 Software Market.webp)
Electronic Data Interchange (EDI) Software Market size was valued at USD 2.1 billion in 2024 and is likely to reach USD 10.03 billion by the end of 2037, expanding at around 12.7% CAGR during the forecast period i.e., between 2025-2037. In 2025, the industry size of electronic data interchange (EDI) software is evaluated at USD 2.3 billion.
The sector’s robust growth trajectory is attributed to a global push for digitalization and automation spanning across industries. The rapid integration of generative artificial intelligence (AI) solutions to EDI is boosting automated data mapping and increasing adoption across businesses. For instance, in December 2023, Accenture and McDonald’s Corporation announced the expansion of the partnership to execute generative AI solutions across the latter’s restaurants worldwide for operational efficiency.
Industries reliant on just-in-time delivery models are merging with EDI solutions due to improved efficiency and an increase in international sourcing. For instance, in May 2024, Kinaxis was selected by Harley-Davidson as its supply chain management platform solution. Additionally, the growth of e-commerce platforms is positioned to accelerate the adoption of EDI systems as businesses seek to manage inventory and vendor relationships effectively. Key players are investing to expand and improve B2B inventory management solutions to leverage the rising demands. For instance, in June 2023, Unicommerce in India launched its advanced inventory management solution with real-time inventory synchronization capabilities.
The electronic data interchange (EDI) software market is projected to present significant revenue streams due to expansion of EDI into emerging economies. Middle-and-low-income countries in APAC, Latin America, and Africa are experiencing a surge in digitization that can be leveraged by businesses providing B2B communication solutions. Additionally, EDI is increasingly adopted in banking and financial services boosting the sector’s growth. For instance, in September 2024, the Press Information Bureau (PIB) of the Government of India reported a surge in digital payment transactions across the country, from 252.6 million transactions in FY 2017-18 to 226.9 million transactions in FY 2023-24. By the end of the forecast period, the global EDI software market is poised to benefit from the growing focus on interoperability for vendors to develop industry-specific EDI solutions for evolving client needs, and maintain its profitable growth curve.
Growth Drivers
Challenges
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
12.7% |
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Base Year Market Size (2024) |
USD 2.1 billion |
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Forecast Year Market Size (2037) |
USD 10.03 billion |
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Regional Scope |
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Industry (Retail, Healthcare, Automotive, Financial Services, High-Tech Manufacturing, Logistics, Telecom)
Retail segment is anticipated to dominate around 25.7% electronic data interchange (EDI) software market share by the end of 2037. The adoption of EDI in retail sector is increasing owing to real-time communication between suppliers, distributors, and retailers facilitated by EDI solutions. The trends and innovations in the retail sector indicates the rise of omnichannel retailing necessitating retailers to adopt enhanced EDI solutions to synchronize data across e-commerce platforms, physical stores, and third-party logistics. For instance, in July 2023, Jitterbit launched Harmony EDI, i.e., a cloud-based EDI solution providing ease in managing and configuring trade partners. Additionally, the expansion of cross border trade drives demand for streamlined communication, benefiting adoption of EDI to manage international invoicing.
The healthcare segment of the EDI software market is poised for increased adoption of EDI solutions. The growth is owed to the increasing need for efficient data exchange between healthcare providers, insurers, and patients. EDI solutions are experiencing surging adoption in the healthcare sector due to a rise in value-based care models that necessitate seamless data integration to efficiently track patient outcomes. For instance, in October 2024, Edifecs Inc., announced participation at the Workgroup for Electronic Data Interchange National Conference 2024 to discuss the future of healthcare data sharing and interoperability. Additionally, the shift towards electronic health records (EHR) and interoperability demand between healthcare systems is poised to drive the continued growth of the sector.
Type (Hybrid, Outsourcing, In-house)
The hybrid segment of electronic data interchange (EDI) software market is poised to attain the largest revenue share during the forecast period. The rising integration of cloud-based and on-premise EDI solutions boosts the growth of the market. The hybrid EDI solutions allow organizations to leverage the scalability and cost-effectiveness of cloud solutions as well as the combine the customization offered by on-premise systems. Businesses with complex legacy systems require integration with new cloud technologies to expand functionalities.
Additionally, hybrid models support faster data exchange, increasing adoption rates. Vendors are poised to leverage the surging demands by positioning their solutions. For instance, in November 2023, AWS B2B Data Interchange was launched facilitating organizations to automate and monitor EDI-based business transactions at a cloud scale.
Our in-depth analysis of the Electronic Data Interchange (EDI) Software Market includes the following segments:
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Industry |
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Type |
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Deployment |
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North America Market Forecast
North America in electronic data interchange (EDI) software market is expected to hold over 45.06% revenue share by the end of 2037. The expansion of end users of EDI software solutions is a major growth driver of the regional market. Industries such as retail, manufacturing, and healthcare are driving demands for EDI software solutions owing to the digital transformation and to streamline supply chains. For instance, in June 2024, Oracle launched the Oracle Health Insurance Data Exchange Cloud Service to assist healthcare insurers simplify complex data exchange requirements.
The U.S. leads the revenue share in the EDI software market of North America. The growth of the domestic U.S. market is owed to rising integration between EDI and application programing interface (API) systems. The trends are favorable for businesses that are offering hybrid solutions for efficient data exchange across different platforms. For instance, in May 2024, TrueCommerce launched EDI integration with the SAP S/4HANA Cloud Public Edition that is poised to be groundbreaking for the industry.
Additionally, EDI software solutions are increasingly leveraged in cross-border transactions boosted by the support from U.S. Customs and Border Protection. For instance, in May 2023, the U.S. Customs and Border Protection release guidelines and benefits of filing data through EDI for cross-border transactions.
Canada is a major contributor to the revenue share of the electronic data interchange (EDI) software market of North America. The domestic market is positioned to leverage favorable trends to increase market share by the end of the forecast period. In addition to various sectors in the country leveraging EDI software solutions to streamline tasks, the increase in cross-border trade of Canada, particularly with the U.S., drives demand for EDI solutions. The country has profitable mining and energy sector, that leverages EDI solutions to optimize procurement and inventory management to curb operational delays.
Businesses are poised to leverage the opportunities in the domestic electronic data interchange (EDI) software market of Canada by forwarding new solutions. For instance, in August 2024, Celigo announced the launch of B2B manager designed to simplify self-service EDI management.
Europe Market Analysis
Europe is projected to exhibit the fastest growth in the electronic data interchange (EDI) software market during the forecast period. A key driver of the sector in the region is the calls to minimize paper-based processes. Regulatory requirements such as eInvoicing directive, that requires EU public administrations to receive all electronic invoices issued under contracts where EU public procurement directives apply boost adoption of EDI solutions to improve transparency. Additionally, the push for unified digital economy boosts larger adoption of cross-border EDI solutions. For instance, in August 2024, the European Union and China launched cross-border data flow communication mechanism.
The electronic data interchange software sector in Germany is poised to thrive by the end of the forecast period. The industry 4.0 initiatives of Germany boosts adoption of EDI software solutions to optimize the management of supply chain and provide support o just-in time production strategies. The export-driven economy of Germany requires seamless data exchange with international trade partners, boosting the adoption of hybrid EDI solutions. For instance, in 2022, the World Bank estimated overall exports from Germany at USD 1.7 billion.
Additionally, initiatives boosting digitization in the country encourages adoption of EDI in sectors such as retail and logistics. For instance, in November 2024, Wipro announced strategic partnership with RELEX solutions to optimize end-to-end retail operations and inventory planning.
The electronic data interchange software sector of France is poised to increase its revenue share during the forecast period by leveraging favorable trends in Europe benefiting EDI vendors. The automotive and retail sectors in France are increasingly adopting EDI solutions to improve efficiency of business. Additionally, the B2B e-invoicing mandates that necessitates suppliers and public administrators to exchange electronic invoices through the Chorus Pro Platform, is poised to increase adoption of EDI solutions. Domestic businesses in France can leverage the opportunities by tailoring EDI solutions in compliance with the General Data Protection Regulation (GDPR) of the European Union.
Businesses are investing on B2B EDI solutions to transform their supply chains and increase revenue shares. For instance, in February 2024, Rexel France announced Relex Solutions to automate and optimize its French subsidiary’s supply chain forecasting, planning and replenishment processes.
 Software Market Size.webp)
The electronic data interchange software sector is poised for a profitable growth curve during the forecast period. The key players in the market are investing in providing hybrid EDI solutions to improve their portfolios to increase the scope of services for multiple end user industries.
Here are some key players in the EDI software market:
Author Credits: Abhishek Verma
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