Home > Media & Technology > Information Technology > IT Software > Inventory Management Software Market
Inventory Management Software Market Size
Inventory Management Software Market size surpassed USD 3 billion in 2022 and is anticipated to exhibit a CAGR of 5% between 2023 and 2032, given the increasing internet connectivity and e-commerce spending.
With the rapid e-commerce growth and the rise in supply chain issues, a shift from manual inventory tracking to automated inventory management software is being observed across global enterprises. Based on the Digital Commerce 360 analysis of the U.S. Department of Commerce, in the Q3 of 2022, online spending rose by 10.8% Y-o-Y compared to the same period a year earlier. Online business acceleration can be credited to government-led initiatives targeted toward boosting digital transformation. Furthermore, improved internet access will stimulate the adoption of inventory management software to streamline e-commerce tasks.
The deployment of RFID technology as a major component of supply chain networks is another prominent factor bolstering the inventory management software market demand. The incorporation of RFID technology enables businesses to curb labor costs and enhance inventory management efficiency. Likewise, it can help manage inventory in real-time and make informed decisions, thus providing lucrative opportunities for industry growth. However, high initial investments associated with advanced features and deployment methodologies may create roadblocks to inventory management software development over the estimated timeline.
| Report Attributes | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 3 billion |
| Forecast Period: | 2023 to 2032 |
| 2032 Value Projection: | USD 6 billion |
| Historical Data for: | 2018 to 2022 |
| No. of Pages: | 270 |
| Tables, Charts & Figures: | 397 |
| Segments covered: | Type, Application, Deployment Model, Organization size, End use |
| Growth Drivers: | |
| Pitfalls & Challenges: |
Inventory Management Software Market Analysis
Inventory management software market share from the advanced radio frequency system (RFID) segment will depict around 5% CAGR through 2023. Increased accuracy, real-time updates, and improved inventory visibility are some of the key attributes fueling the use of RFID in inventory management. This software ensures the automation of end-to-end controls and tasks including tracking and counting, resulting in reduced labor costs. With the escalating investment in warehouse and distribution center expansion projects, the development of RFID-based inventory management tools is anticipated to rise worldwide.
Based on the application, the order management segment held more than 35% share of the inventory management software market in 2022, on account of the progress in the logistics sector. According to data from Cogoport, the logistics sector is projected to expand five-fold in India by 2050. Such trends will, in turn, boost the reliance on software designs to manage incoming orders from varied channels. Additionally, rapid technological advancement will promote the adoption of inventory management solutions to enhance logistic processes and facilitate the integration of tools for quick order resolution.
The cloud-based deployment model segment is projected to expand at 5% CAGR during the forecast timeline, driven by the rising awareness of the model’s flexibility, scalability, and enhanced security. Cloud-based inventory management software is also reducing the reliance of users on additional resource dedication for hardware and software infrastructure management. The growing awareness of these attributes allows users to invest in revenue-generating operations, thereby contributing to the usage of cloud-based software in inventory management.
The automotive end-use segment will reach USD 700 million by 2032, attributed to the extensive usage of GPS-based inventory management systems. In the automotive sector, the system can alleviate customer satisfaction through the prevention of losses due to stolen inventory, cost reduction, and improved staff efficiency. Also, the steady increase in automotive registration rates is expected to augment demand for automotive inventory management software, especially in developed nations.
In terms of the organization size, the inventory management software market value from the large enterprise segment surpassed USD 1 billion in 2022. This is a result of the introduction of robust and comprehensive solutions to manage the supply chain operations for larger enterprises. Inventory management functionalities of ERP systems enable seamless inventory tracking across multiple supply chain links. These factors will hasten software development to automate inventory management and tracking across large-sized enterprises.
Asia Pacific inventory management software market value is slated to grow at 8% CAGR during the forecast period, as a result of the online retail growth. According to the Ministry of Commerce, in 2021, online retail sales of physical goods reached close to USD 1.58 trillion in China. This rapid progress in the regional e-commerce sector, alongside the burgeoning digital economy, is attributed to rising disposable income and internet penetration. Furthermore, technological innovations are likely to redefine retail spaces and in consequence, augment the need for inventory management software across the region.
Inventory Management Software Market Share
Some of the leading companies involved in the inventory management software market include
- Zoho Corporation Private Limited
- Wasp Barcode Technologies
- SkuVault (Marlin Equity Partners)
- SAP SE
- Revel Systems
- Oracle Corporation
- Microsoft Corporation
- Manhattan Associates
- Intuit Inc.
- Fishbowl Inventory (Diversis Capital)
- Archon Systems Inc.
- NCR Corporation
- Alterity, Inc. (Acctivate)
These companies are focusing on business expansions and innovative service launches to gain a competitive edge over rivals in the industry.
For instance, in August 2021, Manhattan Associates launched the Manhattan Active Omni service for optimized order management. This service was designed to connect customers to same-day delivery services and retailers through 360-degree control of orders, with advanced capabilities equipped to manage fulfilments, orders, and shipping and return challenges. This initiative allowed the company to establish a strong presence in the global market.
Impact of COVID-19 Pandemic
Despite economic disruptions, an uptick in consumer e-commerce activity has been witnessed since the onset of the COVID-19 pandemic. Based on data from UNCTAD, the share of internet users who made online purchases surged from 53% in 2019 to 60% between 2020 and 2021 across 66 countries. Such factors will accelerate the demand for online order management software to support sales processes including delivery and returns and subsequently influence the industry trends.
The inventory management software market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD from 2018 to 2032 for the following segments: Click here to Buy Section of this Report
Market, By Type
- Manually Managed Inventory System
- Barcode Scanning System
- Advanced Radio Frequency System (RFID)
Market, By Application
- Order Management
- Asset Tracking
- Service Management
- Product Differentiation
- Inventory Optimization
Market, By Deployment model
- On-premise
- Cloud
Market, By Organization size
- SME
- Large Enterprise
Market, By End use
- Manufacturing
- Medical/Healthcare
- Retail
- Automotive
- Oil & Gas
- Others
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Netherlands
- Asia Pacific
- China
- Japan
- India
- South Korea
- Australia
- Southeast Asia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- South Africa
- UAE
- Saudi Arabia
Frequently Asked Questions (FAQ) :