from $2,655.2million in 2020. Control towers of this operational sort are used for both analysis and carrying out actions Because of the increased complexity of supply chain and expense, companies are opting for implementing end-to-end supply chain visibility, boosting the demand for the control tower in the supply chain market. Additionally, the control tower is also used to create transparency in multitier supply chains, establishing a list of critical components, and determining the origin of supply as well.
The application is further classified into supply chain and transportation. The supply chain sub-segment is expected to have a dominant market share of $6,166.5 million by 2028, up from $1,941.2 million in 2020. Organizations are leaning toward the use of supply chain control tower analytics solutions as the supply chain ecosystem becomes more complicated and the necessity for real-time data analysis grows. The cost-effectiveness, agility, ease of use and integration, planning, and scalability of control towers are attracting a variety of supply chain management solution providers.
The end-use sub-segment is further divided into aerospace & defense, chemicals, retail & consumer goods, healthcare & pharmaceutical, automotive & manufacturing, information & technology, and others. The automotive and manufacturing sub-segment is anticipated to have a dominating market share and surpass $1,967.6 million by 2028, up from $671.5 million in 2020. Control towers for the automotive and manufacturing industries allow businesses to centralize transportation planning and reduce the number of empty kilometers their delivery trucks traverse.
The control towers market for the North America region is projected to have the largest share. The market in North America generated a revenue of $ $1,638.9 million in 2020 and is projected to reach up to $.0 4,982.0 million by 2028. Because it is a technologically advanced region with a large number of early adopters and the presence of significant market players, North America is predicted to contribute the greatest market share in terms of revenues throughout the projection period. With technical advancements and an emphasis on making control tower supply chain activities, the demand for the market is increasing.
Key Players in the Global Control Towers Market
- Blue Yonder Group
- SAP SE
- o9 solutions
- Viewlocity Technologies Pty Ltd
- One Network Enterprises
Along with the company profiles of the key players in the market, the report includes the Porter’s five forces model that gives deep insights into the competitive environment of the market.
Porter’s Five Forces Analysis for the Global Control Towers Market
- Bargaining Power of Suppliers: The control towers market has a limited number of suppliers, and there is a high demand for control towers from a variety of countries to improve supply chain management.
As a result, the bargaining power of suppliers is high.
- Bargaining Power of Buyers: In order to meet evolving customer demands, shippers are increasingly relying on multi-channel logistics solutions that take advantage of every mode of transportation.
As a result, the bargaining power of buyers is low.
- Threat of New Entrants: The supply chain process across several sectors has become more complex and the need for proper management has increased, resulting in a high number of new entrants in the market.
Thus, the threat of the new entrants is high.
- Threat of Substitutes: There are less number of substitute available for the control towers in the market.
Therefore, the threat of substitutes is low.
- Competitive Rivalry in the Market: The competitive battle among industry leaders is intense, owing to the large number of participants in the control towers market that are focused on improving new technologies, expanding their businesses, and innovating.
As a result, the market's competitive rivalry is high.