Demand Planning Software Market Segmented By Type (Solutions, Services), By Deployment (On-premise, Cloud, Hybrid), By Organization (SMEs, Large Enterprise), By End User (Telecom and IT, Healthcare, Retail, Automotive, Industrial, Food and Beverages, Manufacturing, Others), By Region, By Competition 2020-2030F

Market Overview

The Global Demand Planning Software Market will grow from USD 4.11 Billion in 2024 to USD 8.25 Billion by 2030 at a 12.32% CAGR. Demand planning software serves as a critical business process tool, enabling organizations to accurately project future product and service requirements through the analysis of historical data, market trends, and advanced analytical models, thereby optimizing inventory and resource allocation. According to ASCM's 2024 Supply Chain Trends report, the global supply chain management application market, encompassing demand planning functionalities, is projected to reach approximately $31 billion by 2026. This market growth is primarily driven by the increasing complexity of global supply chains and the pervasive need for enhanced predictive accuracy, augmented by the integration of artificial intelligence and machine learning in forecasting processes.

Further stimulating market expansion are the rising demands for cost reduction through optimized inventory management and the sustained growth of e-commerce platforms. Nevertheless, a notable impediment to market expansion remains the inherent complexity associated with integrating disparate data sources, which frequently results in data fragmentation and inconsistencies that can compromise overall forecasting accuracy.

Key Market Drivers

The global demand planning software market is experiencing substantial growth, reflecting broader positive trends within enterprise software sectors. According to SNP Schneider-Neureither & Partner SE, in May 2025, its software business revenue increased by 36% in Q1 2025, indicating robust demand for specialized solutions. A primary driver is increasing supply chain complexity and globalization. Modern supply chains feature intricate, multi-country networks involving numerous suppliers and diverse distribution channels. This complexity, intensified by geopolitical shifts and dynamic consumer preferences, creates significant management challenges, as reliance on manual systems often results in inefficiencies and elevated costs. For instance, according to Katana MRP, in 2024, their "2024 Business Trends and Predictions (5 Key Trends)" article, imports from Mexico to the US increased by 26%, highlighting expanding cross-border trade and the critical need for advanced planning tools.

Concurrently, the growing demand for predictive accuracy and data-driven forecasting significantly influences the adoption of demand planning software. Businesses increasingly recognize that traditional forecasting methods prove inadequate in today's volatile market conditions, often leading to costly stockouts or excess inventory. The imperative to base strategic decisions on reliable future projections compels organizations to leverage sophisticated analytical tools. This reliance on data-driven insights enables companies to better anticipate market shifts, optimize inventory levels, and enhance customer satisfaction. According to the Journal of Supply Chain Management Science, in October 2025, its article "AI-Driven Raw Material Demand Forecasting: Towards Project Management Practices", the implementation of AI forecasting models for the 2024 planning horizon led to a 66.5% reduction in overstock volumes, underscoring the direct impact of predictive capabilities on operational efficiency. This strategic focus on granular data analysis and precise future modeling highlights the pivotal role of advanced demand planning solutions.

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Key Market Challenges

The complexity inherent in integrating disparate data sources represents a significant impediment to the expansion of the Global Demand Planning Software Market. This challenge frequently results in data fragmentation and inconsistencies, directly compromising the accuracy of forecasting outcomes. When organizations struggle to unify information from various systems, the foundational data utilized by demand planning software becomes unreliable, diminishing the software’s ability to generate precise future product and service projections. This directly undermines the core value proposition of such solutions.

The difficulty in achieving seamless data integration prevents businesses from fully leveraging advanced analytical models within demand planning platforms. According to MHI's 2025 Annual Industry Report, published in March 2025, 75% of companies consider supply chain synchronization and coordination somewhat challenging, with over 25% finding it very or extremely challenging. These issues, deeply rooted in data integration complexities, lead to reduced confidence in data-driven insights, consequently slowing the adoption and investment in new demand planning software. The market's growth is therefore hampered by the persistent struggle to ensure data quality and coherence, which are prerequisites for effective demand forecasting.

Key Market Trends

The demand planning software market is significantly influenced by a fundamental shift towards cloud-based and Software as a Service (SaaS) deployment models. This trend is driven by the inherent advantages of scalability, lower infrastructure expenditure, and simplified access to continuous updates and advanced functionalities. Companies are increasingly adopting cloud solutions to bolster agility and enable remote workforces to collaborate effectively on planning initiatives. The 2025 MHI Annual Industry Report, published in March 2025, predicted cloud computing and storage adoption across supply chain technologies to reach 91% over the next five years. This widespread move towards the cloud provides a more elastic and robust demand planning infrastructure, essential for navigating market volatility and supporting business growth.

A key trend is the growing emphasis on enhanced collaborative planning across the supply chain, aimed at fostering greater transparency and synchronized decision-making. This involves dismantling departmental silos and integrating external partners, including suppliers and distributors, directly into the demand planning process. Such platforms facilitate real-time information exchange and consensus forecasting, moving beyond traditional sequential methods to achieve a unified perspective on demand signals and inventory status. According to the 2025 MHI Annual Industry Report, released in March 2025, 55% of supply chain leaders are increasing their technology and innovation investments, directing capital towards solutions that enable end-to-end orchestration and collaboration between technology and human teams. This investment highlights the critical role of collaborative tools in mitigating risks and optimizing overall supply chain performance.

Segmental Insights

The Small and Medium-sized Enterprises (SMEs) segment is currently the fastest-growing in the Global Demand Planning Software Market. This rapid expansion is primarily driven by the increasing accessibility and affordability of cloud-based demand planning solutions, which significantly reduce the initial capital investment for smaller businesses. Furthermore, SMEs are increasingly recognizing the strategic imperative of advanced demand planning to enhance operational efficiency, optimize inventory management, improve cash flow, and enable quicker responses to dynamic market conditions. The availability of user-friendly interfaces and flexible subscription models from software providers has further lowered entry barriers, empowering SMEs to leverage sophisticated forecasting capabilities previously limited to larger enterprises.

Regional Insights

North America stands as the dominant region in the Global Demand Planning Software Market, attributed to a confluence of factors fostering its leadership. The region benefits from a robust technological infrastructure and a high concentration of major technology providers and innovators. North American enterprises, particularly large corporations, demonstrate a significant inclination towards investing in advanced software solutions for optimizing complex supply chains and enhancing operational efficiency. Furthermore, the widespread adoption of predictive analytics, artificial intelligence, and data-driven decision-making across diverse industries, including retail, manufacturing, and healthcare, fuels the continuous demand for sophisticated demand planning software in this region.

Recent Developments

• In May 2025, o9 Solutions continued to advance its Digital Brain platform by integrating next-generation Generative AI (GenAI) and Agentic AI-enabled capabilities, a focus that began in 2024. This breakthrough research aimed to further transform planning and decision-making for enterprises by accelerating value creation through specialized AI agents and self-learning models. The enhancements supported end-to-end domain processes across supply chain, commercial, and finance functions, enabling more consistent, rapid, and scalable planning. These innovations positioned o9 to help global companies solve value leakage and achieve hundreds of millions in annual value through smarter, integrated demand planning.

• In July 2024, Blue Yonder unveiled new functionalities within its Cognitive Demand Planning solution, emphasizing improved planning productivity and enhanced collaboration. These updates focused on optimizing the forecasting process for both new and transitioning products by combining extensible machine learning and statistical techniques. The solution was designed to foster better collaboration across marketing, sales, and operations teams, providing a consolidated view of demand-related information. This aimed to offer organizations streamlined inventory management, reduced supply chain costs, and greater control over demand planning processes within the global demand planning software sector.

• In February 2024, Logility enhanced its prescriptive supply chain planning solutions by integrating generative artificial intelligence (GenAI) capabilities. This innovation aimed to provide clients with explainability and insights derived from GenAI inquiries, facilitating faster and more informed decision-making. The solution allowed for the analysis of forecast changes using large language models while maintaining data security. This development in Logility's Digital Supply Chain Platform, which already incorporated AI and predictive analytics, was a significant step in helping enterprises navigate complex supply chain data and achieve competitive advantages in the global demand planning software market.

• In January 2024, Kinaxis introduced new AI and machine learning innovations designed to enhance retail supply chain operations. The company's expanded retail offering included Demand.AI, which leveraged advanced machine learning models to provide a deeper understanding of internal and external factors influencing demand for products. These enhancements aimed to improve demand forecasting and enable quick adjustments to plans, ensuring that retailers could maintain optimal inventory levels and fulfill customer orders efficiently, even amidst unforeseen disruptions. The focus was on providing end-to-end supply chain transparency and robust simulation capabilities within the global demand planning software market.

Key Market Players

• SAP SE
• Oracle Corporation
• Kinaxis Inc.
• Anaplan Inc.
• IBM Corporation
• Logility Inc.
• RELEX Oy
• ToolsGroup B.V.
• Blue Yonder Group Inc.
• Manhattan Associates Inc.

Report Scope:

In this report, the Global Demand Planning Software Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Demand Planning Software Market, By Type:

o   Solutions

o   Services

• Demand Planning Software Market, By Deployment:

o   On-premise

o   Cloud

o   Hybrid

• Demand Planning Software Market, By Organization:

o   SMEs

o   Large Enterprise

• Demand Planning Software Market, By End User:

o   Telecom and IT

o   Healthcare

o   Retail

o   Automotive

o   Industrial

o   Food and Beverages

o   Manufacturing

o   Others

• Demand Planning Software Market, By Region:

o   North America

§  United States

§  Canada

§  Mexico

o   Europe

§  France

§  United Kingdom

§  Italy

§  Germany

§  Spain

o   Asia Pacific

§  China

§  India

§  Japan

§  Australia

§  South Korea

o   South America

§  Brazil

§  Argentina

§  Colombia

o   Middle East & Africa

§  South Africa

§  Saudi Arabia

§  UAE

Competitive Landscape

Company Profiles: Detailed analysis of the major companies presents in the Global Demand Planning Software Market.

Available Customizations:

Global Demand Planning Software Market report with the given market data, TechSci Research offers customizations according to a company's specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).

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