Demand Planning Solutions Market Report 2025

The demand planning solutions market size has grown rapidly in recent years. It will grow from $4.43 billion in 2024 to $4.89 billion in 2025 at a compound annual growth rate (CAGR) of 10.4%. The growth in the historic period can be attributed to globalization of supply chains, increased product variability, market dynamics and competitive pressures, e-commerce growth, regulatory compliance requirements.

The demand planning solutions market size is expected to see rapid growth in the next few years. It will grow to $7.9 billion in 2029 at a compound annual growth rate (CAGR) of 12.7%. The growth in the forecast period can be attributed to real-time data and analytics, sustainability and environmental concerns, demand for integrated planning platforms, post-pandemic supply chain optimization. Major trends in the forecast period include integration with e-commerce platforms, enhanced user experience and intuitive interfaces, dynamic scenario planning, demand planning for omni-channel retail, integration 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 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 January 2024, RELEX Solutions, a supply chain and retail planning firm based in Finland, acquired Optimity for an undisclosed sum. This acquisition will enhance the RELEX retail and supply chain platform by integrating daily production planning, optimization, and scheduling capabilities, which are essential for the complete consumer goods value chain. Optimity is also based in Finland and specializes in demand planning solutions.

Major companies operating in the demand planning solutions market include 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 2024. 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.

Demand planning solutions encompass software or systems designed to assist organizations in forecasting and anticipating customer demand for their products or services. These solutions leverage historical sales data, market trends, and other pertinent factors to generate precise demand forecasts, empowering businesses to optimize their inventory management, production planning, and supply chain operations. Techniques employed in demand planning solutions include statistical forecasting, collaborative planning, and demand sensing.

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.

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