"Smart Strategies, Giving Speed to your Growth Trajectory"
The global electronic data interchange software market size was USD 1,547.2 million in 2019 and is projected to reach USD 3,451.3 million by 2027, exhibiting a CAGR of 10.7% during the forecast period.
The growth of the market is primarily driven by the rising preference of large organizations towards in-house processing and digital transformation & process automation. In addition, the rising adoption of EDI transactions across various industries is expected to drive market growth during the forecast period. The major software providers are focusing on adopting various marketing strategies, including mergers & acquisitions, joint ventures, and others, in order to strengthen their position in the EDI market. For instance, in October 2019, Epicor Software Corporation acquired one of the leading providers of business visibility software and EDI solutions - 1 EDI Source, Inc. The aim is to offer a wide range of data exchange software solutions to Epicor's existing and new customers.
Interest in Electronic Data Interchange Systems Will Grow amid COVID-19 Crisis
The COVID-19 pandemic is expected to have a positive impact on this market. Several business functions across verticals have been adversely affected including the electronic data interchange process. This, in turn, has resulted in the dawdling of the B2B and B2C data exchanging process. The retail, healthcare, and other industrial sectors have started adopting cloud-based data exchange software to offer lifetime access to the data and easy & safe data interchange across the globe. Globally, government bodies along with organizations are focused on enrolling recovery actions for post-COVID-19 impact. According to the World Economic Forum (WEF), in April 2020, the contactless digital payment means such as quick response (QR) codes, near-field communications (NFC), facial recognition, and others can help various countries to cope with the COVID-19 crisis, thus propelling the use of electronic paperless transactions. Various companies are opting for innovative contact-less solutions to avoid the spread of coronavirus.
Request a Free sample to learn more about this report.
Increasing Adoption of Industry 4.0 Technologies to Drive Growth
The incorporation of Industry 4.0 technologies in EDI systems has triggered a new path for the data interchange process, offering several benefits to businesses. Data interchange transactions are crucial to the B2B and B2C processes, from small and medium enterprises (SMEs) to large organizations as they offer better integration for the SMEs with larger firms that have strong market influence and big budgets. The future of the retail supply chain entirely depends on technological innovations, namely the Internet of Things (IoT), Blockchain, and Artificial Intelligence (AI), among others.
The key benefits delivered by advanced EDI solutions through B2B integration and automation are as follows:
Thus, the digital technology implementation enabled by AI and IoT are augmenting the data exchange process and driving the electronic data interchange software market growth.
Effortless Conduct of Transactions between Small Businesses and Large Organizations to Aid Market Growth
The EDI software aids small organizations to automate several transactions with other companies that occur on a frequent basis, including exchanging invoices, orders, and advanced shipping notices. Moreover, the data exchange inventory software solutions also enable management of various EDI solutions, creating a fully integrated, end-to-end, and automated EDI processes. This significantly increases the productivity, efficiency, and profitability for SMEs, augmenting the global market growth. The companies operating in the market are focusing on partnerships to cater to the rising demand for automation solutions from smaller organizations.
EDI enables small organizations to enhance customer satisfaction and brand loyalty by offering online recommendations. In addition, it also helps SMEs to seamlessly transact with large organizations across the globe by solving technical and business connection requirements productively and efficiently.
Threat of Application Programming Interface (API) as a Substitute for EDI to Inhibit Growth
Electronic data interchange solutions offer a basic exchange of business documents using multiple standard electronic formats via computers between business partners. It is feasible to carry on the similar transactions using API, such as sending order stock, invoices, and carrying out other similar processes, thus creating a substitute for the traditional data interchange systems. APIs are often faster, flexible, and cost-effective than EDI, and are typically synchronous and boast smaller payloads. An API is integrated with a REST (Representational state transfer), a systematic architectural style, that is easy to modify for developers as per the necessity. It also offers safe and trusted data exchange service, wherein it is also useful to track the data or order stock that has been lost, and is hence emerging as a potential substitute threat for the EDI technology.
Cloud-based Segment Dominated the Market Share
Based on product type, the market has been bifurcated into cloud based and on-premise.
Amongst these, the cloud-based type is estimated to have a significant portion of the market share and is expected to grow at a higher rate in the coming years. This is owing to its characteristics of providing newfound flexibility for enterprises and the ability to save time and money by improving agility and scalability. The adoption of cloud-based EDI platforms is increasing across companies, who have a wide presence across different geographies or are planning for aggressive expansion as such platforms allow the end-users to connect with customers, partners, and other businesses with minimal effort. In addition, the cloud computing features allow the user instant provisioning of any software or application and eliminate time spent on installation and configuration.
The on-premise segment is anticipated to grow at a considerable rate. Increasing investments in data interchange platforms by major players are expected to drive the market. Data exchange solutions have the ability to allow enterprises to maintain a level of control.
To know how our report can help streamline your business, Speak to Analyst
Logistics Segment to Exhibit the Highest CAGR
Based on industry, the market is further segregated into healthcare, automotive, financial services, high-tech/ manufacturing, retail, logistics, and others.
The logistics segment is projected to hold a higher market share during the forecast period. This is owing to the introduction of new technologies in logistics services including carrier-based data analytics, consolidation of deliveries from multiple shippers, and automated scheduling. The implementation of data interchange solutions in the retail sector is increasing as they drive the global data synchronization and streamline the Direct Store Delivery (DSD) procedures.
The adoption of electronic data interchange software is anticipated to grow in the healthcare industry in the coming years. EDI software allows healthcare organizations to efficiently transmit medical reports, patient cases, or perform transactions including claims and encounters information, eligibility, payment and remittance advice, and others.
North America Electronic Data Interchange Software Market, 2019 (USD Million)
To get more information on the regional analysis of this market, Request a Free sample
Geographically, the market is segmented across five major regions, namely North America, Europe, Asia Pacific, the Middle East & Africa, and South America.
North America is expected to dominate the electronic data interchange (EDI) software market share in terms of revenue during the forecast period. The expanding industrial manufacturing, healthcare, retail, and automobile industries are boosting the demand for data interchange solutions across the US and Canada. Major solution providers are focusing on adopting various marketing strategies including mergers & acquisitions to expand their business across different geographies.
Asia Pacific is expected to grow exponentially during the forecast period. The growth is attributable to the increasing supply chain efficiencies between retailers & suppliers and rise of the e-commerce industry majorly in developing countries including India, China, and others. In addition, rising government initiatives and growing manufacturing facilities in this region are expected to increase the demand for EDI software among enterprises.
To know how our report can help streamline your business, Speak to Analyst
Europe is expected to grow at a substantial CAGR owing to the presence of a considerable number of data exchange solution and tool manufacturers. The Middle East & Africa and South America regions are expected to experience a gradual CAGR during the forecasted period. This growth is owing to the rising e-commerce and distribution stores and facilities, the emergence of SMEs engaged in third-party logistics businesses, growing healthcare and manufacturing infrastructure, and others.
Key Players to Emphasize on Developing Innovative Electronic Data Interchange Software
Major players such as Dell Boomi, SPS Commerce, Inc., MuleSoft LLC and others are proactively strengthening their market position by upgrading their existing product lines to cater to various end-use applications. In addition, key players are now integrating EDI systems with advanced technologies such as IoT, Machine Learning (ML), blockchain, cloud, and others to enhance their product portfolio and deliver enhanced solutions. In addition, the major players in the market are focusing on the expansion and development of existing solutions in terms of upgrading and integration of technology, among others.
An Infographic Representation of Electronic Data Interchange (EDI) Software Market
To get information on various segments, share your queries with us
The market research report provides a detailed depth analysis of the market and focuses on key aspects such as leading companies, product type and applications of the product. Besides this, the electronic data interchange software report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over the recent years.
ATTRIBUTE | DETAILS |
Study Period | 2016 – 2027 |
Base Year | 2019 |
Forecast Period | 2020 – 2027 |
Historical Period | 2016 – 2018 |
Unit | Value (USD Million) |
Segmentation | By Product Type
|
By Industry
| |
By Region
|
Fortune Business Insights says that the EDI software market value stood at USD 1,547.2 million in 2019.
By 2027, the market size is expected to reach USD 3,451.3 million
The market is expected to grow at a CAGR of 10.7% in the forecast period (2020-2027).
Within product type, the cloud-based segment is expected to lead the market during the forecast period.
The effortless dealing of smaller businesses with larger organizations is one of the key drivers for market growth.
Dell Boomi, SPS Commerce, Inc., MuleSoft LLC, Open Text Corporation, and Software AG are the top companies in the market.
The logistics segment holds the major market share