According to the research report titled “Specification Management Software Market Forecast to 2028 – COVID-19 Impact and Global Analysis,” published by The Insight Partners, the market was valued at US$ 404.66 million in 2021 and is projected to reach US$ 720.92 million by 2028; it is expected to grow at a CAGR of 8.6% during 2021–2028.
APAC Specification Management Software Market to Grow at Highest CAGR During Forecast Period
With a large emphasis on gathering foreign direct investments (FDIs), governments of APAC countries are offering tax rebates, funds, subsidies, and so on to attract the fast-moving consumer goods (FMCG) and pharmaceutical manufacturing companies to set up plants in their respective countries. Further, initiatives such as Made in China 2025 and Make in India are propelling the growth of various sectors. However, China, which is the world's largest industrial hub, is seeing a spike in labor costs due to the large aging population; this has redirected manufacturers’ attention to Southeast Asian countries. Companies are drawn to these countries because of better infrastructure, rising domestic consumption, and lower operating and labor costs. Favorable initiatives such as China Food and Drug Administration’s reform in China and the price reform in Japan; supportive funding policies in Southeast Asia; and escalating digitalization in the pharmaceuticals industry are among major factors that are expected to drive the growth of the specification management software market in APAC during the forecast period.
The corporate and manufacturing sectors in APAC exhibited low investments in the technologies in the first half of 2020 due to the COVID-19 pandemic; however, they had to scale up the adoption of digital technologies to manage daily business operations from remote locations. In addition, the specification management software market in APAC is dominated by China since the country hosts a large number of manufacturers. The presence of limited workforces in production facilities resulted in limited production, which caused significant revenue losses to manufacturers. Nevertheless, since May 2020, the Chinese manufacturing facilities have been operating with higher manpower, which provided growth impetus to the specification management software market in the country.
Key Findings of Study:
FMCG, pharmaceuticals, logistics, and manufacturing companies are scaling up their business activities to meet the growing demands, which is one of the key forces driving the adoption of advanced specification management tools. More than 75% of enterprises are planning to foster their digital transformation to recover from the business loss incurred in 2020 due to the COVID-19 pandemic. The enterprises are looking forward to adopting cost-effective solutions to accomplish their predetermined digital goals. As a result, free and cloud-based platforms for quality management, packaging, and document management are expected to gain great momentum. Specification management software allow end users to automate the management approval process, alongside maintaining complete transparency. Lascom created a cloud platform for product creation and innovation. The company offers its quick and easy-to-implement product lifecycle management software solution for enterprises in the food & beverages, personal care and cosmetics, and retail industries. Migrating specification proofing and approval to an online mode enables enterprises to have high-speed specification approvals and product launches, alongside reducing internal and external costs. As a result, cloud-based specification management software is emerging as an important trend in the specification management software market.