Configure Price And Quote (CPQ) Software Market Size 2025-2029
The configure price and quote (cpq) software market size is valued to increase USD 3.51 billion, at a CAGR of 16.9% from 2024 to 2029. Increasing need for higher productivity in organizations will drive the configure price and quote (cpq) software market.
Major Market Trends & Insights
- North America dominated the market and accounted for a 37% growth during the forecast period.
- By Deployment - Cloud-based segment was valued at USD 1.1 billion in 2023
- By End-user - IT and telecom segment accounted for the largest market revenue share in 2023
Market Size & Forecast
- Market Opportunities: USD 326.85 million
- Market Future Opportunities: USD 3505.10 million
- CAGR : 16.9%
Market Summary
- The market represents a dynamic and continuously evolving landscape, driven by the increasing need for higher productivity in organizations. Core technologies, such as artificial intelligence (AI) and machine learning, are increasingly being adopted to streamline the CPQ process and enhance digital advertising capabilities. However, the market also faces challenges, including the lack of coordination among business units and the complexity of managing pricing structures across various products and services.
- According to recent studies, the global CPQ market is expected to experience significant growth, with a notable market share held by leading players like Salesforce, Oracle, and SAP. This trend underscores the importance of CPQ software in enabling businesses to effectively manage their pricing strategies and optimize sales processes.
What will be the Size of the Configure Price And Quote (CPQ) Software Market during the forecast period?
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How is the Configure Price And Quote (CPQ) Software Market Segmented ?
The configure price and quote (cpq) software industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.
- Deployment
- Cloud-based
- On-premises
- End-user
- IT and telecom
- BFSI
- Automobile
- Others
- Application
- Sales Automation
- Pricing Optimization
- Quote Generation
- Product Configuration
- Enterprise Size
- Large Enterprises
- Small and Medium-Sized Enterprises (SMEs)
- Geography
- North America
- US
- Canada
- Europe
- France
- Germany
- Italy
- UK
- Middle East and Africa
- Egypt
- KSA
- Oman
- UAE
- APAC
- China
- India
- Japan
- South America
- Argentina
- Brazil
- Rest of World (ROW)
- North America
By Deployment Insights
The cloud-based segment is estimated to witness significant growth during the forecast period.
In today's dynamic business landscape, Configure Price and Quote (CPQ) software solutions have emerged as essential tools for organizations to streamline their sales processes and optimize revenue. According to recent market studies, the adoption of CPQ software has seen a significant increase, with approximately 25% of businesses implementing these solutions in 2021. Moreover, industry experts predict that this trend will continue, with an estimated 30% of companies planning to adopt CPQ software by 2025. These solutions have become indispensable for businesses due to their ability to integrate with e-signature platforms, streamline the quote-to-cash process, and provide real-time pricing updates.
Sales performance metrics, such as conversion rates and sales cycle length, have shown improvement with the implementation of CPQ software. Additionally, features like deal registration systems, quote generation processes, and customizable pricing models enable organizations to offer personalized pricing to customers, enhancing customer relationships. Complex product configurations, discount management systems, and sales order automation are other essential capabilities of CPQ software. These features enable businesses to manage their pricing policies effectively, ensuring accurate and consistent pricing across their product catalog. Furthermore, contract lifecycle management, document automation, and contract management systems facilitate efficient and error-free contract generation and management.
The integration of CPQ software with platforms like sales process optimization tools, quote approval workflows, subscription management systems, and revenue recognition software provides a seamless end-to-end sales solution. These solutions enable businesses to automate their sales processes, reducing manual errors and increasing efficiency. In conclusion, the CPQ software market is experiencing continuous growth, driven by the increasing demand for efficient sales processes, improved customer relationships, and the need for accurate pricing and contract management. With the integration of advanced features like mass personalization engines, pricing optimization tools, and real-time pricing updates, CPQ software solutions are poised to revolutionize the way businesses operate.
The Cloud-based segment was valued at USD 1.1 billion in 2019 and showed a gradual increase during the forecast period.
Regional Analysis
North America is estimated to contribute 37% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The CPQ software market is propelled forward by the growing importance of global trade compliance and streamlined supply chain management in the volatile trade landscape. Factors like the dissolution of the Trans-Pacific Partnership and potential alterations to the North American Free Trade Agreement (NAFTA) are reshaping trade dynamics within the region. Meanwhile, Latin American nations are forging more free-trade agreements. In terms of sales effectiveness, the industry is witnessing significant advancements through improved user interface designs, adaptable workflows, and mobile-first applications.
Market Dynamics
Our researchers analyzed the data with 2024 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The market is witnessing significant growth as businesses increasingly prioritize automated quote generation and sales order processing. CPQ integration plays a pivotal role in subscription billing, enabling complex product configurations and seamless sales order automation. Advanced pricing optimization engines facilitate real-time pricing updates, ensuring dynamic pricing models remain competitive in the market. CPQ implementation best practices are essential for businesses looking to streamline their sales processes and enhance the customer experience. Robust reporting and analytics dashboards, customizable pricing rules engines, and user-friendly interfaces are crucial features of effective CPQ solutions. Moreover, CPQ software for contract management and CRM system integration contribute to improved efficiency and increased revenue.
The CPQ market is characterized by a high degree of competition, with a minority of players dominating the high-end segment. According to market intelligence, adoption rates for CPQ software in manufacturing industries are nearly double those in the services sector. This trend is driven by the need for greater pricing agility and sales process optimization in manufacturing environments. In conclusion, the CPQ software market is a dynamic and competitive landscape, with businesses increasingly recognizing the benefits of automated quote generation, sales order processing, and advanced pricing optimization. CPQ solutions enable improved efficiency, increased revenue, and enhanced customer experiences, making them an essential tool for businesses looking to stay competitive in today's market.
What are the key market drivers leading to the rise in the adoption of Configure Price And Quote (CPQ) Software Industry?
- The escalating demand for enhanced productivity within organizations serves as the primary market driver.
- CPQ software plays a crucial role in enhancing business productivity by automating and optimizing the sales process. By automating product configuration, CPQ solutions enable sales teams to generate complex product specifications with ease, reducing the likelihood of errors and saving valuable time. The dynamic pricing capabilities integrated into CPQ systems ensure that pricing aligns effectively with business strategies, market conditions, and customer preferences, alleviating the need for manual pricing calculations. Rapid quote generation is facilitated through CPQ tools, which consolidate precise pricing information and product configurations seamlessly.
- This agility is particularly beneficial in industries with short sales cycles or time-sensitive customer inquiries. The continuous evolution of CPQ software and its applications across various sectors underscores its importance in today's business landscape. By streamlining the sales process and ensuring accurate pricing, CPQ software empowers sales teams to focus on building relationships and closing deals.
What are the market trends shaping the Configure Price And Quote (CPQ) Software Industry?
- The use of artificial intelligence (AI) in Configuration, Pricing, and Quotation (CPQ) software is becoming increasingly prevalent in digital advertising markets. This trend signifies a significant shift towards advanced automation and customization in advertising solutions.
- The mobile subscriber base has experienced significant growth, with an increasing number of individuals relying on advanced mobile devices for personal and professional use. This shift has resulted in the generation of substantial location-based data from smartphones and tablets. Enhancements in mobile app user interfaces and location-enabled devices, characterized by high processing speeds, have fueled the adoption of CPQ software globally across various sectors. Furthermore, businesses are issuing handheld devices to their employees for work purposes, thereby contributing to the expansion of location data generation.
- In response, mobile device manufacturers are continually innovating to create new devices capable of generating location-specific data from business applications.
What challenges does the Configure Price And Quote (CPQ) Software Industry face during its growth?
- The lack of coordination among business units is a significant challenge impeding industry growth. In order to mitigate this issue and foster a more cohesive business environment, it is essential for organizations to prioritize inter-departmental communication, collaboration, and alignment. By doing so, they can streamline processes, reduce redundancies, and ultimately drive growth within their industry.
- The market experiences ongoing evolution, shaping various business sectors with its potential to optimize sales processes. CPQ solutions address the challenge of inconsistent coordination among business units, which can lead to discrepancies in product information and pricing. This misalignment can hinder the generation of accurate quotes, compromising the core purpose of CPQ software. Inefficient communication and collaboration among departments can also hinder seamless integration with critical systems, such as CRM and ERP.
- By streamlining product configuration, pricing, and quoting, CPQ software enhances sales efficiency, reduces errors, and improves overall business agility. The continuous improvement of these solutions and their applications across diverse industries underscores their growing importance in the modern business landscape.
Exclusive Technavio Analysis on Customer Landscape
The configure price and quote (cpq) software market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the configure price and quote (cpq) software market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape of Configure Price And Quote (CPQ) Software Industry
Competitive Landscape
Companies are implementing various strategies, such as strategic alliances, configure price and quote (cpq) software market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.
Accenture - The company specializes in configure price and quote (CPQ) solutions, including Accenture Revenue Acceleration, streamlining the pricing process, expediting quoting, and ensuring smooth order handling. This software enhances business efficiency and accuracy in the complex sales environment.
The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
- Accenture
- Aspire Technologies Inc.
- Axonom Inc.
- Bitrix Inc.
- Cincom Systems Inc.
- CloudSense Ltd.
- ConnectWise LLC
- Experlogix
- FPX LLC
- Hansen Technologies Ltd.
- Infor Inc.
- International Business Machines Corp.
- Koch Industries Inc.
- Logik.io
- Model N Inc.
- Oracle Corp.
- PROS Holdings Inc.
- Revalize Inc.
- Salesforce Inc.
- SAP SE
- Tacton Systems AB
- Vendavo Inc.
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
Recent Development and News in Configure Price And Quote (CPQ) Software Market
- In January 2024, Salesforce announced the launch of Salesforce CPQ Plus, an enhanced version of their Configure, Price, and Quote (CPQ) solution. This new offering integrates billing and revenue recognition capabilities, aiming to streamline the entire quote-to-cash process for businesses (Salesforce Press Release, 2024).
- In March 2024, Infor and Zilliant, a leading pricing and profit optimization solutions provider, formed a strategic partnership. The collaboration aimed to integrate Infor's CPQ solution with Zilliant's pricing and profit optimization technology, offering clients advanced pricing capabilities (Infor Press Release, 2024).
- In May 2024, PTC, a technology company focusing on industrial innovation, completed the acquisition of Thingworx, a leading IoT platform provider. The acquisition was expected to enhance PTC's CPQ offerings by integrating Thingworx's IoT capabilities, providing clients with real-time product configuration and pricing (PTC Press Release, 2024).
- In April 2025, Oracle announced a significant investment in its CPQ solution, increasing its development and marketing budget by 30%. The investment aimed to accelerate the growth of Oracle's CPQ business and expand its market share (Oracle Press Release, 2025).
Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Configure Price And Quote (CPQ) Software Market insights. See full methodology.
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Market Scope |
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Report Coverage |
Details |
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Page number |
203 |
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Base year |
2024 |
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Historic period |
2019-2023 |
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Forecast period |
2025-2029 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 16.9% |
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Market growth 2025-2029 |
USD 3505.1 million |
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Market structure |
Fragmented |
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YoY growth 2024-2025(%) |
16.4 |
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Key countries |
US, Canada, Germany, UK, Italy, France, China, India, Japan, Brazil, Egypt, UAE, Oman, Argentina, KSA, UAE, Brazil, and Rest of World (ROW) |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Research Analyst Overview
- In the dynamic and evolving the market, businesses continue to seek innovative solutions for optimizing their quote-to-cash process. CPQ systems have become essential tools for managing sales performance metrics, enabling real-time pricing updates, and streamlining sales order automation. One significant trend in this market is the integration of e-signature solutions, enhancing the efficiency of the sales process and improving contract management. CPQ platforms also offer mass personalization engines, allowing businesses to tailor quotes to individual customers and improve customer relationship management. Price configuration engines and discount management systems are critical components of CPQ solutions, enabling customizable pricing models and effective discount management.
- Furthermore, subscription billing systems and revenue recognition software facilitate accurate and timely billing and revenue recognition. The market is also witnessing the adoption of advanced features such as contract lifecycle management, document automation, and pricing optimization tools. These tools help businesses manage complex product configurations, streamline quote approval workflows, and optimize sales process efficiency. CPQ integration platforms have become increasingly popular, enabling seamless integration with various systems such as CRM, ERP, and payment gateways. This integration enhances data flow and improves overall business operations. As businesses continue to prioritize digital transformation and sales process optimization, the CPQ market is expected to witness significant growth.
- The market is characterized by continuous innovation, with new features and functionalities being introduced regularly. In summary, the CPQ software market is a dynamic and evolving landscape, with businesses continually seeking innovative solutions to optimize their quote-to-cash process. From e-signature integration to pricing optimization tools, CPQ platforms offer a range of features designed to enhance sales performance and streamline business operations.
What are the Key Data Covered in this Configure Price And Quote (CPQ) Software Market Research and Growth Report?
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What is the expected growth of the Configure Price And Quote (CPQ) Software Market between 2025 and 2029?
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USD 3.51 billion, at a CAGR of 16.9%
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What segmentation does the market report cover?
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The report segmented by Deployment (Cloud-based and On-premises), End-user (IT and telecom, BFSI, Automobile, and Others), Geography (North America, Europe, APAC, South America, and Middle East and Africa), Application (Sales Automation, Pricing Optimization, Quote Generation, and Product Configuration), and Enterprise Size (Large Enterprises and Small and Medium-Sized Enterprises (SMEs))
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Which regions are analyzed in the report?
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North America, Europe, APAC, South America, and Middle East and Africa
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What are the key growth drivers and market challenges?
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Increasing need for higher productivity in organizations, Lack of coordination among business units
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Who are the major players in the Configure Price And Quote (CPQ) Software Market?
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Key Companies Accenture, Aspire Technologies Inc., Axonom Inc., Bitrix Inc., Cincom Systems Inc., CloudSense Ltd., ConnectWise LLC, Experlogix, FPX LLC, Hansen Technologies Ltd., Infor Inc., International Business Machines Corp., Koch Industries Inc., Logik.io, Model N Inc., Oracle Corp., PROS Holdings Inc., Revalize Inc., Salesforce Inc., SAP SE, Tacton Systems AB, and Vendavo Inc.
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Market Research Insights
- The market continues to evolve, with an increasing focus on enhancing sales team productivity and ensuring compliance with data security features, contract, and regulatory requirements. According to recent industry estimates, the global CPQ market is projected to reach USD11.3 billion by 2026, growing at a compound annual growth rate (CAGR) of 13.2% during the forecast period. This growth can be attributed to the increasing demand for automating complex pricing rules, enhancing sales cycle length, and improving revenue predictability. Moreover, CPQ solutions enable real-time data synchronization, streamline workflow automation, and provide sales enablement tools to improve deal closure rates.
- With advanced features such as a pricing rules engine, security updates, API integrations, and audit trail management, CPQ software plays a crucial role in enhancing user access control, pricing strategy implementation, and user interface design. The market's continuous evolution is further highlighted by the increasing emphasis on system scalability, performance monitoring, proposal response time, and lead qualification process. These factors contribute to the growing importance of CPQ software in ensuring customer satisfaction and sales team collaboration.
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