Key Factor Supporting Category Management Software Market Development in 2025: Surge In Retail Stores Fuels Growth In Category Management Software Market

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How Large Will the Category Management Software Market Size By 2025?
The market size for category management software has witnessed a speedy expansion in the past few years. Projected figures indicate a rise from $2.16 billion in 2024 to $2.47 billion in 2025, representing a compound annual growth rate (CAGR) of 14.3%. This trajectory during the historical phase is driven by increased necessity for data-oriented decision making, intensifying rivalry in the retail industry, the growth of online shopping, challenges associated with managing broad product ranges, and the advent of big data analytics.

How Big Is the Category Management Software Market Size Expected to Grow by 2029?
Expect significant expansion in the category management software market in the coming years. The market is predicted to rise to a valuation of $4.16 billion in 2029, with a compound annual growth rate (CAGR) of 13.9%. Factors such as the application of IoT devices for live inventory monitoring, attention to sustainability, evolution towards dynamic pricing tactics, focus on supply chain elasticity, and an increasing emphasis on customer loyalty are contributing to this growth in the forecast period. Emerging trends during this timeframe include cloud-enabled solutions, real-time data analysis, mobile-compatible solutions, personalized and custom approaches, as well as supply chain transparency.

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Which Key Market Drivers Powering Category Management Software Market Expansion and Growth?
The growth of the category management software market is anticipated to be fueled by the increasing number of retail stores. Retail outlets, which may either be physical or online, are business enterprises selling goods and services straight to customers. The escalation in retail stores is linked to the rising consumer demand for hassle-free shopping and retailer efforts to spread their footprint and penetrate new markets. Category management software aids in inventory streamlining, setting competitive pricing, and enhancing store layouts, all of which contribute to superior sales and improved profitability for retail stores. For example, a report by the US-based National Association of Convenience Stores disclosed in January 2024 that the number of convenience stores in the United States grew by 1.5%, tallying up to 152,396 in 2024, up from the total in the preceding year. Consequently, the upsurge in the count of retail stores is a significant driver for the expansion of category management software.

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Which Fast-Growing Trends Are Poised to Disrupt the Category Management Software Market?
Leading businesses in the category management software market are concentrating on incorporating artificial intelligence to create AI-powered category management software that enhances efficiency and streamlines decision-making processes. AI-empowered category management is a software solution that leverages artificial intelligence algorithms to improve category management procedures in retail environments. For example, in January 2024, Symphony Innovation LLC, an Indian company that provides predictive intelligence software solutions, introduced the category manager copilot system. They did this in partnership with the Microsoft Azure Open AI service for retailers and consumer packaged goods. This system employs both text and graphics to swiftly evaluate user inquiries and pinpoint factors that impact the performance of a product category. This copilot serves as a digital assistant, enabling category managers to undertake tasks more quickly, simply, and strategically, freeing them up to concentrate on high-priority strategic activities instead of routine operational tasks.

What Are the Emerging Segments in the 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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Who Are the Global Leaders 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.

Which are the Top Profitable Regional Markets for the Category Management Software Industry?
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.

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