What Fueled The Previous Growth In The Category Management Software Market?
The category management software market has seen considerable growth due to a variety of factors.
• The market size of category management software has seen a substantial increase in the past few years. The growth is predicted to continue, escalating from $2.16 billion in 2024 to $2.47 billion in 2025, which translates to a compound annual growth rate (CAGR) of 14.3%.
The growth in the historical period can be owed to factors such as a surge in demand for data-based decision making, escalated competition in the retail sector, the rise of e-commerce, the complexity associated with managing large product varieties, and the rise of big data analytics.
How Does the Forecast Look for the Category Management Software Market?
The category management software market is expected to maintain its strong growth trajectory in upcoming years.
• Expectations are high for rapid expansion in the category management software market in the upcoming years. Anticipated to surge to $4.16 billion in 2029, it is set to achieve a compound annual growth rate (CAGR) of 13.9%.
The expected growth during this period is due to factors such as the incorporation of IoT devices for real-time inventory management, a focus on sustainability, transition to dynamic pricing models, prioritization of supply chain resilience, and enhancing shopper loyalty. Noteworthy trends for this period include embracing cloud-based solutions, integration of real-time data analytics, implementing mobile-friendly solutions, emphasis on personalization and customization, and enhancement of supply chain visibility.
What Are The Leading Drivers Of Growth In The Category Management Software Market?
The category management software market is projected to grow as the number of retail stores increases. Retail stores, whether online or bricks-and-mortar, are businesses that sell products and services straight to consumers. An expansion in retail store numbers is happening due to a surge in consumer desire for convenient shopping experiences and retailers' attempts to grow and reach new markets. Category management software aids in the organization of inventory, establishment of competitive pricing, and enhancement of store layouts, which all contribute to increased sales and profit margins for retail stores. For example, a report from the National Association of Convenience Stores, a trade organization based in the US, revealed that the US experienced a 1.5% increase in convenience stores in January 2024, bringing the total to 152,396 in 2024, an increase from the previous year. As such, the growth in retail stores contributes significantly to the increased demand for category management software.
How Are The Segments Defined Within The Global Category Management Software Market?
The category management software market covered in this report is segmented –
1) By Component: Solution, Service
2) By Deployment: On-Premises, Cloud-Based
3) By Organization Size: Small And Medium Enterprises, Large Enterprises
4) By Application: Retail, Distribution, Consumer Packaged Goods
Subsegments:
1) By Solution: On-Premise Solutions, Cloud-Based Solutions
2) By Service: Implementation And Integration Services, Support And Maintenance Services, Consulting Services
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How Are New Trends Impacting The Size Of The Category Management Software Market?
Leading companies in the category management software market are concentrating on the integration of artificial intelligence to create AI-equipped category management software, thereby improving effectiveness and streamlining decision-making processes. AI-enabled category management is a software solution that utilizes AI methodologies and algorithms to improve category management processes in a retail environment. For example, in January 2024, Symphony Innovation LLC, an Indian predictive intelligence software solutions provider, in partnership with the Microsoft Azure Open AI service, introduced the category manager co-pilot system for retailers and consumer packaged goods. This system employs both text and visuals to swiftly analyze user requests and pinpoint performance-impacting factors in a product category. The co-pilot acts as a digital assistant, enabling category managers to work more efficiently, conveniently, and strategically, allowing them to concentrate on high-value strategic tasks rather than routine operational duties.
Who Are the Key Players In The Category Management Software Market?
Major companies operating in the category management software market are:
• International Business Machines Corporation
• Oracle Corporation
• SAP SE
• Capgemini SE
• Cognizant
• Zebra Technologies Corporation
• Nielsen Holdings plc
• SAS Institute Inc.
• ID Logistics Group
• PTC Inc.
• Acosta Inc.
• Teradata Corporation
• Information Resources Inc.
• Epicor Software Corporation
• Manhattan Associates Inc.
• Qlik Technologies Inc.
• Anaplan Inc.
• MicroStrategy Incorporated
• Aptos LLC
• Vistex Inc.
• AFS Technologies
• JDA Software
• Jagger LLC
• Velocity Financial Inc.
What Is The Most Dominant Region In The Category Management Software Market?
Europe was the largest region in the category management software market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the category management software market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
