The global category management software market size was estimated at USD 1.49 billion in 2021 and is projected to reach USD 3.79 billion by 2030, growing at a CAGR of 11.1% from 2022 to 2030. This steady growth can primarily be attributed to the increasing need for effective segmentation and classification of a wide range of product categories across retail stores. Retailers are increasingly focusing on structured category management approaches to better understand consumer behavior, optimize shelf space, and enhance overall customer attraction and shopping experience.

Category management solutions also play a crucial role in identifying opportunities to establish mutually beneficial and long-term relationships with suppliers. These solutions support various procurement and supplier-related functions, including strategic sourcing, efficient supplier onboarding, supplier relationship management, negotiation processes, performance evaluation, and opportunity identification. By streamlining these activities, organizations are able to improve collaboration, enhance transparency, and strengthen supplier networks.

In addition, the adoption of category management solutions enables organizations to achieve significant cost savings across materials, supplies, and inventory management. These solutions make it easier to analyze vendor contracts in detail, helping retailers identify areas where minor operational adjustments in procurement can result in measurable financial gains. Such efficiencies further contribute to the overall growth of the market.

Moreover, the implementation of category management software and related services helps reduce supply chain risks by improving visibility and control over spending patterns. Organizations can identify anomalous or inefficient expenditures, pinpoint areas requiring corrective action, and initiate cost-reduction strategies using advanced analytics and insights provided by these solutions. This ability to optimize spending and mitigate risks is expected to create lucrative growth opportunities for the industry over the forecast period. Furthermore, category management software supports the initiation and management of collaboration with multiple suppliers, enabling organizations to maintain consistency, improve coordination, and drive long-term operational efficiency.

Key Market Trends & Insights:

• The Europe region dominated the global category management software industry in 2021 and accounted for the maximum share of more than 28.10% of the overall revenue. This dominance can be attributed to the strong presence of organized retail chains, early adoption of advanced digital solutions, and the increasing focus on data-driven merchandising and procurement strategies across the region. European retailers continue to invest in category management tools to improve operational efficiency and enhance customer engagement.

• Based on solution type, the assortment planning segment dominated the industry in 2021 and accounted for the maximum share of more than 40.37% of the overall revenue. The high adoption of assortment planning solutions is driven by the need to optimize product mix, improve shelf utilization, and align offerings with changing consumer preferences, enabling retailers to maximize sales and profitability.

• Based on deployment mode, the cloud-based deployment segment dominated the industry in 2021 and accounted for the largest share of more than 67.90% of the global revenue. The preference for cloud-based solutions is supported by benefits such as scalability, cost-effectiveness, ease of integration, real-time data access, and reduced infrastructure requirements, making them highly attractive to organizations of all sizes.

• Based on enterprise size, the large enterprise segment dominated the global industry in 2021 and accounted for the maximum share of more than 73.15% of the overall revenue. Large organizations typically manage complex product portfolios and extensive supplier networks, which increases the demand for advanced category management software to streamline operations, improve decision-making, and enhance supply chain coordination.

• Based on application, the retail segment dominated the industry in 2021 and accounted for a share of more than 83.20% of the global revenue. The strong dominance of the retail sector reflects the widespread use of category management solutions to analyze consumer behavior, optimize product assortments, improve pricing strategies, and enhance overall store performance.

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Market Size & Forecast:

• 2021 Market Size: USD 1.49 Billion

• 2030 Projected Market USD 3.79 Billion

• CAGR (2022-2030): 11.1%

• Europe: Largest market in 2021

• Asia Pacific: Fastest growing market

Key Companies & Market Share Insights:

The industry is highly fragmented, with the presence of numerous global and regional players competing across different markets. To strengthen their market position and gain higher industry shares, prominent companies are increasingly focusing on expanding their customer base through the adoption of new technologies and the implementation of innovative business strategies. These approaches enable players to enhance their product offerings, improve operational efficiency, and address the evolving needs of end users.

For instance, in 2022, Epicor, a global leader in enterprise software, acquired Data Interchange, a U.K.-based Electronic Data Interchange (EDI) provider, as part of its strategy to promote business growth. This acquisition significantly expands Epicor’s presence and reach across European markets and is expected to enhance operational efficiency while driving greater value across the supply chain through improved data integration and connectivity.

Furthermore, businesses increasingly prefer to obtain services from category management software providers for key functions such as forecasting, reporting, and planning, as these services help organizations make data-driven decisions and improve overall performance. For example, in July 2022, Board International S.A. announced that it was selected by Cornerstone Building Brands to support improved project visibility across budgeting, forecasting, reporting, capital expenditure planning, and tax provisioning. This selection highlights the growing demand for advanced category management and planning solutions that enable better financial control and strategic decision-making.

Key Players

• Oracle Corp.

• Aptos, LLC

• Board International S.A.

• INTERACTIVE EDGE

• 42 Technologies, Inc.

• Epicor Software Corp.

• Softvision

• GEP

• JAGGAER

• DotActiv (Pty) Ltd.

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Conclusion:

The report concludes that the category management software market is expected to grow substantially over the forecast period, driven by the increasing need for effective product categorization and retail optimization. Growth is supported by widespread adoption of cloud-based solutions, strong demand from large enterprises, and the dominant use of software in the retail sector. The market is also driven by the need for better supplier collaboration, improved forecasting, reporting and planning capabilities, and the shift toward omnichannel retail strategies. Cloud deployment and advanced analytics features further facilitate operational efficiency and supply chain improvements, contributing to overall industry expansion.