Rising demand for agile contract management software, changes in compliance and regulations, and increased complexity owing to diversity in sales and licensing are driving growth of the Contract Management Software Market. A new market research report from MarketsandMarkets puts that growth at a CAGR of 13.5% between 2019 and 2024, and projects global revenues for the sector will almost double from US$1.5 billion to US$2.9 billion over the same period.
The report is called “Contract Management Software Market by Component (Software and Services), Business Function (Legal, Sales, Procurement, and Finance), Deployment Type (On-premises and Cloud), Organization Size, Vertical, and Region – Global Forecast to 2024.”
Software segment to record a higher growth rate than the services segment during the forecast period
By component, the software segment is expected to grow at a higher rate than the services segment during the forecast period. Contract Management Software provides secure auto generation of contracts, legal agreements, proposals, quotes, and documents. Contract Management Software typically fits into a portfolio of tools used to handle overall vendor or contractor relationships and easily integrates with other complementary software such as CRM software, quote management software, accounting software, and e-signature software. This ensures that the investment made on this software is maintained while adding sophisticated contract management capabilities fully synchronized with all the critical business processes. Leading Contract Management Software vendors are providing a return on investment (ROI) calculator to help enterprises quantify their ROI. Each organization has to provide some data such as legal employee costs, sales operation costs, number of contracts, total contract value, and so on, and get an ROI estimate.
Support and maintenance to grow at higher rate than implementation and consulting services
Among services, the support and maintenance segment is expected to witness a higher growth rate than the deployment and integration and consulting and advisory services segment during the forecast period. The support and maintenance services are offered after the installation of a Contract Management Software solution in an organization. These services include assistance provided during installation and maintenance activities for data and software/solutions maintenance. The services can be offered from remote places, via web conferencing, telephones, and ticketing systems or onsite assistance. An end-user may require the help of a Contract Management Software vendor for further customization or improvement in the order, for which the vendor provides services for a predetermined duration.
North America to account for the largest market size during the forecast period
North America is expected to hold the largest market size during the forecast period. The U.S. has emerged as the largest market for Contract Management Software owing to the large-scale implementation of Contract Management Software solutions by organizations and enterprises in the country. The high pace of development of infrastructure in the U.S., along with Artificial Intelligence (AI) and cloud computing has contributed to the fast growth of the Contract Management Software Market in the US.
Some of the leading U.S. and foreign companies operating in the Contract Management Software Market are:
Aaveneir, Agiloft, Apptus, CLM Matrix, CobbleStone Software, Conga, Concord, ContractWorks, ContractsWise (UK), Coupa, Determine, DocuSign, IBM, Icertis, GEP, HighQ (UK), JAGGAER, SAP Ariba, Synertrade (France), Trackado (Sweden), and Zycus. These players have adopted various strategies to grow in the Contract Management Software Market.