The Electronic Data Interchange market was valued at US$ 30.64 billion in 2023 and is projected to reach US$ 65.99 billion by 2031; it is expected to register a CAGR of 10.3% during 2023–2031. The rising adoption of Electronic Data Interchange solutions with blockchain technology is likely to bring in new trends in the market.
The digital transformation and acceptance of Electronic Data Interchange solutions for data transaction trends across industries, Electronic Data Interchange-related compliance requirements, and favorable government initiatives to boost Electronic Data Interchange solution adoption are among the critical factors driving the growth of the Electronic Data Interchange market. However, there are a few issues/concerns, such as high initial costs, limited flexibility, and integration complexity, which may restrain frequent adoption of these solutions in the coming years. Despite these limitations, the growing demand for cloud-based solutions and the adoption of advanced technologies such as blockchain are anticipated to fuel the Electronic Data Interchange market growth during the forecast period.
The electronic data interchange system helps reduce data entry needs and maximize strategic, scalable, sustainable communication with trading partners. In April 2023, Axway (a global leader in B2B integration and Electronic Data Interchange software provider) acquired AdValvas (a European expert in e-invoicing processes). The acquisition further enhances Axway's position as a leader in B2B integration and adds new capabilities in the area of invoicing and compliance. Thus, expansion strategies by market players further propel the adoption of Electronic Data Interchange systems in Europe.
Electronic Data Interchange is a process of transaction of business documents; it is a standard electronic format between the organization and trade partners. Invoices, purchase orders, and advance ship notices are among the common materials that are interchanged with the help of Electronic Data Interchange. Several other documents, such as customs, payment, inventory, bills of lading, and shipping status documents, are also interchanged using Electronic Data Interchange. Electronic Data Interchange empowers organizations to regulate the exchange of data between supply chain applications. It helps in organizing the business-critical data and ensures it is sent on time. The traditional business communication with mail preparation has been replaced with Electronic Data Interchange. The Electronic Data Interchange solutions permit organizations to enhance the overall workflow performance with fast and accurate processing of Electronic Data Interchange documents, leading to less repeated work, fewer cancelled orders, and fewer stock-outs.
Electronic Data Interchange is utilized regularly among small and mid-sized businesses. As SMEs have fewer resources and human capital, Electronic Data Interchange enables them to automate processes instead of relying on traditional methods. Moreover, it enables a variety of documents and data to be shared with Electronic Data Interchange rules and standards for the entire electronic interchange process. It comprises transmission, message flow, document format, and software utilized to send and receive documents in the SMEs. In addition, SMEs account for most businesses globally. According to the World Bank, they account for about 90% of businesses. Thus, the growing adoption of Electronic Data Interchange among SMEs has substantially propelled the market share of these Electronic Data Interchange solutions. The increased adoption can lead to higher revenue generation for Electronic Data Interchange providers. Owing to the growing utilization of Electronic Data Interchange by SMEs, providers are making Electronic Data Interchange solutions more affordable and accessible for expanding their businesses. Further, small- and medium-sized businesses investing in Electronic Data Interchange are able to trade with larger organizations while simultaneously handling more business transactions. Overall, Electronic Data Interchange helps SMEs operate more efficiently while allowing them to process more transactions and conduct business with larger organizations.
Cloud-based Electronic Data Interchange is gradually getting highly adopted by businesses. Cloud Electronic Data Interchange software provides a combination of technological and business process improvement design. From streamlined automation to data transformation capabilities, cloud Electronic Data Interchange tools place an enterprise in a position to tackle potential integration challenges that occur without having to deploy and manage the software and hardware. Further, cloud-based Electronic Data Interchange comprises several benefits, including.
Key segments that contributed to the derivation of the electronic data interchange market analysis are component, type, and industry.
The geographic scope of the electronic data interchange market report is mainly divided into five regions: North America, Europe, Asia Pacific, Middle East & Africa, and South & Central America.
North America held the largest market share in 2023, owing to the widespread penetration of Electronic Data Interchange transaction mandated across organizations in countries such as the US, Canada, and Mexico. North America is one of the most advanced regions in terms of implementation and adoption of Electronic Data Interchange solutions. In North America, various Electronic Data Interchange system providers are expanding their businesses. In October 2019, Epicor Software Corporation acquired 1 Electronic Data Interchange Source Inc., a leading Electronic Data Interchange solutions and business visibility software provider. Adding one Electronic Data Interchange source to the Epicor Software Corporation product portfolio provides a single comprehensive Electronic Data Interchange platform, allowing customers to choose the best option to fit their business needs. Therefore, business expansion strategies propel the adoption of Electronic Data Interchange systems in the region.
The regional trends and factors influencing the Electronic Data Interchange Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Electronic Data Interchange Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 30.64 Billion |
| Market Size by 2031 | US$ 65.99 Billion |
| Global CAGR (2023 - 2031) | 10.3% |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Component
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Electronic Data Interchange Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Electronic Data Interchange Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The electronic data interchange market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the electronic data interchange market are listed below:
The “Electronic Data Interchange Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
The digital transformation and acceptance of Electronic Data Interchange solutions for data transaction trends across industries, Electronic Data Interchange-related compliance requirements, and favorable government initiatives to boost Electronic Data Interchange solution adoption are a few critical factors driving the growth of the Electronic Data Interchange market.
The market is likely to register a CAGR of 10.3% during the forecast period.
Mulesoft, LLC, SPS Commerce, Inc., TrueCommerce Inc., IBM Corporation, Cleo, The Descartes Systems Group Inc., Data Masons Software LLC, crossinx GmbH, EDICOM, Comarch SA, InterTrade Systems, Inc., Boomi, Adeptia, Linoma Software, Amosoft Edi Services, Infocon Systems, B2bgateway, Youredi, Cin7, DataTrans Solutions are among the leading payers operating in the Electronic Data Interchange market.
The rising adoption of Electronic Data Interchange solutions with blockchain technology is likely to bring in new trends in the market.
North America dominated the market in 2023.
The Electronic Data Interchange market is anticipated to reach US$ 65.99 billion by 2031.