Multichannel Order Management Market - Forecast(2024 - 2030)

Multichannel Order Management Market Overview

The Multichannel Order Management Market size is forecast to reach US$3.9 billion by 2027, growing at a CAGR of 10.8% from 2022 to 2027. This growth is mainly attributed to the growth of digital technologies across various industries, the increasing penetration of smartphones across the globe, increasing internet user, an abundance of e-commerce merchants and the adoption of multiple sales channels by various enterprises. These multichannel order management systems are primarily for scaling all functions and orders at every level, which assists organizations in forming an efficient system. The flexibility offered by these solutions is one of the major reasons for their increased adoption which in turn boost the Multichannel Order Management Market size. The multichannel order management operating systems aid in the supply chain management of various marketplaces, the warehouse management to avoid stockouts and overselling, the accurate processing of bulk orders and the tracking of differentiated pricing across all channels which is a complex task but these operating systems can handle that task seamlessly and with ease. These factors are combinedly increasing the size of the Multichannel Order Management Market industry.

Multichannel Order Management Market Report Coverage

The “Multichannel Order Management Industry Outlook – Forecast (2022-2027)” by IndustryARC, covers an in-depth analysis of the following segments in the Multichannel Order Management Market.

Key Takeaways

• Adoption of software in the Multichannel Order Management Market was the highest and also analyzed to grow at a significant rate during the forecast period 2022-2027. This growth in the software segment is attributed to increasing digitalization, process automation and rising adoption of cloud-based systems for better productivity and operational efficiency.
• Based on End-user Industry in Multichannel Order Management Market, the retail and e-commerce industry in the Multichannel Order Management Market is expected to grow at the highest rate with a CAGR of 11.5% during the forecast period 2022-2027. This is primarily due to the growing focus on supply chain efficiency, reverse logistics, customer preferences & awareness and so on.
• Increasing demand for smart warehouse management through barcode scanners in order to reduce inventory loss, providing better shopping standards for customer satisfaction and growing adoption of process automation drives the growth of the Multichannel Order Management Market.
• APAC region dominated the Global Multichannel Order Management Market in 2022, attributed to the rapid digitalization and competition within the industries to provide consumers with the highest product satisfaction. Also, the presence of manufacturers and increasing investment in order management systems drive the Multichannel Order Management Market.

Multichannel Order Management Market Value Share, By Region, 2021 (%)

Multichannel Order Management Market Segment Analysis - by Component

The Software segment in the Multichannel Order Management Market industry is analyzed to grow with the highest CAGR of 36% during the forecast period 2022-2027. Increasing digitalization, the rising need to automate the process and the rising adoption of cloud-based arrangements due to their proficient working with low operational cost are expected to drive the growth of software systems in enterprises. This rising demand for software eventually boosts the Multichannel Order Management Market outlook. The increasing regulatory and competitive pressure on firms to automate the process presents a significant opportunity for market growth. Another key factor for the rapid growth of this segment is the geographical reach of retail, e-commerce, telecom, IT companies and Banking and Financial companies.

Multichannel Order Management Market Segment Analysis - by End-user Industry

Based on End-user Industry the retail and e-commerce industry is analyzed to grow at the highest CAGR of 11.8% during the forecast period 2022-2027. Rapid digitalization has played a vital role in transforming the retail and e-commerce industry. Consumers are becoming more preferential about when and how they want to be reached by brands. As a result, the market is expected to move forward due to the need for consistency, stock availability and clarity in market communication across industries. The multiple sales channels are no longer mutually exclusive. With the rapid growth of the online market, retailers are increasingly embracing cutting-edge technologies such as big data analytics, cloud computing, digital stores, and social media networks. With increasing competition in this industry, customer experience has proven to be a critical differentiator among online shopping options. For instance, In June 2021, Salesforce has partnered with Adyen, a Dutch payment company. Adyen introduced Order Management System for Salesforce Commerce Cloud on Salesforce AppExchange as part of this collaboration, allowing users to gain deeper insights into consumer behavior by monitoring refunds, orders or stock inventory, and cancellations. As a result, these factors are significantly improving the Multichannel Order Management Market size.

Multichannel Order Management Market Segment Analysis - by Geography

North America region dominated the global market for multichannel order management with a market share of 37% in 2021 and the APAC region is analyzed to have the highest growth rate over the forecasting period 2022-2027. The North American region is a mature and well-established market with a healthy risk appetite and a propensity for technological innovations, there are numerous opportunities for multichannel order management vendors and service providers. Except for North America, Asia Specific Region has seen the highest growth rate over the past few years and also analyzed to grow with a significant growth rate. Across the Asia Pacific region, Shopping malls, grocery stores, supermarkets, convenience stores, and hypermarkets are equipped with superior supply chain management, and they are also receiving a digital upgrade in order to compete in the next generation of shopping experiences. For example, JD.com, one of China's largest retail companies, has been implementing what it calls "boundaryless retail" through partnerships with major Western players such as Walmart and Intel. A partnership with the Japanese beauty company SK-II in Shanghai illustrates how this can work. JD.com set up a pop-up store for a month and gave customers a digital bracelet that allowed them to synchronize their in-store preferences with their online shopping cart. Thus, these factors are set to transform the Multichannel Order Management Market outlook in the APAC region.

Multichannel Order Management Market Drivers

The emerging potential of online sales and rising competition among enterprises are driving the adoption of operating systems which boosts the growth of the Multichannel order Management Market

The internet is widely used in all lines of business, fuelling the growth of eCommerce players. Furthermore, the food and beverage, healthcare, and manufacturing industries are gaining traction in adopting advanced technologies. These verticals sell their products through a multichannel network, which is expected to drive the Multichannel Order Management Market. By implementing a multichannel order management solution, businesses are developing comprehensive strategies to deliver end-to-end business models. Furthermore, increased internet penetration encourages retailers, food and beverage companies, healthcare providers, and manufacturers to adopt multichannel order management, allows them to access real-time information about their business operations. For instance, in September 2021, IBM corporation announced their new IBM E1080 server, based on an IBM Power10 processor, designed specifically for cloud-based operations. The E1080 server is designed to be one of the most secure server platforms, allowing clients to operate a secure, frictionless hybrid cloud experience across their operations. As a result, emerging opportunities among industry verticals are expected to drive the Multichannel Order Management Market during the forecast period.

Convenience and easy accessibility of mobile payment options is a key factors in the Multichannel order Management Market growth

The convenience and ease of use of mobile payment systems are one of the key factors driving the Multichannel Order Management Market growth. Governments around the world are investing heavily in financial institutions to encourage to expand their services to rural areas in order to extend banking and payment services to these areas. Furthermore, mobile commerce vendors are collaborating with retail and telecom companies to integrate payment services. As a result, mobility is critical to ensure an uninterrupted data-sharing process. People who do not have access to a bank can use mobile banking and m-commerce to achieve financial inclusion. For instance, In March 2022, the Reserve Bank of India took two critical initiatives which are UPI123Pay and DigiSaathi. The UPI123Pay system provides a unified payment interface for feature phone users and DigiSaathi provides a 24x7 helpline to address all the queries of consumers regarding digital payments. These initiatives will help to strengthen the digital ecosystem and increase financial inclusion. Such factors will increase the adoption of multichannel order management solutions, thereby driving the market growth during the forecast period.

Multichannel Order Management Market Challenge

Security and Privacy concerns along with a lack of technical expertise in the multichannel order management systems hinder the market growth

Even though the Multichannel Order Management Market is growing rapidly, the systems handle confidential data, which must be safeguarded to avoid data breaches and theft, which can harm an organization's reputation. Enterprise data can be breached and accessed by unauthorized users. It is a growing source of concern among businesses. It is possible that enterprise users will be able to view competitor data. These security concerns about unauthorized data access may jeopardize enterprise data security and competitive business position. In March 2021, organizations such as BigBasket faced a data breach where 20 million customer data were hacked. Additionally, the multichannel order management solution includes integrating order management solutions with various sales channels such as websites, marketplaces, offline systems, and shipping partners and the integration process involves end-to-end order flow, order analytics, visibility, and security. As cloud-based management systems are complex, cloud professionals require specific skills to assist in service integration, informed purchasing, contract facilitation, monitoring and management. 

Multichannel Order Management Industry Outlook

Product launches, collaborations, and R&D activities are key strategies adopted by players in the Multichannel Order Management Market. The top 10 companies in the Multichannel Order Management market are:

1. IBM Corporation
2. Oracle Corporation
3. HCL Ltd
4. SAP SE
5. BrightPearl
6. Cloud Commerce Pro LTD
7. Zoho Corporation
8. Linnworks
9. Sanderson
10. Salesforce INC

Recent Developments

• In September 2021, IBM announced the new IBM Power E1080 server which is the first in a new family of servers based on the new IBM Power10. These kinds of technological improvements increase the adoption of cloud-based multichannel order management systems which in turn boosts the market growth. 
• In April 2021, ZOHO announced their new low-code workflow automation application QNTRL which enables users to centralize their inquiries from all process stakeholders, assure process compliance, enable contextual and workflow-centric collaboration and simplify repetitive operations. 
• In March 2021, Linnworks integrated with Buy on Google, a checkout experience that allows shoppers to easily purchase products directly from retailers on Google, assisting merchants in increasing sales, reaching new audiences, and extending the reach of existing product lines. 

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