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The distribution software market size is estimated to grow by USD 1,352.4 million at a CAGR of 2.61% between 2022 and 2027. The growth of the market depends on several factors, including value-based pricing strategies adopted by market companies, increased adoption of these and increased demand from SMEs. They mainly include distribution (wholesale and distribution of goods to other enterprises), supply chain management, transportation management, financials, human resource (HR) management, and procurement management. This provides broad visibility across the entire organization and delivers unparalleled control in managing thousands of transactions, suppliers, and customers while simultaneously tracking millions of inventory items. This software is primarily adopted across many distribution industries, including automotive and truck component and part manufacturers, building materials, chemical supplies, electrical goods, electronics, food and beverage, fasteners, general wholesale, industrial machinery, irrigation systems and parts, janitorial and sanitation, medical and dental supplies, paper and packaging materials, restaurant equipment and supplies, and safety products.
It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Increased demand for distribution software from SMEs is the key factor driving the market growth. Numerous SMEs invest in these to gain a competitive edge in their business operations. The main reason for the adoption among SMEs is that it enables end-users to reduce the purchase cycle and obtain high productivity with low operating costs. Also, many SMEs are expanding their business operations and, thus, need to invest in these to grow their business and provide new services.
In addition, organizations are required to adopt new advanced technologies to ease operations, enhance product/service quality, and sustain in the highly competitive market for a longer period. In addition, Because of its ease of implementation and high efficiency, SMEs adopt cloud-based distribution software. This further drives the adoption and, in turn, will boost the growth of the market during the forecast period.
Supply chain inefficiencies and the need for transparency an emerging trends shaping the market growth. Products or goods move through many stages and get distributed at every stage in the retail landscape. Inventory tracking has become more complex with the trend of omnichannel retailing. Accurate demand planning by manufacturers and retailers is also another intricate task because of incorrect data and delayed data flow through the supply chain. Manufacturers can obtain POS data from retailers, but without information about stock levels during inventory transportation, it is not possible to plan for demand accurately.
Moreover, organizations prefer better transparency of orders, inventory, and shipment information. Also, they need accurate information regarding all inbound and outbound processes. The distribution software helps deliver better visibility and provides end-users with the ability to turn raw data into meaningful information through the use of the built-in reporting feature. Such factors are expected to drive the market growth during the forecast period.
Threat from open-source distribution software is a significant challenge hindering the market growth. They pose a serious threat to the markets. and it can be downloaded and run on all platforms. It is becoming increasingly popular in emerging economies such as India and China. Most of the small-scale businesses cannot afford to invest in expensive on-premises and cloud-based. Therefore, enterprises are adopting open-source solutions because they do not need any capital investment.
However, in developing economies such as India and China, this is becoming increasingly popular, as most SMEs in these countries cannot afford to invest in expensive on-premises and cloud-based. Such factors will adversely influence the market share of companies and, in turn, restrict the growth of the market during the forecast period.
The market share growth by the cloud-based segment will be significant during the forecast period. Enterprises are primarily focusing on reducing their IT infrastructure costs and also working on improving the flexibility, agility, and efficiency of business operations. The emergence of cloud-based is growing among end-users because it does not require the client to set up their own servers and eliminates the need to purchase additional hardware.
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The cloud-based segment was the largest and was valued at USD 4,702.88 million in 2017. Cloud applications are more accessible and easier to use. The end-user requires just a web browser and an Internet connection and they can make regular payments instead of a big one-time investment. The periodic expenses are for maintenance and upgrades of the software. The growing adoption of cloud-based solutions can be attributed to the extensive use of the Internet. These factors are anticipated to fuel the growth of the cloud-based segment of the market during the forecast period.
The SMEs segment of the global market is characterized by the presence of companies with relatively smaller IT infrastructures and budgets than larger enterprises. SMEs operating in different industry verticals, such as e-commerce, finance, healthcare, and manufacturing, can benefit from distribution software. The global market caters to businesses of all sizes, including SMEs. With different price points to accommodate the specific needs and budgets of small-scale businesses. Such factors are expected to drive the growth of the global market during the forecast period.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. The major factors driving the growth of the market in North America are the availability of adequate IT infrastructure, technological advances, increasing number of SMEs, wide geographic dispersion of employees, increasing adoption of these, growing presence of manufacturing and distribution organizations, and the presence of prominent companies are. The rising expectation for quality products and the growing pressure among organizations to minimize costs while maintaining highly efficient logistical operations are also driving the growth of the market in the region along with intense competition among various providers.
Consequently, companies are upgrading their offerings to garner significant market revenue. The introduction of these is expanding in the region, such as in the US and Canada. It's due to the rapid growth of e-commerce and the shift toward omnichannel retail. To increase their operational efficiency, a wide range of industries present in these countries is rapidly flourishing because companies are integrating specialized into their systems. These factors are anticipated to fuel the regional market growth during the forecast period.
The Market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Acumatica Inc. - The company offers Distribution Edition specialized distribution management software.
ADS Solutions Corp. - The company offers such as Accolent ERP, Accolent eCommerce, and Accolent ERP wireless WMS.
Agnitech - The company offers inFlow Cloud inventory management software.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
The Market is witnessing significant growth, driven by the increasing demand for managing customer relationships and the expanding IT sector. Security concerns are prompting a shift towards more secure solutions, particularly in software distribution and installation/uninstallation processes. Configuration options are becoming more advanced to cater to diverse needs, especially in educational institutions where automation is gaining traction. In the IT market, factors like Internet penetration and the adoption of cloud-based software are reshaping the landscape. However, challenges such as deployment cost and cyber-attacks remain. Technologies like blockchain are emerging to enhance security and streamline operations.
The IT and telecommunication segment in the North American region is a key driver, with advancements in technological advancements fueling growth. Meanwhile, the e-commerce sector in the Asia-Pacific region is driving demand for efficient delivery models like SaaS and digital delivery. End users across various sectors, including public, media & entertainment, transportation & logistics, BFSI, and energy & utility, are increasingly adopting SaaS solutions. Industry experts predict a single-digit CAGR, highlighting the market's steady growth. Regional outlooks are optimistic, with a focus on economical products & services and robust sales channels. Industry analysts emphasize the importance of a strong value chain to ensure market success.
Distribution Software Market Scope |
|
Report Coverage |
Details |
Page number |
160 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.61% |
Market growth 2023-2027 |
USD 1,352.4 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
2.25 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 42% |
Key countries |
US, Canada, China, Japan, and Germany |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Acumatica Inc., ADS Solutions Corp., Agnitech, Blue Link Associates Ltd., Cloud 9 ERP Solutions, Cloud Pencils Pvt. Ltd., Constellation Software Inc., DATABASICS Inc., Distribution Management Co. Inc., Epicor Software Corp., Fishbowl, JCurve Solutions Ltd., Koch Industries Inc., Oracle Corp., Panasonic Holdings Corp., Sage Group Plc, SAP SE, SYSPRO Pty. Ltd., ECOUNT Co. Ltd., and Archon Systems Inc. |
Market dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Deployment
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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