Demand Planning Solutions Global Market Report 2024

The demand planning solutions market size has grown rapidly in recent years. It will grow from $4.05 billion in 2023 to $4.53 billion in 2024 at a compound annual growth rate (CAGR) of 12.0%. The expansion observed in the historical period can be credited to factors such as the globalization of supply chains, heightened product variability, shifts in market dynamics and competitive pressures, the growth of e-commerce, and the necessity for regulatory compliance.

The demand planning solutions market size is expected to see rapid growth in the next few years. It will grow to $6.93 billion in 2028 at a compound annual growth rate (CAGR) of 11.2%. The anticipated growth in the forecast period can be ascribed to factors such as the utilization of real-time data and analytics, increasing focus on sustainability and environmental concerns, a heightened demand for integrated planning platforms, and efforts towards optimizing supply chains post-pandemic. Key trends expected in the forecast period encompass the integration with e-commerce platforms, improvements in user experience and intuitive interfaces, dynamic scenario planning, demand planning tailored for omni-channel retail, and the incorporation of predictive analytics.

The growth of the demand planning solutions market is expected to be fueled by the increasing number of business entities in the foreseeable future. Business entities, distinct legal organizations formed for conducting business activities, utilize demand planning solutions to enhance their demand forecasting and planning processes. These solutions contribute to improved forecasting accuracy, optimized inventory management, and enhanced efficiency in the supply chain. As per the United States Census Bureau, in May 2023, the U.S. reported an estimated total of 5.0 million enterprises in 2022, marking a 42 percent increase compared to the previous year. Additionally, NerdWallet reported that by May 2023, 33.2 million small businesses were established in the U.S. by 2022. Consequently, the growing number of business entities is a significant driver of the demand planning solutions market.

The swift growth in digitization is expected to drive the demand planning solutions market forward. Digitization, the conversion of analog information into digital format using discrete numerical values, leverages demand planning solutions to enhance forecasting accuracy, optimize inventory management, and streamline supply chain processes. This integration allows organizations to dynamically respond to market fluctuations, improve customer satisfaction, and achieve operational efficiency through real-time data analysis and predictive analytics. According to data from Augusta Free Press in December 2022, global digital transformation spending reached about $1.85 trillion, reflecting a 16% increase compared to the previous year. Hence, the rapid growth in digitization is a key factor propelling the demand planning solutions market.

The demand planning solutions market is witnessing a prominent trend in technological advancement, with major companies in the sector actively embracing new technologies to maintain their market positions. An example of this is seen in the actions of Zionex Inc., a South Korea-based provider of supply chain planning solutions, which introduced PlanNEL Beta in March 2023. This innovative artificial intelligence (AI)-powered Software as a Service (SaaS) platform focuses on demand forecasting and inventory optimization. Tailored for manufacturing and distribution companies, PlanNEL utilizes various AI techniques, including machine learning, natural language processing, and computer vision, to generate accurate demand forecasts. The platform also incorporates features such as demand-driven replenishment, safety stock optimization, and cycle counting to assist companies in optimizing their inventory levels.

A strategic partnership approach is being adopted by major companies in the demand planning solutions market to effortlessly generate accurate and timely demand planning forecasts. Strategic partnerships involve companies leveraging each other's strengths and resources for mutual benefits and success. In September 2023, Demand Driven Technologies, a US-based supply chain management software company, formed a partnership with SKU Science, a France-based demand planning solutions company. This collaboration aims to enhance businesses' agility and resilience in their supply chains by integrating SKU Science's advanced forecasting capabilities into Demand Driven Technologies' Intuiflow software. This integration facilitates the creation of unified demand plans by incorporating data from various stakeholders and departments, fostering enhanced collaboration across the organization.

In December 2021, Netstock Operating LLC., a US-based developer of supply chain planning software, acquired Demand Works Inc. for an undisclosed amount. With this acquisition, Netstock Operating LLC. sought to broaden its product offering, expand its customer base, reach new geographic markets, access Demand Works' technology, and strengthen its competitiveness in the supply chain management market. Demand Works Inc., a US-based software company, specializes in providing demand planning and supply chain management solutions.

Major companies operating in the demand planning solutions market report are International Business Machines Corporation (IBM), Oracle Corporation, SAP SE, Wolters Kluwer N.V., Infor, SAS Institute Inc., Blue Yonder, Manhattan Associates Inc., Coupa Software Inc., Anaplan, e2open LLC, Blue Ridge Solutions Inc., Kinaxis Inc., RELEX Solutions Srl, QAD Inc., OM Partners nv, American Software Inc., Aspire Systems Pvt. Ltd., Maropost Inc., ToolsGroup, Logiwa Technology Inc., FuturMaster, John Galt Solutions Inc., Gain Systems Inc., Arkieva Inc., Alloy Technologies Inc., GMDH Inc., Solvoyo, Business Forecast Systems Inc., Avercast LLC.

North America was the largest region in the demand planning solutions market in 2023. Asia Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the demand planning solutions market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the demand planning solutions market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary components within demand planning solutions are solutions and services. The solution component refers to a specific element or segment of a broader solution, representing a modular or distinct piece that contributes to the overall functionality or effectiveness of the solution. This includes both cloud-based and on-premises deployments, catering to the needs of both small and medium-sized enterprises (SMEs) and large enterprises. The primary end-users span across various industries, including automotive, healthcare, information technology and telecommunications, banking, financial services, and insurance (BFSI), manufacturing, food and beverage, among others.

The demand planning solutions market research report is one of a series of new reports that provides demand planning solutions market statistics, including demand planning solutions industry global market size, regional shares, competitors with a demand planning solutions market share, detailed demand planning solutions market segments, market trends, and opportunities, and any further data you may need to thrive in the demand planning solutions industry. This demand planning solutions market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The demand planning solutions market includes revenues earned by entities by providing services such as implementation and integration, forecasting model development, customization and configuration, process optimization, and consulting. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.