At 8.0% CAGR, Middle East & Africa Electronic Data Interchange Market is Projected to be Worth US$ 3,892.58 Million by 2031, says Business Market Insights

According to Business Market Insights’ research, the Middle East & Africa electronic data interchange market was valued at US$ 2,101.55 million in 2023 and is expected to reach US$ 3,892.58 million by 2031, registering a CAGR of 8.0% from 2023 to 2031. Increasing adoption of EDI transactions and standards and growing adoption of EDI in SMEs are among the critical factors attributed to drive the Middle East & Africa electronic data interchange market growth.

An electronic data interchange (EDI) document comprises minimum vital data to ensure smooth EDI transactions. The organizations are required to adhere to stringent EDI formatting rules as this helps retrieve the document's relevant information. The EDI document consists of several transaction numbers from the EDI public format. For example, the purchase order (PO) is assigned to the invoice transaction number 810 and the EDI transaction number 850. Thus, the EDI translator obtains an EDI 850 PO document that easily recognizes the order number, items in the order, the company name of the buyer, and the price per item. An efficient EDI transaction enhances the overall data exchange process with seamless automation of B2B workflows and effective integration of the external and internal systems, cloud ecosystems, and applications. Many governments are authorizing the adoption of EDI solutions in specific countries for receiving and sending data from organizations to trading partners. EDI solution providers offer various solutions with benefits such as compliance features to tackle the complex country regulations and guard against any risk associated with the regulatory compliances that affect "procure to pay" and "order to cash" business processes. The EDI standard formats of a document on which the data interchange depends are managed and efficiently interpreted by computers so that both parties can easily understand it. Every country has a different set of regulations, and companies are required to stay updated to avoid penalties or fines (also known as chargebacks). Various providers are developing EDI systems to deliver a more robust and user-friendly experience. For instance, in July 2023, Jitterbit, Inc. launched its self-managed, cloud-based EDI solution fully integrated into the Jitterbit Harmony platform. With Harmony EDI, users can fully self-serve and self-manage EDI 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 EDI system helps to streamline processes and automate workflows, eliminating the manual processing and approvals of EDI transactions and ensuring the accuracy of information being transmitted between systems. Such developments propel the adoption of the EDI system to automate the workflow process.

On the contrary, the emergence of security threats and attacks hampers the growth of Middle East & Africa electronic data interchange market.

Based on component, the Middle East & Africa electronic data interchange market is bifurcated into solutions and services. The solutions segment held 69.0% market share in 2023, amassing US$ 1,450.01 million. It is projected to garner US$ 2,840.12 million by 2031 to register 8.8% CAGR during 2023–2031.

In terms of type, the Middle East & Africa electronic data interchange market is categorized into direct EDI, EDI via AS2, EDI via VAN, mobile EDI, web EDI, EDI outsourcing, and others. EDI via AS2 segment held 27.0% share of Middle East & Africa electronic data interchange market in 2023, amassing US$ 566.41 million. It is anticipated to garner US$ 1,158.52 million by 2031 to expand at 9.4% CAGR during 2023–2031.

By industry, the Middle East & Africa electronic data interchange market is segmented into BFSI, retail & consumer goods, healthcare, IT & telecommunication, transportation & logistics, and others. The retail & consumer goods segment held 29.0% share of Middle East & Africa electronic data interchange market in 2023, amassing US$ 609.60 million. It is projected to garner US$ 1,000.69 million by 2031 to expand at 6.4% CAGR from 2023 to 2031.

Based on country, the Middle East & Africa electronic data interchange market is categorized into South Africa, Saudi Arabia, the UAE, and the Rest of Middle East & Africa. Our regional analysis states that the UAE captured 36.6% share of Middle East & Africa electronic data interchange market in 2023. It was assessed at US$ 770.21 million in 2023 and is likely to hit US$ 1,456.85 million by 2031, registering a CAGR of 8.3% during 2023–2031.

Key players operating in the Middle East & Africa electronic data interchange market are MuleSoft, LLC; Optum Inc; TrueCommerce Inc; Cerner Corp; International Business Machines Corp; Boomi, Inc; GoAnywhere MFT; The Descartes Systems Group Inc; Crossinx GmbH; EDICOM; Comarch SA; and InterTrade Systems, Inc. among others.

• In July 2023, Deloitte and EDICOM announced they have entered a global strategic partnership for the SEA/APAC market. This partnership combines Deloitte's extensive consulting experience with EDICOM's compliant technological services.
• 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. EDI Partner Onboarding Solution is geared towards 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.

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