Inventory tracking system market is forecast to reach $6.2 billion by 2025, at a CAGR of 6.30% during 2020-2025. Increasing adoption of smartphones and other mobile devices, a rapidly evolving global e-commerce landscape and the increasing need to control and reduce supply chain inefficiencies by offering an Omnichannel shopping experience, retailers are designing a cohesive user experience for their customers on various platforms such as physical stores, online stores, social media channels and rising need to control inventory shrinkage in supply-chains are the key factor facilitating the Inventory tracking system market growth. According to the National Retail Federation’s National Retail Security Survey (NRSS) on retail theft, global retailers incurred shrinkage losses amounting to $50.6 billion in 2018. The four major sources of inventory shrinkage in the retail industry include shoplifting, employee theft, supplier fraud, and paperwork errors. As inventory shrinkage can significantly affect profit margins of SMEs, there is an increasing demand for modern inventory tracking systems, especially from the retail sector will increase the demand for inventory tracking system.
North America held a dominant share of over 40% in the inventory tracking system market in 2018 due to rapidly expanding e-commerce landscape in the region, a robust manufacturing sector with increasing adoption of industrial IoT after Industry 4.0
The hardware and tracking device segment is projected to grow at highest CAGR of 11.2% due to increased adoption is due to the technology aids in tracking the movement through every stage of the supply chain right from the manufacturing unit to the point of sale.
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Manufacturing sector is growing at a highest CAGR in the inventory tracking system market in the forecast period due to effectively acting as buffer between consumer demands and component availability.
Major Key players operating in the Inventory Tracking System Market include A2B Tracking Solutions Inc., Asset Management International, AT&T INC, Barcodes Inc., CYBRA Corporation, MASS Group Inc., Ventipix, Wasp Barcode Technologies, Windward Inventory Tracking System and ZIH Corporation among others.
Type – Segment Analysis
The hardware and tracking device segment is projected to grow at highest CAGR of 11.2% in the forecast period 2020-2025. Increased adoption is due to the technology aids in tracking the movement through every stage of the supply chain right from the manufacturing unit to the point of sale which ensures stock security, quality control and reorder point. Tracking devices are typically used by many end users. For instance, manufacturing units that move thousands of orders on a daily basis use tracking devices for safety and security. Similarly, tracking devices are used by automobiles companies to provide vehicle location and to share engine diagnosis. In addition to this, the technology is ideal for the implementation in environments, where real-time inventory optimization is critical. All these will accelerate the growth of the inventory tracking system in the forecast period.
By End User – Segment Analysis
Manufacturing sector is growing at a highest CAGR in the inventory tracking system market in the forecast period due to effectively acting as a buffer between consumer demands and component availability. In addition it acts as the mode of control and management of inventories by tracking the number of products or components that exists in the manufacturing unit. For Instance, insufficient inventory can seriously disrupt the production-distribution cycle that is so crucial to the survival of all manufacturing organizations. On the other hand, excessive inventory can cripple a firm’s cash flow and thus endanger its liquidity position. These capabilities are expected to favorably contribute to the increasing uptake of inventory tracking systems over the forecast period.
Geography – Segment Analysis
In 2018, North America held a dominant share of over 40% in the inventory tracking system market size due to rapidly expanding e-commerce landscape in the region, a robust manufacturing sector with increasing adoption of industrial IoT after Industry 4.0, and the availability of an extensive cloud-based inventory solutions that offer cost-benefits for the maintenance of large-scale inventory as compared to the traditional systems are the major factors which fuel the growth in this region. According to the U.S. Department of Commerce’s International Trade Administration (ITA), the manufacturing industry in the U.S. received Foreign Direct Investment (FDI) amounting to USD 1.6 trillion in 2017. Similarly, in 2016, the manufacturing sector contributed nearly USD 350 billion to the U.S. GDP. All these factors will accelerate the market in this region.
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Drivers – Inventory Tracking System Market
Rising popularity of e- commerce is driving the growth of this market
Inventory tracking in e-commerce helps to manage and keep track of the inventory so that one can channelize them accordingly and deliver to the customers without any delay. Having a proper inventory system in an e-commerce business will always help them to prevent any time lag from processing the order to the final delivery. E-Commerce is a huge platform which is growing at an unprecedented rate all over the world. For Instance according to the report given by internet retailer in 2018, global ecommerce sales will reach $3.6 trillion in 2019 from $2.9 trillion in 2018. Therefore, an increase in the e-commerce sales will drive the demand for inventory tracking system.
Increasing usage of smartphones
Smartphones can be used for barcode scanning, data collection and entry, data access in the field, taking photos, collecting signatures and capturing GPS location of the transaction. The increase adoption of smart phones will drive the inventory tracking system in the forecast period. For instance according to the report given by American mobile retail association in 2018, 1.4 billion units of smartphones were sold worldwide, therefore increase in smartphones will enhance the inventory tracking system market.
Challenges – Inventory Tracking System Market
High investment cost and cyber security attacks.
Software which is required for inventory tracking system depends on the features and the abilities that it offers along with the access to the number of users and products involved is very high. Additionally, data security is one of the major concerns for inventory tracking system vendors, as the software carries vital information related to customers, product and technicians is easily cyber attackers, who can hack into these systems and manipulate the data to misguide technicians. These kind of challenges will hinder the market for the forecast period.
Partnership and acquisitions are key strategies adopted by players in the Inventory Tracking System Market. In 2018, the market of Inventory Tracking System industry outlook has been consolidated by the top five players accounting for 58.25% of the share. Inventory Tracking System top 10 companies include A2B Tracking Solutions Inc., Asset Management International, AT&T INC, Barcodes Inc., CYBRA Corporation, MASS Group Inc., Ventipix, Wasp Barcode Technologies, Windward Inventory Tracking System and ZIH Corporation among others.
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