Executive Summary

The multichannel order management market is expected to witness significant growth in the coming years due to the increasing adoption of omnichannel strategies by retailers and the growing demand for streamlined and efficient order management solutions. The market is driven by factors such as the rise of e-commerce, increasing consumer expectations for fast and reliable delivery, and the need for real-time inventory visibility. However, the market faces challenges such as the high cost of implementation and the complexity of integrating multiple sales channels. The market is highly competitive, with key players such as IBM, Oracle, SAP, and Salesforce offering comprehensive multichannel order management solutions.

Important Note: The companies listed in the image above are for reference only. The final study will cover 18–20 key players in this market, and the list can be adjusted based on our client’s requirements.

Key Market Insights

• The multichannel order management market is expected to grow at a CAGR of 11.8% during the forecast period, driven by the increasing adoption of omnichannel strategies by retailers.
• North America is expected to dominate the market, owing to the high penetration of e-commerce and the presence of major multichannel retailers in the region.
• Cloud-based solutions are expected to witness the highest growth, owing to their scalability, flexibility, and cost-effectiveness.
• Small and medium-sized enterprises are expected to be the fastest-growing segment, owing to the increasing adoption of e-commerce by these companies.

Market Drivers

1. Rise of E-commerce: The growth of e-commerce has led to an increase in the number of sales channels through which retailers sell their products. This has created a need for multichannel order management solutions that can integrate these channels and streamline the order fulfillment process.
2. Increasing Consumer Expectations: Consumers expect fast and reliable delivery, regardless of the sales channel they use. Multichannel order management solutions enable retailers to provide a seamless shopping experience by coordinating inventory levels and shipping processes across channels.
3. Real-time Inventory Visibility: Real-time inventory visibility is essential for retailers to optimize their inventory levels and prevent stockouts. Multichannel order management solutions enable retailers to track their inventory levels in real-time, regardless of the sales channel.

Market Restraints

1. High Cost of Implementation: Multichannel order management solutions can be expensive to implement, especially for small and medium-sized enterprises. This can be a barrier to adoption, particularly for companies with limited budgets.
2. Complexity of Integrating Multiple Sales Channels: Integrating multiple sales channels can be complex, requiring significant investment in technology and resources. This can be a challenge for retailers with limited IT capabilities.

Market Opportunities

1. Emerging Markets: Emerging markets such as Asia-Pacific and Latin America present significant growth opportunities for multichannel order management vendors. These markets are experiencing rapid growth in e-commerce and are characterized by a large number of small and medium-sized enterprises.
2. Mobile Commerce: The growth of mobile commerce presents an opportunity for multichannel order management vendors to develop solutions that enable retailers to manage orders received through mobile apps.

Market Dynamics

One of the key trends in the market is the increasing adoption of omnichannel strategies by retailers. Omnichannel retailing involves providing a seamless shopping experience across multiple channels, including online, mobile, and in-store. Multichannel order management solutions play a critical role in enabling retailers to achieve this goal by providing real-time visibility into inventory levels, coordinating order fulfillment across channels, and providing a single view of the customer.

Another key trend in the market is the growing demand for cloud-based solutions. Cloud-based solutions are gaining popularity due to their scalability, flexibility, and cost-effectiveness. They enable retailers to quickly and easily scale their operations, without the need for significant investment in IT infrastructure.

The COVID-19 pandemic has also had a significant impact on the multichannel order management market. The pandemic has accelerated the shift towards e-commerce, as consumers increasingly turned to online shopping to avoid physical stores. This has led to an increased demand for multichannel order management solutions that can integrate multiple sales channels and provide real-time visibility into inventory levels.

Regional Analysis

North America is expected to dominate the multichannel order management market, owing to the high penetration of e-commerce and the presence of major multichannel retailers in the region. The region is characterized by a highly competitive market, with key players such as IBM, Oracle, and SAP offering comprehensive multichannel order management solutions.

Europe is also expected to be a significant market for multichannel order management solutions, owing to the high adoption of e-commerce in the region. The region is characterized by a highly regulated market, with strict data privacy laws that impact the adoption of cloud-based solutions.

The Asia-Pacific region is expected to witness significant growth in the coming years, owing to the rapid growth of e-commerce in countries such as China and India. The region is characterized by a large number of small and medium-sized enterprises, presenting significant growth opportunities for multichannel order management vendors.

Competitive Landscape

Leading Companies in the Multichannel Order Management Market:

1. IBM Corporation
2. Oracle Corporation
3. SAP SE
4. Salesforce.com, Inc.
5. Manhattan Associates, Inc.
6. HCL Technologies Limited
7. Zoho Corporation Pvt. Ltd.
8. Stitch Labs, Inc.
9. Brightpearl Limited
10. Etail Solutions LLC

Please note: This is a preliminary list; the final study will feature 18–20 leading companies in this market. The selection of companies in the final report can be customized based on our client’s specific requirements.

Segmentation

The multichannel order management market can be segmented on the basis of deployment model, organization size, and vertical.

On the basis of deployment model, the market can be segmented into cloud-based and on-premise solutions. Cloud-based solutions are expected to witness the highest growth, owing to their scalability, flexibility, and cost-effectiveness.

On the basis of organization size, the market can be segmented into small and medium-sized enterprises and large enterprises. Small and medium-sized enterprises are expected to be the fastest-growing segment, owing to the increasing adoption of e-commerce by these companies.

On the basis of vertical, the market can be segmented into retail, healthcare, manufacturing, and others. The retail sector is expected to dominate the market, owing to the high adoption of multichannel order management solutions by retailers.

Category-wise Insights

1. Software: The software segment is expected to dominate the market, owing to the increasing adoption of cloud-based solutions by retailers.
2. Services: The services segment is expected to be the fastest-growing segment, owing to the increasing demand for implementation, integration, and support services.

Key Benefits for Industry Participants and Stakeholders

1. Improved Order Fulfillment: Multichannel order management solutions enable retailers to streamline their order fulfillment processes, reducing the time and cost required to fulfill orders.
2. Real-time Inventory Visibility: Multichannel order management solutions provide real-time visibility into inventory levels, enabling retailers to optimize their inventory levels and prevent stockouts.
3. Single View of the Customer: Multichannel order management solutions provide a single view of the customer, enabling retailers to deliver a personalized shopping experience across multiple channels.
4. Increased Efficiency: Multichannel order management solutions enable retailers to automate manual processes and streamline their operations, reducing the time and cost required to manage orders.
5. Enhanced Customer Satisfaction: Multichannel order management solutions enable retailers to provide a seamless shopping experience across multiple channels, increasing customer satisfaction and loyalty.

SWOT Analysis

Strengths:

1. Multichannel order management solutions enable retailers to provide a seamless shopping experience across multiple channels.
2. Real-time inventory visibility enables retailers to optimize their inventory levels and prevent stockouts.
3. Multichannel order management solutions provide a single view of the customer, enabling retailers to deliver a personalized shopping experience.

Weaknesses:

1. Multichannel order management solutions can be expensive to implement, particularly for small and medium-sized enterprises.
2. Integrating multiple sales channels can be complex, requiring significant investment in technology and resources.

Opportunities:

1. Emerging markets present significant growth opportunities for multichannel order management vendors.
2. Mobile commerce presents an opportunity for multichannel order management vendors to develop solutions that enable retailers to manage orders received through mobile apps.

Threats:

1. The market is highly competitive, with large vendors such as IBM and Oracle dominating the market.
2. The market is characterized by rapid innovation, with new vendors entering the market with innovative solutions.

Market Key Trends

1. Increasing Adoption of Omnichannel Strategies by Retailers: Omnichannel retailing is becoming increasingly popular, with retailers seeking to provide a seamless shopping experience across multiple channels. Multichannel order management solutions play a critical role in enabling retailers to achieve this goal.
2. Growing Demand for Cloud-based Solutions: Cloud-based solutions are gaining popularity due to their scalability, flexibility, and cost-effectiveness. Multichannel order management vendors are increasingly offering cloud-based solutions to meet the evolving needs of retailers.

Covid-19 Impact

The COVID-19 pandemic has had a significant impact on the multichannel order management market, accelerating the shift towards e-commerce and increasing the demand for multichannel order management solutions. The pandemic has forced retailers to adapt to new ways of doing business, with many shifting their focus to online sales channels. Multichannel order management solutions have played a critical role in enabling retailers to manage their online sales channels and provide a seamless shopping experience to customers.

Key Industry Developments

1. In February 2021, IBM announced the launch of IBM Sterling Supply Chain Suite, a comprehensive supply chain management solution that includes multichannel order management capabilities.
2. In October 2020, Salesforce announced the acquisition of Slack, a popular team collaboration platform. The acquisition is expected to enable Salesforce to integrate Slack’s communication and collaboration capabilities with its multichannel order management solutions.

Analyst Suggestions

1. Multichannel order management vendors should focus on developing solutions that are tailored to the needs of small and medium-sized enterprises, which are expected to be the fastest-growing segment in the market.
2. Vendors should focus on developing cloud-based solutions that are scalable, flexible, and cost-effective, to meet the evolving needs of retailers.

Future Outlook

The multichannel order management market is expected to witness significant growth in the coming years, driven by the increasing adoption of omnichannel strategies by retailers and the growing demand for streamlined and efficient order management solutions. The market is expected to reach USD 3.8 billion by 2026, growing at a CAGR of 11.8% during the forecast period (2021-2026).

Multichannel order management solutions are becoming increasingly important for retailers as they seek to provide a seamless shopping experience to customers across multiple channels. Real-time inventory visibility, order fulfillment automation, and a single view of the customer are critical features of multichannel order management solutions that enable retailers to achieve this goal.

Cloud-based solutions are expected to witness the highest growth in the market, owing to their scalability, flexibility, and cost-effectiveness. Small and medium-sized enterprises are also expected to be a significant growth segment, owing to the increasing adoption of e-commerce by these companies.

The COVID-19 pandemic has accelerated the shift towards e-commerce and increased the demand for multichannel order management solutions. Multichannel order management vendors are expected to continue to develop innovative solutions that meet the evolving needs of retailers and enable them to provide a seamless shopping experience to customers across multiple channels.

Conclusion

The multichannel order management market is expected to witness significant growth in the coming years, driven by the increasing adoption of omnichannel strategies by retailers and the growing demand for streamlined and efficient order management solutions. The market is highly dynamic, characterized by rapid innovation and competition. Multichannel order management vendors should focus on developing solutions that are tailored to the needs of retailers and that provide real-time inventory visibility, order fulfillment automation, and a single view of the customer.

Additionally, vendors should focus on developing cloud-based solutions that are scalable, flexible, and cost-effective to meet the evolving needs of retailers. The market is also expected to witness significant growth in emerging markets such as Asia-Pacific and Latin America, presenting significant growth opportunities for multichannel order management vendors. To stay competitive in the market, vendors need to keep up with the latest trends and developments in the industry. For example, vendors can focus on developing solutions that enable retailers to manage orders received through mobile apps, to capitalize on the growing trend of mobile commerce.