Inventory Management Software Market (2023 - 2030)

The global inventory management software market size was worth USD 1530.5 million in 2022 and is expected to reach USD 3290.2 million by 2030 which is growing with a CAGR of 11.5% from 2023 - 2030.

Inventory management is a set of instructions keeping track of products, assets, or items; estimating the storage requirements of the components; and managing the volume of finished products. Inventory management software plays a crucial role in current business plans.

Inventory management software helps companies to reduce time and effort in tracking goods and raw materials by using technologies like RFID and also focusing more on the quality of the product. The market is experiencing high demand for more effective solutions due to the surge in the growing adoption of automation by companies.

Market Drivers

The inventory management software market is expected to have an average growth in terms of revenue throughout the forecast period. The growth attributes to the increasing prominence of multi-channel systems and the incorporation of the market with advanced technologies like IoT and BigData platforms for real-time data access. Moreover, large-sized warehouses primarily focus on substituting their physical method of noting inventory with digital technologies.

Companies like FedEx and Amazon are investing highly in inventory management software to increase efficiency. Adopting new and advanced technologies boosts market growth.

Significance of Real-Time Information

The advent of new tools in the global inventory management software market enables businesses to maintain their inventory.

Deploying connected devices is increasingly impacting inventory management software positively. The easy and simple inventory tracking facilities propel the market growth.

Market Restrains

The complete inventory data is to be synchronized and stored in case of software failure requiring a high maintenance cost. This factor hampers the market growth.

Recent Market Developments

• On October 14, 2016, HighJump's cloud-based WMS brings warehouse operations to the cloud. The HighJump cloud WMS software scale from the needs of a single warehouse or a distribution center to a large, global enterprise with dozens of distribution centers.

• On September 21, 2022, Rippling launched computer inventory management. As workers remained to work remotely, the dashboard automatically stores ships and retrieves employee computers in a way that is remote and hands-free.

• On February 17, 2022, DEAR Systems and Orderhive were purchased by Cin7. The acquisition is to create a SaaS Inventory and Order Management Leader for all types of product sellers.

Segmentation Analysis

The global Inventory Management Software Market has been segmented and sub-segmented according to the following categories:

Inventory Management Software Market - By Component

• Software
• Services

The software segment holds the largest share in inventory management software. Small and Medium Enterprises are increasingly adopting inventory management software and the software is primarily hosted through a cloud-based computing system. Moreover, the manufacturing and retail fields have impacted the software segment positively.

The services segment is projected to grow with the highest CAGR rate throughout the timeline period. The segment comprises consulting, system integration, operation, and maintenance services.

Inventory Management Software Market - By Deployment

• On-Premises
• Cloud

Inventory Management Software Market - By Industry

• Transportation & Logistics
• Retail
• Healthcare
• Manufacturing
• Food & Beverage
• Others

Based on the industry, the manufacturing segment is leading the global inventory management software market. The segment is schemed to hold a share of 42% in 2022 in terms of revenue. The manufacturing segment continues to retain its dominance across the timeframe. The manufacturing industries have installed Warehouse Management Solutions (WMS).

The retail segment is foreseen to grow with the highest CAGR. The segment growth owes to the upswing in e-commerce sales. Vendors concentrate more on providing data-driven technologies to help retailers organize their online and offline inventory.

The transportation and logistics segment is projected to be the quickest-growing due to the growing need for technologically advanced warehouse management solutions that help logistics companies to keep their operations associated with the ever-demanding market.

Regional Analysis

North America

The U.S and Canada are the major contributors in the region. Canada and the U.S will experience growing product demand. The U.S has observed technological advancements in terms of digital technologies. Over the past couple of years, the increasing adoption of inventory management software supports market growth.

Europe is scheduled to lead the inventory management software market globally. The region's growth depends on the advancements in advanced software solutions and the retail industry is quickly increasing.

For example, in September 2022, Lightspeed launched the Lightspeed retail 3.0. The launch helped the company to deliver creative inventory management software solutions to small and medium enterprises across Europe.

The market in the UK is estimated to grow with a CAGR of 9.3% during the timeline period. In western European countries like UK, Germany, France, and Spain, the demand for the inventory management software market is surging.

However, Asia-Pacific is the swiftest-growing market for warehouse management systems. E-commerce is growing extensively and in appearing economies like India, Indonesia, and China, the manufacturing industries are growing tremendously. India and China are experiencing the critical advent of new market competitors due to the region's thriving the retail industry

China is the primary contributor to the growth of warehouse management systems across the region because of its industrial and manufacturing sectors.

India is esteemed as the quickest-growing market for warehouse management systems throughout the region. Also, the demand for real-time inventory is surging along with growing government regulatory policies and remote accessibility of information accelerating the market growth in India.

Latin America is the second-quickest growing region followed by Asia-Pacific. As the small and medium enterprises are escalating through multiple sectors. Also, the demand for software is flourishing developing transparency and operational efficacy by reorganizing diverse business processes. Factors mentioned above mount the inventory management software market.

The Middle East and African market for inventory management software are anticipated to have appreciable growth throughout the forecasted period.

Major key players in the market

1. IBM Corporation
2. Oracle Corporation
3. SAP SE
4. Zoho Corporation
5. Zebra Corporation
6. Kinaxis Inc.
7. Infor Inc.
8. SAGE Group Plc.
9. Brightpearl Ltd.
10. DEAR Inventory
11. HighJump Software Inc. (Körber AG)
12. Erply Ltd. and few others are some of the leading competitors participating in the global inventory management software market.

COVID-19 Impact on Inventory Management Software Market

The sudden eruption of COVID-19 has caused enterprises to use advanced inventory management tools to confirm the best management and supply of inventory through supply chains in an effective way.