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Inventory Management Software Market Analysis
- Report ID: GMI2364
- Published Date: Jan 2023
- Report Format: PDF
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.
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Inventory Management Software Market Scope
