Category management software Market– Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Solution (Planogram Software, Floor Planning Software), By Service (Managed Services, Professional Services), By Deployment (On-premises, Cloud-based), By Enterprise Size (Large Enterprises, Small & Medium Enterprises), By Application (Retail, Distribution), By Region, and By Competition 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 2.22 Billion
CAGR (2026-2031)	13.11%
Fastest Growing Segment	Managed services
Largest Market	Europe
Market Size (2031)	USD 4.65 Billion

Market Overview

The Global Category management software Market will grow from USD 2.22 Billion in 2025 to USD 4.65 Billion by 2031 at a 13.11% CAGR. Category management software is a strategic technological solution that enables retailers and manufacturers to treat product categories as distinct business units, allowing for the optimization of merchandising, pricing, promotion, and shelf-space allocation. The market is primarily propelled by the critical need for operational efficiency and the increasing requirement for data-driven decision-making to align product assortments with evolving consumer demands. Furthermore, the rising complexity of global supply chains has necessitated robust digital tools that centralize procurement data and foster improved collaboration between suppliers and retailers.

However, the integration of these advanced platforms with entrenched legacy systems presents a significant challenge, often resulting in data silos and extended implementation timelines that can stall market penetration. This technical friction creates barriers for established enterprises attempting to modernize their merchandising infrastructure. According to the Chartered Institute of Procurement & Supply, in 2024, 65% of organizations identified digital technology investment as a strategic priority, indicating that despite integration difficulties, the industrial commitment to adopting automated solutions remains a fundamental force sustaining market momentum.

Key Market Drivers

The Rapid Integration of Artificial Intelligence and Machine Learning is fundamentally reshaping the Global Category management software Market by automating complex analytical tasks and enabling precise consumer demand forecasting. Retailers and manufacturers are increasingly deploying AI-driven algorithms to optimize pricing strategies, planograms, and assortment planning with granular accuracy that manual methods cannot achieve. This technological shift directly translates into financial performance, encouraging further software adoption and displacing legacy systems. According to NVIDIA, January 2024, in the 'State of AI in Retail and CPG: 2024 Trends' report, 69% of retailers attributed an increase in annual revenue to the adoption of AI technologies, underscoring the direct return on investment offered by intelligent category management solutions. As these tools become more sophisticated, they allow businesses to transition from reactive inventory control to predictive category orchestration, thereby cementing AI as a non-negotiable component of modern merchandising infrastructure.

Concurrently, the Growing Emphasis on Supply Chain Efficiency and Resilience is driving the market as organizations seek software to navigate volatility and mitigate disruption risks. Category management platforms are evolving to provide end-to-end visibility, ensuring that procurement strategies align with real-time inventory availability and logistics constraints. This focus on operational agility is fueling substantial capital allocation toward digital tools that support robust supply networks. According to MHI, March 2024, in the '2024 MHI Annual Industry Report', 55% of supply chain leaders are increasing their investment in supply chain technology and innovation to bolster resilience against global disruptions. This surge in spending highlights a broader industrial trend where digital transformation is prioritized to secure competitive advantage. According to Amazon Business, in 2024, 98% of procurement decision-makers indicated plans to invest in analytics, automation, and AI tools over the next few years, reflecting the sustained demand for advanced software solutions that centralize data and streamline category performance.

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Key Market Challenges

The integration of modern category management platforms with entrenched legacy systems stands as a primary impediment to the growth of the global market. Established retailers and manufacturers often operate on monolithic, on-premise Enterprise Resource Planning (ERP) architectures that lack the flexibility required to seamlessly synchronize with cloud-native category management solutions. This technical incompatibility forces organizations to undertake complex, resource-intensive customization projects, which significantly extends implementation timelines and delays the realization of return on investment. Consequently, the friction associated with bridging these data silos deters potential buyers who fear operational disruption, thereby stalling the widespread adoption of automated merchandising tools.

This infrastructural rigidity not only inflates deployment costs but also limits the effectiveness of data-driven strategies, as fragmented information systems cannot provide the real-time visibility needed for optimal decision-making. The challenge is underscored by the disconnect between investment intent and operational readiness. According to the MHI 2024 Annual Industry Report, while 55% of supply chain leaders are increasing their technology and innovation investments, the report highlights that structural barriers, including the complexity of integrating with existing infrastructure, remain critical hurdles that prevent organizations from fully capitalizing on these digital advancements. This gap between financial commitment and technical capability directly hampers the market’s ability to scale efficiently.

Key Market Trends

The Incorporation of Sustainability and Environmental Impact Metrics is fundamentally altering category strategies, as organizations move beyond traditional profit-centric models to integrate ESG compliance into their merchandising workflows. Modern category management software is increasingly being designed to track carbon footprints, ethical sourcing certifications, and packaging waste across the entire product lifecycle, enabling retailers to curate assortments that meet stringent regulatory standards and consumer expectations. This shift toward green procurement is driving substantial capital allocation into digital tools capable of monitoring Scope 3 emissions and supplier ethics. According to TradeBeyond, April 2024, in the 'Retail Sourcing Report: 2024 Supply Chain Sustainability Trends', over 80% of companies intend to increase their investment in environmental sustainability projects within the next year, reflecting the industry's urgency to embed ecological accountability into category planning.

Simultaneously, the Rise of Collaborative Retailer-Supplier Data Sharing Networks is replacing siloed decision-making with unified, real-time joint business planning platforms. These networks facilitate the transparent exchange of point-of-sale data, inventory levels, and demand forecasts, creating a single source of truth that aligns the objectives of trading partners and mitigates the bullwhip effect. By dismantling the informational barriers between buyers and vendors, these platforms enable more responsive replenishment and optimized planogram execution that benefits both parties. The demand for such integrated ecosystems is acute; according to RELEX Solutions, August 2024, in the 'Supply Chain Collaboration Report', 87% of respondents at manufacturing and consumer goods companies reported their wish for more collaboration with their retail partners, underscoring the critical market push toward shared data infrastructure.

Segmental Insights

The Managed services segment is projected to register the fastest growth within the Global Category Management Software Market due to a rising preference for outsourcing specialized procurement functions. Organizations increasingly rely on external experts to navigate complex supply chains and ensure effective utilization of category management tools. This approach addresses the shortage of internal skilled personnel required to interpret market data and execute strategic sourcing initiatives. Furthermore, engaging service providers assists enterprises in maintaining adherence to evolving global trade regulations, thereby reducing operational risks and enhancing overall strategic planning capabilities.

Regional Insights

Based on data from trusted market research reports, Europe stands as the leading region in the global Category Management Software market. This dominance is primarily driven by a mature retail sector and the extensive presence of large-scale supermarket chains that prioritize advanced assortment planning. European retailers heavily invest in software solutions to seamlessly integrate shopper insights with supply chain operations, ensuring precise inventory control and optimized product placement. Furthermore, the region’s strong focus on omnichannel retailing and operational efficiency across key markets, such as Germany and the United Kingdom, reinforces its sustained leadership in adopting centralized management platforms.

Recent Developments

• In May 2025, Coupa Software expanded its footprint in the Global Category management software Market by acquiring Cirtuo, a specialist in AI-powered strategy creation. This acquisition was intended to integrate Cirtuo’s autonomous category management capabilities into Coupa’s comprehensive total spend management platform. The strategic move enabled procurement organizations to bridge the gap between high-level strategy and tactical execution, fostering better alignment with corporate objectives such as sustainability and risk management. The updated suite offered users data-driven insights to construct robust sourcing pipelines, demonstrating the increasing reliance on autonomous technologies in the sector.
• In February 2025, Relex Solutions brought a new innovation to the Global Category management software Market with the launch of its cloud-native Space for Category Management application. The solution was engineered to automate and optimize shelf space allocation using artificial intelligence and machine learning, thereby reducing manual planning efforts. It allowed retailers to dynamically adjust planograms to reflect seasonal trends and consumer preferences. Furthermore, the software facilitated seamless cross-functional collaboration between supply chain and merchandising departments, ensuring that inventory and space decisions were aligned with demand forecasts to maximize sales performance.
• In January 2025, Vision Group Retail completed the acquisition of Hivery, a provider of AI-driven assortment simulation and optimization software. This transaction was aimed at integrating Hivery’s advanced predictive analytics with Vision Group’s computer vision technologies to revolutionize category management capabilities. The combination provided retailers and consumer goods companies with a unified solution for hyperlocal space planning and assortment strategy. By leveraging store-level data, the enhanced platform was designed to uncover revenue opportunities and deliver precise return on investment insights, marking a significant consolidation in the Global Category management software Market.
• In November 2024, Alnatura, a prominent organic food retailer, advanced its technological capabilities by migrating its category management operations to Blue Yonder’s cloud-based Software-as-a-Service platform. This strategic initiative was undertaken to optimize the retailer's cost structure and increase supply chain resilience amidst market fluctuations. The project, facilitated by a strategic partner, enabled the company to enhance agility in meeting customer demands across its store network. This deployment underscored the growing shift towards cloud-native solutions in the Global Category management software Market to support data-driven merchandising decisions and improve operational efficiency.

Key Market Players

• JDA Software Group, Inc.
• SAP SE
• Oracle Corporation
• International Business Machines Corporation
• Infor, Inc.
• Nielsen Holdings PLC
• SAS Institute Inc.
• Manhattan Associates, Inc.
• Symphony RetailAI
• Aptos, Inc.

By Solution	By Service	By Deployment	By Enterprise Size	By Application	By Region
Planogram Software Floor Planning Software	Managed Services Professional Services	On-premises Cloud-based	Large Enterprises Small & Medium Enterprises	Retail Distribution	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Category management software Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Category management software Market, By Solution:

• Planogram Software
• Floor Planning Software

• Category management software Market, By Service:

• Managed Services
• Professional Services

• Category management software Market, By Deployment:

• On-premises
• Cloud-based

• Category management software Market, By Enterprise Size:

• Large Enterprises
• Small & Medium Enterprises

• Category management software Market, By Application:

• Retail
• Distribution

• Category management software Market, By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE