Pricing Software Market Strategies, Top Players, Growth Opportunities, Analysis and Forecast by 2031

The pricing software market size is projected to reach US$ 2,875.61 million by 2031 from US$ 1,204.44 million in 2023. The market is expected to register a CAGR of 11.49% during 2023–2031. Increasing penetration of mobile devices and boosting the subscription base for pricing management software or platforms are a few other key factors contributing to the market growth.

Pricing Software Market Analysis

In the past few years, due to industrialization, the manufacturing industry has expanded significantly in terms of output generated, the total number of manufacturing companies, and digitalization trends in the manufacturing sector. For instance, as per the data published by the United Nations in 2023, the production index of global manufacturing production in 2015 was 100, whereas the index in 2019 reached 113. In Q3 2021, the global manufacturing index reached 117. In 2023, the global manufacturing index passed 120 points. The automotive industry is one of the notable industries across the globe that has shown strong growth rates in the past few years. As per the data published by the International Organization of Motor Vehicle Manufacturers in 2023, the total vehicle production was 80 million in 2021, which increased to 93 million in 2023. According to the Labour Bureau of India, in 2020, the number of factories increased by 2.48% compared to 2019. Such statistics show increased global manufacturing output in the past few years. Such growth in the manufacturing industry increased the importance of the tools that help in gaining competitive advantage, ultimately driving the demand for pricing optimization and management software.

Pricing Software Market Overview

Pricing software is a commercially available price management application that includes tools to automate price analysis, optimization, and execution to assist businesses in their efforts to make efficient and effective pricing decisions. Companies are increasingly looking for options to integrate these applications into their existing technology infrastructure to ensure that the improvements implemented by management are sustainable over the long term. It originated as revenue management software in the travel and hospitality industries. Pricing software is also designed for industries such as retail, B2B, financial services, and telecommunications. B2B pricing software helps companies analyze, manage, optimize, and implement their prices.

Different types of pricing software used in the industries include price optimization software, price management software, and pricing analytics and execution. AI and machine learning algorithms use large amounts of data to analyze price trends and patterns. Therefore, these algorithms enable companies to predict customer behavior and demand, thereby helping to set optimal prices. AI-powered pricing software continually learns and adapts to changing market conditions. It considered varying factors such as competitive pricing, seasonality, and customer segmentation, resulting in maximum sales and higher profitability.

The key factors fueling the growth of the pricing software market include the rise in the adoption of pricing software in various sectors, worldwide digital transformation, the increasing need for competitive pricing strategies, and the manufacturing industry's growth. However, the incompatibility issues with IT infrastructure are hindering the growth of the pricing software market. Moreover, the growing integration of cloud computing, AI, and data analysis with pricing software is projected to create opportunities for companies operating in the pricing software market during the forecast period. Further, the increasing investment toward the adoption of digital infrastructure and the development of different pricing tools is expected to be the key trend in the pricing software market from 2023 to 2031.

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Pricing Software Market: Strategic Insights

Pricing Software Market

• Market Size 2023
  US$ 1,204.44 Million
• Market Size 2031
  US$ 2,875.61 Million

Market Dynamics

GROWTH DRIVERS

• Increasing Need for Competitive Pricing Strategies
• Digital Transformation Globally
• Continuous Growth in Manufacturing Industry

FUTURE TRENDS

• Integration with Artificial Intelligence (AI)

OPPORTUNITIES

• Growing Data Generation and Data Analytics Tools

Regional Overview

• North America
• Europe
• Asia-Pacific
• South and Central America
• Middle East and Africa

Market Segmentation

Type

• Cloud Based
• On-Premise

Enterprise Size

• Small and Medium Enterprises
• Large Enterprises

Industry Vertical

• Manufacturing
• Travel and Hospitality
• IT and Telecom
• Retail and E-commerce
• Food and Beverages
• BSFI

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Pricing Software Market Drivers and Opportunities

Increasing Need for Competitive Pricing Strategies

Considering the current environment where inflation, consumer awareness, and the number of players are increasing, pricing has become one of the important factors as it affects the overall business and its growth. Competitive pricing strategies help companies across the globe to reduce losses and increase the profitability of the company by analyzing a variety of factors that are affecting the pricing of particular goods and services. One of the factors that allow users to understand, is price elasticity and demand dynamics. Price elasticity is one of the notable factors in the business as it measures customer sensitivity toward price changes. This helps identify consumer behavior and further optimize the price accordingly. In addition, it also helps analyze the competitors' prices across the sales channels. With this data, companies can come up with competitive prices as the competition is getting fierce and the need for competitive advantages is increasing. This competitive pricing strategy is highly beneficial in setting dynamic prices. Owing to the increased penetration of e-commerce and other online marketplaces, the trends of dynamic prices have increased. Pricing software helps the users not only identify customer behavior and competitors' analysis but also helps in pricing management across the sales channel, which ultimately leads to increased adoption of the pricing software.

Growing Data Generation and Data Analytics Tools

Data analytics has become a powerful tool for businesses to benefit from valuable insights and make informed decisions due to the massive amount of data generated. Data analytics is experiencing a revolution in tools, technologies, applications, and adoption. The industry is evolving rapidly, and companies are heavily investing in turning data and analytics into competitive advantage. According to most big data experts, the amount of data generated is expected to increase dramatically during the forecast period. For instance, the report from Seagate's Data Age 2025 estimates that the amount of data generated worldwide is expected to reach 175 zettabytes by 2025. The massive increase in the number of people working from home or remote locations, studying, and spending time on the internet is driving data expansion. Such a high amount of data, when processed with the help of artificial intelligence integrated within the pricing software, is expected to provide a detailed and very insightful analysis to its end users, which will help them optimize and manage the price. According to the experts, the more data is processed within the pricing software, the more accurate results can be obtained. Thus, massive data generation, increased investments in data analytic tools, and the presence of AI-integrated pricing software are expected to generate lucrative opportunities for the pricing software market.

Pricing Software Market Report Segmentation Analysis

Key segments that contributed to the derivation of the pricing software market analysis are type, enterprise size, and industry.

• Based on type, the pricing software market is divided into cloud-based and on-premise. The cloud-based segment held a larger market share in 2023.
• Based on enterprise size, the pricing software market is divided into small and medium enterprises and large enterprises.
• By industry, the market is segmented into manufacturing, travel and hospitality, IT and telecom, retail and e-commerce, food and beverages, BFSI, and others. The manufacturing segment held the largest share of the market in 2023.

Pricing Software Market Share Analysis by Geography

The geographic scope of the pricing software market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.

The Asia Pacific pricing software market is segmented into Australia, China, India, Japan, South Korea, and the Rest of Asia Pacific. These countries are experiencing a gradual increase in the adoption of advanced technologies. Digital capabilities are continually being developed in the region to maintain competitiveness in the long term. Governments of various countries are taking strategic steps toward digitalization. For example, in February 2023, the government of China released the overall plan for the development of a digital China. The plan aims to promote the use of digital technologies in the areas of economics, politics, culture, social affairs, and environmental sustenance. According to the plan, China will build a nationwide system by 2025 to achieve its Digital China goal. By 2035, China wants to be one of the world's leading economies in terms of the level of digitalization. The plan is to promote the use of digital technologies in the areas of economics, politics, culture, social affairs, and environment refurbishment. Likewise, in March 2022, the Australian government announced an investment of US$ 74.91 million (AUD 107.2 million) to improve Australia's healthcare system. Therefore, increasing adoption of digital technologies and growing number of digitalization initiatives are expected to boost the growth of the pricing software market in the region.

Surge in mobile usage, rise in data consumption, substantial growth of the telecom industry, and increase in the need for IoT connections are the major factors propelling the growth of the pricing software market, mainly in the telecom industry across the region. Moreover, the increasing demand for cloud-based solutions and services among businesses to enhance their compatibility to address the growing subscriber base and manage new revenue streams is anticipated to provide significant opportunities for the key players providing pricing software solutions.

Pricing Software Market Report Scope

Pricing Software Market News and Recent Developments

The pricing software market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the pricing software market are listed below:

• Epicor, a global leader in industry-specific enterprise software to promote business growth, announced the immediate availability of a powerful and highly flexible new B2B eCommerce platform to serve automotive replacement parts distributors and their customers. The cloud-based ECA platform is designed to help automotive parts distributors and other users increase sales and customer satisfaction by providing up-to-date, customer-specific part pricing and availability. The solution's cloud-native architecture simplifies customer setup and control and streamlines each step in the online selling and buying experience. ECA is integrated with the Epicor aftermarket product content engine, featuring the industry's premier parts and application catalog, aftermarket-to-aftermarket and OE-to-aftermarket interchange, labor database, pre-configured jobs packages, and more. (Source: Epicor, Press Release, October 2023)
• Revalize, a worldwide leader in CAD, CPQ, and PLM software solutions for manufacturers, announced the acquisition of KCL, the premier design software for foodservice equipment in North America and beyond. Revalize delivers more efficient routes from idea to cash, increasing agility and speed-to-market while reducing costs and complexity for businesses that design and model with its industry-leading CPQ solution. KCL enhances Revalize's CPQ offering with its robust design tools. Revalize will connect designers and manufacturers in one streamlined solution made up of the AutoQuotes(AQ) catalog and CPQ software. (Source: Revalize, Press Release, October 2023)

Pricing Software Market Report Coverage and Deliverables

The "Pricing Software Market Size and Forecast (2023–2031)" report provides a detailed analysis of the market covering below areas:

• Pricing software market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
• Pricing software market trends, as well as market dynamics such as drivers, restraints, and key opportunities
• Detailed PEST and SWOT analysis
• Pricing software market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
• Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the pricing software market
• Detailed company profiles