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The contract life-cycle management software market size is forecast to increase by USD 4.83 billion at a CAGR of 23.75% between 2023 and 2028. Market expansion hinges on various factors, such as company pricing strategies, the widespread adoption of cloud-based contract lifecycle management solutions, and the imperative to adhere to regulatory standards. Companies' pricing approaches influence market competitiveness and customer acquisition. Additionally, the migration towards cloud-based contract management platforms enhances operational efficiency and scalability. Moreover, regulatory compliance requirements drive organizations to invest in robust contract management solutions, ensuring adherence to legal mandates and mitigating risks. These factors collectively shape the growth trajectory of the market. Furthermore, the report includes historic market data from 2018 to 2022.
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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.
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The software segment was valued at USD 685.30 million in 2018. 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.
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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.
In the realm of contract management, organization size and vertical play significant roles, particularly in sectors like healthcare and lifesciences. Companies such as Apttus and CobbleStone Software provide solutions like Determine for small & medium enterprises (SMEs) and the IT sector, aiming to streamline processes and enhance efficiency. Through the utilization of statistical data, these platforms facilitate contract creation, contract governance, execution, and governance, resulting in substantial time and cost savings while minimizing errors and disputes. Accessibility is improved through digitalization, offering automated contract lifecycle management to mitigate risks and simplify processes. By centralizing operations, these systems bolster contract management processes, boosting operational efficiency and providing a comprehensive framework for businesses to operate within. Ultimately, they serve as integral tools for streamlining contract management processes and optimizing organizational performance.
One of the key factors driving growth in the market is the pricing strategies of companies. To thrive in a competitive market environment, software companies are adopting customer-centric pricing strategies enabled by advances in technology. Several companies in the market are focusing on providing value-based pricing models depending on the customer's needs and value perception. Further, Agiloft, Apptus, and CMI Team are leading providers of innovative solutions, offering comprehensive tools and services to streamline business processes and optimize organizational efficiency.
Furthermore, contract management software centralizes contract data, streamlining contact management processes and enhancing efficiency by providing organizations with comprehensive tools to manage, track, and analyze their contracts throughout the entire lifecycle administration. The high price of the software and constrained IT budgets have led the companies to re-evaluate the software pricing and delivery models. Therefore, companies 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.
The emergence of analytics in contract life-cycle management is another factor supporting the market 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.
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.
The market research report includes the adoption lifecycle of the market research and growth, 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 market growth and forecasting strategies.
Market Customer Landscape
Companies 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 companies, including:
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 market 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.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments.
Vendor Management Software Market: Vendor Management Software Market Analysis North America, APAC, Europe, South America, Middle East and Africa - US, Canada, China, Germany, France - Size and Forecast
IT Asset Management Software Market: IT Asset Management Software Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, Canada, China, UK, Germany - Size and Forecast
Procurement Software Market: Procurement Software Market by Deployment, End-user and Geography - Forecast and Analysis
In today's dynamic business landscape, platforms like ContractsWise are invaluable for enhancing visibility and productivity while ensuring compliance with legal and regulatory standards. These solutions address contract-related issues by offering intuitive approval workflows and timely notifications, even in remote work arrangements. By simplifying contract management processes, these platforms streamline monitoring, negotiation, and renewal, facilitating informed decision-making and minimizing errors. Through automation, they enable quicker contract cycles and establish efficient workflows, Aaveneir, complemented by robust notification systems. A systematic approach underpins these solutions, allowing organizations to navigate the complexities of contract management with ease and precision. Overall, they serve as indispensable tools for optimizing operations and fostering success in today's competitive market.
Industry Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 23.75% |
Market growth 2024-2028 |
USD 4.82 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
19.99 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 44% |
Key countries |
US, Germany, China, India, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, 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 forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, Market growth and Forecasting, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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