Multichannel Order Management Market Size, Report 2031

Report Description

The global multichannel order management market size was USD 2.76 Bn in 2022 and is likely to reach USD 6.79 Bn by 2031, expanding at a CAGR of 10.5 % during 2023–2031. The market growth is fueled by the ­­growth of the e-commerce sector and the subsequent need for comprehensive automated systems for order management systems.

A multichannel order management system is a business-to-business software application that allows retailers to improve the visibility of entire life cycle orders to minimize complexities associated with order management operations. This system access real-time data from multiple sales and distribution to streamline functionalities across multiple sales channels such as ordering, shipping, fulfillment, pricing, and warehouse management.

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Sellers tend to sell their products and goods on multiple channels to target customers from diverse geographic locations and complexities. However, this approach creates some complexities associated with inventory planning and post-purchase business operations. For example,

Multichannel order management systems collect data from all the associated channels and present it on a common dashboard for efficient inventory management. Retailers can access the details about each order process across various channels so that the orders are not lost, delayed, or damaged during the order fulfillment process.

Multichannel order management systems allow manufacturers, store managers, and warehouse operators to process orders seamlessly in real time. These systems automatically update order status and automate the multichannel order fulfillment workflows that are best suited for respective business operations. Data-driven inventory planning and workflow automation assist retail managers manage the workflow automation on all different sales channels to create an elevated and seamless omnichannel consumer experience for the beneficiaries.

The rising consumer preference for e-commerce services for availing goods and products fueled the market during the COVID-19 pandemic. Consumers preferred e-commerce services due to pandemic-induced lockdowns and ordered goods and products through various sales channels including online and offline platforms. The retailers found it difficult to manage the inventory and process the orders across various channels. Multichannel order management solutions enabled retailers to organize the order workflow from one place and streamline the order processes that suited their business interests.

Multichannel Order Management Market Dynamics

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Drivers

Digital transformation of businesses, adoption of e-commerce services, and high penetration of smartphone users in society are anticipated to drive the market.  It is expected that 20.8% of retail purchases are likely to take place online and it is expected to reach 26% by the year 2026. The e-commerce market size is expected to be valued at USD 8.1 trillion by 2026. Consumers are ordering goods and products through digital channels such as e-commerce platforms due to the convenience and variety of goods and products offered on a single platform. The multichannel platforms help in streamlining purchase and delivery-related processes in the order management operations of e-commerce services providers.

Restraints

Concerns about customer data security and data gaps created during order fulfillment processes are likely to hinder the market. The silos of customer data are created and transmitted over the internet daily during order fulfillment operations. This data is vulnerable to attacks from hackers and phishers. Customers are concerned about data confidentiality. This factor restrains the market.

Opportunities

The rising adoption of digital technologies such as cloud computing and artificial intelligence, is likely to create significant opportunities for the market.  The data created across various channels need to be organized in a comprehensive manner so that it can be used for safe and efficient order management operations. Cloud computing and artificial intelligence are integrated into the systems to make informed decisions for inventory management and schedule timely order delivery to gain a competitive edge in the market.

Scope of the Multichannel Order Management Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

Component Segment Analysis

Based on component, the multichannel order management market is bifurcated into services and software. The software segment is expected to dominate the market at a significant rate during the projection period owing to enhanced scalability, easy deployment, and improved productivity offered by multichannel order management software systems. The software systems help retailers to make informed decisions through data analytics operations in large order fulfillment setups.

The services segment is anticipated to expand at significant growth in the forecast period owing to the optimization of order processing operations at various levels in the organizational structure. The services offered under multichannel order management operations provide enhanced functionalities to facilitate optimal and efficient functioning of order management operations.

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Deployment Mode Segment Analysis

On the basis of deployment mode, the global market is divided into cloud-based and on-premises. The cloud-based segment is projected to register a considerable CAGR during the forecast period due to enhanced functionality and scalability offered by the cloud-based services while dealing with the silos of data created across various platforms. Organizations are increasingly adopting cloud-based multichannel order management systems for efficient management of inventories.

The on-premises segment is expected to grow at significant growth in the forecast period owing to reduced complexities and easy management of order management processes provided by on-premises services. On-premises deployment of multichannel order management services provides flexibility and independence to the operators during the management of inventory and orders.

Organization Size Segment Analysis

Based on organization size, the multichannel order management market is bifurcated into SMEs and large enterprises. The large enterprises segment is expected to register a robust growth rate during the forecast period owing to the ability of multichannel order management systems to minimize the complexities associated with the large and complex inventories in large enterprises. Large enterprises deal with issues related to order processing and inventory planning. Multichannel order management systems offer flexible order fulfillment options and multi-location inventory management services to retailers to improve productivity and profitability in order management cycles.

The SME segment is anticipated to grow at a rapid growth in the projected period owing to the rising popularity of SMEs globally due to supportive government policies and subsequent requirements of order management solutions. The SMEs are gaining popularity due to the adoption of innovative and productive practices. SMEs adopt multichannel order management systems to enhance operational capability and profitability in order management processes.

Application Segment Analysis

On the basis of application, the multichannel order management market is segregated into inventory management, order fulfillment, channel integration, and others. The order fulfillment segment is expected to register a robust growth rate during the forecast period owing to the automation of order fulfillment to speed up the delivery of goods and products. Multichannel order management facilitates workflow automation to minimize time-consuming operations such as order processing and shipping. The consumers receive the orders as per the schedule. 

The inventory management segment is expected to expand at a significant growth in the forecast period owing to the optimal profitability provided by inventory management. The inventory management service helps users to fulfill orders accurately and on time by monitoring real-time data of inventory during order management processes.

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End-user Segment Analysis

Based on end-user, the multichannel order management market is segmented into manufacturing, transportation, retail, and others. The retail segment is expected to register a robust growth rate during the forecast period due to large inventory management requirements in the retail sector. The retail sector is a competitive sector. Consumer preferences are continuously changing and retail players need to continuously update their inventories as with the changing market trends. The enormous pressure of handling orders in an efficient way encourages players in the retail sector to adopt multichannel order management systems.

The transportation segment is anticipated to grow at a rapid growth in the projected period owing to the enhanced accuracy of inventory orders and productivity offered by multichannel order management solutions. The transporters want to gain a competitive advantage in the market by fulfilling the orders accurately and ensuring timely delivery of the products and goods.

Regional Outlook

In terms of region, the global multichannel order management market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period owing to the rising adoption of multichannel order management systems by retail companies in the region. The multichannel order management solutions offer cost-effective, agile, and comprehensive methods of order fulfillment processes to organizations. Moreover, the rising adoption of e-commerce services by consumers and integration of the Internet of Things in Retail and data analytics in multichannel order management systems acts as a catalyst for the market.

Asia Pacific is expected to expand at a significant growth due to the rising popularity of e-commerce platforms and the subsequent need for comprehensive multichannel order management systems. The e-commerce sector in the region is growing by leaps and bounds. Inventory management and order processing are integral aspects of e-commerce operations.  Multichannel order management systems help e-commerce operators to streamline order processing operations efficiently to save money and operational costs.

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