Global Catalog Management System Market Size, Share & Industry Trends Analysis Report By Component, By Services Type, By Type, By Deployment Type, By Organization Size, By Vertical, By Regional Outlook and Forecast, 2021 - 2027
The Global Catalog Management System Market size is expected to reach $7.9 billion by 2027, rising at a market growth of 12.4% CAGR during the forecast period.
ver the projected period, a sharp rise in consumer demand for services and items such as fashion and clothing and electronic gadgets, as well as expanding internet penetration and growing smartphone use, are expected to fuel market expansion. Following the COVID-19 pandemic, demand for catalogue management systems is predicted to soar as large and small businesses alike transfer their IT infrastructure to cloud networks in order to boost and improve company operations.
Catalog management is described as the act of organizing items in the desired way in order to provide consistent and high-quality data throughout all sales channels. Catalog management entails defining different catalogues depending on a variety of criteria. These catalogues must be descriptive and consistent. Product names, hierarchy, descriptions, pricing, and other associated characteristics are all part of online catalogue administration. Color, pattern, style, and fit are all details that must be exact in order for shoppers to be guided to the proper product. A catalogue management system assists in the creation and modification of catalogues, as well as the pricing of items.
It is utilized to keep product information organized and structured, making it easier for consumers and channel partners to grasp the benefits of the product. Brands are currently delivering a plethora of new products which are both short-lived and reliant on several channels. It's challenging for brands to ensure the integrity of their product data throughout all platforms and channels. Catalogs are a vital part of every business since they provide a list of items for sale as well as information on shipping and availability.
Rising consumer demand for items, expanding internet access, and increasing smartphone prevalence are likely to fuel market expansion, acting as a stimulus for catalogue management solutions from the e-commerce businesses. The catalogue management systems market is highly fragmented since a big number of firms competes in it.
Impact of COVID 19
COVID-19's widespread adoption has resulted in digital revolution in a variety of sectors, including media and entertainment, telecommunications, retail, and e-commerce. The onset of the COVID-19 pandemic has pushed the usage of catalogue management systems to new heights. These systems provide a fast picture of a channel's services and products, uploading and recording data and organizing it to satisfy client requirements. They also aid in the real-time augmenting, enriching, and validating of data, as well as automating the creation of catalogues utilizing data from diverse sources like e-commerce websites in order to extend product assortment and achieve quicker dissemination of product data over channels. Due to the digitization, shifting customer tastes, and more screen time, the COVID-19 pandemic has had a favorable influence on total industry growth.
Market Growth Factors
The eCommerce business is experiencing a surge in demand for catalogue management systems
Because of expanding consumer demand for items, more internet access, and increased smartphone penetration, the eCommerce business has been developing at a breakneck speed. The amount of money spent on the internet has surged over the world. The eCommerce business is quickly expanding in nations including Philippines, India, Mexico, and China. Catalog management aids in the reduction of service delivery costs, the enhancement of customer experience, staff efficiency, and the general operation of enterprises. Customers have a better shopping experience with catalogue management system solutions since they provide extensive information on every product. These advantages assist firms in saving time and automating the updating of product information on eCommerce platforms.
Increasing adoption of Smartphones
Customers' usage of mobile applications, social media, and digital channels has expanded as a result of the high penetration of mobile devices throughout the world, boosting their participation in retail and e-commerce through such channels. Customer happiness has become a top priority for businesses. As a result, they're planning consumer engagement channels. SMBs and major corporations are using cutting-edge software and a service to handle offers/discounts, product data, payment systems, and inventories from a central location. All product information is created, managed, and maintained in a single central repository with catalogue management systems. Catalog management software/platforms and services give a consolidated view of product data needed for search engine optimization and supply chain optimization, which promotes their adoption across a wide range of sectors. Latest technologies like artificial intelligence (AI) are likely to improve catalogue management solution capabilities, giving the catalogue management market tremendous development potential.
Market Restraining Factors
Misconceptions about data security and privacy threats
Data collection and transfer from one channel to the next is part of catalogue management. Catalog management systems are also engaged in data synchronization and publication across channels. Many firms believe catalogue management systems would result to data breaches in its highly abstracted data sets due to a lack of sufficient information about security standards and their implementation. The main reason for the slow adoption of catalogue management solutions is concerns regarding data security. Users are hesitant to use these solutions because they are afraid of losing their critical master and reference data owing to data mistakes that occur during compilation or upgrade. Users believe that their data privacy is at danger, and that there will be no responsibility for data losses or thefts, and that no mitigation would be offered.
Based on Component, the market is segmented into Solution and Services. Over the projected period, the service category is expected to grow at the fast rate. The managed and professional services provided by various catalogue management system vendors will drive substantial growth in this industry. The growing demand for cloud-based managed services, as well as companies' increased reliance on IT assets to boost their company efficiency, are driving the managed services market forward.
Service Type Outlook
Based on Services Type, the market is segmented into Professional Services and Managed Services. In 2020, professional services held the largest market share. Professional services assist businesses in identifying security flaws and developing security measures in order to deploy catalogue management systems effectively. Professional services provide advantages such as higher profitability, lower administrative costs, and better resource use. Professional services also aid workforce management by enhancing efficiency via greater planning, cooperation, and comprehensive knowledge management.
Based on Type, the market is segmented into Product Catalog and Service Catalog. In the year 2020, the product catalogue category dominated the market. The rising prevalence of e-commerce websites and online retail storefronts, where consumers may shop for their preferred items in one application, might be credited to the segment's rise.
Deployment Type Outlook
Based on Deployment Type, the market is segmented into Cloud and On-Premise. From 2021 to 2027, the on-premise category is expected to grow at a considerable CAGR. Due to the security benefits provided by this deployment type, such as data security and transparency, the market is predicted to increase significantly throughout the projection period.
rganization Size Outlook
Based on Organization Size, the market is segmented into Large Enterprises and Small & Medium Enterprises. In 2020, the large enterprise sector held the largest market share. Large businesses have a broad business network and a variety of income streams. As a result, to extend their company operations, huge corporations turn to creative and new technology and solutions. Moreover, the growing involvement of government agencies in providing finance to major businesses to help them adopt digitalization is expected to drive this segment's growth.
Based on Vertical, the market is segmented into Retail & eCommerce, BFSI, IT & Telecom, Media & Entertainment, Travel & Hospitality and Others. During the predicted period, the BFSI industry will see considerable expansion. BFSI firms are modernising their data platforms and related toolkits to meet the evolving needs of reporting analysts, data analysts, business intelligence, data scientists, and enterprises and employees adopting self-service technologies. The need for catalogue management systems is likely to rise throughout the forecast period as BFSI organisations provide more data, goods, and services.
Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa. From 2021 to 2027, the Asia Pacific market for catalogue management systems is expected to grow at a promising CAGR. The rising inclination for technologically superior solutions among various firms in Asia Pacific nations such as India and China may be ascribed to regional market expansion. Furthermore, increased IT investment in the area is likely to contribute to an increase in the implementation of catalogue management systems, boosting regional market growth.
The major strategies followed by the market participants are Product Launches. Based on the Analysis presented in the Cardinal matrix; IBM Corporation, SAP SE, Broadcom, Inc., and Oracle Corporation are the forerunners in the Catalog Management System Market. Companies such as Fujitsu Limited, Salsify, Inc., ServiceNow, Inc. are some of the key innovators in the Market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Proactis Holdings Limited (Café Bidco Limited), Coupa Software, Inc., IBM Corporation, SAP SE, Broadcom, Inc., Oracle Corporation, Fujitsu Limited, Salsify, Inc., ServiceNow, Inc., and Comarch SA.
Recent Strategies Deployed in Catalog Management System Market
Partnerships, Collaborations, and Agreements:
Dec-2021: Salsify came into partnership with Trace One and UNFI Brands+. Together, the companies focused to create over 5000 grocery products for success on the digital shelf as well as they minimized the time elapsed between product development being completed. Moreover, the companies make these products available to retail customers, and eCommerce sites as well as increasing sales volume and customer satisfaction.
Sep-2021: ServiceNow joined hands with Infosys, a leading IT company. Together, the companies focused to offer enterprise-level service management for customers in manufacturing companies. Moreover, the companies would help manufacturing industries in digitalizing their floors, factories, and plant operations by leveraging ServiceNow Operations Technology Management (OTM) and Infosys industry cloud blueprints, part of Infosys Cobalt.
Nov-2020: Salsify came into a partnership with e-Comas, an Amazon consulting, content optimization, and account management firm. This partnership focused on enabling joint customers to increase sales on Amazon more effectively by combining expert counsel and top most digital shelf technology. Moreover, the partnership aimed to introduce Amazon's digital shelf excellence for brand manufacturers across the Middle East, Europe, and Africa (EMEA).
Acquisitions and Mergers:
May-2021: Salsify took over Alkemics and its Supplier Experience Management (SupplierXM) platform. Together, the companies would develop the Salsify Commerce Experience Management (CommerceXM) platform the most continual adaptive system of record and workflow for brands and retailers to integrate on best product experiences for the digital shelf.
Dec-2020: IBM took over Instana, a major application performance monitoring, and enterprise observability platform. Through this acquisition, the company aimed to provide industry-leading, AI-powered automation abilities to handle the difficulty of modern applications that span hybrid cloud landscapes.
Jun-2020: ServiceNow completed the acquisition of Sweagle, a Belgium-based configuration management startup. Through this acquisition, the company aimed to eliminate configuration problems before they start as well as enable the team to deliver application and infrastructure changes speedily and minimize risk.
Product Launches and Product Expansions:
Aug-2021: Salsify launched the latest connector with Adobe Commerce and Magento Open Source. The connector would assist brands in using the company’s product information management (PIM) abilities to occupy sales in the growing direct-to-consumer (D2C) market. Moreover, the connector would also enable the brands leveraging the Product Experience Management (ProductXM) platform to send directly the product content at their eCommerce site.
May-2021: Oracle Corporation unveiled Oracle Cloud Infrastructure (OCI)’s service catalog. The launch would enable the organization to centrally manage applications, compliance regulations and help in achieving consistent governance.
May-2021: Oracle introduced the Oracle Enterprise Catalog for Communications as a division of the Oracle Digital Experience for Communications solution. The product would help CSPs in simplifying and streamlining offer introduction across ordering, sales, fulfillment, eCommerce, and billing through offering a common and consistent definition of product information. Moreover, the product strengthens CSPs to launch new service offers and tailor them to particular customer micro-segments to enhance engagement.
Scope of the Study
Market Segments covered in the Report:
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