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The quality management software market size is estimated to grow at a CAGR of 10% between 2022 and 2027. The market size is forecast to increase by USD 5,897.6 million. The market's growth depends on several factors, including the Rise in the adoption of cloud-based quality management software offerings, rapid advances in technologies driving demand for scalable telecom management solutions, and rising spending on IT technologies. Quality management software is an enterprise platform that automates the process of monitoring and controlling product defects. End-users can utilize the software to check the final quality and ensure enhancements in production, processes, and revenue. The software allows them to isolate, identify, and correct unexpected defects in products, which could result in a failure to fulfill customer requirements. In addition, quality management software offers different tools for evaluating the effectiveness of repair attempts and supports end-users in ensuring that products meet compliance requirements based on international regulations.
This quality management software market report extensively covers market segmentation by Application (IT and telecom, transportation, and logistics, consumer goods and retail, healthcare, and banking), 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.
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The rise in adoption of cloud-based quality management software offerings is a major factor driving the market growth. The global adoption of cloud computing is rapidly increasing due to its flexible nature and cost benefits. Organizations of all sizes, including small-scale companies and startups, are leveraging cloud solutions to scale their operations without the need for costly infrastructure. Cloud-based quality management software offers swift implementation, reduces processing time and paperwork, and provides easy access to centralized documents. Market vendors are responding to the demand by offering cloud-based solutions and forming strategic partnerships to enhance document management capabilities. As a result, the market for cloud-based quality management software is poised for significant growth, driven by the accessibility and scalability it offers to end-user industries.
The growing adoption of SaaS-based quality management software solution is a major quality management software market trend. The surging popularity of SaaS-based quality management software solutions drives their adoption. SMEs opt for SaaS-based solutions for faster implementation, cost-effectiveness, and enhanced data security. With no software installation needed, users access the software via vendor data centers on a subscription basis. Monthly fees cover maintenance and upgrades. SaaS deployment appeals to SMEs, eliminating acquisition and long-term upgrade costs. Its economical nature propels market growth for SMEs and other users.
Threat from open-source quality management software providers is a major factor hindering market growth. The abundance of open-source quality management software providers poses a significant challenge in the global market. Notably, software like FlinkISO and Odoo offers free access to quality management functionality. Open-source vendors offer a wide range of tools and applications, allowing end-users to cover functionalities provided by on-premises or cloud vendors. These vendors cater to desktop (Linux, Mac, Windows) and mobile (Android, iOS) platforms. Open-source quality management software finds favor among SMEs with limited purchasing power and IT budgets. Developing countries like India and China witness increased adoption due to affordability constraints. Consequently, this trend negatively impacts the revenue and market share of commercial quality management software vendors in the forecast period.
The market is categorized into several segments based on application, including IT and telecom, transportation and logistics, consumer goods and retail, healthcare, and banking. Notably, the IT and telecom segment is expected to experience significant market share growth throughout the forecast period. Within this segment, IT and telecommunication companies are intensifying their efforts to attract, recruit, develop, and retain skilled professionals in order to achieve organizational objectives. These companies recognize the value of quality management technologies in optimizing human capital to meet both short-term and long-term goals. The rapid adoption of quality management software by telecom and IT organizations is driven by the need for expertise in advanced technologies to effectively manage business operations.
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The IT and telecom segment was valued at USD 4,060.34 million in 2017 and continues to grow during the forecast period. Quality management software enables telecom and IT companies to analyze, identify, and address workforce gaps. Predictive analytics and statistical modeling are used to prioritize recruitment workflows, conduct workforce planning, and evaluate different recruiting sources to improve hiring quality. The need to identify, hire, and retain skilled technical experts fuels the adoption of quality management software in the telecom and IT industries. The continuous growth and advancement of quality management software are expected to meet the demand for managing the potential workforce and achieving long-term and short-term goals in IT and telecom companies. These factors contribute to the increasing demand for quality management software in the IT and telecom segment during the forecast period.
Based on deployment, the market is segmented into on-premise and cloud-based segments. On-premise segment is expected to hold the largest market share. But the on-premises model is expected to grow slower than the global average during the forecast period. It requires significant investments in product purchases, installation, maintenance, and upgrades, along with training an in-house IT workforce. However, it offers enhanced security compared to cloud-based solutions. Large organizations dominate this market segment, prioritizing functionality over cost, especially for handling critical data. The growth of the on-premises model is influenced by the high costs associated with transitioning to the cloud model. The rise of SMEs, advancements in data security, cost-effectiveness, and flexibility of the cloud model will drive the adoption of cloud technologies, gradually eroding the market share of the on-premises model over time.
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North America is estimated to contribute 32% 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.
North America stands out as an attractive market for quality management software, driven by its early adoption of advanced technologies and the presence of thriving industries such as IT, healthcare, BFSI, manufacturing, retail, and e-commerce. These sectors require sophisticated quality management systems to support their technologically mature operations. The region benefits from the strong market presence and penetration of top-quality management software vendors, contributing to overall market growth.
Stringent compliance with quality management standards and international technical specifications, including AS9100 Rev.D, IATF 16949, and ISO 9001, is a key driver for the implementation of quality management software across various industries in North America. Regulatory initiatives like the Patient Protection and Accountable Care Act (PPACA) have mandated the delivery of quality healthcare services, further emphasizing the importance of compliance. Moreover, organizations are aligning their quality management efforts with strategic business objectives, leveraging methods such as Six Sigma and ISO standards to enhance productivity, process efficiency, and customer satisfaction. This underscores the increasing focus on supplier quality assurance, quality process automation, and compliance management among quality management software end-users in the region.
In 2020, the COVID-19 pandemic had a significant adverse impact on business activities and the overall economy of North America. Government-imposed lockdown measures resulted in the shutdown of manufacturing, transportation, logistics, and retail sectors, hindering regional economic growth. The market for quality management software also experienced a slowdown as most end-user industries remained closed to contain the spread of the virus. However, cloud-based software providers witnessed substantial growth during the pandemic, given the increased remote work arrangements. Organizations turned to cloud-based quality management software to meet their quality management needs. As vaccination drives were initiated in 2021, business activities resumed, leading to the reopening of production units and office premises. This recovery has driven the demand for quality management software in North America, positioning the market for growth during the forecast period.
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.
The research 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 quality management software market 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.
Quality Management Software Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 10% |
Market growth 2023-2027 |
USD 5,897.6 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
9.08 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 32% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Aras Corp., Cority Software Inc., Dassault Systemes SE, Hewlett Packard Enterprise Co., Hexagon AB, Honeywell International Inc., Intelex Technologies ULC, IQVIA Holdings Inc., MasterControl Inc., MetricStream Inc., Microsoft Corp., Oracle Corp., Parasoft Corp., PSC Software, QT9 Software Inc., Siemens AG, UniPoint Software Inc., Autodesk Inc., SAP SE, and Wolters Kluwer NV |
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, Market condition analysis for 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 market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Deployment
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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