Contract Management Software Market Growth Report 2031
The Contract Management Software Market size is projected to reach US$ 7.14 billion by 2031 from US$ 2.56 billion in 2023. The market is expected to register a CAGR of 13.7% in 2023–2031. The growing investment of industries in new-gen technologies is likely to remain a key contract management software market trend.
Contract Management Software Market Analysis
Contract management solutions assist legal advisers in collecting comparable contracts from the library for reference, which may be viewed virtually in formats such as PowerPoint, Microsoft Word, and Excel. This decreases review time and allows businesses to spot flaws in their system, which is fueling the market growth globally. It also enables businesses to ensure compliance with regulations enacted by regulating bodies. In addition, it improves operational efficiency and transparency in reporting systems and management controls. Further, as a result of rising globalization, a collaborative approach to project management and joint ventures is becoming increasingly important since it gives contract visibility to all parties involved, which is increasing the adoption of contract management solutions. In addition, the rising demand for cloud-based contract management software is expected to create an opportunity for the growth of the market in the forecasted period.
Contract Management Software Market Overview
Contract management software assists lawyers and other professionals in the creation, negotiation, renewal, and data collection of current corporate contracts. Contract management software is an essential tool for ensuring that the intent of every contract in the organization is fully realized. Furthermore, the software can help to improve contract performance by ensuring the enforcement of commercial terms, accelerating cash flow and time-to-revenue, and lowering the risk of noncompliance.
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Contract Management Software Market: Strategic Insights
Market Size Value in US$ 1,522.9 Million in 2019 Market Size Value by US$ 5,236.1 Million by 2027 Growth rate CAGR of 16.7% from 2020-2027 Forecast Period 2020-2027 Base Year 2020
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Contract Management Software Market: Strategic Insights
| Market Size Value in | US$ 1,522.9 Million in 2019 |
| Market Size Value by | US$ 5,236.1 Million by 2027 |
| Growth rate | CAGR of 16.7% from 2020-2027 |
| Forecast Period | 2020-2027 |
| Base Year | 2020 |
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Contract Management Software Market Drivers and Opportunities
Increasing Demand for Process Efficiency and Automation
As companies aim to reduce human errors and inefficiencies in contract lifecycle management while also enhancing operational efficiency, the demand for contract management software is increasing in the market. Contract management software streamlines the administration of contracts by automating repetitive tasks such as contract preparation, approval workflows, document storage, and renewal alerts. Automation causes a rise in demand for contract management systems since it reduces administrative burden, shortens contract cycle times, and boosts productivity. Thus, the rising demand for process efficiency and automation is boosting the contract management software market.
Rising Demand for Cloud-Based Solutions
Cloud-based contract management software has an easy-to-use interface, allows for dynamic process approvals, integrates seamlessly with popular contract management systems, and greatly lowers total expenses. Additionally, cloud-based contract management software enables organizations to access contract data and tools from any location at any time using any internet-connected device. Hence, as the software helps to satisfy the expectations of growing enterprises and allows for seamless integration with other corporate systems, its demand is increasing worldwide. Thus, the rising investment in the smart grid infrastructure is expected to create an opportunity for the growth of the contract management software market.
Contract Management Software Market Report Segmentation Analysis
Key segments that contributed to the derivation of the Contract Management Software Market analysis are component, deployment type, business function, and vertical.
- Based on offering, the Contract Management Software Market is bifurcated into software and services. The software segment held a larger market share in 2023.
- Based on deployment type, the market is segmented into cloud-based and on-premise. The cloud-based segment is anticipated to grow in the forecasted period.
- Based on business function, the market is segmented into legal, sales, procurement, and others. The legal segment is anticipated to grow in the forecasted period.
- By vertical, the market is segmented into healthcare and life sciences, transportation and logistics, government, manufacturing, telecom and IT, BFSI, others. The healthcare and life sciences segment is anticipated to grow in the forecasted period.
Contract Management Software Market Share Analysis by Geography
The geographic scope of the contract management software market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
North America is anticipated to witness significant growth in the Contract Management Software Market. The market in this region is segmented into the US, Canada, and Mexico. Organizations have increased openness in contract management by implementing policies and using streamlined contract management systems is one of the major factors fueling the market growth in the region. In addition, laws such as the Health Insurance Portability & Accountability Act (HIPAA) encourage the use of contract management programs, further boosting the market growth. Moreover, the region consists of a large number of market players who are continuously working on the advancement of the software which is further fueling the market growth in the region.
Contract Management Software Market Report Scope
Contract Management Software Market News and Recent Developments
The contract management software market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market for speech and language disorders and strategies:
- Agiloft, the global standard in agile contract lifecycle management (CLM), announced that Kroll has joined Agiloft’s global network of service partners. Kroll offers a wide range of services to help clients implement, maintain, and drive the adoption of Agiloft’s AI-driven CLM platform. By combining contract management and legal process best practices, proven technology, and rigorous systems implementation support, its teams transform contracting from a bottleneck to a business enabler for companies across key verticals, including Financial Services, Life Sciences, Energy, High Tech, and others. (Source: Agiloft, Press Release, 2023)
- Icertis announced the launch of Icertis Contract Intelligence (ICI) for Banking and Financial Services. The new contract lifecycle management (CLM) solution is packaged with out-of-the-box functionality that includes a range of contract types, rules to identify obligations, and workflow and reporting to support specific challenges in business processes across front, middle, and corporate offices of Banking and Financial Services organizations. The solution will help teams increase business velocity while managing risk and improving regulatory compliance to obligation areas like AML, ISDA credit support, and credit risk reviews. (Source: Icertis, Press Release, 2022)
Contract Management Software Market Report Coverage and Deliverables
The “Contract Management Software Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Key future trends
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Global and regional market analysis covering key market trends, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component ; Deployment Type ; Business Function ; Vertical
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
The global contract management software market is expected to reach US$ 7.14 billion by 2031.
The key players holding majority shares in the global contract management software market are Agiloft Inc, Apttus Corporation, Wolters Kluwer, CobbleStone Software, ContractsWise, IBM Corporation, Icertis, JAGGAER, SAP SE, and Zycus Inc.
Growing investment of industries in new-gen technologies is anticipated to play a significant role in the global contract management software market in the coming years.
The increasing demand for process efficiency and automation is the major factors that propel the global Contract Management Software Market.
The global contract management software market was estimated to be US$ 2.56 billion in 2023 and is expected to grow at a CAGR of 13.7% during the forecast period 2023 - 2031.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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