The global product information management market size was valued at USD 15.29 billion in 2021. It is projected to reach USD 124.176 billion by 2030, growing at a CAGR of 26.2% during the forecast period (2022-2030).
The booming e-commerce sector's demand for product information management software, the need to promote team efficiency, and the requirement for product data curation and management are some of the key drivers fueling the growth of the worldwide product information management market. However, it is projected that difficulties with data security and a shortage of qualified IT personnel will limit industry expansion. On the other hand, it's anticipated that integrating cutting-edge technologies like AI and ML in PIM software to improve management will present profitable growth opportunities for developing the global market during the forecast period.
Companies from various industries recognize the need for an appropriate solution to simplify product data management and curation. Product information management solutions are typically required when older systems become costly to maintain. This is because there are numerous channels, complicated attribute models, endless aisles (inbound or outbound), multiple product hierarchies, complex user models, and direct-to-consumer (DTC) commerce. In addition, there are many different product hierarchies.
Customers in the economy's B2C and B2B sectors demand more compelling, seamless, and individualized commerce experiences. For the story being told about their products to be as effective as possible, retailers, producers, and brands must provide correct product data to all their distribution channels. Product information management (PIM) software is crucial for businesses that want to engage customers successfully and offer their goods and services through various channels.
To address the drawbacks of traditional MDM applications, such as their inability to support image and video content needed to merchandise products, publish product data and content to a variety of channels, and lack of portals facilitating distribution of this data to the company's distribution network, businesses are implementing. This drives demand for PIM software since it provides a single system of truth for commerce that corrects these issues.
For all product category configurations, inaccurate inventory records result in significant performance decreases, but the supply chains are significantly more affected. When lead times are shorter and demand uncertainty in the marketplace is lower, the adverse effects of inaccurate inventory information are more pronounced. As a result, although offering precise and crucial business information regarding demand forecasting and future company planning, such inaccuracy in product data presents a significant barrier.
Although there is a growing need for product information management, the market is constrained by a scarcity of skilled labor. Due to a lack of understanding of cutting-edge technologies, there is also a shortage of experienced experts in bigdata analytics. For instance, a 2018 survey by the World Economic Forum found that 54% of the world's workforce needed new or upgraded skills to deal with disruptive and digital technologies that are creating the virtual world.
Businesses across various sectors, including healthcare, retail, and BFSI, are investing in and deploying cutting-edge technologies like AI and ML to expand and gain an advantage over their rivals. Anomaly detection, automatic product classification, enrichment procedures, selecting data from reputable sources, product grading, and contextual suggestion are all features of AI-powered product information management (PIM). AI-powered PIM solutions may generate an integrated view of the data across many systems and automate insights regarding data challenges to assist customers in better understanding their goods. Additionally, AI chatbots can increase customer satisfaction and experience, increasing revenue and profitability.
ML-enabled PIM solutions help enterprises manage compliance, advance data-based digital transformation and improve operational efficiency by anticipating data quality concerns and giving solutions to improve data matching and eliminate data inconsistencies. Businesses like Akenoe and IBM are now providing PIM solutions with ML capabilities. It is projected that demand for such products may rise during the forecast period, which will likely encourage vendors to develop new PIM solutions.
Software for managing product information in the cloud is becoming more popular since it has several advantages over managing it on-premises. Businesses use cloud product information management to save operating expenses and improve their operations since it offers pay-per-usage licensing and requires less IT setup. Additionally, cloud product information management suppliers are updating their product offerings, which should lower the cost of the solutions. For instance, Oracle Product Hub Cloud has gained popularity recently because it offers improved features that enable cost savings.
The global product information management market is segmented by component, deployment, organization size, and industry vertical.
Based on The Component, The global product information management market is classified into software, multi-domain PIM, single-domain PIM, and services.
The software segment is the highest contributor to the market and is expected to grow at a CAGR of 24.90% during the forecast period. Product Information Management (PIM) software enables businesses to organize and unify all technical and marketing data for their catalogs and products. Companies may use PIM software to manage and distribute a single source of truth for product information as needed. Product information management software also manages the data about the products in your product catalog, including their dimensions, weights, descriptions, testimonials, certifications, and more.
Multi-domain solutions use master data management (MDM) methods and technology across many data domains with a unified, centralized platform, managing all different forms of master data in one repository. Multi-domain MDM deployments by businesses are improving the accuracy and breadth of their data. Multi-domain platforms also help companies to extend their solutions to accommodate new domains, users, and data, enabling organizations to expand their multi-domain platforms without having to factor in additional technical expenses.
Based on The Deployment, the market is bifurcated into cloud and on-premise.
The on-premise segment owns the largest market share and is anticipated to grow at a CAGR of 24.60% during the projected period. The on-premise deployment option for product information management enables software installation. It permits applications to run on systems present on an organization's premises rather than deploying at a remote facility like server space or the cloud. These solutions' greater security features encourage large financial institutions and enterprises to embrace them. Using the company's IT infrastructure, on-premise product information management software can collect, present, and organize crucial business data while maintaining data security.
Product information management is being deployed using a cloud-based licensing and delivery model, where a service provider hosts the application, and users can access it and its features online. This deployment strategy offers the IT staff the opportunity to provide actual economic value to the organization through lower anticipated costs and a better ability to concentrate on innovation and differentiation. Mid-sized financial institutions may select cloud-based product information management since it has low maintenance requirements and does not require any upfront cash.
Based on Enterprise Size, the market is divided into large, small and medium enterprises.
The large enterprise segment is the highest contributor and is anticipated to grow at a CAGR of 24.30% during the forecast period. Large businesses have made substantial investments in information management, which aids them in integrating cutting-edge technologies into infrastructure to boost overall productivity and efficiency. In turn, this has accelerated the use of product information management in major corporations. Additionally, large businesses choose custom product information management to handle enormous data volumes, which supports market expansion. PIM systems provide a single platform for managing product information across industries. Large businesses invest significantly in cutting-edge technologies to boost their productivity and efficiency.
Small and medium-sized businesses are expected to have rapid development throughout the projected period due to a rapid uptake of cloud services by these companies across a variety of industry verticals. The demand for more tailored consumer experiences also boosts this segment's growth. SMEs are using modern technologies to maintain efficient and cost-effective business operations. Utilizing new and cutting-edge technology is made possible for cash-strapped small and medium-sized firms thanks to cloud adoption, which is advantageous for the market.
Based on Industry Vertical, the market is bifurcated into BFSI, retail, manufacturing, telecom and IT, transportation and logistics, media and entertainment, and others.
The retail segment is the highest contributor to the market and is expected to grow at a CAGR of 29.20% during the forecast period. The retail sector held the largest market share for product information management due to the globalization of the distribution and supply networks for the retail industry. Companies are using PIM software. As a result, it effectively supplies product information across all distribution channels and boosts sales. Additionally, the expansion of e-commerce globally is forcing industry participants to concentrate on preserving product content, enhancing the user experience, and preserving customer feedback, ratings, and online platform activity. This is also causing the PIM software market to expand.
Companies that make cement and other building materials, equipment and machinery, plastic and rubber, electrical and electronic goods, and other goods are included in the economy's manufacturing sector. Global manufacturers can output product information from a single source of truth using product information management software, which promotes the product's value and safeguards brand identity. For their businesses to thrive, industrial manufacturers need to increase the channels through which their products are offered and ensure that the product data is sufficiently accurate and rich.
North America Dominates the Global Market
The global product information management market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
North America is the largest shareholder of the global product information management (PIM) market and is anticipated to grow at a CAGR of 23.90% over the forecast period. Due to increased spending on transportation and logistics, which is encouraging the adoption of automation technologies in logistics and supply chains, North America is anticipated to maintain its leadership during the projected period. In this area, the retail market is sizable and very competitive. The rise of the product information management market in this region is anticipated to be driven by an increase in implementing PIM solutions in e-commerce. Most industries in North America have a high rate of advanced technology adoption. Additionally, the area is home to significant players who provide cutting-edge product information management.
Europe is expected to grow at a CAGR of 25.10%, generating USD 32,915.79 million during the forecast period. Part of supply chain management software for inventory management has one of the biggest markets in Europe. With almost one in ten people employed by more than 3.6 million retail businesses, the retail sector is one of the dominant economic sectors in the European Union. As a result, the demand for PIM software for product management is anticipated to rise. It is anticipated that the increased attention being paid to logistics value, much of which is driven by retail and home delivery, will present several prospects for market expansion.
Asia-pacific information management market analysis includes China, Australia, India, and Japan. In order to maintain their growth and increase efficiency, business firms have been forced to make significant investments in product information management software due to the solid economic expansion and continued development in the services sector. PIM software investment in emerging nations is also influenced by rising mobile penetration, rising cloud adoption among small and medium-sized firms, and continuous modernization of the industrial and retail sectors.
Due to rising technological costs and the demand for user-friendly and affordable product information management solutions, LAMEA is predicted to have moderate product information management market growth. In addition, it is anticipated that growing recognition for data-driven businesses and the popularity of the Internet of Things (IoT) will fuel demand for product information management. As a result of advancements in the country's e-commerce sector, Brazil is anticipated to be one of LAMEA's primary revenue generators.
A list of key global product information management market companies profiled
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