Demand Planning Solutions Market Size and Share
Market Overview
| Study Period | 2019 - 2030 |
|---|---|
| Market Size (2025) | USD 4.69 Billion |
| Market Size (2030) | USD 7.82 Billion |
| Growth Rate (2025 - 2030) | 10.78% CAGR |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order Image © Mordor Intelligence. Reuse requires attribution under CC BY 4.0. |
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Demand Planning Solutions Market Analysis by Mordor Intelligence
The demand planning solutions market size stands at USD 4.69 billion in 2025 and is projected to reach USD 7.82 billion by 2030, advancing at a 10.78% CAGR. Market expansion is propelled by AI-enabled demand-sensing engines, rapid cloud-first ERP modernization, and rising direct-to-consumer (DTC) fulfillment complexity. Vendors are embedding machine-learning pipelines that raise forecast accuracy by double-digit percentages, while multi-tenant SaaS architectures shorten deployment cycles and lower total cost of ownership.[1]SAP SE, “SAP and Orkla Food Ingredients Success Story,” sap.com Enterprises also prioritize integrated business-planning suites that close gaps between sales, operations, and finance, amplifying demand for unified platforms.[2]Microsoft, “Enable efficient, accurate demand planning with Copilot,” microsoft.com Intensifying competition, cybersecurity concerns, and talent shortages in data science remain headwinds, yet the addressable base is widening as mid-market firms embrace subscription pricing models.
Key Report Takeaways
- By component, software led with 71.89% of the demand planning solutions market share in 2024, while services are forecast to expand at 14.97% CAGR to 2030.
- By deployment model, cloud-based solutions held 62.04% of demand planning solutions market share in 2024; on-premises variants trail but hybrid architectures are gaining traction alongside regulated-industry requirements.
- By organization size, small and medium enterprises logged the highest projected CAGR at 15.86% through 2030, whereas large enterprises retained 52.13% revenue share of the demand planning solutions market size in 2024.
- By industry vertical, manufacturing led with 27.54% of the demand planning solutions market share in 2024, while retail and e-commerce are forecast to expand at 14.24% CAGR to 2030.
- By geography, North America led with 37.53% demand planning solutions share in 2024, while Asia-Pacific is projected to rise at a 12.47% CAGR.
Global Demand Planning Solutions Market Trends and Insights
Drivers Impact Analysis
| Driver | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| AI-driven predictive accuracy gains | +2.8% | Global, with concentration in North America & Europe | Medium term (2-4 years) |
| Integration of demand planning with S&OP suites | +2.1% | Global, led by manufacturing regions in APAC & North America | Long term (≥ 4 years) |
| Cloud-first ERP modernization wave | +1.9% | Global, accelerated in North America & Europe | Short term (≤ 2 years) |
| Surge in direct-to-consumer fulfillment complexity | +1.7% | North America & Europe, expanding to APAC | Medium term (2-4 years) |
| Adoption of demand sensing for near-real-time insights | +1.4% | Global, with early adoption in developed markets | Medium term (2-4 years) |
| Regulatory push for supply-chain transparency | +0.9% | Europe & North America, expanding globally | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
AI-driven predictive accuracy gains
Next-generation planning engines use deep meta-learning models that autonomously select demand drivers, lifting forecast accuracy by 14-27% and reducing perishable waste up to 27% at adopters such as Orkla Food Ingredients. Continuous ingestion of external data—weather, economic signals, social sentiment—allows granular weekly forecasts for consumer packaged goods portfolios facing accelerated product life cycles. The shift compresses planning cycles from weeks to days and frees planners to focus on scenario analysis rather than data wrangling. Vendors differentiate through proprietary feature-engineering templates and automated model monitoring that alerts users when prediction drift exceeds tolerance bands.
Integration of demand planning with S&OP suites
Unified business-planning suites align sales, operations, and finance targets on a single in-memory data layer, eliminating reconciliation exercises that previously consumed days each month. Microsoft’s Copilot in Dynamics 365 lets planners query exceptions using natural language, cutting analysis time and supporting real-time what-if simulations across promotion calendars, capacity constraints, and supplier disruptions. Companies deploying integrated S&OP report 15-20% forecast-plan alignment improvements and 10-15% safety-stock reductions, directly releasing working capital.
Cloud-first ERP modernization wave
Cloud deployments captured 62.04% share in 2024 and grow at a 13.75% CAGR as enterprises decommission aging on-premises instances. SAP’s cloud ERP suite revenue expanded 27% in Q1 2025, evidencing sustained demand.[3]TechGig, “SAP Surpasses Salesforce, Oracle and Workday in Cloud Revenue Growth,” content.techgig.com Elastic compute pools support AI model training and real-time inference without datacenter upgrades. Subscription pricing extends access to SMEs, who can deploy feature-complete planning stacks for less than USD 100 per user monthly, hastening technology democratization.
Surge in direct-to-consumer fulfillment complexity
DTC brands must synchronize demand across micro-fulfillment nodes and adapt to influencer-driven demand spikes. JVN Hair trimmed average shipping zones by 19.7% and miles traveled per package by 33.4% after adopting AI-driven demand allocation. Omnichannel retailers report inventory-turnover gains above 25% when forecast engines incorporate store traffic and clickstream data, underscoring the revenue and cost implications of granular demand planning.
Restraints Impact Analysis
| Restraint | (~) % Impact on CAGR Forecast | Geographic Relevance | Impact Timeline |
|---|---|---|---|
| High switching costs from legacy tools | -1.8% | Global, particularly in established manufacturing regions | Short term (≤ 2 years) |
| Shortage of data-science talent in supply-chain teams | -1.2% | Global, acute in emerging markets | Medium term (2-4 years) |
| Cyber-security concerns around multi-tenant SaaS | -0.9% | Global, heightened in regulated industries | Medium term (2-4 years) |
| Data quality issues in emerging markets | -0.7% | Emerging markets in APAC, Latin America, and Africa | Long term (≥ 4 years) |
| Source: Mordor Intelligence | |||
High switching costs from legacy tools
Enterprises migrating from customized spreadsheets or proprietary modules face implementation budgets exceeding USD 2-5 million, with data cleansing alone absorbing up to 60% of project costs. Unexpected change-management expenses inflate timelines and can delay ROI, particularly for mid-market manufacturers lacking dedicated IT teams.
Shortage of data-science talent in supply-chain teams
Organizations report six-month project slippage when unable to recruit or train hybrid talent skilled in both machine learning and supply-chain domain logic. Salary premiums and a limited pipeline in emerging markets exacerbate the constraint, compelling vendors to pre-package AI workflows that mask algorithmic complexity.
Segment Analysis
By Component: Services drive implementation complexity
Software continued to dominate with 71.89% share in 2024, yet services revenue grows at 14.97% CAGR as enterprises seek domain-specific consulting. Services spend now represents roughly 60% of total project outlays because AI model tuning, multi-system orchestration, and change-management initiatives demand external expertise. Canon IT Solutions’ FOREMAST 3.4 illustrates heightened services pull; ensemble-forecast features necessitate configuration assistance to exploit automatic model selection.
The demand planning solutions market size for services is projected to expand faster than software as more companies adopt continuous-optimization retainers rather than one-time installs. Vendors cultivate partner ecosystems that resell templates for consumer-goods or automotive verticals, reinforcing recurring consulting revenues.
By Deployment Model: Cloud dominance accelerates
Cloud implementations account for most new bookings because multi-tenant architecture allows quarterly functional updates without disruption. Oracle’s 52% cloud infrastructure revenue spike mirrors AI workload surge among planning customers. On-premises persists in highly regulated life-sciences and defense segments; nevertheless, hybrid styles are emerging as compromise models that keep sensitive data on-premises while off-loading compute-intensive training jobs to the cloud.
Through 2030, the demand planning solutions market will see enterprises renegotiate legacy perpetual licenses into SaaS contracts, driving predictable ARR streams for vendors and accelerating roadmap execution given a unified code base.
By Organization Size: SME adoption accelerates
Large enterprises held 52.13% demand planning solutions market share in 2024, but SMEs outpace at 15.86% CAGR. Purpose-built offerings such as Zionex PlanNEL for CPG package AI forecasting, shelf-life visibility, and replenishment recommendations into pay-as-you-grow tiers.
SMEs leverage the demand planning solutions market size advantageously because subscription pricing cushions cash flows and minimizes capital-expense approvals. Enhanced UIs, pre-built connectors, and embedded training modules further reduce adoption friction, permitting midsize manufacturers to match larger rivals in forecast accuracy.
By Industry Vertical: Manufacturing leads, retail accelerates
Manufacturing remained the largest contributor in 2024 as multi-tier bills of material, long lead times, and capital-intensive production lines necessitate precise forecasts. Nissan’s digital resilience platform shows how automotive players are marrying demand-sensing data with tier-N risk visibility.
Retail and e-commerce expand rapid deployment of allocation engines that re-optimize store and warehouse stocks hourly. Blue Yonder’s acquisition of One Network positions it to deliver end-to-end orchestration spanning consumer demand signals to supplier execution. The demand planning solutions market size for retail is forecast to jump sharply as omnichannel models proliferate, while electronics, healthcare, and food & beverage remain steady adopters seeking waste minimization and compliance.
Geography Analysis
North America generated 37.53% revenue in 2024 owing to mature SaaS culture, skilled analytics labor, and widespread cloud infrastructure. U.S. multinationals speed up implementation after pandemic-era disruptions underscored the cost of forecast error. Canadian consumer-goods players invest in demand sensing to navigate regional promotional cycles, while Mexican maquiladoras rely on planning software to synchronize just-in-time flows across the U.S. border.
Asia-Pacific is the fastest-growing region at 12.47% CAGR. Chinese industrial firms accelerate adoption under state-backed intelligent-manufacturing subsidies, whereas Japanese conglomerates embed planning content into management systems such as AVANT Cruise to integrate financial and supply-chain metrics. India’s IT services ecosystem expands implementation talent pools, fostering uptake among pharmaceuticals and apparel exporters. Southeast Asian electronics assemblers deploy cloud setups to handle volatile component availability.
Europe maintains steady demand as ESG mandates elevate traceability requirements. German automotive suppliers integrate carbon-footprint indicators into forecast algorithms, while U.K. retailers like Waitrose use AI solutions to raise on-shelf availability and customer satisfaction. Eastern Europe witnesses growth as near-shoring draws manufacturing projects that necessitate advanced planning.
Competitive Landscape
The market is moderately fragmented. Tier-1 ERP vendors—SAP, Oracle, Microsoft—bundle planning modules within expansive suites, leveraging installed bases and global partner networks. Specialists such as Kinaxis, o9 Solutions, and ToolsGroup compete on algorithmic depth and low latency. Blue Yonder’s USD 839 million purchase of One Network accelerates convergence around network-level optimization and positions the firm to challenge incumbents with an integrated demand-to-fulfillment stack.
Strategic moves involve AI-native enhancements, vertical templates, and ecosystem partnerships. Kinaxis launched its Maestro AI layer, signaling a push toward composable supply-chain apps that embed autonomous decision agents. Patent filings for AI planning rose sharply in 2024 per the USPTO dataset, indicating ongoing IP battles. Competitive intensity is expected to rise as vendors extend orchestration from demand planning to supply collaboration, logistics, and last-mile execution.
Demand Planning Solutions Industry Leaders
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SAP SE
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Oracle Corporation
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Blue Yonder (JDA Software Group, Inc.)
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Kinaxis Inc.
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ToolsGroup B.V.
- *Disclaimer: Major Players sorted in no particular order
Recent Industry Developments
- July 2025: Hitachi Solutions East Japan introduced Forecast Pro TRAC, embedding collaborative workflows and expert-system guidance to automate method selection, thereby shrinking planner intervention time.
- July 2025: Avant Corporation expanded AVANT Cruise with supply-chain planning content, unifying sales, production, and inventory metrics alongside financial data to elevate enterprise performance management.
- May 2025: Zionex unveiled PlanNEL for CPG, a SaaS service designed for consumer-goods firms facing short life cycles. The launch targets SME whitespace with subscription pricing and embedded AI forecasting.
- April 2025: Canon IT Solutions released FOREMAST 3.4 with automatic ensemble model selection, supporting clients that need daily granularity. The upgrade encourages services pull for configuration and model governance.
Global Demand Planning Solutions Market Report Scope
| Software | |
| Services | Consulting and Implementation |
| Support and Maintenance | |
| Training |
| Cloud-based |
| On-Premises |
| Hybrid |
| Large Enterprises |
| Small and Medium Enterprises (SMEs) |
| Manufacturing |
| Retail and E-commerce |
| Consumer Goods and FMCG |
| Healthcare and Life Sciences |
| Automotive |
| Food and Beverage |
| Electronics and High-Tech |
| Other Industry Verticals |
| North America | United States | |
| Canada | ||
| Mexico | ||
| Europe | United Kingdom | |
| Germany | ||
| France | ||
| Italy | ||
| Spain | ||
| Russia | ||
| Rest of Europe | ||
| Asia-Pacific | China | |
| Japan | ||
| South Korea | ||
| India | ||
| Australia | ||
| Indonesia | ||
| Rest of Asia-Pacific | ||
| South America | Brazil | |
| Argentina | ||
| Chile | ||
| Rest of South America | ||
| Middle East and Africa | Middle East | United Arab Emirates |
| Turkey | ||
| Saudi Arabia | ||
| Israel | ||
| Qatar | ||
| Rest of Middle East | ||
| Africa | South Africa | |
| Nigeria | ||
| Kenya | ||
| Egypt | ||
| Rest of Africa | ||
| By Component | Software | ||
| Services | Consulting and Implementation | ||
| Support and Maintenance | |||
| Training | |||
| By Deployment Model | Cloud-based | ||
| On-Premises | |||
| Hybrid | |||
| By Organization Size | Large Enterprises | ||
| Small and Medium Enterprises (SMEs) | |||
| By Industry Vertical | Manufacturing | ||
| Retail and E-commerce | |||
| Consumer Goods and FMCG | |||
| Healthcare and Life Sciences | |||
| Automotive | |||
| Food and Beverage | |||
| Electronics and High-Tech | |||
| Other Industry Verticals | |||
| By Geography | North America | United States | |
| Canada | |||
| Mexico | |||
| Europe | United Kingdom | ||
| Germany | |||
| France | |||
| Italy | |||
| Spain | |||
| Russia | |||
| Rest of Europe | |||
| Asia-Pacific | China | ||
| Japan | |||
| South Korea | |||
| India | |||
| Australia | |||
| Indonesia | |||
| Rest of Asia-Pacific | |||
| South America | Brazil | ||
| Argentina | |||
| Chile | |||
| Rest of South America | |||
| Middle East and Africa | Middle East | United Arab Emirates | |
| Turkey | |||
| Saudi Arabia | |||
| Israel | |||
| Qatar | |||
| Rest of Middle East | |||
| Africa | South Africa | ||
| Nigeria | |||
| Kenya | |||
| Egypt | |||
| Rest of Africa | |||
Key Questions Answered in the Report
What is the projected CAGR for demand planning solutions through 2030?
Spending is forecast to advance at a 10.78% CAGR, lifting global revenue from USD 4.69 billion in 2025 to USD 7.82 billion by 2030.
Which deployment approach, cloud or on-premises, shows faster revenue expansion?
Cloud-based platforms lead with a 13.75% CAGR and 62.04% share thanks to elastic compute, subscription pricing, and rapid update cycles.
How do AI-driven forecasting engines impact forecast accuracy?
Organizations that embed machine-learning pipelines report 14-27% accuracy gains and up to 27% waste reduction in perishable categories.
Which vertical is expected to add the most revenue over the next five years?
Retail and e-commerce solutions are projected to grow at 14.24% CAGR, outpacing manufacturing and adding the largest incremental revenue.
Why are small and medium enterprises adopting demand planning platforms at a faster rate?
Subscription models, pre-configured templates, and lower IT overhead drive SME uptake at a 15.86% CAGR, democratizing advanced analytics.
What factors make Asia-Pacific the most attractive region for new deployments?
Government-backed digitization programs, expanding manufacturing bases, and growing cloud adoption yield the region’s leading 12.47% CAGR.
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