Product Information Management Market: Information by Component(Solution, Services), Deployment Mode, Organization Size (SMEs, Large Enterprises), and Region — Forecast till 2029

Sep 08, 2020   Market Overview Product Information Management (PIM) is a software tool and a subset of business applications focused on managing product information used across enterprises. It focuses on providing precise product information and is extensively used for merchandising and marketing purposes. The adoption of PIM offers businesses more convenient and cost-effective solutions than organization-wide MDM deployment. It offers a centralized source of product data that helps enrich products, manage ...
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Report Description

Market Overview

Product Information Management (PIM) is a software tool and a subset of business applications focused on managing product information used across enterprises. It focuses on providing precise product information and is extensively used for merchandising and marketing purposes. The adoption of PIM offers businesses more convenient and cost-effective solutions than organization-wide MDM deployment. It offers a centralized source of product data that helps enrich products, manage images, and ensures products are highly marketed on various e-commerce platforms.

The global product information management market was valued at approximately USD 6.12 billion in 2019 and is expected to reach USD 30.96 billion by 2029, with a CAGR of 18.0% during the forecast period, 2020–2029.

Source: Investor Presentation, Company Websites, Annual Reports, Primary Interviews, Secondary Research, and SR Analysis

As per industry experts, there is an inter-relationship between Master Data Management (MDM) and PIM. Leading vendors of PIM solutions, such as IBM Corporation, SAP SE, and Stibo Systems, are now transforming themselves as MDM vendors. Also, smaller vendors such as Enterworks, Contenserve, Salisfy, and Akeneo, among others, are gaining significant shares in the product information management market.

The market is yet to witness any consolidation as it is rapidly expanding on account of the expanding e-commerce market. As per industry experts, PIM has become one of the pillars of the foundation for the growth of the e-commerce sector. Leading vendors hardly observe any acquisitions, as these vendors have already penetrated the market. Privately held players are growing significantly, with leading players offering technology solutions to them.

Easier Data Management and Accurate Product Information

Maintaining accurate product information is a challenge, especially for growing businesses. PIM solutions can help maintain accurate inventory stocks, sales, and production information, facilitating smooth business operations. Conventionally, data spreadsheets are used to maintain these records, and these pose a risk of human error, which can often lead to consumer complaints and inventory imbalance and even disrupt the entire organizational structure’s workflow.

PIM solutions provide information about work processes and are useful in automating manual production processes, offering many benefits, especially in the case of effective mass production. They help manufacturers keep track of the consumer sentiment in specific regions, which in turn helps them strategize future products that can appeal to a larger customer base in a particular area or industry vertical. Further, positive modifications in products can lead to an upsurge in sales figures. The proper presentation of accurate data enables organizations to work in line with the market situation.

Discovery of New Potential Customers

The year 2019 recorded a 25% increase in PIM software adoption among companies compared to 2018. Companies are increasingly adopting PIM solutions to ease the management of meticulous tasks across various verticals. The influx of several new players in the market and the rapid pace of new product development are expected to provide the market a significant thrust in the coming years. Most opportunities are expected to unfold in Europe, North America, and the emerging economies of Asia-Pacific.

Impact of COVID-19

PIM is a crucial part of data management in running an e-commerce business that deals in the sales of goods. The target of data management is the centralization of product data, improvement of product experience, restriction of data control personnel, efficient update to product data, and increase in productivity.

The product information management market has observed a nominal growth during the COVID-19 pandemic as lockdowns have resulted in the halt of retail and e-commerce business operations. The decline in large and small-scale e-commerce business operations has led to the nominal growth of the PIM market. For instance, Oracle, in the fourth quarter of 2020, is observing a decline in business operations, particularly in cloud licenses and on-premise license segments.

The product information management market has observed some growth amid the pandemic on account of e-commerce operations in the medicine and essential commodities segments. As per industry experts, e-commerce sales of virus protection products, including hand sanitizers, gloves, masks, and antibacterial sprays, has increased by 817% in the U.S.

Many SMEs have begun strategizing toward the adoption of a digital platform amid the pandemic, wherein data management solutions can help sell products through third-party e-commerce platforms, which is paving way for the growth of the product information management market.

Product Information Management Market: Regional Overview

Geographically, the market has been studied across North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. Interestingly, the U.S., the U.K., and Chinaare among the frontrunners in the market. For the study, the revenue generation of E-commerce sales, ICT expenditure in software, and the latest BSA reports and digital readiness index from various credible sources were referred to estimate and forecast the adoption of PIM solutions in various industry verticals.

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North America: The Largest Shareholder with More Than a 36% Value Share as of 2019

Globally, North America accounted for the largest market share in 2019 and is expected to dominate the product information management market during the assessment period. Regional market growth can be attributed to the high penetration of the software compared to other developed markets, coupled with robust cloud-based infrastructure, which helps companies deploy enhanced customer experience solutions across various verticals.

As per the report titled ‘The Mobile Economy 2020’ published by the GSM Association, the U.S. had the highest number of smartphone users in 2019, i.e., 83%, and the figure is expected to reach 91% by the year 2025. Further, as per the ‘Global E-commerce Report 2020’ by the e-marketer, the U.S. ranks second on the retail e-commerce and sales ranking. The report also states that in 2019, the U.S. e-commerce market accounted for almost 11% of the total economy, i.e., approx. USD 601.65 billion. The increasing consumer spending on e-commerce platforms and the presence of advanced technological infrastructure drive the adoption of PIM solutions in North America.

Asia-Pacific to Exhibit the Highest CAGR During the Forecast Period

Asia-Pacific is expected to exhibit the highest growth in the product information management market, against a backdrop of high smartphone penetration, favorable government initiatives promoting digitalization, and the presence of countries such as China and India that are home to approx. 36% of the global population. As per the report titled ‘The Mobile Economy 2020’ published by the GSM Association, the smartphone penetration in Asia-Pacific and Greater China as of 2019 was 64% and 72%, respectively, and is expected to reach 81% and 89% by the year 2025.

Favorable government initiatives, such as the Digital India Campaign by the government of India, the Digital Economy Promotion Agency by the government of Thailand, the Inclusive Industrial Strategy (i3s) by the government of Philippines, and Making Indonesia 4.0 by the government of Indonesia, promote the utilization of the internet and other technically advanced features in the region. The ‘Global E-commerce Report 2020’ by e-marketer estimates Asia-Pacific will account for approx. 643% of the total e-commerce spending, which sums up to USD 2.271 trillion.

The Global E-Commerce Guide 2020’s list of the highest online shopping penetration rate reveals that six of the top ten countries are from Asia-Pacific, with China at the first position, South Korea at the second, and Indonesia, India, Taiwan, and Thailand at the fifth, sixth, eighth, and tenth positions respectively.

Product Information Management Market: Segmentation Overview

For estimation and study, the product information management market has been segmented on the basis of component, organization size, deployment mode, vertical, and region.

By Component

  • Solution
  • Services

The solution segment accounted for the larger market share exceeding 63% in 2019and is expected to continue dominating the product information management market during the forecast period. The segment’s growth can be attributed to the increasing need for highly advanced solutions to gather information about products, such as attributes and specifications, from multiple sources and integrate it into a single repository. These solutions allow companies to improve their product data synchronization and its publishing, which enhances brand awareness, increases sales engagement and improves customer experience. On the other hand, the services segment is anticipated to register a higher CAGR during the forecast period.

By Deployment Mode

  • Cloud
  • On-Premise

The on-premise segment holds the dominant position in the product information management market. In on-premise PIM products, data management solutions and processes use in-house servers, and all of the software’s features are intended for use within the organization’s network. On-premise systems are safer and more secure; thus, large enterprises opt for them to secure sensitive data about sales, employee information, and marketing and product strategies. However, the cloud segment is anticipated to record a higher CAGR during the forecast period.

By Organization Size

  • SMEs
  • Large Enterprises

The large enterprise segment holds the dominant position in the product information management market. However, SMEs are increasingly adopting PIM solutions to expand their business organically, which will enable the segment to grow with a higher CAGR during the forecast period.

By Vertical

  • Retail and FMCG
  • BFSI
  • Manufacturing
  • IT & Telecom
  • Healthcare
  • Others

The Retail and FMCG segment accounted for the largest market share of more than 31% in 2019 and is expected to dominate the market during the forecast period. With the inception of data 4.0, many retailers are shifting their focus toward PIM in the FMCG industry due to its link with the e-commerce business. Retail vendors are using PIM solutions to improve sales, keep a check on stock, and manage inventory.

Cloud-based PIM computing is the preferred mode of deployment for small-scale individual vendors. Accuracy in billings and automatic check on pricing through data analysis are expected to provide new growth horizons for the market in the FMCG and retail industry.

With the emergence of tech giants, such as Amazon, Flipkart, and Shopclues, the need for shipping services and FMCG institutions has increased at a significant rate. These organizations face challenges in the form of streamlining work and the systematic arrangement of goods for transportation. Thus, they are increasingly adopting PIM solutions to increase ease in transportation, data storage, and management.

Competitive Landscape

The product information management market is moderately fragmented and primarily led by international players. It is dependent on macroeconomic factors such as foreign exchange fluctuations, social, legal, and other macro-economic factors. The global product information management market is led by giants such as IBM Corporation, SAP SE, Informatica, and Oracle Corporation, among others.

Key Players

  • IBM Corporation
  • Oracle Corporation
  • SAP SE
  • Tibco Software
  • Informatica
  • Stibo Systems
  • Riversand
  • Contentserv
  • Akeneo
  • Enterworks
  • Inriver
  • Agility Multichannel
  • Pimcore
  • Plytix

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