Product Information Management Market Size, Share & COVID-19 Impact Analysis, By Deployment (Cloud and On-premise), By Enterprise Type (Small & Medium Enterprises, Large Enterprises), By End-user (Retail & E-commerce, Manufacturing, IT & Telecommunication, Healthcare, Automotive, and Others), and Regional Forecast, 2022-2029

The global product information management market size was valued at USD 2.49 billion in 2021 and is projected to grow from USD 3.01 billion in 2022 to USD 12.91 billion by 2029, exhibiting a CAGR of 23.1% during the forecast period. Based on our analysis, the global market exhibited an average growth of 19.4% in 2020 as compared to 2019. 

Product Information Management (PIM) is a software that helps to manage, store, and enrich the product content and update accurate information, which significantly helps to sell various products across multiple sales and marketing channels. PIM helps standardize the increasingly complex demands of product content, including size, ingredient, weight, colors, and other product specs. Growing usage of the solutions by retailers, manufacturers, and wholesalers helps to manage the products in a central space. In addition, PIM helps maintain the consistency and quality of product data collected from multiple sources and consolidates them into one main data source.

The rising adoption of PIM software in various industry verticals delivers better customer and omnichannel experience by streamlining an organization's internal and external marketing processes.

COVID-19 IMPACT

Huge Demand for PIM Software from Several Industries to Boost Market Growth

A rapid surge in online shopping sales has been linked to COVID-19, with billions of people staying at home and avoiding in-store purchases for health and safety reasons. With the growth of retail and e-commerce businesses and the increasing amount of product data to manage, the region has accepted PIM solutions.

The COVID-19 situation forced many small companies to go online and accelerate digital transformation. For instance, Plytix, a key player in the global market, opened a new office in the Alameda principal after growing its customer base by 42% and increasing staff by 21% in 2020 from five nationalities.

Increased demand for PIM software by various end-use industries generated lucrative market growth opportunities during the pandemic. The revenue generated by e-commerce business has experienced rapid growth due to the increase in digitalization and the number of online buyers, which significantly fueled the growth of global e-commerce. It results in increased adoption of PIM software in the retail & e-commerce industry.

According to the Flexera 2020 State of the Cloud Report, 93% of projects are adopting a multi-cloud approach and 87% are adopting a hybrid cloud strategy. Additionally, 20% of organizations spend more than USD 12 billion annually on the public cloud, and 59% expect the COVID-19 situation to push cloud usage beyond previous plans. It leads to increased adoption of cloud-based PIM software by various end-users.

LATEST TRENDS

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Integration of Augmented Reality Technology with E-commerce to Improve Customer Experience

Increasing integration of Augmented Reality (AR) technique with e-commerce delivers customized and real-time shopping experiences to customers using product information management platforms.

• For instance, according to Threekit, 83% of online shoppers rank product images as an important influencing factor in their purchase decisions. Thus, enabling 3D configuration and augmented reality with ecommerce sites improves the conversion rates by 40%.

Using PIM in combination with AR helps boost the buyer's confidence that they have chosen the right product. It also helps to deliver a better product experience through laptops and mobile and helps to visualize the products and see them on a real scale and on-site.

The growing implementation of augmented reality applications significantly helps increase conversion rates, increase the number of order sizes, and lower return rates.

Thus, the above factors will likely surge the demand for integrating augmented reality solutions with this software.

DRIVING FACTORS

Rise in Complexity of Managing the Data Generated by Digital Commerce is Likely to Boost the Demand for PIM

The continuous growth in online sales generates huge demand for adopting the e-commerce system. This e-commerce system significantly offers Enterprise Resource Planning (ERP) systems, supply chain management systems, and Customer Relationship Management (CRM) systems to deliver real-time product information to fulfill the rising demands of customers.

Companies with large ranges of products have sophisticated categorizations in their product catalogs. This complex nature of digital commerce fascinates many companies to streamline the creation, maintenance, and publication of product information to downstream channels. PIM makes it easy to distribute data to many channels and media. Thus, various end-users demand to adopt this software to manage a large amount of product content.

Therefore, the rise in complexity of managing the data generated by digital commerce boosts the demand for PIM software.

RESTRAINING FACTORS

Rising Concerns about Dealing with Multiple Sales Channel Requirements Hinder the Market Growth

The growing usage of open-source PIM platforms requires a good IT service team for PIM implementation and customization. The collection of data from multiple sales channels can be misspelled, incomplete, and deliver product information inaccurately and inconsistently.

Various marketing channels are involved with cloud-based PIM software to collect and manage a large amount of product content. This software is accessible by multiple users to deal with multiple sales channel requirements; hence it becomes challenging to meet consumers' demands from various e-commerce sites.

Thus, handling huge amounts of product content such as marketing information, photos, and videos with proper security and privacy becomes difficult.

SEGMENTATION

By Deployment Analysis

Rising Adoption of Cloud Helps to Manage the Large Amount of Product Content

Based on deployment, the market is fragmented into cloud and on-premise. The cloud segment holds the highest market share and is expected to grow at the highest CAGR in the forecast period. The cloud-based PIM software helps to manage a wide network of providers and aims to handle the large volume of product content which changes continuously. 

It enables digital product information management with fewer costs, the fastest launch, and increased scalability.

However, installing on-premise product information software on one or multiple devices makes the PIM process more expensive and complicated. Thus, the on-premise software installation witnessed a significant decline in the market share in 2021.

By Enterprise Type Analysis

Large Enterprises Dominate the Market Due to High Investments in Online Businesses

Based on enterprise type, the market has been bifurcated into Small & Medium Enterprises (SMEs) and large enterprises. The large enterprises segment invest in e-commerce startups and various online businesses to market their product and implement various marketing strategies to deliver better product experiences to customers and reach their business goals.

The software also allows large businesses to manage product data for multichannel marketing and improves marketing productivity. Hence, large enterprises segment is expected to dominate the market during the forecast period.

By End-user Analysis

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Retail & E-commerce Industry Generate High Revenue Due to Rise in Need for Product Information Management Systems

On the basis of end-user, the market is divided into retail & e-commerce, manufacturing, IT & telecommunication, healthcare, automotive, and others. Retail & e-commerce and manufacturing segments are expected to gain maximum market share during the forecast period. Increasing the usage of PIM by retailers, merchandisers, and managers helps to track the total sale of the product. Thus, the retail & e-commerce industry is estimated to dominate the market during the forecast period.

Rising usage of PIM software helps manufacturers deliver sufficient product information to customers across the channels, which significantly helps to improve the conversion rate and provide a better customer experience. The government's growing focus on advancing the manufacturing industry is expected to fuel the product information management market growth across the manufacturing industry.

REGIONAL INSIGHTS

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In the scope of the study, the market is studied across North America, Europe, Asia Pacific, the Middle East & Africa, and South America based on region.

North America accounted for the highest market share in 2021, owing to the rise in e-commerce traffic in the last few years, resulting in increased usage of product information management software to provide a better customer experience.

• According to census.gov, in 2021, total U.S. e-commerce business revenue reached USD 959.9 billion, with 18.3% year-over-year growth from USD 811.6 billion in 2020.

The presence of key market players across North America is further expected to boost the market. Adopting this software in the retail & e-commerce industry helps boost e-commerce sales in countries such as the U.S. and Canada across North America.

• For instance, according to Net Solution’s state of B2B Commerce Report 2020, 76.7% of enterprises are aiming to adopt this software in the future.

Asia Pacific is projected to witness notable growth in the forecast period due to increasing online customers and growing internet and high-speed broadband penetration among various countries across the region. Growing penetration of global e-commerce companies such as Amazon, Alibaba, Snapdeal, Flipkart, and many more in India and China generates huge demand for adopting this software in the e-commerce industry.

The surge in penetration of digital technologies in countries such as Argentina and Brazil is leading to updating taxation policies of e-commerce, a legal framework for data protection, consumer protection, and regulation of the internet. It increases the number of digital buyers of goods and services in the region. These factors significantly propel the demand for software in South America.

Growing initiatives taken by the government to bring development in retail, e-commerce, and manufacturing sectors in the Middle East & Africa are estimated to propel the demand for the adoption of product information management software by various companies. The manufacturing industries are contributing the highest revenue to improve the GDP of the Middle East & Africa countries over the last few years.

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According to Contentserv, European countries such as the U.K., Germany, and France are the top countries generating the highest B2C e-commerce sales in 2020. Thus, it has been said that 30% of global e-commerce revenue comes from Europe. Thus, it is projected to boost the demand for PIM solutions in Europe.

KEY INDUSTRY PLAYERS

Key Players Emphasize Advanced Product Information Management to Strengthen their Positions

The global market is consolidated, with many service providers controlling the share. Various companies are implementing advanced technologies to boost their market share. Expansion of product portfolios, mergers & acquisitions, and research & development are the key strategies adopted by service providers. Thus, the global market is expected to update its product offerings continuously.

List of Key Companies Profiled:

• Akeneo (France)


• Informatica Inc. (Germany)


• Magnitude Software, Inc. (Agility Multichannel) (Sweden)


• IBM Corporation (U.K.)


• Inriver AB (Germany)


• Salsify Inc. (U.S.)


• Syndigo LLC (U.S.)


• SAP SE (Germany)


• Stibo Systems (U.S.)


• Pimcore (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• February 2022: Syndigo entered into a partnership with Ariser to deliver enterprise PIM and MDM solutions to the clients to boost the enterprise data management capabilities by providing a better customer experience.


• October 2021: Codifyd Inc., an end-to-end digital commerce and product content solution provider, partnered with Riversand, a SaaS-based product information solution provider, to offer advanced MDM and PIM solutions to customers present across the globe.


• January 2021: inRiver completed the acquisition of Detail Online, an AI-powered analytics solution provider to deliver the only digital-first PIM solution that helps to provide revenue-driving PIM solutions across multiple online channels.


• June 2020: Oracle Corporation launched Oracle product information management implementation guide version 12.1 to enable users to set and manage the item catalogs, and report templates to define the responsibilities of users and customers.


• April 2020: Syndigo, a product information software provider, completed the acquisition of Kwilee, a product management and distribution platform to enhance digital asset management and customization capabilities.

REPORT COVERAGE

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The study on the market includes prominent areas worldwide to get a better knowledge of the industry. Furthermore, the research provides insights into the most recent industry and market trends as well as an analysis of technologies that are being adopted quickly worldwide. It also emphasizes some of the growth-stimulating restrictions and elements, allowing the reader to obtain a thorough understanding of the industry.

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