Global Assortment and Space Optimisation (ASO) Market Report and Forecast 2024-2032

Global Assortment and Space Optimisation (ASO) Market Outlook

The assortment and space optimisation (ASO) market size reached a value of nearly USD 1.88 billion in 2023. The market is projected to grow at a CAGR of 12.5% between 2024 and 2032 and reach around USD 5.45 billion by 2032.

Key Takeaways

• The growing e-commerce sector is expected to fuel the demand for assortment and space optimisation solutions and services.

• Oracle Corporation, Blue Yonder Group, Inc., and SAP SE are a few of the major companies in the assortment and space optimisation (ASO) market.

• Advancements in retail space planning technology, including management software and applications, are expected to bolster the ASO market.

There is a growing trend of creating a customer-centric assortment among retailers to increase their profitability and net sales while also gaining customer loyalty. Moreover, the rising availability of innovative AI-based solutions that can automate category management and assortment optimisation is anticipated to aid the assortment and space optimisation (ASO) market in the forecast period.

The rising number of SKUs (stock keeping units), restricted shelf space, and supply chain complexities are pushing retailers to optimise product assortment and retail space. Additionally, there is an increasing investment to integrate technologies such as virtual reality (VR), 3D technologies, and augmented reality (AR) in ASO solutions by retailers to develop consumer-oriented retail store plans, which is further creating opportunities for the market.

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Key Trends and Developments

Growing demand for personalised shopping experiences; technological advancements; the expanding e-commerce channels; and the rising commitment towards sustainability are aiding the assortment and space optimisation (ASO) market growth

April 2023

Oracle introduced new AI and automation capabilities in the Oracle Fusion Cloud Applications Suite to enhance supply chain management, improve operational efficiency, and boost financial accuracy.

March 2023

Rimi Baltic, a retailer operating in Latvia, Estonia, and Lithuania, implemented SymphonyAI Retail CPG’s cloud-based macro and micro space solutions, including Store View planogram distribution, Assortment Optimization, Shelf Planning, and Category Insights reporting, as well as floor planning.

January 2023

Big Boy Restaurant Group partnered with Oracle to modernise its systems and improve customer service. The restaurant chain implemented Oracle MICROS Simphony Cloud POS and Payment Cloud Service to streamline ordering, payment, and inventory management.

January 2023

South African retailer Pick n Pay Group partnered with Blue Yonder to enhance its inventory, ranging, and space planning capabilities.

Growing consumer demand for personalised shopping experiences

The evolving consumer demand and the surging preference for personalised shopping experiences are pushing retailers to deploy ASO solutions to create relevant product assortments.

Technological advancements and innovations

Technological advancements and innovations have led to the deployment of artificial intelligence (AI) and data analytics in ASO solutions to better understand customer behaviour and enhance assortment and space optimisation.

Expanding the presence of retail stores and the rising popularity of e-commerce channels

The presence of retail stores such as grocery stores is increasing as they offer ease of accessibility, convenience, and a one-stop-shopping experience. Moreover, ASO solutions have been paving their way into e-commerce platforms to manage ascending stock keeping units and control the costs of inventory and logistics.

Rising commitment towards sustainability

Assortment and space optimisation tools help to reduce wastage by analysing consumer preferences and ensuring that only products in demand are stocked. As a result, manufacturers are employing such solutions for inventory management.

Increasing number of SKUs

The rising number of SKUs (stock keeping units) and restricted shelf space, along with the increasing supply chain complexities, are pushing retailers to optimise product assortment and retail space.

Global Assortment and Space Optimisation (ASO) Market Trends

The increasing complexity of supply chains, growing number of SKUs, heterogeneity of stores and limited shelf space are prompting retailers to adopt assortment and space optimisation (ASO) tools for lowering their operating costs in supply chains, improving procurement conditions, and increasing revenue generation. The application of ASO solutions to manage product assortments for improving consumer interaction and managing inventory and shipping costs is developing in the rapidly expanding e-commerce industry.

Furthermore, there is an increasing investment in innovative technologies such as virtual reality (VR), 3D technologies, and augmented reality (AR) by retailers to develop consumer-oriented retail store plans. With the growing trend of hyperlocalisation of retailing, the deployment of AI and data analytics-driven ASO solutions is likely to grow in the forecast period.

Figure: Global E-commerce Growth Rate (in %), 2021-2027

Market Segmentation

Global Assortment and Space Optimisation (ASO) Market Report and Forecast 2024-2032 offers a detailed analysis of the market based on the following segments:

Market Breakup by Component:

• Solutions

• Services 

Market Breakup by Deployment:

• On-Premises

• Cloud

Market Breakup by Enterprise Size:

• Large Enterprises

• Small and Medium Sized Enterprises

Market Breakup by Region:

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Solutions are expected to dominate the assortment and space optimisation (ASO) market share in the forecast period.

Integrated cloud-based assortment and space optimisation (ASO) solutions help retailers plan and execute a dynamic shelf strategy by using latest sales data to drive optimal sales. Technological advancements such as artificial intelligence (AI)-based retail ASO solutions enable intelligent store clustering by integrating demographic and customer loyalty data. By leveraging AI and computer vision on various attributes, images, and trends, such solutions can help retailers gain insights into gaps in their assortment and market competition.

Companies providing ASO services use highly efficient category management software to deliver distinctly productive assortment optimisation services. Retail ASO cloud services help retailers increase their space productivity by leveraging statistical forecasting, demand transference and predefined business rules to enable optimum assortment decisions within the spatial constraints of planograms.

Competitive Landscape

Major players in the assortment and space optimisation (ASO) market are increasing their collaboration, partnership, and research and development activities to gain a competitive edge

Oracle Corporation

Oracle Corporation, headquartered in the USA and founded in 1977, is a leading database management company. Ora’le's Retail Inventory Planning and Management division provides an Assortment and Space Optimization solution that enables businesses to maximise returns on their available retail space and increase profitability.

Blue Yonder Group, Inc.

Blue Yonder Group, Inc., headquartered in the USA and founded in 1985, is a well-known global leader in the field of digital supply chain. The company’s assortment management solution empowers businesses to offer the right product range, create exceptional customer experiences, and build brand loyalty.

SAP SE

Headquartered in Germany and founded in 1972, SAP SE provides assortment management and planning solutions under its ERP segment, which encompasses a range of offerings such as assortment plans, store layout elements, and merchandise planning.

McKinsey & Company

Headquartered in the USA and founded in 1926, is a globally recognised management consulting firm. McKin’ey's assortment optimisation solution empowers businesses with comprehensive insights and analyses to enhance their category offerings and drive sales growth.

Other key players in the global assortment and space optimisation (ASO) market include Aptos, LLC, Microsoft Corporation, International Business Machines Corporation, Accenture PLC, and Nielsen Consumer LLC, among others.

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Global Assortment and Space Optimisation (ASO) Market Analysis by Region

North America is a prominent region due to the presence of leading assortment management and planning solutions companies. Regional merchants in North America are increasingly using ASO as it allows for variable assortments that adapt to changing consumer trends and behaviours.

Retailers can find the best shop groupings for increased supply chain efficiency by employing an intelligent clustering approach. In 2022, inventories in the USA grew at a 12.7% rate compared to 2021, which further necessitates the deployment of ASO solutions.

In Europe, AI-assisted ASO tools are gaining popularity by boosting sales via data-driven decisions and improving product relevance for customers. Retailers analyse historical purchase transactions from point of sale (POS) systems to determine the co-occurrence of product pairs. With these tools, retailers can make better decisions about which products to sell in their locations and adapt assortments to local customer preferences and shop sizes.

In the Asia Pacific region, the growing digital commerce and evolving consumer preferences are pushing merchandisers to leverage innovative technologies like data analytics and AI for maximising space and spot opportunities. By 2024, the Asia Pacific’s online retail sales are expected to reach USD 2.5 trillion, up from USD 1.5 trillion in 2019, propelling the assortment and space optimisation (ASO) market expansion.

Key Highlights of the Report

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Assortment and Space Optimisation (ASO) Market Report Snapshots

Assortment and Space Optimisation (ASO) Market Size

Assortment and Space Optimisation (ASO) Market Trends

Assortment and Space Optimisation (ASO) Market Share

Assortment and Space Optimisation (ASO) Companies

Assortment and Space Optimisation (ASO) Market Regional Analysis