Order Management Software Market Hits Record $6.2B in 2025
Market projections indicate that it will reach $6.2 billion by 2025 as companies adopt digital solutions to streamline operations more efficiently.
The global multichannel order management market, valued at $2.95 billion in 2022, is projected to reach $6.86 billion by 2030. This represents an impressive CAGR of 11.6% from 2023 to 2030. Companies just need sophisticated systems that can handle the entire order lifecycle through multiple sales channels efficiently.
North America's market share stands at 29.9% as of 2022, making it the revenue leader. The Asia Pacific region shows promising potential with a predicted CAGR of 12.7% through 2030. Retail and e-commerce applications dominate the sector with 24.0% of the revenue share. The retail and wholesale industries make up nearly 70% of total spending on order management system solutions. Market forecasts indicate almost doubling to $1.9 billion by 2026, showing a five-year CAGR of 12.3%. Businesses prioritize solutions that provide up-to-the-minute order tracking and cross-channel inventory management to meet customer expectations effectively.
Why the Order Management Software Market is Booming?
Companies of all types are moving to order management software (OMS) faster than ever. This software helps them run their operations better. The market keeps growing as businesses just need solutions that bring together inventory, customer information, payment systems, and delivery operations on one platform.
Impact of Multichannel Order Management Market Trends
The global multichannel order management market size was valued at USD 3.91 billion in 2024 and is projected to reach USD 9.19 billion by 2032, with a CAGR of 11.9% during the forecast period. E-commerce growth has changed how businesses handle orders through multiple channels. In fact, recent studies show 62% of shoppers buy online weekly, while 29% make purchases 2-3 times each week.
Online and offline business models now meet in ways that create an urgent need for better order processing and tracking systems. Companies sell through websites, mobile apps, online marketplaces, and social commerce platforms. This makes order and inventory management more complex. They invest heavily in multichannel solutions that offer unified product information and smoother operations.
Supply chain automation is another reason for market growth. Manual processes are nowhere near enough in today's digital economy. Automated order management helps eliminate delays and boost customer satisfaction.
Role of Real-Time Inventory Visibility in Customer Experience
Live inventory visibility is a vital part of modern retail's omnichannel customer experience. Retailers who can't show current stock levels risk losing customers who expect to check product availability across locations.
A recent survey found that 45% of supply chain executives see live inventory visibility as a "significant issue". This visibility lets retailers offer curbside pickup, buy-online-pickup-in-store (BOPIS), and same-day delivery. These features are the foundations of meeting today's customer expectations.
Live inventory visibility offers several key benefits:
- Lower inventory carrying costs through optimized stock levels
- Quick responses to inventory delays or availability issues
- Better tracking of SKUs with automated systems
- Better reverse logistics processes
- Higher customer satisfaction through accurate product availability data
Shift Toward Cloud-Based OMS in Retail and Wholesale
Cloud-based OMS is becoming more popular in the retail and wholesale sectors. The cloud segment leads the market and should grow at the highest CAGR during the forecast period. Budget-friendly costs, easy integration, and connections with multiple sales channels drive this growth.
Cloud-based OMS offers many advantages over traditional on-premise systems:
- Lower upfront costs and less infrastructure needed
- Access from anywhere with internet
- Automatic updates and better data security
- Natural integration with other digital tools
- Flexible resources based on demand
This technology helps businesses operating in multiple regions handle orders naturally. Small and medium-sized enterprises (SMEs) find cloud-based OMS particularly useful. It gives them the flexibility to compete with larger retailers without spending too much money.
Deployment Models and Business Size Segmentation
Business requirements shape how companies set up their order management software (OMS). The choice between cloud-based and on-premise solutions depends on the company's size and what it needs to get done.
Cloud-Based OMS: Scalability and Integration Benefits
Cloud-based OMS solutions lead the market today. Companies love them because they solve many modern business challenges. These platforms use subscription pricing. Entry-level services start at about $62 per month, while premium subscriptions cost around $267 monthly.
Cloud deployment helps businesses that want a quick setup without spending too much up front. These systems update on their own and sync inventory right away across channels. Companies can also scale up their resources when they need to handle more orders. Teams can access the main dashboard from any device with internet, which makes remote management easy.
The cloud setup saves money by eliminating hardware costs and upkeep. This works great for businesses that deal with changing order volumes or seasonal rushes. Cloud systems also blend with over 100 sales channels, including big names like Shopify, Amazon, and Magento.
On-Premise OMS: Customization and Data Control
While cloud solutions are popular, on-premise deployment still makes sense for some businesses. Companies with strict security rules, special compliance needs, or unique workflows often pick this option.
On-premise systems let companies control their data and system setup better than cloud versions. To name just one example, see how pharmaceutical distributors choose on-premise systems to follow HIPAA rules and keep sensitive information secure.
In spite of that, this option needs high upfront investment for hardware, licenses, and IT staff. Companies must handle their own maintenance, security updates, and system growth, which takes longer to set up than cloud options. Small businesses especially have moved away from on-premise solutions because of these challenges.
Adoption by SMEs vs Large Enterprises
SMEs and large organizations approach OMS differently because they have different needs and resources.
SMEs want cost-effective, flexible solutions that match their specific needs. They pick platforms that help them build flexible partner networks. Cloud-based systems are huge in this group, with many SMEs choosing Software-as-a-Service (SaaS) options that give them big-company features without complex technical requirements.
Popular SME platforms include Brightpearl, built for multichannel e-commerce retailers, and Cin7 Core, which tracks inventory immediately for smaller companies moving to better management systems. These platforms work naturally with accounting systems like QuickBooks and Xero.
Large enterprises see OMS as a long-term investment. They care about making things work better, keeping transactions secure, and staying ahead of competitors. These companies often build custom systems with immediate analytics and use hybrid models that combine private and public cloud infrastructures.
Enterprise solutions like Manhattan Order Management, Microsoft Dynamics 365 Intelligent Order Management, and SAP Commerce Cloud serve this market. They offer advanced features for global operations with complex, high-volume needs. Unlike SMEs' quick approach, big organizations need extensive planning, leadership approval, and multi-year implementation plans.
Industry-Specific Adoption and Use Cases
Each industry has its own needs for order management systems that address specific challenges.
Retail and Fashion: Omnichannel Fulfillment
Retailers now adopt omnichannel order management to create uninterrupted shopping experiences between physical stores and digital platforms. Studies show that omnichannel OMS leads to a 30% increase in conversion rates and cuts total ownership costs by 30%. Brands like Debenhams have reshaped their operations through omnichannel features. They expanded their catalog to 3 million SKUs across 11 brands and went live in three weeks.
The retail sector gets these benefits from OMS:
- Faster order fulfillment through dynamic inventory allocation across warehouses and stores.
- Multiple fulfillment options like buy online, pick up in-store (BOPIS), curbside pickup, and same-day delivery.
- 3% fewer split shipments through smart inventory management.
Healthcare: Integration with EHR and Compliance
Healthcare organizations don't deal very well with order management systems because of electronic health record (EHR) integration and regulatory compliance. Patient safety and care continuity suffer because occupational health documents stay separate from health system EHRs.
OMS-EHR systems must follow HIPAA, the Genetic Information Nondiscrimination Act (GINA), and the Americans with Disabilities Act (ADA) regulations. Healthcare facilities report better results with integrated systems. Patient portal activation reached 92.9% (46,468 of 49,994 patients), visit times dropped by 36.7%, and patients completed 5,358 questionnaires electronically.
Manufacturing: Direct-to-Consumer Channel Enablement
Manufacturers adopt direct-to-consumer (D2C) channels to control customer experience and fix quality issues. The D2C market shows promise as 81% of consumers plan to shop from these brands. Notwithstanding that, manufacturers score 50% lower in customer experience than B2C organizations. This gap shows they just need specialized OMS solutions.
A detailed OMS coordinates marketing engines, e-commerce portals, financial systems, fulfillment systems, and channel partner systems. These features help manufacturers switch to D2C models. This setup lets manufacturers build customer relationships, collect data from touchpoints, and create feedback loops between consumer behavior and product development.
Food & Beverage: Inventory Synchronization Challenges
Food and beverage companies face unique inventory management problems due to product perishability and complex supply chains. They must balance shelf-life with consumer demand while handling seasonal changes.
Good inventory synchronization prevents expired products, financial losses, and resource waste. Live analytics help businesses predict demand changes and adjust purchases to sell products before expiration. OMS systems with lot traceability, batch tracking, and serial number monitoring allow complete ingredient tracking throughout the supply chain to meet food safety requirements.
Regional Insights and Growth Opportunities
Regional markets for order management software show unique adoption patterns and growth paths. Each region offers distinct opportunities based on local business conditions and how consumers behave.
North America: Mature Market with High SaaS Penetration
North America leads the global order management software market with a 43.2% market share in 2024. The region's software as a service (SaaS) market will likely reach $235.47 billion in 2025, thanks to its reliable digital infrastructure. Major tech companies have made North America the main center for OMS breakthroughs. The U.S. makes up $221.79 billion of this expected revenue and has about 17,000 software as a service companies, while Canada has 2,000. The multichannel order management segment in this region will grow at a CAGR of 11.9% through 2030.
Asia Pacific: Mobile-First Commerce and OMS Demand
Asia Pacific has become the fastest-growing OMS market. It will grow at a CAGR of 12.7% through 2030, mainly because of its mobile-first approach to commerce. Mobile sales make up 8 out of 10 digital transactions in the region, which is much higher than the global average of 65.7%. While 62% of APAC consumers prefer shopping on mobile devices, half of them still find mobile shopping difficult. South Korea and China's m-commerce will likely exceed 75% of all e-commerce by 2026. This shift to mobile commerce creates a huge demand for OMS solutions that make mobile purchasing better.
Europe: GDPR Compliance Driving OMS Upgrades
Europe has a 27.3% share of the global SaaS market and should reach revenue of $60.04 billion in 2025. GDPR shapes the region's OMS market in unique ways. New GDPR changes coming in May 2025 will reduce paperwork for businesses with fewer than 750 employees. This could change how companies set up their order management systems. About 65% of European companies now use SaaS solutions for core business tasks - up from 40% in 2017. Companies now need OMS platforms with strong data protection features because of these rules.
Middle East & Africa: Logistics and Last-Mile Innovation
The Middle East and Africa offer exciting growth possibilities. The last-mile delivery market should reach $42.7 billion by 2031, growing at an 8.4% CAGR. E-commerce growth pushes OMS adoption forward, with the UAE's e-commerce market expected to hit $9.20 billion by 2026. New last-mile delivery methods are changing the region. These include drone deliveries, ground robots, micro-fulfillment centers, and crowdsourced delivery. Such innovations help solve unique challenges in busy urban areas where traffic slows down deliveries. The Middle East transport and logistics market, valued at $153.79 billion in 2023, helps businesses that use OMS in this region.
Key Players and Market Share Dynamics
Technology giants and innovative specialists dominate the order management software market. The market's competitive landscape continues to evolve as it grows beyond traditional solutions.
Order Management System Market Share by Vendor
The market remains moderately fragmented and continues to spread out as new players enter. IBM, SAP, Oracle, Salesforce, and HCL Technologies lead the pack and hold much of the market share. The current tracking shows 282 distinct order management applications with 2,950 verified customer records. ChowNow, Oracle, Your Inspiration Solutions, Cin7, and Ordersify lead the category by customer count. Leading companies focus on state-of-the-art products and strategic acquisitions to stay competitive.
Zoho, NetSuite, and Shopify Plus: SME-Focused Solutions
Small and mid-sized enterprises prefer specialized platforms with user-friendly interfaces and optimized functionality:
- Zoho Corporation delivers strong solutions through recent product improvements and strategic collaborations.
- NetSuite Order Management merges with the NetSuite ERP cloud platform and eliminates middleware complexity.
- Shopify Plus offers quick deployment with minimal setup requirements, making it affordable for growing businesses.
Oracle and IBM: Enterprise-Grade OMS Platforms
Large organizations need complete solutions to handle complex global operations:
- IBM Sterling Order Management provides the most extensive feature set for enterprise-scale complexity. The implementation usually takes 24-52 weeks.
- Oracle OMS added new features. These include improved supply chain planning, usage-based pricing, and rebate management capabilities.
Emerging Players and Niche Innovators
Specialized providers shape the market's evolution through specific capabilities:
- Manhattan Associates serves the retail and manufacturing industries with specialized solutions.
- Brightpearl targets multichannel retail operations.
- Linnworks specializes in omnichannel retail synchronization.
- Monday.com's subscription-based model shows the fundamental change toward continuous updates and remote access.
Conclusion
The order management software market is set to expand remarkably through 2030. Digital transformation in businesses of all sizes powers this growth. Market projections show values reaching $6.2 billion by 2025. The market will almost double to $1.9 billion by 2026, with a strong 12.3% CAGR. Market size estimates point to values between $3.17 billion and $3.64 billion by 2030.
North America leads the market with a 43.2% share. The Asia Pacific region grows fastest at 12.7% CAGR. European markets show steady progress with GDPR compliance features and hold 27.3% of the global SaaS market share. The Middle East and Africa offer unique prospects through state-of-the-art last-mile delivery solutions, which should reach $42.7 billion by 2031.
Market adoption patterns depend heavily on deployment choices. Cloud-based solutions lead the way because they are expandable and easy to integrate. Their subscription pricing starts at $62 monthly. Some organizations still use on-premise systems for special security needs. However, these systems become less popular as companies focus on flexibility and lower infrastructure costs.
Different industries show varied uses of these systems. Retail businesses see 30% better conversion rates with omnichannel features. Healthcare facilities cut visit times by 36.7% using integrated systems. Manufacturing companies are now heading over to direct-to-consumer channels. Food businesses solve their unique inventory tracking challenges with advanced OMS solutions.
The market keeps changing as major players like IBM, SAP, Oracle, and Salesforce hold their ground. Smaller providers such as Zoho, NetSuite, and Shopify Plus create affordable solutions for small and medium businesses. They offer quick setup options and core features.
Several trends will shape the market through 2030. Mobile commerce grows rapidly, especially in the Asia Pacific, where mobile devices handle 8 out of 10 digital transactions. This creates a need for mobile-friendly OMS solutions. AI tools, immediate analytics, and automation become basic features rather than extras. Supply chain leaders say uninterrupted inventory tracking is vital, with 45% naming it a major challenge.
The OMS market represents more than new software adoption. It shows how customer priorities, business operations, and digital commerce foundations are changing. Companies that accept new ideas in order management can succeed in a complex, multichannel business world where individual-specific experiences determine success.
