Inventory Management Software Market size is set to exceed USD 5 billion by 2026, according to a new research report by Global Market Insights Inc.
Inventory management software is a digital framework for perpetual inventory systems. The software continuously updates in real-time across multiple physical and digital channels. Inventory management software assists retailers in streamlining their sales operations through an integrated view of all the sales across multiple online platforms. This helps organizations to optimize their inventory and compete effectively in a dynamic market.
Increasing need to mitigate supply chain inefficiencies to propel the uptake of inventory management software
The inventory management software market has witnessed a growing demand to address concerns related to inefficiencies in physical operations, involving multiple locations and processes. Inventory management software assists organizations to forecast demand accurately based on sales and future product orders. This leads to optimal inventory levels and increased market competitiveness by reducing inventory carrying costs. In addition, the demand for accurate inventory management to mitigate supply chain disruption amid the ongoing COVID-19 outbreak will create new avenues for the market growth.
Reduction in redundant inventory buffers to drive the growth of the solutions segment
The inventory optimization segment is expected to witness a steady growth rate of above 10% till 2026. This is attributed to the increasing focus to reduce inventory by a considerable percentage and free up working capital from unnecessary inventory buffers. Inventory optimization also facilitates in diminishing inventory carrying costs and improves customer service performance. Inventory management software also provides real-time access to the inventory data, enabling quicker identification and prevention of out-of-stock situations.
Automation of warehouse controls to spur the growth of advanced radio frequency systems
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The advanced Radio Frequency Systems (RFID) segment held nearly 15% global market share in 2019. RFID has a reading range of around 300 feet using active technology and around 40 feet using passive technology. Thus, it largely enhances the accuracy of moving inventory in a warehouse facility. With companies innovating their products with improved RFID capabilities, the uptake of technology is likely to increase positively over the coming years.
Browse key industry insights spread across 240 pages with 352 market data tables and 26 figures & charts from the report, “Inventory Management Software Market Size By Type (Manually Managed Inventory System, Barcode Scanning System, Advanced Radio Frequency System (RFID)), By Application (Order Management, Asset Tracking, Service Management, Product Differentiation, Inventory Optimization), By Deployment Model (On-premise, Cloud), By Organization (Large Enterprise, SMEs), By End-Use (Manufacturing, Medical/Healthcare, Retail, Automotive, Oil & Gas)” in detail along with the table of contents:
Increasing market demand for automated tools amongst SMEs to improve service quality
The SMEs segment dominated a market share of over 70% in 2019. SMEs are increasingly transitioning toward automated inventory management tools to improve service quality and reduce inefficiencies caused by manual processes. Automated solutions, such as Magento ERP, Ordoro, and Unleashed, have gained significant market traction amongst SMEs. A surge in the adoption of cloud-based inventory management by small enterprises across various industry verticals is expected to further spur the market growth.
Improved operational productivity will surge the inventory management software market across the manufacturing sector
In 2019, the manufacturing segment accounted for more than 25% share in the market. The market growth is characterized by the need for effective inventory management systems across manufacturing organizations to maintain operational productivity and reduce inventory associated costs. Efficient inventory management practices amplify the market competitiveness of manufacturing organizations by improving cash flow and maintaining a strong liquidity position.
High prevalence of legacy systems to fuel the growth of on-premise inventory management software
The on-premise segment is anticipated to register gains of over 5% from 2020 to 2026. The substantial deployment of traditional inventory management software by organizations have accentuated the market growth of the on-premise segment. The internally hosted nature of on-premise systems ensures that inventory management systems are accessible 24/7, reducing any bottlenecks caused by internet failures.
Evolving e-commerce landscape in Asia Pacific to influence the need for automated inventory management
The Asia Pacific inventory management software market is predicted to account for 25% revenue share by 2026. Increasing e-commerce business activities and government-led initiatives to boost digitalization in developing economies have triggered an expansion in the overall market. The growth of SMEs across China, India, and South Korea will also drive the market growth as these enterprises use software to upgrade their logistics capabilities and optimize inventory costs.
Strong emphasis by vendors on inorganic growth strategies to augment market share
The inventory management software industry has witnessed several strategic partnerships with major vendors to strengthen their market presence. For instance, in May 2020, Microsoft entered into a partnership with FedEx to develop a new solution with granular level inventory management insights. This strategic partnership to combine FedEx’s global digital & logistics network with Microsoft’s cloud technology for a series of data & analytics solutions.
Some of the key players operating in the industry are Alterity, Inc., Archon Systems, Inc., Blue Younder (JDA Software), Clear Spider, Expresstech International, LLC (Fishbowl), Lightspeed POS, Inc., Manhattan Associates, Microsoft Corporation, Monday.com, NCR Corporation, Oracle Corporation, Revel Systems, Sage Group PLC, SAP SE, SkuVault, Inc., The Answer Company, TradeGecko Pte. Ltd., Vend Limited, Wasp Barcode Technologies, and Zoho Corporation Pvt. Ltd.
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