Category Management Software Market Report Scope & Overview:

Category Management Software Market size was valued at USD 2.40 billion in 2025 and will reach USD 6.63 billion by 2035, growing at a CAGR of 10.7% by 2035. Retailers and small box retailers adopt category management software to use data-driven category-specific tools to plan assortment, optimize shelf, and collaborate with suppliers. Features like real-time analytics, automated reporting, and AI integration boost operational efficiency and customer experience. The growing popularity of cloud solutions, particularly among small- and medium-sized enterprises that prefer their scalability and cost-effectiveness, along with the trend for large enterprises to use a central, integrated platform. The market is large in North America and growing rapidly in Asia Pacific, driven by retail digitalization. Top category management software market companies such as Oracle, DotActiv, and GEP are constantly working on innovations that will ensure businesses remain competitive in the era of technology while quickly responding to consumer demand trends.

According to research, over 60% of category management platforms will be AI-enabled by 2024, with 45% of them across in-store and online channels, unlocking revenue gains, stock optimization, and sustainability adoption by 28% of users.

Market Size and Forecast: 2025

• Market Size in 2025 USD 2.40 Billion

• Market Size by 2035 USD 6.63 Billion

• CAGR of 10.7% From 2026 to 2035

• Base Year 2025

• Forecast Period 2026-2035

• Historical Data 2022-2024

To Get more information On Category Management Software Market - Request Free Sample Report

Category Management Software Market Trends:

• Increasing integration of artificial intelligence and machine learning in category management systems for real-time decision-making and predictive analytics.

• Growing adoption of data-driven retail analytics for demand forecasting, assortment planning, and pricing optimization.

• Expansion of omnichannel retail models and personalized, one-to-one marketing strategies driving automated, fact-based solutions.

• Rapid digitalization of retail infrastructure and penetration of e-commerce in emerging markets.

• Rise of mobile-based analytics, localized software solutions, and cloud-enabled platforms to enhance operational efficiency and customer engagement.

The U.S Category Management Software Market was valued at USD 0.63 billion in 2025 and is projected to reach USD 1.92 billion by 2032 with a CAGR of 11.71% during the forecast period of 2026-2035. This growth is attributed to the presence of a highly developed retail infrastructure, the early technological adoption of AI-based technologies, and the presence of major market players such as Oracle and Epicor in the U.S. Driving factors are the rising need for real-time analytics, customization of product assortment, and integration of omnichannel retail efforts. Furthermore, the growing cloud-based deployments among large enterprises as well as SMEs will also spur the market uptake. The quick growth of this market in the country is further accelerated by support for the digital transformation of regulatory bodies and high expectations of consumers.

Category Management Software Market Growth Drivers:

• Rising Need for Data-Driven Retail Optimization to Improve Profitability and Consumer Experience.

Increased use of data analytics among the retail and consumer packaged goods industries is the key driver for adopting category management software. Enterprises are using better tools for forecasting demand, planning assortment, and pricing more to maximize shelf productivity and customer engagement. Some of the trends in recent times involve the inclusion of artificial intelligence and machine learning algorithms in category management systems for enabling real-time decision-making and predictive analytics. Additionally, the advent of omnichannel models of retail and one-to-one marketing further indicates the importance of automated and fact-driven solutions.

Category Management Software Market Restraints:

• High Implementation Costs and Integration Complexities Across Existing Retail Ecosystems Hamper Software Adoption.

One of the key constraints is the substantial up-front investment needed for category management software adoption, especially by small and mid-sized companies. Integrating these applications with existing enterprise resource planning, customer relationship management, and supply chain systems is operationally challenging. The need for change management, specialized training exacerbates deployment resistance. One of these very important factors is the fear of downtime when transitioning from legacy systems, along with data migration. This hesitancy is primarily prevalent in emerging economies, where heavy budgets and a lack of digital infrastructure are still slowing down the adoption cycle.

Category Management Software Market Opportunities:

• Expanding Digital Retail Infrastructure and E-Commerce Penetration in Emerging Markets Presents Lucrative Growth Prospects.

The accelerated digitalization of retail infrastructure and e-commerce mania in emerging markets present huge opportunities for category management software solution providers. Asia Pacific, Latin America, and the Middle East markets are experiencing investments in cloud-based retail solutions in a bid to leverage operational efficiency and customer interactions. Some of the latest category management software market trends have been the use of mobile-based retail analytics, localized software solutions, and government-sponsored digital transformation programs. Players specializing in low-cost, scalable, and location-focused platforms are likely to gain from this upsurge.

Category Management Software Market Segment Analysis:

By Component

In 2025, the solution segment holds the largest revenue share of 63.48% of the market, owing to rising demand for AI-based tools to support assortment planning, price optimization, and shelf management. Oracle, DotActiv Board International have expanded the reach of analytics and accelerated real-time decisions. Growth in data-driven category strategies, particularly in retail and CPG businesses, remains driving adoption. With companies looking for scalable, integrated platforms, solution-based solutions remain at the forefront of digital retail transformation, significantly driving the maturity and strategic value of the market. For example, DotActiv introduced improved planogram automation capabilities specifically for grocery chains. The service segment is expected to grow at the fastest CAGR of 12.92%, due to the rise in demand for implementation, consulting,  and training services. These services turn out to be very useful for organizations, especially for SMEs to deploy complex implementations. For instance, GEP and Softvision are a few vendors who have expanded their service portfolio with cloud migration assistance and real-time analytics customization. The increasing demand for continuous support and optimization of software environments is a major driver.  In addition, the demand for customized retailing and performance benchmarking is boosting the value of customized service offerings, directly fueling market growth by business size and geography.

By Deployment

The cloud segment leads the market with 61.39% revenue share. As the demand for scalable, cost-efficient, and easily deployable cloud solutions continues to grow, the retail sector is increasingly embracing these technologies. With cloud-based solutions from providers like Aptos and JAGGAER, you can collaborate from anywhere, access updates in real time, and upgrade seamlessly. JAGGAER revamped its SaaS model to support predictive assortment planning for fast-moving retail chains. Cloud deployment gained tremendous success amongst companies that want to adjust themselves to the market variation and customer behaviour, and at the same time reduce the cost of infrastructure. The on-premise segment will have a CAGR of 12.83%, due to the presence of enterprises with stringent data governance, compliance, and customization needs. Corporate enterprises, particularly those in regulated spaces, still invest in secure on-premises solutions. This segment is also being fueled due to the requirement for internal governance, consistent performance, and custom integration with legacy or on-premise systems. For example, Epicor announced improved on-premise functionality with upgraded reporting for global retailers.

By Organization Size

In 2025, large enterprises will have the maximum category management software market share of 68.13% because they can spend on modern software ecosystems and integrate them with the digital infrastructure, which has already been adopted. Enterprises such as Oracle and Epicor target this segment, where support for AI-enabled category planning and supplier collaboration has a regional focus. The driving force here is not the mobile revolution or third-party services, but the enterprise-level demand for scalable, integrated platforms that support omnichannel retailing and advanced analytics. SMEs segment is estimated to grow at the highest CAGR of 12.33% during the forecast period, owing to cost-effective and cloud-based solutions that require low IT infrastructure. Some of these platforms, like 42 Technologies and DotActiv are focusing on minimalist dashboards and SaaS solutions that target small businesses. One of the main drivers is the fact that data is being made available to all, and category planning tools have become available via subscription. In 2024, 42 Technologies introduced a retail analytics suite tailored for SMEs, featuring automated reporting and localized language support.

According to research, the adoption of cloud-based category management software among SMEs has risen by 42%, largely due to its cost-efficiency and scalability advantages.

By Application

Retail heads the application segment with 53.11% revenue share in 2025, fuelled by the category management software industry's focus on shelf management, consumer trends, and forecasted demand. Solutions from entities such as DotActiv and INTERACTIVE EDGE have integrated retail intelligence, planogram automation, and price simulation functionality. In addition to the heatmaps, DotActiv also broadened the retail platform to some cross-merchandising opportunities as well. The impetus is increased omnichannel complexity and a need for a unified consumer experience.  The consumer-packaged goods industry is expected to attain the fastest CAGR at 13.02%, owing to the need for seamless collaboration with retailers, optimization of shelf placement, and understanding consumer behaviour. Companies like Board International and GEP are providing solution-driven joint business planning, real-time data sharing, and SKU rationalization. Board International introduced a CPG analytics module with integrated supply chain data in 2024. One of the main drivers is the increasing need for agility and efficiency in product selection in response to changes in consumption.

Category Management Software Market Regional Analysis:

North America Category Management Software Market Insights

North America captures a 38.39% share of the market in 2025 due to its high level of digital adoption, strong retail architecture, and abundance of global software vendors in the region. Retailers have seen massive adoption of AI-based solutions, the promise of personalised assortment planning and omnichannel optimisation making it the fastest-growing solution space in the region.

Get Customized Report as per Your Business Requirement - Enquiry Now

The United States is the undisputed leader, driven by state-of-the-art IT infrastructure, early adoption of the software, and retail chains that make strong investments, especially in analytics-driven category management.

Europe Category Management Software Market Insights

Europe remains a stable category management software market growth due to higher spending on digital transformation by retail segments, aligning data regulations in applications, and a higher inclination towards sustainability and local assortment planning. Local retailers are adopting integrated platforms to improve supply chains and develop cross-border category strategies.

Germany comes at the top of the region, attributed to the established retail base, robust capital goods manufacturing base, and rising trend of using retail analytics to improve in-store and online performance.

Asia Pacific Category Management Software Market Insights

The Asia Pacific market is expected to grow the fastest at 13.11% CAGR. As China, India,  and Southeast Asia race to digitize their retail sectors, increased e-commerce penetration and IT investments among SMEs and regional players have been priming the pump for software uptake.

China leads the regional pack, supported by its sizable retail ecosystem, government initiatives to drive digital, and strong intelligence retail demands in tier-1 and tier-2 cities, respectively.

Latin America (LATAM) and Middle East & Africa (MEA) Category Management Software Market Insights

Middle East & Africa and Latin America are also experiencing a moderate yet positive growth which can be majorly attributed to retail modernization, smart city initiatives, growing cloud adoption, and more investments in digital tools in every sector, with UAE growing to be the larger market in the Middle East & Africa and Brazil growing to be the larger market in Latin America, respectively.

Category Management Software Market Key Players:

The major key players of category management software market are 

• Oracle Corp.
• Aptos, LLC
• Board International S.A.
• INTERACTIVE EDGE
• 42 Technologies, Inc.
• Epicor Software Corp.
• Softvision
• GEP
• JAGGAER
• DotActiv (Pty) Ltd.

Competitive Landscape for Category Management Software Market:

JAGGAER is a global provider of category management and procurement software solutions, offering advanced analytics, spend management, and supplier collaboration tools. The company helps enterprises optimize sourcing, inventory, and pricing strategies, enabling data-driven decisions, operational efficiency, and improved profitability across retail, manufacturing, and consumer packaged goods sectors.

• In Dec 2024, the company unveiled JAGGAER One version 24.3, which implements several artificial intelligence-driven features to streamline the procurement lifecycle. The BOM costing and supplier development tools stand out as updates for category management to be smarter and more effective.

DotActiv (Pty) Ltd. is a leading provider of category management software and retail analytics solutions, helping retailers and consumer goods companies optimize shelf space, product assortment, and inventory planning. Their data-driven tools enhance demand forecasting, pricing strategies, and in-store execution, driving operational efficiency and improved customer engagement.

• In Dec 2023, DotActiv launched its new cloud-based category management software, helping retailers gain new levels of data analytics and planogram automation. This initiative intends to help retailers maximize shelf space and drive category success.