Pricing Software Market is expected to reach US$ 2,875.61 Million by 2031

Increasing Need for Competitive Pricing Strategies Fuels Pricing Software Market Growth

According to our latest market study on "Pricing Software Market Forecast to 2031 – Global Analysis – by Type, Enterprise Size, and Industry," the market was valued at US$ 1204.44 million in 2023, and it is projected to reach US$ 2,875.61 million by 2031. It is expected to register a CAGR of 11.49% from 2023 to 2031. The report includes growth prospects in light of current pricing software market trends and driving factors influencing the market growth.

The geographical scope of the pricing software market report is divided into North America (US, Canada, and Mexico), Europe (France, Italy, Germany, UK, Russia, and Rest of Europe), Asia Pacific (Australia, India, China, Japan, South Korea, and Rest of Asia Pacific), Middle East & Africa (Saudi Arabia, South Africa, Egypt, and Rest of Middle East & Africa), and South & Central America (Brazil, Argentina, and Rest of South & Central America). 

Pricing Software Market Share — by Region, 2023

Source: The Insight Partners Analysis

The North America pricing software market is segmented into the US, Canada, and Mexico. The well-established infrastructure in developed countries, such as the US and Canada, helps manufacturing firms explore the limits of science, technology, and commerce. Across North America, technological advancements and digitalization have led to high competition in the manufacturing industry. As per the National Institute of Standards and Technology, the manufacturing industry in the US was valued at US$ 2.9 trillion and registered a 10.0% share of the total GDP in 2023. Countries such as the US and Canada are pioneers in the adoption of advanced technology and automation across their businesses. The high penetration of the Internet across North America and government initiatives for promoting the adoption of digital technologies in businesses for smooth and seamless operation and reducing human error in pricing management are further catalyzing the adoption of pricing software across North America.

North America has a high presence of IT and telecom companies including Comcast Corporation, Verizon Communications, AT&T, Lumen Technologies, and T-Mobile. These companies offer their products and services worldwide, generating revenue from several countries. Such companies are increasingly adopting pricing software for the price optimization and management of their product and service offerings. Additionally, the traffic of IT and telecommunication services is very competitive in the region, fueling the need for these companies to efficiently analyze the pricing of their service provided and competitive pricing by using pricing software.

The Europe pricing software market is segmented into Germany, France, Italy, the UK, Russia, and the Rest of Europe. Europe is witnessing increasing digitalization across various industries, including BFSI. Almost every well-known banking institution in Europe has a digital transformation strategy. Offering digital services and goods 24/7 to improve customer experience is the main goal of most digitalization plans for banks. The EU has set two main goals for the digitalization of businesses by 2030: more than 90% of SMEs could achieve at least a basic level of digital intensity, and 75% of EU companies should use cloud computing services. According to the EU, in 2023, more than 70% of all EU companies reached a basic level of digital intensity. The proportion of SMEs was 69%, whereas large companies stood at 98%. Thus, the increasing digitalization in Europe fuels the need to manage pricing for the company's offerings across various industries to benefit from the profitability, sales, market dynamics, consumer behavior, and others, which, in turn, is expected to drive the pricing software market from 2023 to 2031.

The integration of AI and machine learning is expected to become a key trend in the pricing software market, transforming how organizations manage and optimize prices. The need for more accurate data is high in the continuously changing world of business and competitive scenarios. With the help of artificial intelligence pricing engines, companies can analyze the data at minute levels such as weather, seasonality, days of week and time, events, and holidays. This type of software goes beyond the conventional pricing analysis methods and uses advanced and modern algorithms to analyze complex patterns, customer behavior, market trends, and other related factors in real time.

The cloud-based segment accounted for 72.9% of the global pricing software market share in 2023, and it is anticipated to maintain its dominance during the forecast period. Cloud technology is being increasingly adopted across all industries owing to the growing awareness of its benefits and increased amount of data from daily operations. The cloud-based solution provides access through the internet and has robust processing power and storage space, allowing quick tracking of online data and enabling customer behavior analysis. Owing to the increasing adoption of cloud-based solutions across industries, the pricing software vendors are also focusing on developing new and advanced solutions. Companies such as Salesforce, Inc.; Duetto; and Oracle are offering cloud-based price and revenue management solutions. For instance, Oracle offers cloud-based billing software for creating bill statement payments and managing subscriptions, receivables, and collectibles.

Currently, there are two types of cloud-based pricing software available in the market: cloud-hosted and cloud-native. Cloud-native is a new and modern approach to building and running pricing software solutions that ensures the flexibility, reliability, and scalability of cloud computing. It encompasses the various tools and techniques that software developers use to build applications for the public cloud, as compared to traditional technology architectures suitable for on-premises data centers. Hence, the rise in demand for cloud-based pricing software by companies operating in various sectors is anticipated to fuel the pricing software market growth during the forecast period.

In terms of revenue, North America dominated the pricing software market share in 2023, whereas Europe accounted for the second-largest market share in 2023.  

North America has a high presence of IT and telecom companies, including Comcast Corporation, Verizon Communications, AT&T, Lumen Technologies, and T-Mobile. These companies offer their products and services worldwide, generating revenue from several countries. Such companies are increasingly adopting pricing software for the price optimization and management of their product and service offerings. Additionally, the traffic of IT and telecommunication services is very competitive in the region, fueling the need for these companies to efficiently analyze the pricing of their service and competitive pricing by using pricing software. The US accounted for the largest share of the North America pricing software market. The high internet penetration across the country is the main factor catalyzing the adoption of digital solutions across industries such as IT & telecom, media & entertainment, healthcare, retail & e-commerce, and insurance. The presence of several insurance companies across the country makes it necessary for the companies to have a competitive premium structure for their customers. This is influencing the adoption of pricing software among insurance companies for customer analysis and premium calculation based on competition across the country.

The benefits of pricing software, such as improved accuracy, reliability, and building intelligent and relevant pricing strategies, are expected to boost the demand for pricing software from industries such as IT & telecom, retail & e-commerce, food & beverages, BFSI, and healthcare from 2023 to 2031. Moreover, the increase in the rate of digitalization across various sectors, the rise in adoption of digital technologies, and high technology spending by government agencies are the key factors expected to boost the pricing software market growth in the US during the forecast period.

The Canada pricing software market is expected to grow significantly owing to the increasing investment by private and public organizations across industries such as healthcare, insurance, and retail & e-commerce. Canada has the presence of large retail stores such as Loblaw Companies Limited, Sobeys Inc., Walmart Store Inc., Metro Inc., and Home Depot Canada. These retail companies are constantly taking initiatives to attract new customers and retain the old ones through strategies such as customized offerings and deals. This is influencing the demand for pricing software in the industry to study consumer behavior and buying patterns for offering personalized deals.

The healthcare industry across the country is also rapidly expanding through constant investment to develop advanced healthcare infrastructure. As pricing software helps the healthcare industry in billing and payment management across hospitals and clinics in the country, its demand is increasing. According to an online survey conducted in November 2022, among 12,445 Canadians, 94% of Canadians were interested in accessing digital health services. Moreover, the increasing cloud adoption among businesses in Canada propels the growth of the pricing software market.

Epicor Software Corp; PROS Holdings Inc; Revalize, Inc; Competera Limited; Price f(x) AG; Prisync; Webcentric D.O.O.; Zilliant Inc; BlackCurve Solutions Limited; Skuuudle; PriceBeam; Flintfox; Sniffie Software Ltd.; Eversight; Minderest; Wiser Solutions, Inc.; Reactev; Price Edge; Toptal, LLC; and Retalon are among the prominent players profiled in the pricing software market report. In addition, several other players have been studied and analyzed during the study to get a holistic view of the market and its ecosystem. The pricing software market analysis is carried out by identifying and evaluating key players in the market across different regions.

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