Electronic Data Interchange Market is expected to reach US$ 65.99 Billion by 2031

Electronic Data Interchange Market Forecast to 2031: Key Insights

According to our latest market study on "Electronic Data Interchange Market Size and Forecast (2021–2031), Global and Regional Share, Trend, and Growth Opportunity Analysis – by Component, Type, and Industry," the market is expected to grow from US$ 30.64 billion in 2023 and is projected to reach US$ 65.99 billion by 2031; it is likely to register a CAGR of 10.3% during 2023–2031. The rising adoption of EDI solutions with blockchain technology is anticipated to remaina electronic data interchange market trends.

Blockchain is a revolutionary technology transforming business processes across many industries, from retail to logistics. It is deployed to transform the payment and invoicing industry globally by offering easy access and highly secure solutions for end customers. The growing integration of blockchain technology due to successful proof of concepts across various industries such as IT & telecom, BFSI, transportation, and logistics demands electronic data interchange solutions for efficient data interchange. A few blockchain applications consist of high-security applications, data of multiple parties, and tracking of goods from origin to end user. The US and China significantly contribute to the global blockchain technology market growth. Industry experts consider that blockchain technology can transform and disrupt traditional business models by offering substantial business benefits such as greater transparency, increased efficiency, enhanced speed of transactions, better traceability, improved security, and reduced costs. However, according to a few industry experts, blockchain technology cannot replace the B2B transactional methodology; it is suggested to be used as an add-on to electronic data interchange for producing a better business outcome instead of replacing the overall Electronic Data Interchange solution with blockchain technology. Therefore, with the mounting digitalization of payment as well as invoice processes across diversified businesses, the adoption of blockchain technology is expected to lead to electronic data interchange market growth in the future.

Electronic Data Interchange Market 

The US, Canada, and Mexico are major economies in North America. Technological advancements have led to highly competitive markets across North America. The region hosts several technological giants that invest significant amounts in developing robust technologies. The growing spending on the adoption of cloud services in North America and the presence of potential opportunities across next-generation IT technology in the healthcare and BFSI sectors propel the Electronic Data Interchange market growth. Canada held a significant market electronic data interchange market share in 2023. The Canada Revenue Agency (CRA) established a series of circulars on electronic transactions, such as electronic invoicing (circular IC05-1R1), which will accelerate their use throughout the country. The use of Electronic Data Interchange solutions is expected to rise in Canada in the coming years due to a large number of invoices prevailing within the country. Moreover, the Peppol network, an electronic ordering and e-invoice exchange platform, is widely used for B2B transactions in 32 countries, including the US, Canada, and Singapore. Various Electronic Data Interchange suppliers in Canada are expanding their presence through mergers and acquisitions. In January 2023, Crisp Inc. acquired Integral Group Inc., a Canadian Electronic Data Interchange supplier, to expand supply chain visibility with Electronic Data Interchange data and retail integrations. Crisp and Integral will facilitate supplier and retailer collaboration and provide seamless, end-to-end data integration inside the consumer-packaged goods enterprise. Thus, mergers and acquisitions by market players further drive the electronic data interchange market growth in Canada.

Mexico is increasingly becoming a business hub in North America due to favorable governmental strategies and cheap labor. The growing transportation and retail industry in the country is expected to raise the demand for Electronic Data Interchange in the market. According to CEIC data, retail sales in the country grew 4.6% YoY in April 2023, compared with a 1.8% increase in March 2023. Similarly, as per the GOBIERNO DE MEXICO, in 2022, the total trade exchange of transportation in the country was US$ 192 billion. Thus, with continuous technological advancements in the country, the adoption of Electronic Data Interchange solutions and services is increasing, thereby fueling the market growth. 

Increasing Adoption of Electronic Data Interchange Transactions and Standards to Drive Electronic Data Interchange Market Growth

Various providers are developing Electronic Data Interchange systems to deliver a more robust and user-friendly experience. For instance, in July 2023, Jitterbit, Inc. launched its self-managed, cloud-based electronic data interchange solution fully integrated into the Jitterbit Harmony platform. With Harmony electronic data interchange, users can fully self-serve and self-manage Electronic Data Interchange processes. Data is automatically transferred between trading partners (i.e., Amazon.com, Inc., Home Depot, Inc., Lowe's, and Walmart Inc.) and merchants into the merchant's Enterprise resource planning (ERP), Customer relationship management (CRM), and shipping systems. Harmony Electronic Data Interchange system helps streamline processes and automate workflows, eliminating the manual processing and approvals of Electronic Data Interchange transactions and ensuring the accuracy of information being transmitted between systems. Such developments propel the adoption of the Electronic Data Interchange system to automate the workflow process.

Electronic Data Interchange Market: Segmental Overview

Based on component, the market is bifurcated into solution and services. The solutions segment held a larger electronic data interchange market share in 2023. Various Electronic Data Interchange solutions are present in the market; a few are as follows: Web Electronic Data Interchange, Integrated Electronic Data Interchange, Outsourcing Electronic Data Interchange, Electronic Data Interchange B2B Portal, Electronic Data Interchange B2C Portal, Electronic Data Interchange Managed Services, and Electronic Data Interchange Documents Storage. These solutions are capable of meeting the growing needs of its clients with exceptional technical specifications to streamline the receiving and sending of commercial transactions for all types of businesses. These solutions are deployed in a broad range of large and small to mid-sized enterprises for interchanging commercial documents between businesses in a multitude of sectors across the world.

Electronic Data Interchange Market Analysis: Competitive Landscape and Key Developments

The Electronic Data Interchange market report emphasizes key factors driving the market and prominent players' strategic developments. Mulesoft, LLC; SPS Commerce Inc.; TrueCommerce Inc.; IBM Corporation; Cleo; The Descartes Systems Group Inc.; Data Masons Software LLC; Crossinx GmbH; Electronic Data InterchangeCOM; Comarch SA; and InterTrade Systems, Inc are among the prominent players profiled in the Electronic Data Interchange market report. The market players focus on product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities.

• In May 2024, R Systems International Limited (a Blackstone portfolio company), one of the leading digital product engineering and technology companies, launched a transformative solution at Boomi World 2024. Electronic Data Interchange Partner Onboarding Solution is geared toward redefining supply chain management and empowering businesses with unparalleled efficiency and real-time insights. The launch of this solution underscores R Systems’ steadfast commitment to client-centric solutions and addressing the dynamic needs of its clients by driving tangible business outcomes.

In January 2024, Cleo announced the availability of its out-of-the-box Microsoft Dynamics Supply Chain Management (SCM) and Microsoft Dynamics Business Central (BC) connector solutions in Microsoft AppSource. These solutions provide faster time-to-market for customers looking to integrate B2B supply chain transactions directly into their Microsoft Dynamics ERP; specifically, these solutions accelerate Electronic Data Interchange connectivity with trading partners, including retailers, wholesalers, and 3PL providers along with D2C channels such as Shopify and Amazon.

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