Demand Planning Solution Market Overview
As per MRFR analysis, the Demand Planning Solution Market Size was estimated at 5.67 (USD Billion) in 2022. The Demand Planning Solution Market Industry is expected to grow from 6.32(USD Billion) in 2023 to 16.7 (USD Billion) by 2032. The Demand Planning Solution Market CAGR (growth rate) is expected to be around 11.41% during the forecast period (2024 - 2032).
Key Demand Planning Solution Market Trends Highlighted
The Demand Planning Solution Market witnesses significant growth driven by the surging demand for efficient supply chain management, improved forecasting accuracy, and enhanced collaboration among stakeholders. The rise of e-commerce, globalization, and omnichannel retailing fuels the need for optimized demand planning solutions. Moreover, the increasing complexity of supply chains and the volatile nature of consumer demand necessitate the adoption of advanced demand planning tools.
Opportunities abound in the market with the emergence of cloud-based demand planning solutions, which offer greater scalability, flexibility, and cost-effectiveness. Furthermore, the integration of artificial intelligence (AI) and machine learning (ML) technologies into demand planning solutions enhances their predictive capabilities and enables businesses to respond swiftly to market dynamics.
Recent trends in the market include the growing adoption of prescriptive analytics, which provides actionable insights to guide decision-making. Additionally, the integration of external data sources, such as social media sentiment analysis and weather data, helps businesses gain a more holistic view of demand patterns. As businesses prioritize sustainability, demand planning solutions that consider environmental and ethical factors are becoming increasingly sought-after.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Demand Planning Solution Market Drivers
Growing Adoption of Cloud-Based Demand Planning Solutions
The adoption of cloud-based demand planning solutions is rapidly increasing due to the numerous benefits they offer. These solutions are hosted on remote servers and can be accessed via the Internet, eliminating the need for on-premise hardware and software. Cloud-based demand planning solutions are typically more scalable, flexible, and cost-effective than on-premise solutions. They can be easily integrated with other enterprise applications, such as ERP and CRM systems.Additionally, cloud-based solutions provide real-time visibility into demand data, enabling businesses to make more informed decisions. The growing adoption of cloud-based demand planning solutions is a key driver of the Demand Planning Solution Market Industry.
Increasing Demand for Real-Time Visibility into Demand Data
Businesses are increasingly demanding real-time visibility into demand data in order to make more informed decisions. Real-time visibility enables businesses to identify trends and patterns in demand, and to respond quickly to changes in the market. This is especially important in today's fast-paced, competitive business environment. Demand planning solutions provide businesses with the ability to track demand data in real time, and to generate reports and insights that can help them to make better decisions.The increasing demand for real-time visibility into demand data is a key driver of the Demand Planning Solution Market Industry.
Growing Need for Collaboration between Sales and Operations Planning (S&OP) Teams
There is a growing need for collaboration between sales and operations planning (S&OP) teams in order to improve demand planning accuracy. S&OP teams are responsible for developing and executing demand plans, and they need to be able to work together effectively in order to ensure that the plans are aligned with the business's objectives. Demand planning solutions can help facilitate collaboration between S&OP teams by providing a central platform for them to share data and insights.This can help to improve communication and coordination between the teams, and to ensure that the demand plans are based on the best possible information. The growing need for collaboration between S&OP teams is a key driver of the Demand Planning Solution Market Industry.
Demand Planning Solution Market Segment Insights
Demand Planning Solution Market Deployment Mode Insights
The Demand Planning Solution Market is segmented by deployment mode into on-premise and cloud-based. The cloud-based segment is estimated to grow at a significant CAGR during the forecast period, owing to the increasing adoption of cloud computing services by enterprises. Cloud-based demand planning solutions offer several advantages over on-premise solutions, such as reduced IT infrastructure costs, increased flexibility and scalability, and access to real-time data. The on-premise segment held a larger market share in 2023, but its growth is expected to slow down in the coming years due to the rising popularity of cloud-based solutions.
However, on-premise solutions still offer some advantages, such as greater control over data and security, and may be preferred by enterprises with sensitive data or specific regulatory compliance requirements. The increasing adoption of cloud-based demand planning solutions is being driven by several factors, including the growing need for real-time data visibility, the need to improve collaboration and decision-making, and the desire to reduce IT costs. Cloud-based solutions provide enterprises with the ability to access their data and applications from anywhere, anytime, and on any device.
This flexibility is essential for businesses that operate in a marketplace or that have employees who work remotely. In addition, cloud-based demand planning solutions can help enterprises to improve collaboration and decision-making. By providing access to real-time data and analytics, cloud-based solutions enable businesses to make better-informed decisions about demand planning and forecasting. This can lead to improved customer service, reduced inventory costs, and increased sales. Overall, the demand for demand planning solutions is expected to grow significantly over the next few years, driven by the increasing adoption of cloud-based solutions.Enterprises that are looking to improve their demand planning and forecasting capabilities should consider cloud-based solutions as a viable option.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Demand Planning Solution Market Organization Size Insights
The Demand Planning Solution Market is segmented by organization size into Small and Medium-Sized Enterprises (SMEs) and Large Enterprises. The Large Enterprises segment is expected to hold a larger market share due to the increasing adoption of demand planning solutions to optimize supply chain operations and improve forecast accuracy. Large enterprises have complex supply chains and a high volume of SKUs, making demand planning a critical aspect of their business operations. SMEs, on the other hand, are increasingly recognizing the benefits of demand planning solutions to streamline their operations and gain a competitive edge.The SME segment is expected to grow at a faster CAGR during the forecast period as more SMEs adopt demand planning solutions to improve their forecasting capabilities and optimize inventory management.
Demand Planning Solution Market Industry Vertical Insights
The Demand Planning Solution Market is segmented by industry vertical into Retail Consumer Goods, Manufacturing, Healthcare, Automotive, and Pharmaceuticals. Retail Consumer Goods held the largest market share in 2023, with expected to reach USD 3.24 Billion by 2032. The growth of this segment can be attributed to the increasing adoption of demand planning solutions by retailers and consumer goods companies to optimize their supply chains and improve customer service. Manufacturing is another key segment and is expected to grow at a CAGR of 11.5% from 2023 to 2032.The increasing complexity of manufacturing processes and the need to improve efficiency are driving the adoption of demand planning solutions in this segment. Healthcare is also a significant segment and is expected to grow at a CAGR of 11.7% from 2023 to 2032. The rising cost of healthcare and the need to improve patient outcomes are driving the adoption of demand planning solutions in this segment. Automotive and Pharmaceuticals are two other important segments, with both expected to grow at a CAGR of over 11% from 2023 to 2032. The increasing demand for vehicles and pharmaceuticals, coupled with the need to improve supply chain efficiency, is driving the adoption of demand planning solutions in these segments.
Demand Planning Solution Market Solution Type Insights
The Demand Planning Solution Market segmentation by Solution Type includes Collaborative Demand Planning, Predictive Demand Planning, and Machine Learning (ML)-Based Demand Planning. The Collaborative Demand Planning segment held the largest market share in 2023, and it is expected to continue its dominance during the forecast period. The growth of this segment can be attributed to the increasing adoption of collaborative planning processes by businesses to improve supply chain efficiency and customer satisfaction. The Predictive Demand Planning segment is expected to witness significant growth during the forecast period, owing to the rising demand for predictive analytics solutions to gain insights into future demand patterns and make informed decisions.The Machine Learning (ML)-Based Demand Planning segment is also anticipated to grow rapidly, driven by the advancements in ML algorithms and the increasing availability of data for training these algorithms.
Demand Planning Solution Market Functionality Insights
Functionality Segment Insights and Overview The Demand Planning Solution Market is segmented by functionality into data collection and analysis, forecasting and predictive analytics, inventory management, and collaboration and workflow management. The data collection and analysis segment accounted for the largest share of the market in 2023, and is expected to continue to grow at a CAGR of 11.5% over the forecast period. This growth is attributed to the increasing need for businesses to collect and analyze data in order to make better decisions.The forecasting and predictive analytics segment is also expected to grow at a significant rate as businesses increasingly use predictive analytics to improve their demand forecasting accuracy. The inventory management segment is expected to grow at a slower rate as businesses increasingly adopt lean inventory management practices. The collaboration and workflow management segment is expected to grow at a moderate rate as businesses increasingly look for ways to improve their collaboration and workflow efficiency.
Demand Planning Solution Market Regional Insights
The Demand Planning Solution Market is segmented into North America, Europe, APAC, South America, and MEA. Among these regions, North America is expected to hold the largest market share in 2023, owing to the presence of a large number of manufacturing industries and the early adoption of advanced technologies. Europe is expected to be the second-largest market, followed by APAC. The APAC region is expected to witness the highest growth rate during the forecast period due to the increasing demand for demand planning solutions from emerging economies such as China and India.South America and MEA are expected to have a relatively smaller market share, but they are expected to grow at a steady pace during the forecast period.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Demand Planning Solution Market Key Players And Competitive Insights
Major players in the Demand Planning Solution Market industry are continuously upgrading their products to meet evolving customer needs. Leading Demand Planning Solution Market players are investing heavily in research and development to stay ahead of the competition and maintain their market share. As a result, the Demand Planning Solution Market is expected to witness significant development over the next few years. The Demand Planning Solution Market Competitive Landscape is highly competitive, with numerous players vying for market share.
Some of the key players in the Demand Planning Solution Market include SAP, Oracle, JDA Software, IBM, and Infor. These players offer a wide range of Demand Planning Solution solutions to meet the needs of different businesses.SAP is a leading provider of Demand Planning Solution solutions. The company offers a comprehensive suite of Demand Planning Solution solutions that help businesses improve their demand forecasting and planning processes. SAP's Demand Planning Solution solutions are used by a wide range of businesses, including manufacturers, retailers, and distributors. Oracle is another leading provider of Demand Planning Solution solutions. The company offers a cloud-based Demand Planning Solution solution that helps businesses improve their demand forecasting and planning processes. Oracle's Demand Planning Solution solution is used by a wide range of businesses, including manufacturers, retailers, and distributors.JDA Software is a leading provider of Demand Planning Solution solutions.
The company offers a comprehensive suite of Demand Planning Solution solutions that help businesses improve their demand forecasting and planning processes. JDA Software's Demand Planning Solution solutions are used by a wide range of businesses, including manufacturers, retailers, and distributors. IBM is a leading provider of Demand Planning Solution solutions. The company offers a comprehensive suite of Demand Planning Solution solutions that help businesses improve their demand forecasting and planning processes. IBM's Demand Planning Solution solutions are used by a wide range of businesses, including manufacturers, retailers, and distributors. Infor is a leading provider of Demand Planning Solution solutions. The company offers a comprehensive suite of Demand Planning Solution solutions that help businesses improve their demand forecasting and planning processes. Infor's Demand Planning Solution solutions are used by a wide range of businesses, including manufacturers, retailers, and distributors.
Key Companies in the Demand Planning Solution Market Include
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SAP Ariba
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Logility, Inc.
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Tableau Software, Inc.
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OneStream
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SAS Institute Inc.
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ToolsGroup
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IBM Corporation
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Infor
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6 River Systems
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Oracle Corporation
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Kinaxis
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Anaplan
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SAP SE
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Blue Yonder, LLC
Demand Planning Solution Market Industry Developments
The demand planning solution market is anticipated to grow from USD 6.32 billion in 2023 to USD 16.7 billion by 2032, registering a CAGR of 11.41% during the forecast period. The market is driven by the increasing adoption of advanced technologies, such as artificial intelligence (AI) and machine learning (ML), to improve demand forecasting accuracy. Additionally, the growing need for supply chain optimization and inventory management is contributing to the market growth.Recent news in the demand planning solution market includes the acquisition of Anaplan by Thoma Bravo, a private equity firm, for $10.7 billion. This acquisition is expected to strengthen Anaplan's position in the market and accelerate its growth globally. Other notable developments include the launch of new products by key players, such as SAP's Integrated Business Planning solution and Oracle's Demand Management Cloud. These new products offer advanced capabilities and integrations with other enterprise systems, which are expected to drive adoption in the coming years.
Demand Planning Solution Market Segmentation Insights
| Report Attribute/Metric |
Details |
| Market Size 2022 |
5.67(USD Billion) |
| Market Size 2023 |
6.32(USD Billion) |
| Market Size 2032 |
16.7(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
11.41% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
SAP Ariba, Logility, Inc., Tableau Software, Inc., OneStream, SAS Institute Inc., ToolsGroup, IBM Corporation, Infor, 6 River Systems, Oracle Corporation, Kinaxis, Anaplan, SAP SE, Blue Yonder, LLC |
| Segments Covered |
Deployment Mode, Organization Size, Industry Vertical, Solution Type, Functionality, Regional |
| Key Market Opportunities |
Cloud-based solutions Predictive analytics AIpowered automation Realtime data integration Collaboration and communication tools |
| Key Market Dynamics |
Increased customization AI adoption cloud deployment supply chain transparency predictive analytics |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Demand Planning Solution Market is valued at approximately USD 6.32 Billion in 2023.
The Demand Planning Solution Market is projected to reach USD 16.7 Billion by 2032, exhibiting a CAGR of 11.41% during the forecast period (2023-2032).
North America is expected to account for the largest market share, followed by Europe and Asia-Pacific.
The manufacturing industry is expected to be the primary driver of growth for the Demand Planning Solution Market.
Key competitors in the Demand Planning Solution Market include SAP SE, Oracle Corporation, IBM Corporation, SAS Institute Inc., and Infor Inc.
Key growth factors include increasing adoption of cloud-based solutions, growing demand for supply chain optimization, and rising need for real-time data analytics.
Challenges include data integration issues, lack of skilled professionals, and implementation complexities.
Emerging trends include the use of artificial intelligence (AI), machine learning (ML), and predictive analytics.
The market helps businesses improve supply chain efficiency, reduce inventory costs, and enhance customer satisfaction.
The market is expected to continue growing in the future, driven by factors such as increasing adoption of digital technologies and growing demand for supply chain resilience.
