Electronic Data Interchange Market Analysis and Forecast by Size, Share, Growth, Trends 2031

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.

Electronic Data Interchange Market Analysis

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 Market Overview

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.

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Electronic Data Interchange Market: Strategic Insights

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Electronic Data Interchange Market Drivers and Opportunities

Growing Adoption of Electronic Data Interchange in SMEs to Favor Market

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.

Deployment of Cloud-Based Electronic Data Interchange

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.

• Flexibility and scalability: A cloud-based Electronic Data Interchange managed services solution reduces the requirement to build a series of in-house point solutions, and its flexibility can scale as the business needs fluctuate.
• Provides cloud computing advantages: A cloud-based Electronic Data Interchange solution reduces the capital expense of upgrading and purchasing hardware. Moreover, cloud-based Electronic Data Interchange providers deliver their services via cutting-edge technology with near-100% uptime. In January 2024, AWS introduced B2B Data Interchange, a platform enabling organizations to automate and monitor the transformation of Electronic Data Interchange cloud-based business transactions. The service offers a low-code interface for managing trading partners and translating Electronic Data Interchange documents into JSON and XML formats. Thus, the deployment of cloud-based Electronic Data Interchange can drive significant improvements in cost-efficiency, scalability, security, and operational effectiveness, making it a substantial opportunity for the Electronic Data Interchange market.

Electronic Data Interchange Market Report Segmentation Analysis

Key segments that contributed to the derivation of the electronic data interchange market analysis are component, type, and industry.

• Based on component, the market is bifurcated into solutions and services. The solutions segment dominated the market in 2023.
• By type, the market is segmented into direct Electronic Data Interchange, Electronic Data Interchange via AS2, Electronic Data Interchange via VAN, mobile Electronic Data Interchange, web Electronic Data Interchange, Electronic Data Interchange outsourcing, and others.
• In terms of industry, the market is segmented into BFSI, retail & consumer goods, healthcare, IT & telecommunication, transportation & logistics, and others.

Electronic Data Interchange Market Share Analysis by Geography

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.

Electronic Data Interchange Market Regional Insights

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.

Electronic Data Interchange Market Report Scope

Market Players Density: Understanding Its Impact on Business Dynamics

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:

1. Mulesoft, LLC
2. Optum Inc
3. Pacific Commerce Pty Ltd
4. SPS Commerce Inc
5. TrueCommerce Inc.
6. Cerner Corp

Disclaimer: The companies listed above are not ranked in any particular order.

Electronic Data Interchange Market News and Recent Developments

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:

• TrueCommerce, a global provider of supply chain and trading partner connectivity, integration and omnichannel solutions, unveiled its groundbreaking Electronic Data Interchange integration with the SAP S/4HANA Cloud Public Edition. (Source: TrueCommerce, Press Release, May 2024)

• Deloitte and Electronic Data InterchangeCOM announced they have entered a global strategic partnership for the SEA/APAC market. This partnership combines Deloitte's extensive consulting experience with Electronic Data InterchangeCOM's compliant technological services. (Source: R Deloitte, Press Release, July 2023)

Electronic Data Interchange Market Report Coverage and Deliverables

The “Electronic Data Interchange Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:

• Electronic Data Interchange market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Electronic Data Interchange market trends as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Electronic Data Interchange market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the Electronic Data Interchange market
• Detailed company profiles