Partner Relationship Management Market Size and Share 2031
The partner relationship management market size is projected to reach US$ 4.10 billion by 2031 from US$ 1.73 billion in 2023. The market is expected to register a CAGR of 11.4% during 2023–2031. Technological advancement and integration of artificial intelligence (AI) in developing advanced partner relationship management solutions are likely to remain key trends in the market.
Partner Relationship Management Market Analysis
Partner relationship management (PRM) is a collection of tools, processes, and tactics used by businesses to streamline business processes with partners who sell their products. Partner relationship management (PRM) refers to the software and tactics used by businesses to streamline their connections with the partners and distributors that market and sell their products. PRM encompasses simple methods for managing co-marketing connections to more complex programs involving high-level software and data administration. PRM solutions have become an integral component of successful channel management and partner programs, from onboarding and training channel partners to joint business planning and market development fund (MDF) administration. A PRM system provides numerous advantages to a company. It has become a must, particularly for organizations in the emerging growth stage, as they build their indirect sales staff. A PRM platform fortifies the relationship between suppliers and indirect sales channel partners while also providing them with proven technology to enable improved workflows. They enable businesses to manage the full channel partnership relationship, from initial onboarding to partner relationship optimization.
The main advantage of partner selling is the low-investment revenue growth. Businesses save money by not hiring more salespeople because you only pay commissions. Furthermore, rather than spending time learning about a new business, the company may rely on partners that already have the know-how and connections, making it easier to expand and reach more clients. This allows businesses to avoid expensive client acquisition costs and reduce expenses that would otherwise be required to support expanded sales efforts, all while increasing income. PRM can also shorten the time it takes to bring your products and services to market with the correct tools and training. Businesses avoid the time-consuming process of locating and connecting with new prospects by utilizing relationships with customers that partners already have. The macroeconomic factors driving the demand in the partner relationship management market are evolving marketplaces and partner ecosystems.
Partner Relationship Management Market Overview
The function of Partner Relationship Management (PRM) has increased dramatically in the ever-changing world of commercial relationships. As businesses grasp the significance of strategic alliances, the requirement for efficient PRM solutions has grown. In the current market, the enterprises involved in direct selling are moving away from the model and towards partner-led growth. Acquisition prices are rising, and it is no longer a viable strategy for organizations to produce their entire sales pipeline. For instance, according to a 2023 report by Allbound, Inc., The median sales and marketing spend for direct acquisition has reverted to 37-40% of revenue, where it stood before COVID-19. However, with the same outlay, median revenue growth has reduced from 37% in 2018 to 26% in 2022. These are unmistakable indications that something needs to change. This is why several companies, including Dell and Rapid7, have switched their focus from direct acquisition to partner-led growth. Thus, enterprises are venturing into different channels to reach their customer. Moreover, development in the software ecosystem is further complementing this trend in the market to drive the demand for partner relationship management market. This partner-driven model generated a need for enterprises to have a tool that is efficient at managing all the partners on one platform. Loads of data are generated daily, and solutions in the partner relationship management market can help analyze this data to generate insights. With recent large expenditures in PRM solutions, the market has been streamlined and has witnessed some dynamic swings. Mergers and acquisitions are common in this sector, with vendors trying to build a comprehensive offering and, hence, complement their solution through acquisition. Some M&A activity is also intended to broaden market reach, either horizontally or vertically. The digital transformation wave has impacted all major industries, resulting in increased demand for PRM solutions. There is much more scope for the partner relationship management market to expand with rising awareness about automating the partner relationship management workflows. Many companies are taking the initiative to increase awareness about their products in the market. For instance, ZINFI Technologies, Inc., a pioneer in the defining and development of Unified Channel Management (UCM) solutions, announced today that its latest guidebook, PRM Software: Core Capabilities, is now available as a free digital eBook. The eBook is intended for enterprises that are interested in automating partner relationship management workflows and are in the process of selecting a platform.
The PRM Software: Core Capabilities eBook discusses each of the major variables that firms selling through the channel must discover and assess before making an informed purchasing decision.
Strategic Insights
Partner Relationship Management Market Drivers and Opportunities
Rise in Indirect Sales Channel to Favor the Market
Businesses use indirect channels for a variety of purposes, including reaching untapped areas, delivering value-added services, and providing creative solutions. Indirect (i.e., Partner) channels can provide organizations with better, faster, and cheaper routes to market. Leaders should investigate opportunities to build competitive differences through partnerships if they exist. According to a 2022 study, B2B organizations forecast 15% growth from partners this year, which is greater than expected overall industry growth, indicating that leaders are actively pursuing channel ties. Indirect sales have the distinct benefit of offloading some of the heavy marketing and sales labor to third parties. These third parties or partners are often referred to as resellers or affiliates, and they work on a discount (resellers) or commission (affiliates) based on variables determined by the company. The concept of indirect sales is to add a layer (channel) of marketing and sales while minimizing overall costs. It also reduces advertising costs because you are now utilizing the indirect seller's network or audience. Managing the partners in these indirect sales channels drives the demand for solutions in the partner relationship management market.
Growing Partnership Agreement Among Market Players to Develop Technologically Advanced Solutions
The growing digitalization and increasing adoption of automated solutions among SMEs and large enterprises are creating opportunities in the market. Increasing demand for automated solutions encourages market players to upgrade product features and provide cloud-based partner relationship management solutions to customers across the globe. For instance, PartnerStack partnered with Crossbeam to connect PRM (partner relationship management) and account mapping tools in their day-to-day work. This brand-new interface streamlines the account mapping process, allowing partnership teams to reduce manual work while experiencing smooth data flows. The integration of PartnerStack and Crossbeam will empower partnership and revenue executives to integrate two key pieces of technology in their partnership tech stack, allowing teams to drive revenue through shared possibilities. These factors are anticipated to create significant growth opportunities for the market during the forecast period.
Partner Relationship Management Market Report Segmentation Analysis
Key segments that contributed to the derivation of the partner relationship management market analysis are component, deployment, enterprise size, application.
- Based on component, the partner relationship management market is divided into solution and services. The solution segment held a larger market share in 2023.
- By deployment, the market is segmented into cloud and on-premise. The on-premise segment is anticipated to expand during the forecast period.
- In terms of enterprise size, the market is segmented into SMEs and large enterprises. The large enterprise segment is anticipated to expand during the forecast period.
- On the basis of application, the partner relationship management market is divided into BFSI, IT & telecom, retail & consumer goods, manufacturing, healthcare, and others. The IT & telecom segment held a larger market share in 2023.
Partner Relationship Management Market Share Analysis by Geography
The geographic scope of the partner relationship management market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South & Central America.
The region is home to a major e-commerce ecosystem and a diverse consumer market. The US is the leading country in the region to adopt solutions in the partner relationship management market. The country has a booming startup space involved in developing innovative partner relationship management solutions. For instance, some of the major vendors in the partner relationship management market-based in the US are Impartner Inc., ZINFI Technologies, Inc., Salesforce, Inc., and others.
Partner Relationship Management Market Report Scope
Partner Relationship Management Market News and Recent Developments
The partner relationship management market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. A few of the developments in the partner relationship management market are listed below:
- In June 2023, Impartner, the fastest-growing and most award-winning provider of reseller and partner management technologies, announced today a strategic agreement with Crossbeam, a well-known partner ecosystem platform for partnership data. This ground-breaking integration represents a key milestone in the partner management environment, providing enterprises with unparalleled options to optimize their partner ecosystems and achieve greater revenue development. (Source: Impartner, Company Website, June 2023)
Partner Relationship Management Market Report Coverage and Deliverables
The “Partner Relationship Management Market Size and Forecast (2021–2031)” report provides a detailed analysis of the market covering below areas:
- Partner relationship management market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Partner relationship management market trends as well as market dynamics such as drivers, restraints, and key opportunities
- Detailed PEST/Porter’s Five Forces and SWOT analysis
- Partner relationship management market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments for the partner relationship management market
- Detailed company profiles
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Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Component, Deployment, Enterprise Size, and Geography
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
This text is related
to country scope.
Frequently Asked Questions
The global partner relationship management market is estimated to register a CAGR of 11.4% during the forecast period 2023–2031.
The growing number of start-ups worldwide and the rise in indirect sales channels that propel the global partner relationship management market.
Technological advancement and integration of artificial intelligence (AI) in developing advanced partner relationship management solutions to play a significant role in the global partner relationship management market in the coming years.
The key players holding majority shares in the global partner relationship management market are Affise Inc., Crossbeam, Everflow, Impact Tech, Inc, LeadMethod, Inc., Magentrix Corporation, PartnerStack Inc., PartnerTap, Zift Solutions, and ZINFI Technologies, Inc.
The report can be delivered in PDF/PPT format; we can also share excel dataset based on the request.
Some of the customization options available based on the request are additional 3–5 company profiles and country-specific analysis of 3–5 countries of your choice. Customizations are to be requested/discussed before making final order confirmation, as our team would review the same and check the feasibility.
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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