In the fast-paced and ever-evolving business world, efficient inventory management is crucial for the success of any organization. Inventory management software plays a vital role in helping businesses streamline their operations, optimize inventory levels, and ultimately improve their bottom line. In this blog post, we will delve into the latest statistics and trends in the inventory management software industry, providing valuable insights for companies looking to enhance their inventory management processes.
The Latest Inventory Management Software Industry Statistics Explained
The global inventory management software market was valued at $2.24 billion in 2019.
The statistic indicates that in 2019, the global inventory management software market was valued at $2.24 billion. This figure represents the monetary worth of all inventory management software sales worldwide during that year. The value provides insight into the size and scope of the inventory management software market, highlighting its importance and growth potential in the business and technology sectors. The market size of $2.24 billion suggests a significant demand for software solutions that help organizations efficiently manage their inventory, streamline operations, and reduce costs, reflecting the increasing adoption of digital tools for business optimization.
It is expected to grow at a CAGR of 5.2% from 2020 to 2027.
This statistic indicates that the particular value being measured is anticipated to increase at a Compound Annual Growth Rate (CAGR) of 5.2% per year from the base year 2020 to the target year 2027. The CAGR provides a smoothed annual growth rate over the specified time period, taking into account the compounding effect of year-over-year growth. This projected growth rate of 5.2% suggests a steady upward trend in the value being measured over the seven-year period, with the potential for significant increase by the end of 2027.
Retail businesses currently dominate the inventory management software market, accounting for over 30% of the total revenue.
The statistic suggests that retail businesses hold a significant share of the inventory management software market by generating more than 30% of the total revenue in this market sector. This demonstrates that retail businesses are the primary customers driving the demand for inventory management software solutions, which are essential for tracking inventory levels, optimizing stock levels, and improving overall operations efficiency. The dominance of retail businesses in this market may be attributed to the sector’s inherent need for accurate and efficient inventory management systems to handle large volumes of products across multiple locations or platforms. This statistic underscores the importance of inventory management software for retail businesses and highlights the potential for further growth and innovation in this market segment.
The North America region dominated the market with a revenue share of 35.5% in 2019.
The statistic “The North America region dominated the market with a revenue share of 35.5% in 2019” indicates that North America accounted for the largest portion of total revenue generated in the market during the specified year. This suggests that businesses operating in North America contributed significantly to the overall revenues of the market compared to other regions. The 35.5% revenue share highlights the strong market presence and economic influence of North America, showcasing its importance as a key player in the industry. This statistic can provide valuable insights for market analysts, businesses, and policymakers to understand the regional dynamics and competitive landscape within the market.
The Asia Pacific region is expected to grow at the highest CAGR during forecast period.
This statistic indicates that the Asia Pacific region is projected to experience the highest Compound Annual Growth Rate (CAGR) compared to other regions during the forecast period. This suggests that the economies within the Asia Pacific region are anticipated to expand and develop at a faster pace than those in other regions, reflecting robust economic activity, increasing investments, and growing consumer demand. This growth rate can attract businesses and investors looking for opportunities in this region and may signify a favorable market environment for various industries and sectors operating within the Asia Pacific region.
The perpetual software license model segment dominated the market with a share of 78.3% in 2019.
The statistic indicates that in 2019, the perpetual software license model segment held the largest market share at 78.3%. This means that the majority of software sales and usage were based on the perpetual licensing model, where users pay a one-time fee to use the software indefinitely. This dominance suggests that businesses and consumers preferred the traditional payment structure of perpetual licenses over other models like subscription-based or usage-based pricing. The high market share of perpetual licensing also implies that it was the most commonly adopted software licensing approach by software providers and users during that year.
By 2022, it is estimated that more than 90% of businesses will use cloud-based inventory management systems.
The statistic indicates that a significant majority of businesses, more than 90%, are expected to adopt cloud-based inventory management systems by 2022. This trend reflects a growing recognition among businesses of the numerous benefits associated with cloud technology, such as improved efficiency, scalability, and accessibility. The shift towards cloud-based inventory management systems also signifies a broader trend towards digital transformation within the business world, as organizations seek to leverage technological advancements to streamline operations and enhance decision-making processes. Overall, this statistic highlights the increasing importance of cloud-based solutions in modern business practices and the ongoing evolution of inventory management strategies towards more efficient and data-driven approaches.
The on-premise installation method holds a market share of almost 40%, despite increasing cloud adoption.
The statistic indicates that even with the growing popularity of cloud-based software solutions, the on-premise installation method still maintains a significant market share of approximately 40%. This suggests that a considerable portion of organizations continue to prefer hosting their software and applications internally rather than transitioning to cloud-based services. The sustained presence of on-premise installations could be attributed to factors such as data security concerns, regulatory compliance requirements, legacy systems, or specific industry needs that demand localized hosting. Despite the trend towards cloud adoption, it is evident that on-premise installations remain a prevalent choice for many businesses in the current market landscape.
In 2019, supply chain optimization was the main factor driving businesses to adopt inventory management systems.
The statistic indicates that in 2019, businesses were primarily motivated to adopt inventory management systems due to the need for supply chain optimization. This suggests that companies recognized the importance of improving their supply chain efficiency and effectiveness through better inventory management practices. By leveraging technology and data-driven solutions offered by these systems, businesses aimed to enhance their operations, reduce costs, minimize stockouts, and ultimately achieve higher levels of customer satisfaction. The emphasis on supply chain optimization signifies a strategic shift towards more streamlined and integrated inventory processes that are essential for driving performance and competitiveness in today’s fast-paced and interconnected marketplace.
Barcode scanning is currently the most used feature of inventory management systems, with 83% of companies utilizing this tool.
The statistic indicates that barcode scanning serves as the primary and most commonly employed feature within inventory management systems, with a significant 83% of companies leveraging this tool for their operations. This high percentage reflects the widespread adoption of barcode technology in streamlining inventory processes and enhancing efficiency within businesses across various industries. By utilizing barcode scanning, organizations can accurately and rapidly track their inventory, reduce human errors, improve inventory visibility, and ultimately optimize their supply chain management. The widespread utilization of barcode scanning underscores its effectiveness in modern inventory management practices and highlights its crucial role in enhancing operational productivity and accuracy for a majority of companies.
About 43% of inventory management software users are mid-market companies with 51–1000 employees.
The statistic indicates that approximately 43% of companies using inventory management software fall within the mid-market category, defined as those with a workforce ranging from 51 to 1000 employees. This finding suggests that a significant portion of inventory management software users are medium-sized organizations, highlighting the importance of such software in catering to the needs of businesses within this employee range. Understanding the demographic distribution of software users can provide valuable insights for software developers and vendors to tailor their offerings and support services to better serve this particular segment of the market.
The global inventory management software market could potentially reach $3 billion by 2026, according to some forecasts.
The statistic mentions that the global inventory management software market is projected to potentially grow to $3 billion by the year 2026 based on certain forecasts. This indicates a significant expected increase in market size over the next few years, suggesting a strong demand for inventory management software solutions worldwide. Factors such as advancements in technology, the need for efficient inventory tracking and management systems, and the increasing adoption of cloud-based solutions are likely contributing to this growth forecast. As businesses continue to prioritize streamlined operations and inventory control, the market for inventory management software is expected to expand further, presenting opportunities for software developers and companies operating in this space.
Retail industry is projected to reach a market value of $939.5 million by 2027 in the inventory management software market.
The statistic indicates that the retail industry is forecasted to see substantial growth in the inventory management software market, with a projected market value of $939.5 million by the year 2027. This growth likely signifies an increasing adoption of inventory management software by retail businesses to improve efficiency, reduce costs, and enhance overall operations. The significant market value estimate suggests a strong market demand for inventory management solutions within the retail sector and suggests that retailers are recognizing the benefits of leveraging technology to streamline their inventory processes and remain competitive in an evolving market landscape.
In 2019, enterprise resource planning (ERP) solution was the largest application segment with a market share of more than 32%.
The statistic indicates that in 2019, enterprise resource planning (ERP) solution held the largest share of the application market, accounting for over 32% of the total market. This suggests that ERP solutions were the most widely adopted and utilized software applications among businesses during that year. The high market share of ERP solutions highlights their importance in streamlining and integrating various functions within an organization, such as finance, human resources, supply chain management, and more. Businesses likely found value in utilizing ERP solutions to improve operational efficiency, decision-making processes, and overall business performance.
E-commerce is expected to grow at the highest rate in the inventory management software market.
The statistic ‘E-commerce is expected to grow at the highest rate in the inventory management software market’ suggests that the e-commerce sector is projected to experience the most significant increase in demand for inventory management software compared to other industries. This growth can be attributed to several factors, including the rising popularity of online shopping, the increasing number of e-commerce businesses, and the need for efficient inventory control and optimization. As more companies shift towards online retailing and digital platforms, the demand for advanced inventory management solutions within the e-commerce industry is expected to surge, driving the growth of the inventory management software market overall.
The SaaS/software subscription model is set to exhibit the fastest CAGR of 8.8% from 2020 to 2027.
This statistic indicates that the Software as a Service (SaaS) or software subscription model is projected to experience the fastest Compound Annual Growth Rate (CAGR) of 8.8% between the years 2020 and 2027. This suggests a strong and steady increase in adoption and revenue generated by SaaS companies over this period. The forecasted growth rate highlights the growing popularity and acceptance of subscription-based software services, signaling a shift in the way businesses and consumers access and utilize software solutions. Companies in the SaaS industry can leverage this trend to drive innovation, expand their market presence, and capitalize on the evolving preferences of customers seeking flexible and scalable software solutions.
References
0. – https://www.www.reportsanddata.com
1. – https://www.www.softwareadvice.com
2. – https://www.www.fortunebusinessinsights.com
3. – https://www.www.grandviewresearch.com
4. – https://www.www.globenewswire.com
5. – https://www.www.statista.com
6. – https://www.www.businessnewsdaily.com
7. – https://www.www.inboundlogistics.com
