Inventory Optimization Market Poised for Significant Growth, Estimate to Hit USD 12.42 Billion by 2032 | Coherent Market Insights
Burlingame, CA, Aug. 18, 2025 (GLOBE NEWSWIRE) -- Inventory Optimization Market to Hit USD 5.87 Billion by 2025, Driven by Demand for Operational Efficiency
The Global Inventory Optimization Market is estimated to be valued at USD 5.87 Bn in 2025 and is expected to reach USD 12.42 Bn by 2032, exhibiting a compound annual growth rate (CAGR) of 11.3% from 2025 to 2032. The inventory optimization market trend is defined by the adoption of real-time data analytics, cloud-based platforms, and mobile applications to improve inventory visibility and support better decision-making. Businesses are increasingly implementing multi-echelon inventory optimization strategies to streamline supply chain operations and boost customer satisfaction. Additionally, the expanding e-commerce sector and the demand for omnichannel inventory management are driving greater need for advanced inventory optimization solutions.
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Global Inventory Optimization Market Key Takeaways
According to Coherent Market Insights (CMI), the global inventory optimization market size is anticipated to more than double over the forecast period, totaling USD 12.42 Bn by 2032, up from 5.87 Bn in 2025.
Global demand for inventory optimization solutions is expected to rise at a CAGR of 11.3% between 2025 and 2032.
Software is slated to remain the most sought-after component, accounting for 67.6% of the global inventory optimization market share in 2025.
Based on industry vertical, retail & e-commerce segment is set to hold a market share of 27.3% by 2025.
North America remains at the epicentre of inventory management market growth, capturing a share of 38.9% by 2025.
Asia Pacific, with an estimated share of 26.7% in 2025, is poised to exhibit fastest growth during the assessment period.
Rising Need for Operational Efficiency Fueling Market Growth
Coherent Market Insights’ latest inventory optimization market analysis highlights major factors fueling industry growth. Increasing need to improve operational efficiency is one such prominent growth driver.
Industries in the contemporary world are increasingly focusing on streamlining supply chains, reducing waste, and improving demand-supply alignment. This is directing them towards inventory optimization solutions, leading to increased market demand.
Inventory optimization helps companies improve efficiency by automating stock management, lowering holding costs, shortening lead times, and improving order fulfilment rates. Thus, growing emphasis on operational efficiency is expected to boost growth of the inventory optimization market.
Amazon, for instance, uses advanced predictive analytics and AI-driven inventory optimization to improve order fulfilment accuracy as well as reduce delivery times. This rising adoption directly impacts the inventory optimization market growth trajectory.
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High Implementation Costs Limiting Market Growth
The future inventory optimization market outlook looks bright, owing to rising adoption across diverse industries. However, high costs might limit market growth to some extent during the forthcoming period.
Advanced inventory optimization solutions, including software, are expensive. This limits their adoption, especially among small and mid-sized businesses, dampening overall inventory optimization market demand.
Expansion of E-Commerce Creating Lucrative Growth Opportunities
The e-commerce sector is witnessing tremendous growth due to changing customer behaviour and preferences. This is unlocking new revenue-generation streams for inventory optimization companies.
Modern customers expect a seamless, omnichannel shopping experience across online and physical stores. This prompts retailers like Walmart and Amazon to adopt inventory optimization solutions.
For instance, Walmart employs integrated real-time inventory management systems to enhance operational efficiency as well as reduce costs. As e-commerce continues to expand, demand for inventory optimization solutions will grow rapidly during the assessment period.
Emerging Inventory Optimization Market Trends
A prominent trend in the inventory optimization market is the adoption of artificial intelligence and advanced analytics. AI-powered demand forecasting and prescriptive analytics are transforming inventory planning. They have the tendency to minimize stockouts and overstock by analyzing real-time data, such as sales trends and market shifts. Similarly, AI- and IoT-enabled autonomous replenishment systems are being deployed to automatically trigger orders, reducing human error as well as improving efficiency.
Rising popularity of cloud-based inventory optimization solutions is expected to boost the target market. These solutions are gaining traction as they offer scalability, lower IT burdens, and ease of integration with e-commerce, ERP, and point-of-sale systems.
Growing emphasis on sustainability is positively influencing the inventory optimization market value. Companies are increasingly adopting inventory optimization solutions to meet sustainability objectives, such as reducing overproduction as well as minimizing waste and improving resource efficiency.
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Analyst’s View
“The global inventory optimization industry is poised to experience robust growth, owing to rising need for operational efficiency, expansion of e-commerce, and growing adoption of advanced technologies like AI in inventory management,” said a senior analyst at CMI.
Current Events and Their Impact on the Inventory Optimization Market
| Event | Description and Impact |
| Global Supply Chain Disruptions and Geopolitical Tensions |
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| Advanced AI and Machine Learning Integration in Supply Chain |
|
| Sustainability and ESG Compliance Requirements |
|
Competitor Insights
Key companies in the inventory optimization market report:
- Oracle Corporation
- SAP SE
- IBM Corporation
- Epicor Software Corporation
- Infor Inc.
- Microsoft Corporation
- Manhattan Associates
- Kinaxiz Inc.
- Blue Yonder (formerly JDA Software)
- Logility
- Zoho Corporation Pvt. Ltd.
- Sage Group PLC
- Brightpearl Ltd.
- DEAR Systems
- Chainalytics LLC
Key Developments
In June 2025, Celonis and Peech introduced the Celonis Inventory Lifecycle optimization app. This new inventory lifecycle solution is designed to optimize CPG and retail operations as well as reduce perishable goods losses.
In September 2024, ThroughPut.AI launched novel AI-powered predictive parts & kit management capabilities. The new capabilities are intended to help businesses optimize sourcing, improve production reliability, and reduce unplanned downtime.
Market Segmentation
Component Insights (Revenue, USD Bn, 2020 - 2032)
- Software
- Services
Industry Vertical Insights (Revenue, USD Bn, 2020 - 2032)
- Retail & E-commerce
- Manufacturing
- Healthcare & Pharmaceuticals
- Automotive
- Others
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