Inventory management software in the retail sector: Key market research findings
- Omnichannel retailing boosts growth in the market
- The Americas dominate the market geographically
- Key vendors – Epicor, Oracle, SAP, Microsoft, and JDA Software
Technavio’s market research analysts predict the global inventory management software market in the retail sector to grow at a CAGR of more than 8% between 2016 and 2020. The market’s growth is spurred primarily by the increase in omnichannel retailing. Retailers need real-time information about the products or goods being offered to the customer without inconsistencies to make the model effective. Omnichannel retailing helps provide a perfect shopping experience to customers. During 2015, the Americas dominated the global inventory management software market in the retail sector with a revenue of almost $293 million. The strong presence of global retailers and inventory management software providers is expected to further fuel growth in the inventory management software market in the retail sector in Americas over the next four years.
The new market research report from Technavio presents a breakdown and analysis of the inventory management software segments based on the deployment type.
“Of late, the market has been witnessing an increase in the adoption of radio frequency identification (RFID) technology. A RFID system is built on wireless technology and is used largely for tracking objects and automatic identification. They help minimize the cost of operations by reducing the delivery time and defects per million opportunities, such as delivering the wrong item, which triples the delivery time and can result in customer attrition,” says Amrita Choudhury, Lead Analyst, ICT, Technavio Research.
The on-premise deployment segment dominated the global inventory management software market in the retail sector in 2015 by accounting for more than 70% of the overall market revenue. In an on-premise deployment model, the software is installed on the user’s server and is maintained by IT specialists in the organization. In this model, apart from the deployment cost of the applications, organizations incur additional expenses to monitor, maintain, upgrade, and provide training and support to end-users.
The key vendors in the market includes Epicor, Oracle, SAP, Microsoft, and JDA Software. Due to the presence of several multinational vendors, this market appears highly fragmented. Several vendors have established a significant presence in the market, and the market is mainly dominated by key vendors like Epicor, Oracle, SAP, Microsoft, and JDA Software. The high demand for the software for inventory management among retailers has intensified the competition among vendors. Also, the coming years will also witness the established vendors acquiring smaller vendors to expand their product portfolio and to increase their share of the market. This will also help them in entering new markets.
A more detailed analysis is available in the Technavio report, Global Inventory Management Software Market in the Retail Sector 2016-2020.
We can customize reports by other regions and specific segments upon request.
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