The category management software market is helping retailers optimize product assortments, shelf space allocation and pricing. Category management software helps retailers effectively manage categories, assortments, pricing, promotions and supply chain operations to maximize profits. Insights from category management software helps retailers make more informed category reviews, shelf space allocation and pricing decisions.

The Global Category Management Software Market is estimated to be valued at US$ 1.71 Billion in 2024 and is expected to exhibit a CAGR of 10.% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the category management software market are Aptos, LLC, Board International S.A., Cognizant, IBM Corporation, INTERACTIVE EDGE, Infor, Mi9 Retail, Microsoft Corporation, Oracle Corporation, Retail Insights, Retek, Revionics, SAP SE, Softvision, Symphony RetailAI. Category management software helps retailers optimize revenues, profit margins and inventory levels by making data-driven category, pricing and promotion decisions. With growing retail sector global expansion into emerging markets presents significant growth opportunities for players in the category management software market.

Market Drivers

The primary driver boosting the Category Management Software Market Trend is the need for a collaborative, data-driven approach to retail planning and execution. Category management software helps retailers improve sales and profits by optimizing pricing, promotions, sourcing and shelf space allocation based on market insights and analytics. To differentiate in an increasingly competitive retail landscape, retailers are relying more on data analytics and category management software to manage complex category reviews, assortments and pricing strategies more efficiently.

PEST Analysis
Political: Category management software enables retailers and consumer goods manufacturers to adhere to government regulations related to labeling and packaging of products. The software helps keep track of product specifications and ensures compliance.

Economic: Fluctuations in overall economic conditions influence consumer spending which directly impacts retail sales and inventory management. Category management software allows organizations to analyze economic trends and demand patterns to make informed decisions.

Social: Changing customer preferences and lifestyle trends require retailers to frequently refresh product categories. The software facilitates evidence-based category review to identify top-selling items and adjust assortments based on social factors.

Technological: Advanced technologies like big data analytics, cloud computing and AI are being integrated into category management platforms. This allows extraction of deeper insights from large datasets, offers flexibility of cloud-based deployment and enables automated decision making.

Geographical concentration
In terms of value, the category management software market is concentrated in North America and Europe. Established retail industries, organized retail sector and presence of global retailers have led to higher adoption of tech-enabled category management practices in these regions.

Fastest growing region
Asia Pacific region is poised to grow at the fastest pace for the category management software market during the forecast period. This can be attributed to rising incomes, expansion of modern retail formats, increasing digitization of emerging economies and growing e-commerce Sales in countries like China and India. Continuous economic development is encouraging retailers to invest in innovative solutions for better planning and assortment optimization.

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Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)