Order Management Software Market Report Scope & Overview:

The Order Management Software Market was valued at USD 3.4 Billion in 2023 and is expected to reach USD 5.7 Billion by 2032, growing at a CAGR of 5.79% from 2024-2032. The growth of the Market is attributed to the increasing feature analysis and the complexity of omnichannel orders, leading to the need for the progression of solutions. In terms of user demographics, the market appears to be maturing with a wide age range of users in different industries, and many will expect seamless integration with other software systems. Integration capabilities are critical, expect many more software solutions to support improved integrations with ERP, CRM, and other enterprise systems in 2023. Furthermore, order management systems have a strong influence on business decisions as they help companies optimize workflow processes and serve customers. Reports cover Market trends, The competitive landscape, future forecasts

Market Dynamics

Drivers

• Increasing demand for automation, real-time inventory visibility, and multi-channel order management.

The Order Management Software Market is growing rapidly with the increasing activity of automation, the driving process of orders & the real-time visibility of an inventory. OMS solutions are designed to minimize order processing time, minimize errors, and thereby improve customer satisfaction for businesses. Add to that the complexity of navigating multi-channel sales and the expanding e-commerce industry, and you can see why order management solutions are becoming strong candidates for improvement. With shipping times becoming faster and more precise as companies seek to provide efficient supply chain delivery, OMS software helps ensure that businesses effectively send products back and forth, making its impact on overall operational performance and profitability irrefutable.

Restraints:

• Lack of skilled personnel to manage and operate advanced OMS systems, hindering effective implementation and utilization.

The foremost hindrance of the Order Management Software Market is the absence of trained staff to maintain and operate an up-to-date OMS solution. With these systems gathering complexity, the organization requires workers with specialized experience in systems integration, data and analytics, and system optimization. This is a relatively scarce expertise, especially in smaller to mid-sized companies, which either lack time to train and build out their teams or the dollars to hire qualified talent. Such a lack of specialized workers can lead to delayed implementation, misutilization, and failure to reach the true capabilities of OMS systems.

Opportunities:

• Growth of omnichannel retailing and integration of AI for predictive analytics and efficiency.

As omnichannel retailing is on the rise, the future of Order Management Software in the case of mutually benefitting businesses that operate on multiple sales channels is endless. The demand for managing inventory and processing orders seamlessly across physical stores, e-commerce platforms, and mobile apps is increasing. Moreover, the combination of OMS solutions with artificial intelligence and machine learning can allow predictive analytics, and smarter decisions, which can further improve operational efficiency and customer experience. E-commerce has seen a continual rise all over the world which will be a boon for a few OMS providers opening new avenues for them.

Challenges:

• Data privacy concerns and complex regulatory requirements around customer and order data security.

The Order Management Software Market is facing a challenge from data privacy concerns and the increasing complexity of regulatory requirements. OMS solutions deal with sensitive customer and order data, which makes it essential to be compliant with data protection laws like GDPR. In addition to that, OMS typically operates from within an organization but integrates with multiple third-party platforms and systems, which adds a new layer of potential vulnerabilities. It has become imperative for companies to tackle these security issues to gain customer confidence while shielding their systems against the threat of cyberattacks. Continuous compliance is also a challenge due to the evolving nature of data privacy regulations.

Segment Analysis

By Deployment

Cloud-based Order Management Software segment dominated the market and accounted for a revenue share of more than 69% in 2023, Driven by scalability, cost-effectiveness, and seamless integration with existing systems. With the wide adoption of cloud technology, the application of cloud-based solutions is predicted to rise with their adoption rate bringing the enhancement of business agility and taking off burdening overhead costs.

On-premise Order Management Software is expected to grow at significant CAGR as some bigger companies are still going for the on-premise solutions since they solely want to to have the maximum control as well as the maximum safe control of their data.

By Functionality

The order capture function continues to dominate and represents a significant revenue share of more than 39% in 2023, as it is a core part of the order fulfillment process. It enables businesses to receive orders from different channels like online stores, brick-and-mortar shops, and mobile applications. With more and more businesses transitioning to an omnichannel retail model, capturing orders from any point of interaction seamlessly is a need of the hour. It also brings better customer experience and order management capabilities to aid companies in being competitive in an ever-changing market.

The order Processing segment witnessing the fastest growth in the OMS market is order management processing as companies try to automate their order fulfillment workflows. It performs important functions like payment processing, shipping, invoicing, and returns management. With the increasing demand for faster delivery and reduced lead times, organizations have been turning to automated order processing to improve their operational efficiencies and meet customer expectations. As fulfillment speed is a growing expectation with customers, this functionality is at the core of the OMS system adoption.

By End-Use

The retail segment dominated the market and represented a significant revenue share in 2023, as this segment continues to have a constant operational need to optimize processes to improve customer satisfaction. Retail, particularly for brick-and-mortar and e-commerce, has a great need for OMS solutions to manage orders across channels and streamline operations. Increasing customer expectations around shipping speed, tracking, and returns transparency have made another piece of software needed for competitive success at retail. OMS solutions improve the customer experience and lower mistakes in the order fulfillment process for the retail industry.

E-commerce is expected to register the fastest CAGR during the forecast period, owing to the booming online shopping activity across the globe. OMS are particularly crucial for e-commerce businesses with large order volumes and complex supply chain systems, as a sophisticated OMS can help manage high order volumes, improve inventory off-take, and create faster and more accurate order fulfillment capabilities. As a large number of consumers have shifted toward e-commerce shopping, processing orders faster, tracking them in real time, and having visibility into all inventories are rising needs for e-commerce firms. E-commerce OMS has been fast growing due to the fastest growing online platforms and changing consumer demands which results in aggressive adoption of OMS solutions in the industry by e-commerce businesses.

Regional Analysis

North America dominated the market and accounted for the largest share of more than  41% in 2023 of the order management software market owing to the presence of key players and high adoption rate among several sectors such as retail and IT.

Asia-Pacific is the fastest-growing region during the forecast period, while the adoption of OMS is increasing, which can be attributed to this factor is growing e-commerce sector, rapid industrial growth, and increasing digitalization in countries such as China and India. It is also expected that this region will continue along this path of growth until 2032 as organizations in developing markets upgrade their order orchestration systems.

Key Players

The major key companies of Order Management Software are

• IBM - Sterling Order Management

• Oracle - Oracle Order Management Cloud

• SAP - SAP Commerce Cloud

• Salesforce - Salesforce Order Management

• Zoho - Zoho Inventory

• Brightpearl - Brightpearl OMS

• Square - Square for Retail

• Linnworks - Linnworks Total Order Management

• Vinculum - Vinculum Omnichannel OMS

• Freestyle Solutions - Multichannel Order Manager (M.O.M.)

• Aptean - Aptean Order Management

• Etail Solutions - Etail Order

• SellerActive - SellerActive OMS

• NetSuite - NetSuite Order Management

• Manhattan Associates - Manhattan Order Management

Recent Developments

• In February 2024, Gooten, Launched OrderMesh, an order management platform designed for on-demand production. This allows businesses to easily manage and fulfill orders for customized products.

• In July 2024, Tesco launched Transcend Retail Solutions, an e-commerce venture aimed at assisting international supermarket chains in developing their online services. This subsidiary offers Tesco's software, hardware, and consultancy services to international grocers, enabling them to fulfill online orders from their stores. The first contract was secured with New Zealand's Foodstuffs North Island, with plans to expand to 150 stores.