Enjoy complimentary customisation on priority with our Enterprise License!
The contract life-cycle management (CLM) software market is estimated to grow at a CAGR of 18.8% between 2022 and 2027. The size of the market is forecast to increase by USD 2,922.58 million. The growth of the market depends on several factors, including the pricing strategies of vendors, increased adoption of cloud-based contract lifecycle management, and the need to comply with regulatory requirements.
This report extensively covers market segmentation by component (software and services), Deployment (on-premise and cloud-based), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
To learn more about this report, Download Report Sample
The reports categorize the global contract life-cycle management (CLM) software market as a part of the global application software market within the global IT software market. The overall global IT software market covers companies that are engaged in developing and producing application and system software. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The pricing strategies of vendors are notably driving the market growth, although factors such as high implementation and maintenance costs may impede the market growth. Our researchers analyzed the data with 2022 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.
Key Contract Life-cycle Management Software Market Driver
One of the key factors driving growth in the market is the pricing strategies of vendors. To thrive in a competitive market environment, software vendors are adopting customer-centric pricing strategies enabled by advances in technology. Several vendors in the contract lifecycle management market are focusing on providing value-based pricing models depending on the customer's needs and value perception.
The pricing of the software is based on varied features of the software solution and the value-added features provided to the customers. The high price of the software and constrained IT budgets have led the vendors to re-evaluate the software pricing and delivery models. Therefore, vendors are providing SaaS, commercial open-source models, and term licensing to be in sync with the changing demands. Varying pricing structures of the legal practice management software will increase its adoption among end-users.
Significant Contract Life-cycle Management Software Market Trend
The emergence of analytics in contract life-cycle management is another factor supporting the market share growth. Enterprises across all domains are increasingly adopting contract life-cycle management built-in analytics to understand and interpret historical data points. This helps them to immediately access any contract information for comparisons, potential risks, and future performance estimates within the supply chain as it provides reporting and analytical capabilities across all aspects of the contracts and compliance life-cycle.
With built-in analytics, it helps to manage risk and optimize performance. Enterprises gain a better understanding of the patterns that are most valuable and useful in their contracts. They can use the derived insights from analytics tools to enhance their existing business relationships and accordingly pick the optimum contractor during contract renewals or while making new contract decisions.
Major Contract Life-cycle Management Software Market Challenge
The high implementation and maintenance costs will be a major challenge for the market during the forecast period. The price of the contract lifecycle management includes the cost of software licensing, system design and customization, implementation, training, and maintenance. An organization that has purchased the software requires IT staff with the relevant skillset for successful implementation of the software.
Implementation of the contract life-cycle management requires self-assessment, planning, adequate funding, a clear vision, and cooperation at all managerial levels. These factors lead to an increased cost of implementation of the contract life-cycle management, which adversely affects its adoption among the end-users, especially small enterprises.
Key Contract Life-cycle Management Software Market Customer Landscape
The 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 report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Contract Life-cycle Management Software Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Contract Logix LLC - The company offers contract life-cycle management software that securely and easily finds, access, and manages contracts from anywhere, on any device. This is an end-to-end contract lifecycle management platform to automate the entire contract process.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth of the software segment will be significant during the forecast period. Vendors operating in the market have been adopting inorganic strategies to enhance contract life-cycle management software. For instance, in January 2022, SAP SE and Icertis announced an expanded partnership for enhanced contract management to help companies increase efficiency, minimize risk, and make their agreements more reliable. Thus, the growing developments by the vendors operating in the market will drive the growth of the segment and, in turn, the market in focus during the forecast period.
Get a glance at the market contribution of various segments Request a PDF Sample
The software segment was valued at USD 585.52 million in 2017 and continued to grow until 2021. The software is a tool for ensuring that the intent of every contract in an organization is fully realized. It can maximize contract performance, ensure the enforcement of commercial terms, accelerate cash flow and time-to-revenue, and reduce the risk of non-compliance. With advanced contract life-cycle management software, users can auto-build contracts based on defined business rules and bulk data upload. These advantages associated with the segment will fuel the market growth during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America is estimated to contribute 44% 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.
The dominance of the region is mainly because of the availability of adequate IT infrastructure and increased awareness about the benefits of contract life-cycle management. Moreover, owing to the introduction of regulatory frameworks, such as Basel III in the financial sector and the Health Insurance Portability and Accountability Act (HIPAA) in the healthcare sector, enterprises operating in the region are seeking improved solutions to achieve better compliance adherence. Contract life-cycle management allows enterprises to adopt a holistic approach toward contracts and manages the entire life-cycle. By automating the contract lifecycle management process, enterprises can provide better value to their key shareholders.
The outbreak of COVID-19 propelled the growth of the market in North America. However, The regional market in focus has been experiencing developments; for instance, in July 2022, Ivalua launched a collaboration and AI-Powered platform to help organizations improve supply chain resilience and profitability. Therefore, owing to these factors, the CLM software market is expected to grow significantly in the region during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Component (Software and Services), Deployment (On-premise and Cloud-based), and Geography (North America, Europe, APAC, Middle East and Africa, and South America).
|
Contract Life-cycle Management Software Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
165 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 18.8% |
|
Market growth 2023-2027 |
USD 2,922.58 million |
|
Market structure |
Fragmented |
|
YoY growth 2022-2023(%) |
18.6 |
|
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
|
Performing market contribution |
North America at 44% |
|
Key countries |
US, Canada, China, India, and Germany |
|
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Contract Logix Llc, Corcentric Inc., Coupa Software Inc., DocuSign Inc., ESM Solutions Corp., Great Minds Software Inc., Icertis Inc., Infor Inc., International Business Machines Corp., Ivalua Inc., JAGGAER Llc, Newgen Software Technologies Ltd., Optimus BT Inc., Oracle Corp., Robobai Pty Ltd., SAP SE, Scanmarket AS, Thoma Bravo LP, Wolters Kluwer NV, and Zycus Inc. |
|
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period. |
|
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Component
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Customized Report as per your Business Needs
Let us help you make report more suited to your requirements.
Get the report (PDF) sent to your email within minutes.
