Catalog Management System Market - Growth, Trends, and Forecasts (2022 - 2027)

The Catalog Management System Market is expected to grow at a CAGR of 9% over the forecast period. The requirement to have centrally managed product and service data, increasing customer requirements, and expanding the number of digital transformation initiatives in the retail and eCommerce industry verticals are determinants driving the growth of the catalog management market.

Key Highlights

• A growing need to streamline selling processes will drive the selection of catalog management solutions across business verticals. Nevertheless, the services segment would grow at a higher growth rate as organizations focus on reducing operational costs and providing a positive customer experience. For example, more than 4,000 active customers, including almost 75% of multichannel customers, use Feedonomics' full-service feed management. Nearly 400 clients with the business have product catalogs with more than 100,000 SKUs, including some of the top brands and retailers worldwide, like Samsung, Puma, and Sonos. Because of its strong feed management technology, which processes more than 13 billion SKUs daily, Feedonomics can import, optimize, and syndicate huge product catalogs across numerous channels.
• The cloud deployment model would grow tremendously in the catalog management systems market. Significant factors include interactive dashboards, ease of flexibility, enhanced security features, and better scalability that could promote businesses to utilize cloud deployment. In addition, SMEs prefer the cloud-deployed catalog management system because of its economic benefits, driving the global market.
• Customers worldwide are becoming tech-savvy and prefer to engage with businesses via digital channels, such as social media, mobile apps, and websites. Hence, nowadays, this industry vertical is wholly focused on customer satisfaction, requirements, and feedback and is adopting digital technologies. Moreover, the eCommerce and retail industry verticals strategize customer engagement channels to fulfill the need of technologically advanced consumers. For example, Vue.ai use AI to enhance product data, control content, create graphics, and assist retailers in creating organized Catalogs.
• Data collection and transmission from one channel to another are involved in catalog management. Catal catalog management systems also include data synchronization and publication across channels. Many businesses believe that catalog management systems could result in data breaches in their highly abstracted data sets because they lack sufficient information about security frameworks and how to implement them. The main barriers limiting the adoption of catalog management solutions are concerns regarding data security.
• The market for catalog management solutions has benefited from the COVID-19 pandemic. Several industries, including retail and eCommerce, telecom, media, and entertainment, have undergone a digital transformation because of COVID-19. In addition to capturing and uploading data and mapping it to consumer demands, these systems offer a fast overview of the products in a channel. They also assist in real-time data validation, enrichment, and augmentation. They automate the production of catalog information utilizing data from many sources to enhance product assortment and accomplish quicker product data syndication across channels.

Key Market Trends

IT & Telecom Vertical to Drive the Market

• With the increasing need for smartphones and other data-hungry devices in the digital era, giving customers the right products at the right time continues to be a challenge for CSPs. It can be challenging for CSPs to create, manage, and monetize data offers efficiently. A centralized product catalog assists seize revenue-generating opportunities, reduce time-to-market (TTM), deliver unparalleled Quality of Experience (QoE), retain a profitable subscriber base, reduce churn, and improve brand loyalty.
• Catalog Management System helps CSPs design, collaborate, organize, and manage offer life cycles with ease, giving them a competitive edge to launch numerous innovative plans and services. The decreased TTM and capacity to respond instantly to customer demands assure customer happiness, redefine the customer experience, boost ARPU and ROI, and lower operating costs.
• For instance, Ericsson Catalog Manager allows customers to rapidly launch and enable new innovative offerings with simple user experience and enterprise product, service & resource catalog capabilities, providing key catalog features such as centralized catalog, graphical designer tool, and scalable run-time access among others.
• Alepo's next-gen Digital BSS platform, with a built-in product catalog, is designed to increase revenue and customer loyalty by facilitating a rapid TTM for innovative products and services. The centralized Alepo Product Catalog gives CSPs the flexibility to agilely respond in a continuously evolving market across multiple access technologies with fine-grained prepaid, postpaid, and hybrid plans.
• Catalog Management System has led to a catalog drove business processes strategy and the concept of an active/dynamic product catalog in business and IT architecture. According to Infosys Limited, catalog-driven architecture realizes several benefits, such as up to 25% increase in straight-through provisioning, 60-80% reduction of average handling time for order capture, 25-30% reduction of manual handling effort for capturing and executing customer orders, up to 80% improved time-to-market for product enhancements and launches.

Asia Pacific is the Fastest Growing Region of the Market

• APAC is foreseen to be the fastest-growing region in the global catalog management systems market during the forecast period. Rapid economic developments, digitalization, globalization, and the increased adoption of cloud-based technologies are expected to drive the APAC region's catalog management systems market.
• The catalog management market in the Asia Pacific is expected to be fueled by an increase in the adoption of catalog management solutions by many SMEs in the region. The growth of the e-commerce sector in the region is also estimated to drive the catalog management market during the forecast period. According to India Brand Equity Foundation, the Indian e-commerce sector is expected to grow by 21.5% and reach USD 74.8 billion in 2022. By 2030, it is anticipated that India's e-commerce business will be worth USD 350 billion.
• In addition, the surge in internet and smartphone usage is what has spurred the industry's growth in the country. Because of the "Digital India" campaign, there were 830 million more internet connections in 2021, a huge increase. Approximately 55% of all internet connections were made in metropolitan areas, and 97% of those connections were wireless, which is fuelling the e-commerce business in the country and simultaniously driving the catalog management system market in the country as well as in the region.
• According to GSMA, there are more than 900 registrations and 600 guests from more than 35 countries, encompassing government & agencies, analysts, consulting & industry association, mobile operators, companies, and solution providers have been partcipated at the APAC 5G Industry Forum in May 2021. More than 80% of participants in the post-event survey agreed to establish the APAC 5G Industry Community as a platform for collaboration to boost 5G industry innovation, application, and business prospects. This shows the growth potential of digital transformation of businesses in the region and drivng the market in APAC.
• The need for cost optimization and effective utilization of IT & Telecom infrastructures is expected to propel the demand for catalog management systems solution and its associated services. For instance, according to Accenture China Digital Transformation Index 2021, the cjineese companies' scores for digital competency reached 54 out of a possible 100 points, passing the halfway point, demonstrating that more Chinese businesses are steadily progressing through their digital transformation processes.

Competitive Landscape

The Catalog Management System Market is moderately competitive, with many local and international companies. Vendors working in the market are giving affordable solutions to gain market share. An improvement in the digital transformation in retail and e-commerce sectors creates a way to enter new players into the market.

• April 2022 - Edgistify, an eCommerce fulfillment platform, and Eunimart, an eCommerce enabler, have partnered to provide businesses with simple hyper-local delivery PAN India. To give merchants access to hyper-local delivery, Eunimart would integrate with Edgistify's warehouses and leverage their extensive network. A smooth eCommerce experience for retailers would result from this agreement between Eunimart and Edgistify. They would have access to everything from last-mile delivery to procurement, catalog management, inventory management, and warehousing.
• March 2022 - For the Open Digital Architecture (ODA) transformation, stc has chosen Ericsson's Catalog Management solutions to replace the customer order management features of the current Customer Relationship Management (CRM) & Order Management system. The company's services focus on 5G and IoT, and a consolidated catalog and order management system become essential, along with generating new revenue sources and reducing continuing costs. The partnership with Ericsson would help the company to improve its digital infrastructure and move more quickly toward a digital transformation.
• September 2022 - Transact, a specialized e-commerce practice of Omnicom Group Inc. OMC, has been introduced. In addition to eCommerce consulting and e-retail execution services, Transact provides retail media and analytics, content optimization, catalog management, and account management. Transact has been funded by Omni Commerce. It would improve Omnicom's e-commerce capabilities by assisting customers with cross-channel expenditure allocation, operational adjustments to inventory and sales systems, and the coupling of strategic choices with marketing messaging.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support