CAGR: 7%Current Market Size: USD 2 BillionFastest Growing Region: APAC
Largest Market: North AmericaProjection Time: 2023-2030Base Year: 2022
The Global Inventory Management Software market is expected to grow from USD 2 billion in 2022 to USD 3.43 billion by 2030, at a CAGR of 7% during the Projection period 2023-2030. The growth of this market is mainly driven owing to increasing development in end-user applications around the world.
Software for tracking inventory levels, orders, sales, and deliveries is known as inventory management software. It can also be used in the manufacturing sector to create documents linked to production, such as a piece order and a bill of materials. To prevent product overstock and outages, businesses utilize inventory management software. It is a tool for arranging inventory data, which was previously typically kept in hard copy or spreadsheet form. Solutions for inventory management give users access to real-time supply and demand visibility, allowing them to keep track of inventory updates. Users of inventory management software can reserve a certain quantity of an item from their available inventory. Additionally, it offers alternatives for inventory segmentation to meet the demands of privileged customers. The key driver of the global market for inventory management software is the availability of simple and user-friendly inventory tracking tools. Levels, orders, sales, and deliveries are tracked using inventory management software. Applications for managing, controlling, and tracking inventory are widely accessible for iOS and Android devices. Regardless of location or time, the inventory management software makes it simple to manage, monitor, and track inventories. Large MNC manufacturing facilities frequently operate in remote places and are connected via wireless networks. Manufacturing inventory software provides mobile applications that may be used to support various business processes at any time and from any location using mobile devices. Inventory management is highly effective and can manage various product IDs and descriptions with ease. The ability to distinguish each item thanks to the built-in feature of distinct product IDs and descriptions may be quite effective. The Inventory Management Software Market is also being driven by the growing need for inventory tracking solutions internationally.
Sample Request: - Global Inventory Management Software Market
Market Dynamics:
Drivers:
The adoption of supply chain solutions like inventory management is being sparked by the growing focus of organizations on Omni-channel systems to close the gap between online and physical sales. Accurate store inventory is necessary for providing efficient service for daily requests. This has led to a large number of vendors in many different business verticals implementing inventory management software in their warehouses, which helps them manage their inventory effectively and keep consumers both online and offline using an omni-channel platform. Customers can now instantly access things from wherever in an organization thanks to this. The expansion of inventory management solutions is fueled by omni-channel commerce's advantages in terms of improved customer experience, higher sales and traffic, and improved data collecting.
Restraints:
The market for inventory management software may be limited to some extent by the high initial installation costs. The features and consequently the capabilities that the software offers, combined with the access to the number of people and items involved, are generally what determine the software cost.
Opportunities:
In the upcoming years, there will be fierce competition in the global market for inventory management software. This is a result of the rise of numerous players offering technologies-integrated solutions that have the ability to radically revolutionize the inventory management industry. As automation grows popularity across a variety of industry sectors, inventory management software companies are implementing technology that can enable automation. In order to preserve their supremacy in the market for inventory management software, major companies are also buying a variety of new and small enterprises. Using this method, organizations can enhance their product portfolio and get an edge over rivals by utilizing the technology of smaller enterprises.
Challenges
The main drawback of computerized inventory management is by far system crashes. Data loss due to a technical problem, power outage, or corrupt hard disc might potentially bring down the entire operation. When organizations can't access the data they require, operations are at the very least disrupted.
Segmentation Analysis:
The global inventory management software market has been segmented based on offering, deployment, application, and region.
By Offering
The offering includes solution and services. The services segment led the Inventory Management Software market with a market share of around 67% in 2022. Increased adoption of inventory management software by SMEs worldwide is the main factor contributing to the segment's rise. The inventory management program is mostly hosted on a cloud computing platform. The manufacturing and retail industries' expanding need for inventory management has also had a positive impact on the segment's expansion.
By Deployment
The deployment includes on-premise and SaaS. The SaaS segment led the Inventory Management Software market with a market share of around 57% in 2022. The rise in cloud platform usage and greater understanding of the technology's flexibility and scalability are two factors that have contributed to the segment's expansion. Cloud-based inventory management software programs are often pay-as-you-go services housed on the vendor's server. The system's installation, maintenance, and updating are not the end users' responsibility. Due to the advantages afforded by SaaS, the majority of firms have switched from conventional on-premises systems to cloud models.
By Application
The application includes consumer goods and retail, automotive, oil and gas, manufacturing, and others. The manufacturing segment led the Inventory Management Software market with a market share of around 27% in 2022. Warehouse Management Solutions were initially adopted by manufacturing organizations. The adoption of inventory management solutions is now being driven by the growing requirement for inventory management among manufacturing organizations. To fully control the supply chain, they are integrating the software. Additionally, the increased use of cloud-based technology is contributing to the market's expansion by improving the effectiveness and overall performance of supply chain management.
Global Inventory Management Software Market- Sales Analysis.
The sale of Inventory Management Software Products expanded at a CAGR of 4.9% from 2016 to 2022.
The main element driving the adoption of supply chain solutions like inventory management is the growing focus of businesses on Omni-channel systems to close the gap between online and offline sales. Due to a rise in the demand for real-time inventory management solutions that can be accessible through many channels, inventory accuracy has become one of the top issues for warehouse owners. To properly fulfil daily requests, store inventory accuracy is essential. As a result, many vendors in numerous industry verticals are using inventory management software in their warehouses, which helps them to effectively manage their inventory as well as their customers both online and offline through the use of an Omni-channel platform. Additionally, this enables customers to easily access products from wherever inside a company.
Better customer experiences, higher sales and traffic, and better data collecting are all advantages of omni-channel commerce, and these factors will spur the development of inventory management solutions. Due to the shifting supply chain models of product producers and the quickly increasing customer demand, particularly in the transport & logistics and retail sectors, it is projected that demand for inventory management systems would increase significantly. One of the key factors driving the market expansion is the requirement for manufacturers to automate warehouse management procedures and reduce costs globally. The system's capacity to deliver goods as quickly as possible via the shortest shipping routes could be the cause of the system's skyrocketing demand.
Thus, owing to the aforementioned factors, the global Inventory Management Software Market is expected to grow at a CAGR of 4.00% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the Inventory Management Software market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. The North America region dominated the Inventory Management Software market and held a 38% share of the market revenue in 2022.
Global Inventory Management Software Market- Country Analysis:
Germany's Inventory Management Software market size was valued at USD 0.12 billion in 2022 and is expected to reach USD 0.88 billion by 2030, at a CAGR of 5.8% from 2023 to 2030.
To meet customer needs, vendors are constantly incorporating new technology. Companies are using technology like predictive ETAs, live ocean & geo-fencing, 3D visual warehouses, and others more and more to meet consumer demand and keep supply and demand in balance. While 3D visual warehouses give users a visual decision-making platform where they can manage inventories kept at different locations, predictive ETAs assist businesses to increase inventory accuracy and customer service. As a result, the country's increased adoption of cutting-edge technology is fueling market expansion.
China Inventory Management Software’s market size was valued at USD 0.18 billion in 2022 and is expected to reach USD 0.29 billion by 2030, at a CAGR of 6.4% from 2023 to 2030. China, followed by Japan and South Korea, has the region's fastest-growing market for inventory management software. A growing market for (Radio Frequency Identification) RFID technology in China is creating expansion potential for inventory management software. A strong surge in demand for end-use products is being seen in emerging nations as a result of consumers' increasing spending power.
India's Inventory Management Software market size was valued at USD 0.15 billion in 2022 and is expected to reach USD 0.23 billion by 2030, at a CAGR of 6% from 2023 to 2030. India is in a price-sensitive region where SaaS implementation is preferred by most businesses. Given that it provides advantages including minimal risk and entry-cost, dynamic and advanced software features, and cost-effective expansion, it is attracting the greatest manufacturer interest. Some of the key reasons driving the market expansion in India include the swift rise in e-popularity commerce's and the expanding demand to reduce supply chain inefficiencies.
Key Application Players Analysis:
To increase their market position in the global inventory management software business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
7% |
Market Size |
2 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Offering, By Deployment, By Application, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Manhattan Associates, Blue Yonder Group, Inc., IBM Corporation, SAP SE, ACL Digital, HighJump, Oracle, VMWare Inc., Telefonaktiebolaget LM Ericsson, Telco Systems, NEC Corporation, Juniper Networks Inc., Hewlett Packard Enterprise Development LP, Softeon, Infor., Versa Networks Inc., and Cisco Systems Inc. |
By Offering |
|
By Deployment |
|
By Application |
|
Regional scope |
|
Scope of the Report
Global Inventory Management Software Market by Offering:
Global Inventory Management Software Market by Deployment:
Global Inventory Management Software Market by Application:
Global Inventory Management Software Market by Region:
Global Inventory Management Software market IS USD 2 billion in 2022
Leading market players active in the global Inventory Management Software market are Manhattan Associates, Blue Yonder Group, Inc., IBM Corporation, SAP SE, ACL Digital, HighJump, Oracle, VMWare Inc., Telefonaktiebolaget LM Ericsson, Telco Systems, NEC Corporation, Juniper Networks Inc., Hewlett Packard Enterprise Development LP, Softeon, Infor., Versa Networks Inc., Cisco Systems Inc. among others.
The possibility of data theft is primarily impeding the growth of the Inventory Management Software market.
Enhanced solutions and product offer is projected to influence the market in the Projection years.
Political Factors- In order to Projection trends, Inventory Management Software Market must maintain a close eye on the government priorities for the entire industry. In the United States, local governments are vital to the creation of regulations and policy, in contrast to most other nations. Instead of creating national policies in the United States, Inventory Management Software Market must closely monitor the states and territories where it has operations.
Economical Factors- Long-term and short-term effects of the United States' unstable currency rate on the Inventory Management Software Market's investment plans are both possible. Increased inflation in the US economy will be caused by the market's easy liquidity following the big recession of 2018. The inventory Management Software Market can use thriving financial markets and simple liquidity in the US equities market to develop internationally. In order to facilitate and enhance the business climate, the United States government has expanded expenditure in creating essential infrastructure over time. The inventory Management Software Market can make use of the current infrastructure to promote growth in the global IT sector.
Social Factors- The United States has a high standard of education, particularly in the Inventory Management Software Market industry. It can be used by Inventory Management Software Market to increase its footprint in the US. In the United States, there is a general negative attitude against immigration. This may affect Inventory Management Software Market's ability to hire managers and leaders from other countries to run its business there. Globally, gender roles are changing. The inventory Management Software Market can try a variety of ideas to support and accommodate the changing gender roles in American culture. The inventory Management Software Market has demographics on its side when it comes to the technology items. The inventory Management Software Market can take advantage of this tendency to appeal to various demographic groups. Inequality of income is on the rise in globally.
Technological Factors- With rising speed and access, Inventory Management Software Market must maintain a close watch on the evolution and improvement of the user experience. The consumer experience in the computer services sector could be fundamentally changed by this. Customer expectations in the technology sector have changed as a result of the advancements and widespread use of mobile technologies. In order to be competitive, Inventory Management Software Market must not only fulfill and manage these expectations but also innovate. Investments in research and development at both the macro and local levels globally. If both public and private players are investing money in creating fresh solutions, there is a creative disruption environment.
Environmental Factors- The priorities of product innovation are also changing as a result of environmental norms. Many times, environmental regulations and expectations are taken into consideration while designing products rather than traditional value propositions. For players like Inventory Management Software Market, waste management, particularly for locations near major centres, has become increasingly important. Strict guidelines for trash management in metropolitan areas have been developed by the government globally. The cost of running the Inventory Management Software Market has also increased because to ongoing monitoring from environmental officials. Additionally, environmental considerations are now at the forefront of the Inventory Management Software Market strategy due to increased customer awareness. Customers anticipate the Inventory Management Software Market to uphold legal requirements and go above and beyond them in order to play a responsible role in the community.
Legal Factors- In the past ten years, data protection has become a crucial component of both privacy concerns and intellectual property rights. Inventory Management Software Market must take into account whether or not the United States has a reliable system in place to guard against data breaches. Even though some nations adhere to international standards, resolution times sometimes take years. Before entering a global market, Inventory Management Software Market must carefully analyze the average time of particular situations. American standards for health and safety, what Inventory Management Software Market must do to comply with them, and how much it will cost to do so
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