New research from Verdantix found that recent EU supply chain due diligence regulations and social-related disclosures to improve supply chain transparency will drive a $7 billion market in supply chain sustainability software by 2029.
New research from Verdantix found that recent EU supply chain due diligence regulations and social-related disclosures to improve supply chain transparency, including crackdowns on human rights violations, will drive a $7 billion market in supply chain sustainability software by 2029, with European firms set to be the biggest spenders.
“Europe leads the world on sustainability regulations, and this is reflected in its projected spending on supply chain sustainability software. However, the extraterritorial reach of regulations such as CSRD means we expect spending in other regions such as North America to catch up. There’s also rising scrutiny over human rights abuses like forced labor. This is incentivizing firms to invest in software to help monitor and demonstrate their commitments to human rights,” says Jessie Wilson, analyst, ESG and sustainability at Verdantix. “We expect future supply chains to be smart and resilient, leveraging AI to enhance data quality and predictive risk management. These advancements will provide deeper insights, helping companies identify and mitigate risks such as forced labor and sourcing from conflict-affected areas or sanctioned regions. Blockchain-based track-and-trace solutions will offer visibility beyond tier 1 suppliers, streamlining processes and ensuring compliance. Integrating these technologies will transform supply chains, making them efficient, ethical, and sustainable.”