Inventory management software market growth predicted at 5% till 2026
According to a new report the inventory software market will be worth $5 billion by 2026. The increasing demand for streamlining inventory management processes will fuel the growth of this market
The report, published by Global Markets Insights Inc. highlights changing consumer preferences and the emergence of omnichannel retailing as the reason for the sudden growth in the adoption of advanced inventory management solutions.
With a new normal being imposed on ways of working for suppliers and logistics companies, some market segments are set to outstrip others in performance.
The adoption of inventory management software across large enterprises only is anticipated to grow ahead of the rest of the sector, at over 8% per annum to 2026. Large enterprises are investing in advanced inventory management software with integration capabilities to track large volumes of inventories. The inventory management software integrates with these systems and provides real-time analysis of stocks. It also helps in electronic scanning and automatic ordering along with sales order tracking.
The manually managed inventory system type is expected to grow at a steady rate over the coming years. Companies shifting from paper-based stock management processes are deploying manually managed inventory systems. These systems take formulae as input from users for both simple and complex calculations related to inventories. It also assists enterprises in ordering and tracking functions for a limited number of products. However, the manual formulae inputs may result in human-caused errors and affect the overall efficiency.
The cloud deployment segment in the inventory management software market is poised grow at over 9% to 2026. Industries and enterprises shifting toward the cloud-based network infrastructure will result in the growing demand for cloud-based inventory management software.
The SaaS-based inventory management software offers additional functionalities & capabilities such as offshore installation and reduced downtime along with cost-effectiveness. Furthermore, system integration and configuration are relatively faster compared to the on-premise model.
The automotive end-use segment is predicted to register around 5% gains during the forecast timeline. Companies providing automotive software solutions are acquiring innovative inventory management solution providers to enhance the capabilities of their automotive software solutions. For instance, in January 2020, DealerSocket, Inc. announced its plan to acquire Auto/Mate, a unique all in one software platform provider. This software will provide automotive dealers with inventory management and digital retail capabilities.