Category Management Software Market Size - By Component (Solution, Service), Deployment Model (On-premises, Cloud-based), Organization Size (SMEs, Large Enterprises), Application (Retail, Consumer Goods, Food & Beverage, Healthcare) & Forecast, 2023 – 2032
Published Date: April - 2025 | Publisher: MIR | No of Pages: 240 | Industry: Media and IT | Format: Report available in PDF / Excel Format
View Details Buy Now 2890 Download Sample Ask for Discount Request CustomizationCategory Management Software Market Size
Category Management Software Market was worth USD 1.7 billion in 2022 and is expected to grow at a CAGR of more than 10.5% during the forecast period 2023-2032, owing to the increasing need for omnichannel retailing. Omnichannel retailing involves smooth management of various types of product categories through online and offline channels. Category management software allows retailers to structure, analyze, and optimize their product offerings to provide consistent and individualized experiences at every touch point. With omnichannel retailing becoming popular to address the changing needs of consumers, category management solutions that are strong and effective have found increased demand, thus fueling market growth.
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The increasing count of retail outlets within the U.S. is promoting the size of the category management software market. As the retail outlets have increased, so has the complexity to manage product categories, inventory, and sales information. Category management software provides sophisticated tools to the retailers to handle their product ranges efficiently and streamline them to increase inventory management as well as improve customer experience. Moreover, inventory management software is a major contributor to the adoption of the market.
| Report Attribute | Details |
|---|---|
| Base Year | 2022 |
| Category Management Software Market Size in 2022 | USD 1.7 Billion |
| Forecast Period | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR | 10.5% |
| 2032 Value Projection | USD 4.7 Billion |
| Historical Data for | 2018 to 2022 |
| No. of Pages | 295 |
| Tables, Charts & Figures | 336 |
| Segments covered | Component, Deployment, Organization Size, Application, and Region |
| Growth Drivers |
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| Pitfalls & Challenges |
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What are the growth opportunities in this market?
Companies increasingly acknowledge the central function inventory management contributes to category optimization. By making inventory management harmonize with category management, companies can make data-driven decisions in order to position products so they are easily available to satisfy customers' demand and reduce carrying costs while enhancing the overall category performance.
The excessive cost of implementation is a key challenge in the category management software market. Companies, especially Small & Medium-sized Enterprises (SMEs), might find the initial costs of purchasing and implementing category management software to be out of their reach. Such costs are in the form of software licenses, hardware infrastructure, training, and customization. To overcome this hurdle, vendors and service providers can think in terms of providing more flexible pricing schemes, cloud-based offerings, and budget-friendly packages tailored to the budget limitations of SMEs, making category management software affordable and within reach.
COVID-19 Impact
The COVID-19 pandemic favourably affected the category management software industry as companies looked for digital solutions to adjust to remote working and evolving consumer needs. With supply chain breaks, businesses required improved inventory management tools. The increased demand for e-commerce and the imperative for data-driven decision-making during the pandemic also drove category management software adoption. Consequently, the market saw rising demand and expedited digital transformation efforts, capitalizing on the shifting business environment mandated by the pandemic.
Category Management Software Market Trends
AI and ML integration is a growing trend in the category management software market, transforming the way businesses maximize their product categories. The technologies enable the software to sift through enormous datasets, forecast consumer tastes, and suggest tailored product assortments and pricing plans. With AI and ML, companies can make informed decisions based on data, optimize stock, and improve the customer experience. The trend is a sign of the industry's movement toward more advanced and effective category management solutions that respond to evolving market conditions and customer behavior.
Cloud solutions are becoming the leading trend among category management software. They provide companies with enhanced flexibility, scalability, and affordability over conventional on-premises systems. Cloud-based category management software provides access to data in real time, allowing teams to collaborate irrespective of location. Cloud-based solutions decrease the load of infrastructure maintenance and updates. While organizations look for agility and efficiency, the deployment of cloud solutions is increasing within the market.
Category Management Software Market Analysis
Discover more about the significant segments defining this market
Solution segment category management software market size is anticipated to rise at a CAGR of more than 9.5% during 2032. Solution segment is again divided into assortment planning, pricing & promotion, inventory management, analytics & reporting, and supplier collaboration. This segment is growing with the provision of an integrated suite of tools specific to the need. For example, in May 2023, Vanta announced a first-category one-of-a-kind vendor risk management solution, integrating risk assessment, security review, and issue remediation on a single platform. It also includes AI-powered questionnaire automation for effectiveness.
This advancement can make the security and risk management functions of category management software more powerful, adding to the demand in the market. Assortment planning maximizes product ranges, profitability is enhanced with pricing & promotion tools, stock levels are efficient through inventory management, analytics & reporting deliver insights. This overall approach gives organizations the capability to make their category management process seamless, leading to better sales, customer satisfaction, and business operations.
Find more about the principal segments that drive this market
Cloud segment dominated category management software market was worth approximately USD 1.1 billion in 2022. Cloud solutions ensure real-time access to data, scalability, and less maintenance of infrastructure. Organizations can manage product categories efficiently, monitor sales, and work in tandem from anywhere. Cloud-based category management software addresses companies' need for remote-friendly & flexible solutions, increasing its adoption. It is in line with the digital transformation trend, which makes it a necessary option for companies desiring to improve category management proficiency while remaining competitive.
Need region-specific data?
North America category management software market held 32% of the revenue stake in 2022, attributed to the rise in retail outlets within the region. For example, in August 2023, Juxta, a joint venture between Gilbarco Veeder Root and Vontier Corp., launched Nomad, a self-sustaining, portable micro-retail outlet. Nomad enables retailers to take their brand presence out of the ordinary convenience store location, with more flexibility in accessing customers.
Rapid growth of stores requires more sophisticated category management capabilities to manage product assortments optimally and boost sales. Apart from this, the North American retail environment is extremely competitive in nature, necessitating enterprises to implement novel category management capabilities so that they don't lag behind. Such growth, together with a firm push towards making decision-making data-led, is reinforcing market expansion throughout the region.
Category Management Software Market Share
The major companies operating in the category management software market are
- IBM Corporation
- Oracle Corporation
- SAP SE
- Mi9 Retail
- Softvision (Cognizant)
These companies are focused on strategic partnerships, new product launches, and commercialization efforts for market expansion. They are also heavily investing in research ideas to introduce innovative products and garner the maximum market revenue.
Category Management Software Industry News
- In June 2023, Unicommerce, an e-commerce enablement Software-as-a-Service (SaaS) platform, launched an advanced inventory management solution, allowing for the automated rerouting of unfulfilled orders based on real-time inventory availability across various stores and warehouses. This enhancement enables more efficient order allocation and fulfillment processes, enhancing the overall inventory management capabilities of businesses using Unicommerce's platform.
The category management software market research report includes in-depth coverage of the industry, with estimates & forecast in terms of revenue (USD million) from 2018 to 2032, for the following segments
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Market, By Component
- Solution
- Assortment planning
- Pricing & promotion
- Inventory management
- Analytics & reporting
- Supplier collaboration
- Service
- Managed service
- Professional service
Market, By Deployment
- On-premises
- Cloud-based
Market, By Organization Size
- SMEs
- Large enterprises
Market, By Application
- Retail
- Consumer goods
- Food & beverage
- Healthcare
- Others
The above information has been provided for the following regions and countries
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- France
- Italy
- Spain
- Nordics
- Asia Pacific
- China
- India
- Japan
- Australia
- Singapore
- Indonesia
- Latin America
- Brazil
- Mexico
- Argentina
- MEA
- UAE
- South Africa
- Saudi Arabia
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