Inventory Management Software Market (2021-2026)
The global inventory management software market size was worth USD 1530.5 million in 2021 and is expected to reach USD 3290.2 million by 2026 which is growing with a CAGR of 11.5% from 2021-2026.
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.
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.
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
The global Inventory Management Software Market has been segmented and sub-segmented according to the following categories:
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.
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.
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 2019, 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.
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
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.
Chapter 1. Inventory Management Software Market – Scope & Methodology
1.1. Market Segmentation
1.3. Research Methodology
1.4. Primary Sources
1.5. Secondary Sources
Chapter 2. Inventory Management Software Market – Executive Summary
2.1. Market Size & Forecast – (2021 – 2026) ($M/$Bn)
2.2. Key Trends & Insights
2.3. COVID-19 Impact Analysis
2.3.1. Impact during 2021 - 2026
2.3.2. Impact on Supply – Demand
2.3.3. Impact on Production Cost
2.3.4. Impact on Supply Chain
Chapter 3. Inventory Management Software Market – Competition Scenario
3.1. Market Share Analysis
3.2. Product Benchmarking
3.3. Competitive Strategy & Development Scenario
3.4. Competitive Pricing Analysis
3.5. Supplier - Distributor Analysis
Chapter 4. Inventory Management Software Market Entry Scenario
4.1. Case Studies – Start-up/Thriving Companies
4.2. Regulatory Scenario - By Region
4.3 Customer Analysis
4.4. Porters Five Force Model
4.4.1. Bargaining Power of Suppliers
4.4.2. Bargaining Powers of Customers
4.4.3. Threat of New Entrants
4.4.4. Rivalry among Existing Players
4.4.5. Threat of Substitutes
Chapter 5. Inventory Management Software Market – Landscape
5.1. Value Chain Analysis – Key Stakeholders Impact Analysis
5.2. Market Drivers
5.3. Market Restraints/Challenges
5.4. Market Opportunities
Chapter 6. Inventory Management Software Market – By Component
Chapter 7. Inventory Management Software Market – By Industry
7.1. Transportation & Logistics
7.5. Food & Beverage
Chapter 8. Inventory Management Software Market – By Deployment
Chapter 9. Inventory Management Software Market , By Geography – Market Size, Forecast, Trends & Insights
9.1. North America
9.2.7. Rest of Europe
9.3. Asia Pacific
9.3.2. South Korea
9.3.5. Australia & New Zealand
9.3.6. Rest of Asia-Pacific
9.4. Rest of the World
9.4.1. Middle East
9.4.3. South America
Chapter 10. Inventory Management Software Market – Company Profiles – (Overview, Product Portfolio, Financials, Developments)
10.1. Company 1
10.2. Company 2
10.3. Company 3
10.4. Company 4
10.5. Company 5
10.6. Company 6
10.7. Company 7
10.8. Company 8
10.9. Company 9
10.10. Company 10
Primary & Secondary Sources to Collect & Validate Data
Utilization of Both Top Down & Bottom Up Approach
Holistic Research Methodology
Scope & Introductory Research
In the initial stage of research, the scope for market is defined. In order to better understanding of the market, secondary focus is on different segmentations of the market. Preliminary research involves identifying key data points related to the market under consideration to estimate the market sizes to the best extent.
Based on the scope of the market and the key data points, a number of secondary sources are considered. This data collection stage consists of a team of analysts who gather data from various secondary resources, accessing proprietary databases and primary research by reaching out to key market participants and opinion leaders.
At this stage, collected data using several sources is arranged in structured format. The sources include industry participants, in-house models, key opinion leaders in the market ecosystem and databases. Historical data trends are established at this point, and compared to the current scenario. Based on the macro- and micro-factor prevailing in various geographies, proprietary data models are used to analyze key market countries. Key players in this market are listed based on their capabilities in revenue, sales, and development. The study also involves the identification of companies in the category of 'new entrants' and their potential effects on the market.
At this stage, the analyst team moves on to understand how the market has changed over the years. The total size of the market is gathered after an study of different business segments and end-users is done. An impact research is also done to see what factors will/may influence the market in the years ahead. The effect of various variables on the industry is often taken into account when forecasting market sizes.
Data verification is conducted at all research levels, however this stage is dedicated to more rigorous checking of the data points. At this stage, the estimated data is triangulated with company revenues and checked with industry experts including several senior executives and key opinion leaders in the market. The data is then summarized, and the findings are derived from the same for the report.
Quality Assurance & Report Preparation
Holistic research methodology is followed with combination of Top Down and Bottom Up approach to undertake the estimation and forecasting task in order to ensure quality of data. At this stage of the research process, a dedicated QA team checks the data and approves after several predefined checks. Each section is checked and questioned to make the report accurate and reliable. In case of discrepancy, a team of analysts reviews the issue, and the whole process is repeated again. That significantly improves the report's quality. After approval, all the parts of the report are brought together and is formatted by highly trained team thus making it ready to dispatch.