Inventory Management Software Market Size, Share, & Trends Analysis Report By Application (Asset Management, Inventory Control & Tracking), By Deployment, By Organization Size, By End Use, By Region, And Segment Forecasts, 2024 - 2030

Market Size & Trends

The global inventory management software market size was estimated at USD 3.43 billion in 2023 and is expected to grow at a CAGR of 6.7% from 2024 to 2030. The market is experiencing robust growth, driven by the need for businesses to optimize supply chains, reduce costs, and enhance operational efficiency. Rapid expansion across the e-commerce industry and rising supply chain disruptions will propel market growth.

E-commerce businesses require advanced applications to manage large, diverse inventories, ensure timely fulfillment, and maintain optimal stock levels to meet fluctuating customer demands. This drives demand for sophisticated inventory management systems that offer features such as automated reordering, demand forecasting, and integration with various sales channels. Consequently, as e-commerce continues to grow, so does the need for robust inventory management software, fueling market growth. According to the Indian Brand Equity Foundation (IBEF), India's e-commerce platforms achieved a significant milestone, hitting a GMV of USD 60 billion in fiscal year 2023, marking a 22% increase from the previous year. Similarly, the rising internet penetration will boost the adoption of inventory management software for streamlining various e-commerce tasks such as order management, inventory control, etc.

Inventory management software helps businesses efficiently track and manage their stock levels, orders, sales, and deliveries. It automates processes such as reordering, stock level monitoring, and demand forecasting, ensuring optimal inventory without overstocking or stockouts. The software provides real-time data and insights, enhancing decision-making and operational efficiency. It integrates with other business systems like ERP and sales platforms, streamlining workflows and improving accuracy. Key benefits include reduced operational costs, improved customer satisfaction, and better resource allocation, making it essential for businesses in retail, manufacturing, healthcare, and other industries.

Demand for inventory management software is anticipated to witness a rise due to changing supply chain models of product manufacturers and rapidly growing consumer demand, especially in the transport & logistics, e-commerce and retail sectors. The need for manufacturers to streamline inventory management processes and curb costs globally is one of the key trends triggering the market growth. Spiraling demand for the software may be attributed to its ability to optimize supply chain and improve customer satisfaction.

Market Concentration & Characteristics

The inventory management software market is characterized by its robust growth, driven by the increasing need for efficient stock control across various industries. It features a diverse range of applications, including cloud-based and on-premise options, catering to both large enterprises and SMEs. The market is highly competitive, with key players focusing on innovation, integration of AI and IoT, and enhanced user experience. The market is experiencing an increased adoption of mobile applications, blockchain technology, and customization capabilities, helping address challenges such as data security and system integration. The inventory management software market is characterized by a high degree of industry standards and dominance of key players. The market is also characterized by a high level of merger and acquisition (M&A) activity by the leading players. This is due to several factors, including the desire to gain a high market share and the need to consolidate in a rapidly growing market.

The inventory management software market is influenced by various regulations that ensure data security, privacy, and compliance. Key regulations include the General Data Protection Regulation (GDPR) in Europe, which mandates strict data protection and privacy measures for handling personal data. In the U.S., the Health Insurance Portability and Accountability Act (HIPAA) affects inventory software used in healthcare by enforcing stringent data security standards. Moreover, the Sarbanes-Oxley Act (SOX) requires accurate financial reporting and accountability, impacting inventory management practices. Compliance with these regulations is crucial for software providers to maintain trust and avoid legal repercussions.

Application Insights

The order management segment accounted for the largest market share of 35.20% in 2023. The exponential rise of e-commerce and omnichannel retailing necessitates sophisticated order management systems to handle complex fulfillment processes, real-time inventory visibility, and seamless customer experiences. Technological advancements, such as AI and machine learning, enhance predictive analytics for demand forecasting and personalized customer service. Moreover, the integration of order management with existing ERP and CRM systems streamlines operations, reducing errors and improving efficiency. The increasing focus on supply chain optimization and the need for businesses to adapt to rapidly changing market dynamics further fuel demand for advanced order management applications.

The inventory control & tracking segment is expected to grow at a CAGR of 7.1% during the forecast period. Real-time data visibility is crucial for businesses to efficiently manage inventory levels. By having up-to-the-minute information on stock levels, companies can accurately forecast demand, replenish inventory promptly, and minimize stockouts. This helps in meeting customer demands promptly, enhancing customer satisfaction, and optimizing operational efficiency. Overall, real-time data empowers businesses to make proactive decisions and maintain competitive edge in dynamic market environments. Regulatory requirements for accurate inventory reporting and data security also propel the demand for sophisticated tracking systems. Moreover, the push for supply chain optimization and cost reduction further fuels the adoption of advanced inventory control applications.

Deployment Mode Insights

The cloud-based segment accounted for the largest market share in 2023. The segment growth is attributed to cloud applications offering scalability, allowing businesses to easily expand or reduce their inventory management capabilities as needed. This flexibility is particularly attractive to small and medium-sized enterprises (SMEs) looking to avoid large upfront investments in hardware and software infrastructure. Moreover, cloud-based systems provide accessibility from anywhere with an internet connection, enabling real-time inventory tracking and management on mobile devices, which is essential in today's fast-paced business environment.

The on-premises segment is expected to grow at the fastest CAGR over the forecast period. End use industries with stringent data security requirements, such as those in finance and healthcare sectors, prefer on-premise applications due to perceived greater control over data access and security protocols. Organizations prefer on-premise applications for their ability to customize and integrate deeply with existing IT infrastructure, providing a seamless operational fit. Despite the growing popularity of cloud-based applications, the on-premise segment continues to thrive due to these factors, catering specifically to enterprises prioritizing data control, compliance, and integration capabilities.

Organization Size Insights

The large enterprises segment held the largest market share in 2023 and is expected to dominate the market by 2030. Large enterprises drive significant growth in the market due to their complex operational needs and substantial inventory volumes. These enterprises typically require sophisticated applications that can handle extensive product lines, multiple warehouses, and global supply chains. Large enterprises prioritize efficiency gains and cost reductions, the demand for comprehensive, customizable inventory management applications continues to grow, fostering innovation and competition within the market.

The small and medium-sized enterprises (SMEs) segment is expected to grow at fastest CAGR over the forecast period. Increasing affordability and accessibility of cloud-based applications enable SMEs to adopt sophisticated inventory management systems without significant upfront investment. The scalability offered by these applications allows SMEs to expand their capabilities as they grow. Furthermore, the rise of e-commerce and the need for efficient stock control and order fulfillment drive SMEs to implement robust inventory management tools.

End Use Insights

The manufacturing segment held the largest market share in 2023 and is expected to dominate the market by 2030. The increasing complexity of supply chains and the need for real-time tracking and optimization of inventory levels are paramount. Advanced inventory management software helps manufacturers reduce waste, lower costs, and improve production efficiency by providing precise demand forecasting and automated reordering. The integration of technologies such as IoT and AI enhances visibility and predictive maintenance, ensuring smoother operations.

The retail segment is expected to grow at the fastest CAGR over the forecast period. The surge in e-commerce and omnichannel retailing demands sophisticated inventory applications to manage vast, diverse inventories and ensure seamless customer experiences across multiple sales channels. Technological advancements such as AI and machine learning enable better demand forecasting, real-time stock tracking, and automated reordering, enhancing efficiency and reducing costs. In addition, the increasing consumer expectation for fast, accurate delivery and personalized shopping experiences drives retailers to adopt advanced inventory management systems.

Regional Insights

The North America regional market dominated the inventory management software market in 2023 and accounted for a market share of over 30%. The presence of major industry players and continuous investments in R&D contribute to market expansion. The robust e-commerce sector demands sophisticated inventory applications to handle complex logistics and supply chain needs. Furthermore, regulatory requirements such as SOX and HIPAA ensure compliance and drive businesses to adopt advanced inventory management systems. The strong economic environment and the trend towards digital transformation across various industries also fuel growth in this region.

U.S. Inventory Management Software  Market Trends

The inventory management software market in the U.S. is growing significantly at a CAGR of 7.2% from 2024 to 2030. The exponential growth of e-commerce requires sophisticated inventory management to handle vast and diverse inventories, real-time tracking, and fulfillment demands, driving demand for advanced software applications. According to the U.S. Department of Commerce U.S. retail e-commerce sales for the 1^st quarter of FY24, was USD 289.2 billion, an increase of 2.1 percent from the 4^th quarter of 2023.

Europe Inventory Management Software Market Trends

The Inventory Management Software Market in Europe is growing significantly at a CAGR of 6.1% from 2024 to 2030. Small and medium-sized enterprises (SMEs) in Europe are increasingly investing in digital transformation to enhance their competitiveness and agility in a rapidly evolving market. This transformation involves adopting advanced technologies, such as inventory management software, to streamline operations, reduce costs, and improve efficiency. By implementing inventory management applications, SMEs can automate and optimize stock control, ensuring they maintain the right inventory levels, minimize waste, and respond swiftly to market demands.

The inventory management software market in the UK is growing significantly at a CAGR of 6.7% from 2024 to 2030. Digital transformation across industries is a key driver for the adoption of sophisticated inventory management systems, as businesses seek to leverage technology to enhance efficiency and competitiveness. This push for digitalization involves integrating advanced technologies such as AI, machine learning, and IoT into business processes to streamline operations, reduce costs, and improve decision-making.

The Germany inventory management software market is growing significantly at a CAGR of 7.3% from 2024 to 2030. Germany's robust industrial base, encompassing manufacturing, automotive, and engineering sectors, underscores the critical need for efficient inventory management applications. Germany's industrial strength necessitates sophisticated inventory management applications to optimize supply chains, improve operational efficiency, and maintain competitiveness in global markets.

The inventory management software market in France is growing significantly at a CAGR of 5.5% from 2024 to 2030. The adoption of Internet of Things (IoT) and RFID (Radio Frequency Identification) technologies in France is driving the demand for inventory management software that can leverage these technologies to enable real-time tracking of inventory, enhance inventory accuracy, and improve supply chain visibility.

Asia Pacific Inventory Management Software Market Trends

The Asia Pacific is anticipated to rise as the fastest-developing regional market at a CAGR of 7.9%. The rapid industrialization and urbanization in the Asia Pacific region are driving substantial demand for efficient inventory management applications across diverse sectors such as manufacturing, retail, and logistics. As countries in the region undergo rapid economic development and urban expansion, there is an increasing need for businesses to manage their supply chains more effectively. Industrial growth is leading to larger-scale production and distribution networks, necessitating sophisticated inventory management software (IMS) to handle complex inventory tracking, stock optimization, and order fulfillment processes.

The inventory management software market in China is growing significantly at a CAGR of 8.5% from 2024 to 2030. The explosive growth of e-commerce in China, driven by major players such as Alibaba and JD.com, has significantly increased the need for advanced inventory management applications. These e-commerce giants handle vast and complex inventories, with billions of products that need to be tracked, stocked, and delivered efficiently. The sheer volume and variety of products, coupled with high customer expectations for fast delivery and accuracy, necessitate sophisticated inventory management systems.

The Japan inventory management software market is growing significantly at a CAGR of 7.8% from 2024 to 2030. Japan's strong technological infrastructure and high adoption of advanced technologies such as AI, IoT, and automation are key drivers for the growth of sophisticated inventory management applications. The country is known for its technological innovation and robust IT infrastructure, which facilitates the integration of cutting-edge technologies into business operations.

The inventory management software market in India is growing significantly at a CAGR of 9.1% from 2024 to 2030. The expansion of the organized retail sector in India, driven by rising consumer demand and increasing disposable incomes, necessitates efficient inventory management systems. As retail businesses scale up and diversify their product offerings, maintaining optimal stock levels becomes critical to prevent stockouts and overstocking, which can both lead to significant financial losses. Efficient inventory management software enables retailers to track stock in real-time, forecast demand accurately, and streamline supply chain operations.

Middle East & Africa Inventory Management Software Market Trends

The inventory management software market in Middle East & Africa is growing significantly at a CAGR of 5.4% from 2024 to 2030. The increasing penetration of e-commerce in the Middle East and Africa is a significant driver for the growth of the market. With a surge in online shopping, businesses are managing larger and more diverse inventories to meet customer demands promptly. These systems help e-commerce businesses optimize stock levels, reduce order fulfillment times, and minimize errors, leading to improved customer satisfaction.

The inventory management software market in Saudi Arabia is growing significantly, at a CAGR of 5.0% from 2024 to 2030. As part of Vision 2030, Saudi Arabia is diversifying its economy away from oil, promoting sectors such as retail, manufacturing, and logistics, which drive the demand for inventory management applications.

Key Inventory Management Software Company Insights

The key players operating in inventory management software market include Oracle Corporation, Microsoft Corporation, IBM Corporation among others.

• Oracle offers a comprehensive range of inventory management software applications as part of its broader Oracle Supply Chain Management (SCM) Cloud suite. This includes inventory optimization, demand forecasting, warehouse management, and supply chain planning capabilities. Oracle's software applications are highly scalable, catering to both large enterprises and smaller businesses.

• Microsoft offers inventory management applications that seamlessly integrate with its widely used productivity tools such as Microsoft Office and Dynamics 365 ERP. This integration provides a cohesive platform for businesses to manage inventory alongside other critical business processes.

• IBM integrates artificial intelligence (AI) and advanced analytics into its inventory management applications. This enables predictive analytics for demand forecasting, optimizing inventory levels, and improving supply chain efficiency. AI capabilities also enhance decision-making by providing actionable insights from vast amounts of data.

Manhattan Associates, Zoho Corporation, and NCR Corporation are some of the emerging market participants in the inventory management software market.

• Manhattan Associates focuses on delivering end-to-end supply chain applications, including inventory management, warehouse management, and omnichannel fulfillment. Their software is designed to optimize inventory levels, improve order accuracy, and enhance overall supply chain efficiency.

• NCR Corporation provides specialized inventory management software designed specifically for retail and hospitality sectors. Their applications focus on optimizing inventory levels, improving supply chain efficiency, and enhancing customer service in these demanding environments. NCR integrates inventory management software with their broader ecosystem of POS systems, self-service kiosks, and analytics platforms. This integration enables seamless data flow across operations, from inventory management to sales and customer insights.

Recent Developments

• In May 2024, Epicor, announced that it has completed the acquisition of Smart Software, a leading provider of demand planning and inventory optimization applications. This acquisition enhances Epicor’s capabilities in supply chain management, specifically strengthening its ability to offer advanced inventory planning and forecasting tools to its customers. The acquisition underscores Epicor's commitment to providing comprehensive inventory management applications that meet the evolving needs of manufacturing, distribution, retail, and other industry sectors.

• In May 2024, Zimbis and DSN Software announced a strategic partnership to integrate their technologies, enhancing inventory management and supply chain applications. The collaboration aims to leverage Zimbis' expertise in cloud-based inventory management with DSN Software's capabilities in digital transformation for supply chain optimization. The integration of Zimbis Smart Inventory Cabinets with DSN's comprehensive practice management software will help dental clinics to streamline operations, minimize waste, and optimize the use of essential supplies. This partnership aims to establish a higher benchmark for efficiency and management within the dental industry, promising improved operational workflows and better resource management.

• In May 2023, BoxHero, a global inventory management Application, officially launched its applications in the US and Canadian markets. The software offers comprehensive features for small to medium-sized businesses (SMBs) to manage their inventory effectively. BoxHero's user-friendly interface, barcode scanning capabilities, and real-time tracking functionality cater to the needs of retail, e-commerce, and logistics sectors. The expansion into North America aims to capitalize on the growing demand for streamlined inventory management applications, providing SMBs with tools to optimize operations, reduce costs, and improve overall efficiency in their supply chains.

• In December 2023, Syrup Tech announced that it has secured a funding worth USD 17.5 billion in Series A funding to enhance AI-powered inventory forecasting for retailers. The funding will support Syrup Tech's mission to revolutionize inventory management by leveraging advanced AI algorithms, enabling retailers to optimize stock levels, reduce costs, and improve supply chain efficiency.

Inventory Management Software Market Report Scope

Global Inventory Management Software Market Report Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2018 to 2030. For the purpose of this study, Grand View Research has segmented the inventory management software market based on application, deployment mode, Organization Size, end use, and region:

• Application Outlook (Revenue, USD Billion, 2018 - 2030)

  • Inventory Control & Tracking

  • Order Management

  • Scanning and Barcoding

  • Asset Management

  • Others

• Deployment Outlook (Revenue, USD Billion, 2018 - 2030)

  • Cloud-based

  • On-premises

• Organization Size Outlook (Revenue, USD Billion, 2018 - 2030)

  • Small And Medium Enterprise

  • Large Enterprise

• End Use Outlook (Revenue, USD Billion, 2018 - 2030)

  • Retail

  • E-commerce

  • Healthcare

  • Transportation and Logistics

  • Manufacturing

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

    • Australia

    • South Korea

  • Latin America

    • Brazil

  • Middle East & Africa

    • UAE

    • Saudi Arabia

    • South Africa