BOM Software Market Report: Trends, Forecast and Competitive Analysis to 2031

BOM Software Market Trends and Forecast

The future of the global BOM software market looks promising with opportunities in the automotive, aerospace and defense and electrical and electronics markets. The global BOM software market is expected to grow with a CAGR of 10.1% from 2025 to 2031. The major drivers for this market are growing demand for cost efficiency, rising focus on cost reduction, and increasing customization requirement.

Lucintel forecasts that, within the type category, manufacturing BOM is expected to witness the highest growth over the forecast period.

Within the application category, automotive is expected to witness the highest growth.

In terms of region, APAC is expected to witness the highest growth over the forecast period.

Gain valuable insights for your business decisions with our comprehensive 150+ page report. Sample figures with some insights are shown below.

Emerging Trends in the BOM Software Market

The BOM software market continues to experience changing trends, caused by technological shifts, industry-related needs, and global supply chains. Below are five key emerging trends that form the new dimension of the industry:

• Cloud-Based BOM Solutions: Flexible, scalable, and cost-effective, cloud-based BOM solutions are becoming more and more popular. Manufacturers can access real-time data from anywhere to make better decisions or collaborate with teams and geographies more effectively. The integration of ERP and PLM systems with the cloud allows for smooth data exchange and streamlines production workflow and supply chain visibility.
• Artificial Intelligence And Machine Learning Integration: BOM software with AI and machine learning integration is revolutionizing how manufacturers manage materials and resources. Predictive analytics enable businesses to predict material requirements, optimize production schedules, and minimize waste. AI-powered BOM solutions provide actionable insights into supply chain inefficiencies, leading to better cost control and inventory management.
• Internet of Things And Automation: Integration with IoT devices and automation systems is upgrading the efficiency in operations. Material movement is tracked in real-time by IoT sensors, ensuring accurate inventory management with fewer chances of errors occurring during material usage. Smoother coordination between manufacturing, logistics, and procurement teams is ensured by automating production processes combined with BOM software to enhance the overall efficiency of production.
• Advanced Analytics For Supply Chain Optimization: With BOM software, advanced analytics tools for supply chain optimization are being used. These tools improve a manufacturer's decision-making in terms of material costs, lead times, and the performance of suppliers. Predictive analytics for predicting supply chain disruptions and bottlenecks is an increasingly popular trend. Businesses can prepare, anticipating and taking measures in advance.
• Customization and Industry-Specific Solutions: The more specialized industries become, the more customized BOM software solutions are in demand. Companies look for BOM systems that are tailored to the specific needs of their industry-automotive, aerospace, electronics, or pharmaceuticals. This customization allows businesses to adapt their BOM software to their production processes, making it better aligned with their operational goals.

The analysis shows these trends have substantial potential in the transition toward more integrated, intelligent, and data-driven BOM solutions. Of course, these demand expansion and evolutions in the increasing applications of AI, cloud technology, IoT, and advanced analytics. Consequently, BOM software is evolving in response to modern manufacturing demands with newfound efficiency, better supply chain management, and greater collaboration across global production networks.

Recent Developments in the BOM Software Market

The BOM software market has witnessed several key developments that are reshaping the landscape of manufacturing and supply chain management. These developments reflect the increasing demand for more efficient, flexible, and integrated solutions. The following five key developments highlight the ongoing transformation of the BOM software market:

• Cloud Adoption in BOM Software: Cloud-based BOM software is now being adopted as it is highly scalable and flexible. Manufacturers are increasingly adopting cloud solutions to enhance collaboration and streamline data sharing between global teams. This shift allows for real-time updates, reduces the need for on-premise infrastructure, and enables businesses to scale their operations more efficiently.
• Integration with PLM and ERP Systems: Integrated solutions are now being sought by manufacturers to make connections between BOM software and Product Lifecycle Management (PLM) and Enterprise Resource Planning (ERP) systems of manufacturers seamless. Integration makes the data more consistent across the platforms, facilitates faster development processes of products, and helps enhance the overall efficiency of operations with a single source of truth.
• AI-Powered Predictive Analytics: BOM software is increasingly becoming an integral feature of analytics, whereby manufacturers are also able to predict demand, optimize material usage, and minimize waste. Predictive analytics can enable producers to predict when potential supply chain disruption and production bottleneck might occur, thereby making the business more efficient and cost-effective. Manufacturers can now make real-time data-driven decisions.
• User Experience and Customization: With the complexity of manufacturing processes, user experience for BOM software providers is becoming more important. The interfaces are becoming industry specific, including usability, and efficiency are the principal concerns. Manufacturers will need intuitive products that are adaptable to their needs and allow for the support of complex product structures and global supply chains.
• Sustainability Features in BOM Software: Sustainability is now becoming a core focus for BOM software providers. Manufacturers are increasingly looking for solutions that help them track and manage the environmental impact of their supply chains. BOM software now includes features that allow businesses to monitor material sourcing, waste reduction, and carbon footprints, helping them meet sustainability goals while maintaining profitability.

This trend mirrors how BOM software companies are constantly adapting to change for manufacturers' changing needs. Cloud adoption through AI integration makes it a competitive game of who can provide greater flexibility, integrate well, and have sustainable systems to define BOM software into the future.

Strategic Growth Opportunities in the BOM Software Market

There are a lot of growth opportunities in the BOM software market through various key applications. Due to the adoption of advanced technologies in manufacturing industries, there are vast opportunities for BOM software to enhance operational efficiencies and strategic advantages. Here are five key growth opportunities:

• Automation in Manufacturing: With the onset of Industry 4.0 and smart factories, automation is an area where there is lots to come in BOM software. Automated BOM systems save manufacturers from manual work and increase the speed of production and minimize the error rate. This system can update BOMs automatically while changes occur in the material, parts, or processes, ensuring real-time accuracy and efficiency.
• Optimization in Supply Chain Management: BOM software plays a role for the optimization in supply chain management. BOM software can help manufacturers track material movements, forecast demand, and manage supplier relationships more effectively. The increasing complexity of global supply chains will continue to present an increasing need for real-time visibility with BOM systems that provide seamless integration across multiple systems.
• Sustainability and Environmental Impact Tracking: Sustainability is now becoming a factor in manufacturing decisions. BOM software that offers the ability to track the environmental impact of materials, carbon footprints, and waste reduction is increasingly in demand. Companies seek solutions that can support sustainable sourcing and production, opening up new opportunities for BOM software vendors to address the increasing demand for sustainability.
• Integration with AI and IoT for Enhanced Efficiency: Combination with AI and IoT to Improve Efficiency Better efficiency and accuracy of data are achieved when BOM software is combined with AI and IoT technologies for manufacturers. The insight from AI is predictive into material shortages, while IoT devices track the real-time movement of goods. The outcome of such a combination is seamless operations and less inefficiency in the supply chain.
• Industry-specific customizations: The various industries have specific requirements. Industry-specific BOM software helps to fulfill those requirements. Automotive, electronics, or pharmaceutical manufacturers need BOM systems specifically tailored to their product structures and processes. This industry-specific BOM demand offers an opportunity for the provider to provide tailored, high-value software solutions.

These growth opportunities show how BOM software can cater to the evolving needs of manufacturers across various industries. Automation, supply chain optimization, sustainability, AI integration, and industry-specific customization represent significant areas for development and innovation, offering vast potential for growth in the BOM software market.

BOM Software Market Driver and Challenges

The BOM software market is influenced by various technological, economic, and regulatory drivers, as well as challenges that must be addressed to ensure continued growth. The following outlines five key drivers and three challenges affecting the market.

The factors responsible for driving the bom software market include:

1. Technological Advancement: The rapidly changing pace of technological innovation has been the driving force behind BOM software market growth. Incorporation of AI, IoT, and cloud computing has revolutionized the way manufacturing companies manage material, resources, and production processes. These technologies enable better accuracy in data, automation, and predictive analytics that drive demand for advanced BOM solutions.

2. Global Supply Chain Complexity: With the increasing globalization and complexity of manufacturing supply chains, the demand for strong BOM software has increased. Manufacturers need systems that can handle multiple suppliers, different production locations, and real-time tracking of materials. BOM software helps manage this complexity by providing a single source of truth for materials and components, ensuring smooth coordination across the supply chain.

3. Demand for Operational Efficiency: Manufacturers are increasingly demanding operational efficiency with automation, data-driven decision making, and smooth workflows. This is where BOM software makes a difference to achieve efficiency with automated material tracking, optimized schedules, and reducing human errors while producing. So, the growing demand for the reduction of cost and improvement of profitability is adding to the rise in the use of BOM software.

4. Customization and Industry Needs: Specialists in different industries find increasing need for custom BOM software for specific production needs. Automotive, aerospace, and even electronics companies demand some level of customization of product structures and manufacturing processes related to a specific production process. In this regard, the demand pushes for developing highly flexible and adaptive BOM systems to address various industry needs.

5. Sustainability Concerns: Increasing awareness of environmental issues is driving demand for BOM software that supports sustainability. Manufacturers are looking for solutions that help track material sourcing, waste reduction, and energy consumption, as they aim to meet sustainability targets. BOM software that enables transparency and environmental impact tracking is becoming more essential for businesses with sustainability goals.

Challenges in the bom software market are:

1. Compatibility with Old Systems: A challenge, more or less common in most manufacturers, is how the BOM software integrates with legacy systems, such as possibly outmoded ERP or production management software. It can be challenging and expensive to achieve a smooth flow of data between these systems, which deters manufacturers from utilizing newer BOM solutions.

2. Data Accuracy and Quality: Effective BOM software needs to use high-quality and accurate data to be competent in the production line. Inconsistent or incomplete data, however, might lead to errors in the material management, production scheduling, and control of inventories. Data integrity often remains a major hurdle in most manufacturers' adoption of BOM solutions.

3. Cybersecurity Threats: While becoming increasingly interdependent on cloud-based infrastructures and other global systems, security about BOM software is of concern. Protected data about products and suppliers allows them to avoid data breaches and maintain the integrity of the system. Determining and implementing effective cybersecurity measures is necessary to ensure that a manufacturer's BOM is not vulnerable to potential threats.

The BOM software market is influenced by a combination of technological advancements and challenges: the complexity of global supply chains, the demand for efficiency in operation, and the push toward sustainability. Overcoming those challenges related to system integration, data accuracy, and cybersecurity will be crucial for the continued growth and expansion of BOM software across various industries.

List of BOM Software Companies

Companies in the market compete on the basis of product quality offered. Major players in this market focus on expanding their manufacturing facilities, R&D investments, infrastructural development, and leverage integration opportunities across the value chain. With these strategies BOM software companies cater increasing demand, ensure competitive effectiveness, develop innovative products & technologies, reduce production costs, and expand their customer base. Some of the BOM software companies profiled in this report include-

• Autodesk
• Arena Solutions
• Aras
• Dassault Systèmes
• Ptc
• Siemens
• Iqms
• Omnify Software
• Open Systems
• Oracle

BOM Software Market by Segment

The study includes a forecast for the global BOM software market by type, application, and region.

BOM Software Market by Type [Value from 2019 to 2031]:

• Engineering BOM
• Manufacturing BOM
• Service BOM

BOM Software Market by Application [Value from 2019 to 2031]:

• Automotive
• Aerospace And Defense
• Electrical And Electronics
• Others

BOM Software Market by Region [Value from 2019 to 2031]:

• North America
• Europe
• Asia Pacific
• The Rest of the World

Country Wise Outlook for the BOM Software Market

The BOM software market is undergoing dynamic growth all over the world, mainly because of the advancement in technology, digital transformation in manufacturing, and the need for better supply chain management. The BOM software is evolving at a rapid pace in key countries such as the United States, China, Germany, India, and Japan in order to fulfill the demands of complex production systems, global supply chains, and data-driven decision-making. This global trend is molding the market through customized solutions, integration capabilities, and more robust analytics. The summaries of the developments in each country reflect unique advancements and challenges in the BOM software market, as presented below.

• United States: In the United States, rapid technological innovation is one of the reasons for growth in the BOM software market, particularly AI, IoT, and cloud computing. Many firms are adopting cloud-based BOM solutions to collaborate and share real-time data among their supply chain. There is also a rise in demand for more integrated solutions that connect BOM software with ERP and PLM systems. American manufacturers have also used the power of automation and advanced analytics within BOM systems to decrease errors, optimize inventory, and improve production efficiency.
• China: In China, the BOM software market is evolving and focusing on the digital transformation of the manufacturing sector. Chinese manufacturers are increasingly adopting BOM software to streamline their operations, reduce costs, and improve product quality. The push for "Made in China 2025" by the government has driven the demand for advanced manufacturing technologies, and BOM software is an important part of this initiative. Integration of BOM software with AI and big data analytics is also increasing. This allows more accurate forecasting, resource management, and production scheduling.
• Germany: Germany's BOM software market is marked by the country's strong industrial base and commitment to Industry 4.0. The integration of IoT, automation, and digital twins with BOM software is transforming the manufacturing landscape. German companies are investing heavily in systems that provide real-time, data-driven insights into material requirements and production processes. There is also a growing trend toward customizable BOM software solutions that can be tailored to meet specific industry needs, particularly in automotive and machinery manufacturing.
• India: In India, the BOM software market is growing steadily with the rapid adoption of digital technologies by SMEs. Indian manufacturers are increasingly looking at BOM software for supply chain management improvement, minimization of production downtime, and optimum resource utilization. The outsourcing trend and global supply chain collaboration are also pushing the demand for more advanced BOM systems to coordinate with international partners and suppliers seamlessly.
• Japan: The BOM software market in Japan is changing, with a focus on improving operational efficiency and reducing waste. Japanese manufacturers are adopting BOM solutions that integrate with robotics and automation systems to enhance production processes. In addition, there is a strong emphasis on software that supports lean manufacturing practices, helping companies reduce costs and streamline production. Japan is now also experiencing new investment in the AI-powered BOM software through predictive analytics on potential material shortage and production bottleneck.

Features of the Global BOM Software Market

Market Size Estimates: BOM software market size estimation in terms of value ($B).

Trend and Forecast Analysis: Market trends (2019 to 2024) and forecast (2025 to 2031) by various segments and regions.

Segmentation Analysis: BOM software market size by type, application, and region in terms of value ($B).

Regional Analysis: BOM software market breakdown by North America, Europe, Asia Pacific, and Rest of the World.

Growth Opportunities: Analysis of growth opportunities in different type, application, and regions for the BOM software market.

Strategic Analysis: This includes M&A, new product development, and competitive landscape of the BOM software market.

Analysis of competitive intensity of the industry based on Porter’s Five Forces model.

This report answers following 11 key questions:

Q.1. What are some of the most promising, high-growth opportunities for the BOM software market by type (engineering BOM, manufacturing BOM, and service BOM), application (automotive, aerospace and defense, electrical and electronics, and others), and region (North America, Europe, Asia Pacific, and the Rest of the World)?

Q.2. Which segments will grow at a faster pace and why?

Q.3. Which region will grow at a faster pace and why?

Q.4. What are the key factors affecting market dynamics? What are the key challenges and business risks in this market?

Q.5. What are the business risks and competitive threats in this market?

Q.6. What are the emerging trends in this market and the reasons behind them?

Q.7. What are some of the changing demands of customers in the market?

Q.8. What are the new developments in the market? Which companies are leading these developments?

Q.9. Who are the major players in this market? What strategic initiatives are key players pursuing for business growth?

Q.10. What are some of the competing products in this market and how big of a threat do they pose for loss of market share by material or product substitution?

Q.11. What M&A activity has occurred in the last 5 years and what has its impact been on the industry?

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