Global Electronic Data Interchange (EDI) Software Market Size, Share & Trends Analysis Report By Deployment (Cloud and On-Premises) By Industry, By Type (Outsourcing, In-house, and Hybrid), By Regional Outlook and Forecast, 2024 - 2031

Global Electronic Data Interchange (EDI) Software Market Size, Share & Trends Analysis Report By Deployment (Cloud and On-Premises) By Industry, By Type (Outsourcing, In-house, and Hybrid), By Regional Outlook and Forecast, 2024 - 2031

The Global Electronic Data Interchange (EDI) Software Market size is expected to reach $9.0 billion by 2031, rising at a market growth of 12.2% CAGR during the forecast period.

Manufacturers are increasingly adopting EDI to facilitate real-time communication with suppliers and partners, enabling them to respond swiftly to market demands and optimize production processes. Integrating EDI systems in high-tech and manufacturing environments enhances operational efficiency, reduces lead times, and minimizes the risk of errors, driving the segment’s continued growth. Thus, in 2023, the high-tech/manufacturing segment procured 18% revenue share in the electronic data interchange (EDI) software market. This growth reflects the sector’s reliance on EDI for managing complex supply chains, production schedules, and inventory control.

The major strategies followed by the market participants are Acquisitions as the key developmental strategy to keep pace with the changing demands of end users. For instance, In December, 2023, Cleo Communications has acquired ECS International, a Netherlands-based integration technology company, further enhancing its Cleo Integration Cloud (CIC) platform. This strategic acquisition aims to strengthen Cleo’s presence in the Benelux region, a critical hub for European supply chains, enabling enhanced efficiency and reliable cross-border commerce. Additionally, In June 2022, Epicor Software Corporation acquired Data Interchange, a UK-based EDI provider, to expand its reach in European markets. This acquisition enhances Epicor's B2B integration technologies, streamlining supply chain collaboration and simplifying business processes. Data Interchange's cloud solutions will help Epicor customers automate supply chain management. Data Interchange, a specialist in B2B integration, supports automotive, manufacturing, and logistics sectors with innovative EDI tools for efficient data exchange.

Based on the Analysis presented in the KBV Cardinal matrix; IBM Corporation and Salesforce, Inc. are the forerunners in the Electronic Data Interchange (EDI) Software Market. Companies such as SPS Commerce, Inc., Cleo Communications, True Commerce, Inc. are some of the key innovators in Electronic Data Interchange (EDI) Software Market. In July, 2023, SPS Commerce, Inc. took over TIE Kinetix, a prominent provider of supply chain digitalization in Europe, enhancing its e-invoicing capabilities. This acquisition aims to bolster SPS Commerce's European presence and leverage TIE's offerings to meet the growing demand for e-invoicing solutions. The transaction is anticipated to positively impact SPS Commerce's revenue and operational efficiency in the EDI software market.

Market Growth Factors

As companies pursue digital transformation, there is a heightened focus on streamlining operations to reduce costs and improve productivity. EDI systems facilitate the seamless exchange of business documents (such as invoices, purchase orders, and shipping notices) between trading partners, automating previously manual processes.

Additionally, accurate and timely information about inventory availability allows businesses to implement just-in-time (JIT) inventory practices, where materials and products are delivered only as needed in the production process. This strategy reduces waste and enhances overall cost efficiency. Thus, the rising need for real-time data exchange among supply chain partners propels the market's growth.

Market Restraining Factors

Implementing an EDI system requires considerable upfront investment. Organizations must allocate funds for various components, including software licenses, hardware infrastructure, and integration with existing systems (like ERP or accounting software). The need for a robust IT infrastructure to support EDI can be particularly burdensome for small to medium-sized enterprises (SMEs) with limited budgets. Therefore, high initial implementation and ongoing maintenance expenses hamper the market's growth.

The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The illustration above shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater to demand coming from the different industries. The key developmental strategies in the market are Acquisitions, and Partnerships & Collaborations.

Type Outlook

On the basis of type, the market is segmented into in-house, outsourcing, and hybrid. In 2023, the outsourcing segment attained 40% revenue share in the market. As businesses increasingly aim to streamline operations and reduce costs, outsourcing EDI processes has become a strategic choice.

Deployment Outlook

Based on deployment, the market is categorized into cloud and on-premises. The on-premises segment witnessed 47% revenue share in the market in 2023. This segment appeals to organizations that prefer to maintain full control over their EDI systems and data security.

Industry Outlook

By industry, the market is divided into healthcare, automotive, financial services, high-tech/manufacturing, retail, logistics, and others. The logistics segment held 10% revenue share in the market. EDI plays a crucial role in the logistics industry by streamlining communication between stakeholders, including shippers, carriers, and customers.

Regional Outlook

Region-wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. In 2023, the Asia Pacific region generated 28% revenue share in the market. This growth is largely fuelled by rapid industrialization, increasing technology adoption in various sectors, and the rising importance of efficient supply chain management.

Market Competition and Attributes

The Electronic Data Interchange (EDI) software market is highly competitive, fueled by the increasing demand for automated business communication and data exchange. Solutions are tailored to industries such as retail, healthcare, and logistics, with a focus on cloud-based EDI, scalability, and seamless integration with ERP systems. Competitive advantages are often driven by enhanced security, user-friendly interfaces, and customizable features, as businesses aim to streamline operations, improve efficiency, and reduce costs through more effective data exchange processes.

Recent Strategies Deployed in the Market

• Oct-2024: Cleo Communications launched the Retailer Relationship Manager, an innovative solution aimed at enhancing supplier-retailer relationships by transforming real-time supply chain data into actionable insights. This tool enables suppliers to meet business commitments with retailers effectively and provides alerts for potential issues.
• Oct-2024: TrueCommerce, Inc. has formed a partnership with Costa Coffee to spearhead its global electronic data interchange (EDI) expansion. TrueCommerce specializes in EDI solutions, providing a fully integrated global supply chain network that connects customers, suppliers, and logistics partners. This partnership will focus on implementing unified EDI integration with Costa’s Microsoft Dynamics 365 Finance and Operations platform, enhancing operational agility and supporting the coffee chain's growth ambitions while ensuring scalability and reliability in trading partner connectivity.
• May-2024: Cleo Communications partnered with Terillium, Inc., an ERP consulting company and Oracle Partner, to offer tailored EDI solutions for Oracle ERP customers. Leveraging Cleo Integration Cloud (CIC), a cloud-based B2B integration platform, the partnership aims to enhance supply chain efficiency through end-to-end visibility and real-time insights. Cleo and Terillium's extensive ERP expertise will provide clients with the technology and services needed to streamline operations and improve business outcomes.
• May-2024: Salesforce introduced new integration solutions through MuleSoft, focusing on enhancing B2B and B2C order lifecycle management using AI-powered tools like Intelligent Document Processing (IDP). This launch supports electronic data interchange (EDI) for supply chain transactions and enables seamless integration with Salesforce OMS. It improves operational efficiency and visibility across multiple industries. MuleSoft is recognized for offering B2B integration support, helping businesses streamline EDI transactions across the supply chain ecosystem.
• Jul-2023: SPS Commerce, Inc. took over TIE Kinetix, a prominent provider of supply chain digitalization in Europe, enhancing its e-invoicing capabilities. This acquisition aims to bolster SPS Commerce's European presence and leverage TIE's offerings to meet the growing demand for e-invoicing solutions. The transaction is anticipated to positively impact SPS Commerce's revenue and operational efficiency in the EDI software market.

List of Key Companies Profiled

• IBM Corporation
• Epicor Software Corporation
• Salesforce, Inc.
• Open Text Corporation
• Software AG
• SPS Commerce, Inc.
• Cleo Communications
• True Commerce, Inc.
• Rocket Software, Inc. (Bain Capital Private Equity)
• Boomi, LP.

Global Electronic Data Interchange (EDI) Software Market Report Segmentation

By Deployment

• Cloud
• On-Premises

By Industry

• Retail
• Healthcare
• Automotive
• High-Tech/Manufacturing
• Financial Services
• Logistics
• Other Industry

By Type

• Outsourcing
• In-house
• Hybrid

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• UK
• France
• Russia
• Spain
• Italy
• Rest of Europe
• Asia Pacific
• China
• Japan
• India
• South Korea
• Australia
• Malaysia
• Rest of Asia Pacific
• LAMEA
• Brazil
• Argentina
• UAE
• Saudi Arabia
• South Africa
• Nigeria
• Rest of LAMEA