Demand Planning Solutions Market Size, Share & Trends Analysis Report By Component, By Deployment (On-premises, Cloud-based), By Enterprise Size, By Industry, And By Region, And Segment Forecasts, 2022 - 2030

Report Overview

全球需求规划解决方案市场lued at USD 3.6 billion in 2021 and is expected to expand at a compound annual growth rate (CAGR) of 10.3% from 2022 to 2030. Demand forecasting is a part of the supply chain management process that enables a business to customize its production, whether goods or services, by analyzing customer demands. Growing awareness about the benefits offered by these solutions, including improved customer experience, lowers inventory costs, excess storage costs, and increased efficiency in overall production, is the factor driving the market growth. Also, adopting advanced planning and analytics software and tools among various industries like healthcare, retail, and IT & telecom is anticipated to boost the market growth during the forecast period. Further, these above-mentioned industries are adopting solutions to recover from the COVID-19 impact.

Companies are also adopting enterprise analytics platforms to enhance the performance of the supply chain management process. Demand planning solutions help to understand the changing market demands and distribution network issues by analyzing historical data and production capabilities. Furthermore, these solutions offer forecasting by using statistical and mathematical functions, clustering algorithms, ML (Machine Learning) technology, and automated data forecasting techniques. Further, which helps in improving customer planning by employing predictive analytics to identify future trends and the resources needed for production planning and achieving revenue targets. For instance, Demand Management Systems., (DMS) announced to upgrade to the recent version of logility digital supply chain platform used by the client PharmaCare Laboratories. The platform enables supply chain experts to use real-time information and power a more digital supply chain network, supporting the speed of business. The system also integrates AI and advanced analytics to automate planning, speed up cycle times, increase precision, improve operating performance, demolish organization silos, and offer better visibility. Supply chain management and operations rely primarily on demand planning to maintain product demand and supply in accordance with the shifting consumer needs.

However, businesses using demand planning tools deal with security and privacy concerns. Companies hold sensitive information that must be protected to prevent theft and data breaches that could damage their market standing. Data from businesses may be exposed online and accessible by unauthorized individuals, which is an increasing risk. Due to this, concerns regarding security and privacy among enterprises are increasing, which is anticipated to restrain the market expansion during the forecast period.

COVID-19 Impact

COVID-19 impact on businesses is being observed to be severe. Working remotely from home, mass layoffs, government-mandated closures, lockdowns, and social distancing have wreaked havoc in many industries, including retail, manufacturing, and logistics. On the supply side, uncertainty in orders dramatically changed the global supply chain. On the on-demand side, previous sales and forecasts remain irrelevant. However, the outbreak of COVID-19 had an overall positive impact on the target market. Most companies are adopting new predicting models to accurately forecast the post-COVID-19 demand. As a result, a huge surge has been witnessed in the adoption of demand forecasting solutions by various businesses. The companies are focusing on updating the demand plans, stabilizing and improving forecasts, re-optimizing the supply chain, demand forecasting for new products, and setting profitable strategies. As organizations need to predict and better understand their supply chains to ensure a complete recovery from COVID-19. Thus, companies from various industries are adopting these solutions, which is driving the market's growth.

Component Insights

The target market has been bifurcated based on components into solutions and services. The solutions segment accounted for the largest revenue share of 61.6% in 2021 and is expected to remain dominant over the forecast period. The solutions segment is further classified into demand planning & optimization, demand sensing & forecasting, pricing & promotion analysis, and others. Demand sensing & forecasting accounted for a significant market share in 2021. It allows responding to shifting customer demand and market trends and enhancing the supply chain pipeline and production in real-time. Demand forecasting analyzes historical data, which includes sales data, trends, and seasonal data, to predict future demands. Furthermore, according to the demand planning solutions provider, demand sensing has enabled clients to improve forecast accuracy by approximately 15-40%, decrease inventory by 10-30%, and improve customer service levels by 2-5%.

The pricing and promotion analysis segment accounted for a significant market share in 2021. Pricing analysis uses machine learning algorithms and price elasticity models to create promotion-influenced forecasts. Many companies use sales promotion analysis to boost interest and create awareness of a good/service among customers. These promotions frequently include higher costs (such as advertising) or revenue losses (such as discounts), as well as additional expenses (such as increased production).

Deployment Insights

Based on deployment, the market is segmented into on-premises and cloud-based. The on-premises segment accounted for the largest market share of 52.4% in 2021. The cloud-based segment is anticipated to expand at the highest CAGR during the forecast period. With the growing internet adoption, cloud-based systems offer applications that exceed the capabilities of on-premises systems. Adaptability and agility are essential components of any planning system, as seen by the constantly changing supply chain. Also, cloud-based systems are considered to be more cost-effective. However, they are fee-based, which can be treated as an operational cost, whereas on-premises systems are usually capital expenditures.

Previously, on-premises demand planning software was mainly used, providing automation, cutting-edge features, and the capacity to raise supply chain productivity and accuracy. However, cloud-based solutions have advanced and dominate on-premises solutions owing to the growing internet. Today’s cloud-based planning software platform comes with functionality that can be incorporated with other business software. Further, demand planning solutions also provide a configurable, feature-rich platform that can be coupled with other enterprise-level software, such as ERP systems, by leveraging the cloud.

Enterprise Size Insights

的3月ket is segmented into small & mid-sized enterprises and large enterprises based on enterprise size. Small & mid-sized enterprises accounted for a significant market share of 50.3%. The increasing number of small and mid-sized enterprises across the globe and their rising expenditure on implementing forecasting analysis to hold a position in the market and compete against other key players is expected to boost the market's growth over the forecast period. Also, mid-sized enterprises were severely affected by the COVID-19 impact due to the lockdowns, which is indirectly influencing the companies to adopt demand planning solutions.

Further, large enterprises initially used on-premises software to maintain data security and boost operational effectiveness. However, small & mid-sized enterprises with fewer resources could not pay for a comprehensive on-premises system. Small and mid-sized businesses (SMB) can now take advantage of full-featured planning software tools that are more flexible and agile than on-premises alternatives thanks to the development of more adaptable cloud-based demand planning apps.

Industry Insights

Based on industry, the market is classified into BFSI, IT & telecom, healthcare, retail & e-commerce, automotive, food & beverages, manufacturing, and others. BFSI accounted for the largest revenue share of 19.8% in 2021 and is expected to continue its dominance in the forecast period. The manufacturing segment is estimated to expand at the highest CAGR from 2022 to 2030. Manufacturing industries are adopting demand planning and business analytics platforms to improve the performance of the supply chain management process. Utilizing historical data, these companies are implementing these solutions to comprehend shifting consumer demands, manufacturing constraints, and distribution network challenges.

Demand forecasting in retail and e-commerce helps in predicting future sales with the help of using past online sales, market trends, and sales cycles. Demand forecasting software used by retailers and CPG (consumer packaged goods) companies automates time-consuming and difficult decisions and uses machine learning to improve forecasts. Further, it also helps e-commerce stores by offering various advantages which include reduced inventory expenses, a pricing strategy that reflects demand, and improves financial decision-making.

区域的见解乐鱼APP二维码

北美最大的收入占share of 41.0% in 2021 and is expected to continue its dominance in the coming years. The presence of Major tech companies offering demand planning solutions such as IBM, Blue Ridge Solutions Inc., and Demantra (Oracle Corporation) coupled with established technological infrastructure and many adopters of such software is boosting the market growth in the region. Therefore, owing to these factors, the usage of demand planning software in North America is high and contributes more to revenue generation.

The Asia-Pacific is expected to witness the highest CAGR of 12.2% from 2022 to 2030. The region is well-equipped with technology for adopting such software, which has increased adoption, supporting the regional market's growth. The pandemic has accelerated digital adoption in economies like China and India which in turn positively impacted market growth. Further, increasing the number of tech companies providing demand planning solutions is also a significant factor supporting regional market growth.

Key Companies & Market Share Insights

To broaden their product offering, industry companies utilize a variety of inorganic growth tactics, such as partnerships & collaborations, and mergers & acquisitions. For instance, in May 2022, RELEX Solutions acquired Formulate, a Swedish promotion planning, and analytics company. The acquisition enables RELEX to offer an integrated platform with a robust planning solution for global consumer packaged goods (CPG) and retail companies. Some prominent players in the global demand planning solutions market include:

• Aspire Systems

• Blue Ridge Solutions Inc.

• Cognizant Technology Solutions

• Demantra (Oracle Corporation)

• IBM

• Logility, Inc.

• RELEX Oy

• NETSTOCK

• SAP SE

• Syncron AB

• 有限公司

• Kinaxis

Demand Planning Solutions Market Report Scope

Report Attribute	Details
Market size value in 2022	USD 3.97 billion
Revenue forecast in 2030	USD 8.68 billion
Growth rate	CAGR of 10.3% from 2022 to 2030
Base year for estimation	2021
Historical data	2017 - 2020
Forecast period	2022 - 2030
Quantitative units	Revenue in USD Million and CAGR from 2022 to 2030
Report Coverage	Revenue forecast, company ranking, competitive landscape, growth factors, and trends
Segments Covered	Component, deployment, enterprise size, industry, region
Regional scope	North America; Europe; Asia Pacific; South America; Middle East & Africa
Country scope	U.S.; Canada; Mexico; U.K.; Germany; France; China; India; Japan; Brazil
Key companies profiled	Aspire Systems; Blue Ridge Solutions Inc.; Cognizant Technology Solutions; Demantra (Oracle Corporation); IBM; Logility Inc.; RELEX Oy; NETSTOCK; SAP SE ; Syncron AB; Infor; Kinaxis
Customization scope	Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.
Pricing and purchase options	Avail customized purchase options to meet your exact research needs.Explore purchase options

Global Demand Planning Solutions Market Segmentation

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global demand planning solutions market report based on component, deployment, enterprise size, industry, and region:

• Demand Planning Solutions Component Outlook (Revenue, USD Million, 2017 - 2030)

  • Solutions

    • Demand Planning and Optimization

    • Demand Sensing and Forecasting

    • 定价和促销活动分析

    • Others

  • Services

    • Professional Services

    • Managed Services

• Demand Planning Solutions Deployment Outlook (Revenue, USD Million, 2017 - 2030)

  • On-premises

  • Cloud-based

• Demand Planning Solutions Enterprise Size Outlook (Revenue, USD Million, 2017 - 2030)

  • Small and Medium Sized Enterprises (SMEs)

  • Large Enterprises

• Demand Planning Solutions Industry Outlook (Revenue, USD Million, 2017 - 2030)

  • BFSI

  • IT & Telecom

  • Healthcare

  • Retail & E-commerce

  • Automotive

  • Food & Beverages

  • Manufacturing

  • Others

• Demand Planning Solutions Regional Outlook (Revenue, USD Million, 2017 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • 英国

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • 南美

    • Brazil

  • Middle East & Africa