Category Management Software Global Market Report 2024

The category management software market size has grown rapidly in recent years. It will grow from $1.9 billion in 2023 to $2.16 billion in 2024 at a compound annual growth rate (CAGR) of 13.8%. The growth observed in the historical period can be attributed to several key factors. These include the increasing demand for data-driven decision-making processes, heightened competition within the retail sector, the proliferation of e-commerce platforms, the challenges associated with managing large product assortments, and the emergence of big data analytics technologies.

The category management software market size is expected to see rapid growth in the next few years. It will grow to $3.66 billion in 2028 at a compound annual growth rate (CAGR) of 14%. Anticipated growth in the forecast period can be attributed to several key factors. These include the integration of IoT devices for real-time inventory tracking, a heightened focus on sustainability initiatives, a shift towards dynamic pricing strategies, an increased emphasis on supply chain resilience, and the growing importance of shopper loyalty programs. Major trends expected in the forecast period include the adoption of cloud-based solutions for enhanced scalability and flexibility, the implementation of real-time data analytics to drive actionable insights, the development of mobile-friendly solutions to cater to changing consumer preferences, a focus on personalization and customization to enhance the customer experience, and efforts to improve supply chain visibility for greater efficiency and transparency.

The surge in the number of retail stores is poised to propel the growth of the category management software market in the foreseeable future. Retail stores, whether physical or online, serve as establishments where businesses directly sell goods and services to consumers. This increase in retail store numbers is attributed to growing consumer demand for convenient shopping options and retailers' endeavors to expand their presence and penetrate new markets. Category management software plays a pivotal role in streamlining inventory, establishing competitive prices, and optimizing store layouts, thereby driving enhanced sales and profitability for retail stores. For example, as per a report published by the National Association of Convenience Stores, a US-based trade association, in January 2024, convenience stores in the United States experienced a 1.5% uptick, reaching a total count of 152,396 in 2024 compared to the previous year. Consequently, the proliferation of retail stores is a key factor fueling the growth of category management software.

Leading companies in the category management software market are strategically focusing on integrating artificial intelligence (AI) to develop AI-powered category management software, aiming to bolster efficiency and optimize decision-making processes. AI-powered category management software leverages artificial intelligence algorithms and techniques to enhance the category management process in retail settings. For instance, in January 2024, Symphony Innovation LLC, an India-based provider of predictive intelligence software solutions, unveiled the category manager copilot system in collaboration with the Microsoft Azure Open AI service. This system employs both text and graphics to swiftly analyze user queries and pinpoint performance-affecting factors within a product category. Serving as a virtual assistant, the copilot empowers category managers to expedite tasks, simplifying processes and enabling a focus on high-value strategic activities instead of mundane operational tasks.

In January 2024, ITONICS GmbH, a Germany-based SaaS provider specializing in systematic innovation management, acquired Braineet for an undisclosed sum. This strategic acquisition positions ITONICS to enhance its innovative management capabilities by integrating Braineet's expertise in crowdsourcing and innovation portfolio management. The acquisition also aims to establish a comprehensive platform offering cutting-edge tools for open innovation, strategy development, and digital transformation. Braineet, based in France, specializes in offering category management software solutions, further enriching ITONICS' product portfolio and expanding its market reach.

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.

Europe was the largest region in the category management software market in 2023. 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.

The countries covered in the category management software market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Category management software encompasses specialized tools tailored to assist businesses in effectively managing and optimizing their product categories. These software solutions empower businesses to gain valuable insights into their product categories, comprehend customer preferences, spot trends, and make data-driven decisions aimed at maximizing sales and profitability.

The primary components of category management software include solutions and services. Solutions refer to the software systems or tools engineered to tackle specific challenges or requirements within a given domain. They can be deployed either on-premises or in the cloud, catering to organizations of varying sizes, ranging from small and medium enterprises to large enterprises. These solutions find applications across diverse sectors, including retail, distribution, and consumer packaged goods.

The category management software market research report is one of a series of new reports that provides category management software market statistics, including category management software industry global market size, regional shares, competitors with a category management software market share, detailed category management software market segments, market trends and opportunities, and any further data you may need to thrive in the category management software industry. This category management software market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

The category management software market consists of revenues earned by entities providing services such as data analysis and insights, strategic planning, procurement optimization, and inventory management, which are used to streamline and enhance processes related to category management. The market value includes the value of related goods sold by the service provider or included within the service offering. The category management software market also includes sales of servers, storage solutions, software licenses, and networking components that are used in providing category management software services. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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