Electronic Data Interchange (EDI) Software Market Report 2025-2032

Electronic Data Interchange (EDI) Software Market Overview

Electronic Data Interchange (EDI) Software Market Size Was Valued at USD 2.39 Billion in 2024 and is Projected to Reach USD 7.84 Billion by 2032, Growing at a CAGR of 16.01% From 2025-2032.

Electronic Data Interchange (EDI) is the automated, computer-to-computer interchange of business information in a standard electronic format among business partners over a secure, standardized connection. Postal Mail, fax, and email replaced by computer-to-computer EDI. Documents transfer directly from the sender's computer application (e.g. a logistics system) to the receiver's computer application (e.g. an order management system). In the 1960s EDI was introduced by Ed Guilbert to supply chains for the electronic communication between shipments in the US army. Before the internet era, EDI enabled instant long-distance communication. EDI documents are transferred by computers using standards. The popular standards of EDI are United Nations/Electronic Data Interchange for Administration, Commerce and Transport (UN/EDIFACT), Accredited Standards Committee X12 (ASC X12), GS1 EDI, VDA, and Pan-European Public Procurement Online (PEPPOL). These standards describe the rigorous format of electronic documents. EDI delivers multiple benefits such as lower operating costs, faster and streamlined communications, transaction security is increased, removal of manual processes reduced errors, and improved relationships that help to grow the demand for EDI software among organizations.

Market Dynamics And Factors For Electronic Data Interchange (EDI) Software Market

Drivers:

Improve The Record Accuracy By Removing Human Error

• EDI replaces the postal mail, fax, and email operated manually. Manual processes are time-consuming, contain chances of errors, and is an expensive resulting from illegible handwriting, keying and re-keying errors, and incorrect document handling. EDI eliminates the need to re-work orders and improves an organization’s data quality by delivering at least a 30% to 40% reduction in transactions with errors. EDI software gives a reduction of human error benefits. Due to this increase in the level of business efficiency.
• In addition to this, focusing on menial and tedious activities, employees can devote their attention to more important value-adding tasks. Because of faster delivery of goods and services, it improves the trading partner relationship and the organization’s customers. Due to technological advancement EDI software provides 100% accuracy and therefore significantly speeds up the operation. Thus, the studied market is expected to propel over the forecast period.

Restraints:

EDI Software Is Too Expensive

• EDI is expensive which hinders the market of EDI software. EDI system requires a high installment to launch and maintain technology. EDI contains too many standards and the version requires a high cost. It’s difficult for small companies to invest in EDI because of the expenses to be incurred in implementing and maintaining it.
• Newly developed technologies in the EDI systems are expensive, and not affordable for small enterprises to invest in EDI systems, which hinders the growth of the market of EDI software in the projected timeframe.

Opportunity:

Increasing Adoption Of Electronic Data Interchange (EDI) Software Throughout Business Worldwide

• The adoption of electronic data interchange software is increasing due to the emergence of the internet, new transport protocols such as AS2, multiple flavors of XML-based B2B document standards, API based B2B integration, because of these EDI has grown and matured like ERP systems and became a backbone for global business. In many industries and supply chain networks, a core set of EDI transaction types has been widely used.  Purchase Orders, PO acknowledgment, advanced ship notice (ASN), shipment status, invoice, and payments are basic document types.
• Most industries globally exchange these document types with suppliers. Thus, the document set continues to expand as supply chains scale in size and scope. In addition to this, because of the automation process, EDI speeds up business cycles by 61% and reduces the time, thus increasing the demand for EDI software in small as well as large enterprises helps to the growing market in the future.

Segmentation Analysis Of Electronic Data Interchange (EDI) Software Market

Electronic Data Interchange (EDI) Software Market is segmented based on Type, Application and Region

By Type, Cloud-based type Segment is Expected to Dominate the Market During the Forecast Period

• The Cloud-based type is anticipated to dominate the electronic data interchange (EDI) software market. Cloud-based EDI is a game-changer for B2B EDI communications. It is an easy, efficient and effective way of documenting transactions between businesses and companies. Cloud EDI software delivers more than just data exchange, they add value in terms of data security, onboarding, automation, data transformation, real-time collaboration, and business agility. Cloud-based tools can raise operational efficiency, boost end-to-end visibility capabilities and promote smoother collaboration. In addition to this, it is cost-effective. Some tools of EDI are restricted and complex, therefore companies are shifting to cloud-based EDI software and thus contributing largely to the growth of the EDI software market.

By Application, Large enterprise Segment Held the Largest Share in 2024

• Large enterprise is anticipated to grab the maximum market share in the electronic data interchange (EDI) software market over the projected period. Large enterprises are ready to spend high on EDI software systems for increasing operations and efficiency. The initial investment in an EDI system is high due to it containing multiple standards but its affordable price for large enterprises as compared to small and medium. This propels the growth of the EDI software market by the large enterprise in the projected timeframe.

Regional Analysis Of Electronic Data Interchange (EDI) Software Market

North America is Expected to Dominate the Market Over the Forecast Period

• North America is anticipated to dominate the global electronic data interchange (EDI) Software market during the forecast period. The increasing manufacturing, healthcare industries, retails, and automobile industries propel the growth of the market. In addition to these increasing advanced technologies powered by artificial intelligence (AI) and machine learning (ML), governments and organizations in this region that showing much interest in EDI software, increasing adoption of cloud services, presence of the healthcare and BFSI sector that boost the market of EDI software. In the US increasing digital business-to-business transactions. For instance, Sales throughout electronic data interchange (EDI) accounted more than 4.1 trillion U.S. dollars in the manufacturing industry in the United States in 2021. That year, EDI amounted to nearly 70% of all U.S. manufacturers' sales, which exceeded six trillion dollars.
• Asia Pacific is expected to grow exponentially in the electronic data interchange (EDI) software market during the forecasted period. The growth is attributable to the increasing e-commerce industries, rapid economic development in India, China, and others, and increasing supply chain efficiency among the retailers and suppliers that helps to propel the growth of the market. In addition to this rising government initiatives and manufacturing facilities in this region are expected to grow the demand for EMI software among the enterprises that propel the regional market.
• Europe is a region that is expected to show high growth in the electronic data interchange (EDI) software market during the projected period. The growth is attributed due to the presence of numerous data exchange solutions and tool manufacturers. For instance, the United nation of Europe has introduced the electronic data transfer standard ISO 9735 is comply with the electronic data exchange operation. It helps to propel the growth of the market.
• The Middle East and Africa are expected to gradually grow during the forecasted period due to increasing e-commerce, distribution stores, and facilities. Apart from this SMEs engaged in third-party logistics, increasing healthcare and manufacturing infrastructure in this region that boost the growth of the electronic data interchange software market during the projected timeframe.
• Some of the major factors driving the market growth of EDI software in South America include increasing healthcare industries, manufacturing industries, distribution and retail stores, and rising government initiatives that propel the growth of the market in this region in the forecasted period.

Top Key Players Covered In Electronic Data Interchange (EDI) Software Market

• SPS Commerce (The U.S)
• TrueCommerce (The U.S)
• Mulesoft(The U.S)
• IBM Corporation (The U.S)
• Cleo (The U.S)
• Data Masons Software (The U.S)
• Edicom(Spain)
• Crossinx (Germany)
• Intertrade Systems (The U.S)
• Comarch (Poland)
• The Descartes Systems Group (Canada)
• Others Active players.

Key Industry Developments In Electronic Data Interchange (EDI) Software Market

• In January 2024, IBM finalized its acquisition of application modernization capabilities from Advanced, a move aimed at bolstering IBM Consulting's services in mainframe application and data modernization. The acquisition, driven by CEOs' emphasis on technology modernization for competitive advantage, aligns with IBM's hybrid cloud and AI strategy. A recent survey by IBM Institute for Business Value underscores the importance of mainframe systems in hybrid cloud strategies, emphasizing the value of a hybrid approach in driving business transformation.
• In June 2021, MuleSoft Accelerator was launched by MuleSoft for Healthcare, featuring a set of integrations and prebuilt APIs to recover public health data from external sources and common electronic health record systems. The reusable APIs and integrations allow entities to save money and time and efficiently utilize resources.
• In May 2021, A supply chain management specialist DiCentral Corporation, collaborated with Tokyo-based Nippon Information and Communication (NI+C). The partnership allows NI+C to augment its EDI capabilities to meet the rising demand for supply chain automation and outsourced B2B integration.